Thailand's land ownership is a hot topic, especially for foreigners who wish to invest in the country. However, it has been prohibited for foreigners to Buy Land in Thailand, but still, people are looking for ways to get around this rule, and unfortunately, some of them might lose all of their investment in the end.
The Foreign Ownership Ban
Thai law only allows foreigners to own land under exceptional cases, which are not negotiable or avoidable at all via creative methods.
The Company Structure Trap
Creating a Thai company (49% foreign and 51% Thai ownership) for land buying is one of the suggestions that some lawyers give. Possibilities include:
Thai associates are capable of taking control
Government inspections can lead to sale
Eligible for a criminal charge with nominee arrangements
You’re actually not the landowner; the corporation is
The Lease Option Reality
Foreigners have the right to lease land for a period of thirty years, with a possibility of renewing for another thirty years (not guaranteed). This situation is applicable when:
The lease is officially registered
Renewal clauses are clearly outlined
You are willing to recognize that you are not the owner but a lessee
Properly documented "long-term leases" are no longer valid and become worthless.
Marriage Doesn't Help (Much)
A Thai national partner does not automatically acquire land ownership rights through marriage. The land is owned by your Thai partner. If the marriage ends, you will not have any claim to it.
What You Can Own
The property that foreigners are allowed to own includes:
Apartments (if the building is less than 49% foreign-owned)
Buildings on leased land
Land that is subject to specific Board of Investment exceptions (rare), and also foreign ownership in Thailand is restricted to specific BOI cases.
The Safe Approach
Get help only from reputable lawyers who specialize in foreign property law. Have the mindset that you are investing in leasehold or condos, not land ownership. Plan for worst-case scenarios.
Find legally sound property investment options in Thailand. Browse available properties at Prime Property Thailand.
