CAN FOREIGNERS OWN PROPERTY IN THAILAND?
Thailand offers three primary forms of property ownership for foreigners: Freehold, Leasehold, and Thai Quota.
1. Freehold – full ownership rights: This form allows a foreigner to own a condominium unit 100% without any time restrictions. The ownership certificate will bear your name, and the property remains yours forever. However, Freehold is only available for condominium units, provided the project still has available foreign quota. Villas, houses and land plots cannot be purchased this way.
2. Leasehold – long-term lease:
Leasehold grants property rights for a fixed term. In Thailand, the standard term is 90 years, divided into three periods: 30 years + 30 years + 30 years (with mandatory renewal). Some developments offer extensions up to 180 years (5 terms of 30 years each). Unlike Freehold, Leasehold allows purchasing not only condominiums but also villas or houses on land.
The choice between Freehold and Leasehold depends on the buyer’s goals. If the property is purchased for long-term use or personal residence, Freehold is typically chosen. Leasehold attracts investors and those looking for cheaper options, as prices are usually lower.
Most developers require additional payments when purchasing Freehold condominiums.
Properties acquired under Leasehold or Freehold can be sold, inherited, gifted, or renovated. When reselling a Leasehold property, the new owner receives a fresh 90-year lease term.
The main differences between Freehold and Leasehold are price and government fees. Freehold is typically more expensive, and the ownership registration fee is slightly higher than for Leasehold.
3. Thai Quota – purchase through a legal entity:
This option is suitable for purchasing villas, houses or land, as foreigners are prohibited from owning land in Thailand personally.
To register such property, a Thai limited company (LLC) is established with you as a shareholder. However, by law, there must be two additional Thai shareholders holding a combined 51% stake (25.5% each). Your share will be 49%.
Important to know: During registration, lawyers prepare documents guaranteeing that Thai co-owners cannot claim your property. However, there are nuances to consider – we discuss these in detail during consultations.
No additional payment is required for Thai Quota, but you need to register a company (cost depends on the property, starting from 20,000 baht). There’s also an annual company maintenance tax – from 15,000 baht.
Legal risks:
– Attempts to circumvent laws (e.g., through shell companies) may result in ownership revocation.
– It’s crucial to complete transactions through verified lawyers and developers.
Why is this important?
Ignorance of local laws can lead to investment losses. For example, in 2023 Thai authorities tightened checks on property transactions through nominee companies. Our clients are protected – we operate strictly within legal boundaries.
Contact us for a personal consultation to safely complete your property purchase in Thailand. We guarantee transaction transparency and full legal compliance.
