LAND AND HOUSE FOR FOREIGNER IN THAILAND
Laws and Regulations
Foreigner and Ownership of Landed Property
Section 86 of the Thai Land Code prohibits foreigners from owning land in Thailand, except in cases where spe cific laws or treaties provide otherwise. However, foreigners may still acquire certain rights related to land, such as a 30-year leasehold, Sub-Ing-Sith (a form of land use right with a separate title), usufruct, superficies, and the right of habitation. Additionally, land ownership may be possible through a Thai-registered company, subject to legal restrictions and compliance.”
Options of Rights for Foreigner to acquire Landed Property Leasehold
Section 541 – Thai Civil and Commercial Code:
A lease of immovable property may be made for a period not exceeding thirty years. If it is made for a longer period, such period shall be reduced to thirty years. It may be renewed, but the period of renewal must not exceed thirty years from the time of renewal.
Section 541 – Thai Civil and Commercial Code:
The lease contract can be concluded for the lifetime of the lessor or the lessee.
Therefore, foreigner is allowed to register 30 years lease on the land or even registered for the lifetime. In addition, foreigner is not forbidden to have ownership on the construction. Furthermore, significant term and condition can be added such as inheritance, assignment to 3rd party, etc.
Own a Property through a Thai Company
Foreigners are permitted to hold shares in a Thai company, and such a company may own land in Thailand even with foreign shareholders. However, foreign ownership must not exceed 49% of the company’s total shares to maintain its status as a Thai company. For purpose of company incorporation, minimum 2 shareholders are re quired.
Usufruct
Section 1417 – Definition of Usufruct “An owner of immovable property may create a usufruct in favour of an other person to enjoy the property as a usufructuary, under the restrictions provided in this Code.
Section 1418 – Duration“A usufruct may be created either for a period of time or for the life of the usufructu ary.”
Section 1422 – Registration Requirement “A usufruct of immovable property must be made in writing and regis tered at the Land Office.”
Section 1428 – Termination “A usufruct is extinguished upon the death of the usufructuary.”
In practice, Land Office officials may allow the registration of a usufruct in favor of a foreigner who is married to a Thai national, provided the Thai spouse can demonstrate that the funds used to purchase the property were solely theirs. Approval is granted at the discretion of the land officer
Superficies
The owner of a piece of land may grant to another person the right to own, upon or under the land, buildings, structures, or plantations .
Separation of Ownership: The person who holds the right of superficies (called the superficiary) can own buildings, structures, or plantations on land they do not own. The land itself remains under the ownership of the original landowner.
Duration: Can be granted for a specified term, for the life of the landowner, or for the life of the superficiary. A fixed-term superficies can be registered for up to 30 years, and renewed.
Transferability: A registered superficies right can be transferred, inherited, or leased, subject to the agreement and registration.
Registration Required: The right must be in writing and registered at the Land Office to be enforceable
Right of Habitation
The right of habitation is a right granted to a person and his family to dwell gratuitously in a building belonging to another person
Personal Right to Reside: Allows a person (and their family) to live in a building for free, without owning it or paying rent. It is a personal right, not a lease or ownership.
Duration: May be granted for a specific period or for the lifetime of the person granted the right.
Non-transferable: Cannot be sold, leased, or transferred. Ends automatically upon the expiration of the term or the death of the beneficiary.
Scope of Use: The right is limited to residential use only and does not include the right to derive income or profit (e.g., cannot sublet).
Registration: If intended to be enforceable and protect rights against third parties, it must be registered at the Land Office.
Visa Requirements for Foreigner who is acquiring Landed Property
Visa is not required for purchase property in Thailand. There is also available option to purchase the property without presence in Thailand.
Open Thai Bank Account for Foreigner who is acquiring Landed Property
Due to strict policy of The Bank of Thailand, foreigner with short term visa is not allowed to open personal bank account in Thailand unless the foreigner already acquired the property in Thailand.
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Thai Real Estate Laws and Regulations