Because Thai real estate law is complex and applies differently to foreigners than to locals, buying property in Thailand can be challenging and risky. At Siam Legal, in our over 20 years of experience, we have received numerous questions from foreigners about real estate in Thailand. To educate the public and make buying property in Thailand easier for expats, we have compiled this list of the most frequently asked questions from our clients regarding ownership rights, leases, real estate transactions, and more.

What types of real estate can foreigners legally purchase in Thailand?

As a non-Thai citizen, you can purchase certain types of real estate in Thailand, such as condominiums, which can be registered directly in your name. You cannot buy or own land, but you can enter into a lease agreement for up to 30 years, which can be extended to up to 90 years. Although land acquisition is restricted, you can legally purchase houses or villas on Thai land or build a house on leased land. In this case, you retain ownership rights to the building.

What rules must be followed when buying a condominium in Thailand?

Although owning a condominium in Thailand is generally permitted under Thai law, certain rules must be followed. Otherwise, legal consequences and the loss of the investment may result. The conditions are as follows:

  • You can only purchase a condominium with funds transferred from abroad.
  • You can only purchase a condominium in a complex where the foreign ownership share is less than 49% and the remainder is owned by Thai nationals.
  • You are required to pay all applicable Thai property taxes at the time of purchase.

    • How can foreigners legally acquire land through a Thai company?

    Foreigners are not permitted to purchase land in Thailand; they must enter into a lease agreement. If you wish to own a business or make investments in Thailand, there are two ways to legally acquire land for your business. The first option is to establish a Thai limited liability company (LLC) in which 51% of the shares are held by Thai nationals. This company can then acquire land for business purposes.

    If your company has applied for and received funding from the Thai Business Authority (BOI), it can also purchase a specific plot of land for various business purposes. Regardless of the option chosen, the land will be registered in the company's name, and you will be required to maintain proper business operations there.

    If the company ceases operations or the BOI funding is revoked, the authorities could view the agreement as an attempt to circumvent restrictions on foreign land ownership, which could lead to the confiscation of your property.

    How long can you lease land for in Thailand?

    In Thailand, you can lease land for up to 30 years. The lease agreement can include renewal options. With the lessor's consent, up to two renewals are legally permitted, resulting in a maximum lease term of 90 years. For leases with a term of at least three years, registration with the Thai Land Registry is required.

    Can a foreigner inherit land in Thailand?

    No, non-Thai citizens are not allowed to own land in Thailand, including land inherited from a Thai spouse. Even if a Thai citizen bequeaths you land, you cannot register it in your name and will not have full ownership rights. You would have to transfer the land to a Thai citizen or organization, or sell it, as you are entitled to the proceeds.

    What happens to a Thai house after a divorce?

    That depends on whether the property is classified as personal or joint property. If you purchased a house in Thailand with your own funds before your marriage and it is considered personal property, you will retain ownership of it after the divorce.

    In some cases, a Thai house may be considered jointly owned, even if you purchased it with your savings. In this case, the property will be sold, and the proceeds will be divided equally between you and your spouse. Existing leases you entered into with your spouse when you purchased the house will remain unaffected.

    Can a foreigner take out a mortgage in Thailand?

    While there is no law prohibiting foreigners from taking out a mortgage in Thailand, it is fraught with difficulties. Many Thai banks do not grant mortgages to non-residents, and obtaining approval can be challenging. If you require a mortgage, it is strongly recommended that you consult a Thai real estate lawyer beforehand. They can recommend one of the few banks in Thailand that do grant mortgages to foreigners and put you in touch with them on your behalf.

    What is a real estate escrow account in Thailand?

    Escrow accounts are held by licensed escrow agents, such as large banks and law firms. These agents hold the funds for a real estate transaction in a dedicated account and ensure that they are not released until you and the seller have fulfilled the purchase conditions. Escrow services offer additional protection in real estate transactions and play a vital role in preventing real estate fraud.

    Does a foreigner need a Thai real estate lawyer to buy land in Thailand?

    While legal representation is not mandatory under Thai law, hiring a Thai real estate lawyer is an important step to avoid fraud and legal problems when buying property. Whether you are buying a condominium, leasing land, or acquiring ownership rights to a property, a reliable real estate lawyer offers the security and peace of mind that a real estate agent cannot.

    Without proper legal representation, you risk the following:

  • Misunderstanding important contract terms can lead to legal problems and an increased risk of fraud.
  • If you don't speak fluent Thai, you can't communicate with the relevant authorities.
  • This exposes you to fraud, deception, or unfair agreements.
  • Overlooking unfair clauses or conditions that allow landlords and sellers to exploit your ignorance and cheat you out of your money.
  • Getting involved in a property dispute or criminal proceedings can lead to an expensive trial and serious consequences.

    • Professional support when buying real estate in Thailand

    If you are considering buying property in Thailand, investing in real estate, or are involved in a property dispute, contact Siam Legal. Our experienced Thai real estate lawyers will provide you with expert advice. With over 20 years of experience assisting foreigners with Thai real estate law, our lawyers have the necessary skills and qualifications to help you quickly and easily with your property matters.

    With Siam Legal's experienced Thai real estate lawyers by your side, you can rest assured that all your real estate transactions and processes are in safe hands, protecting you from fraud and violations of Thai law. We handle all administrative and legal matters for you, including:

  • Reviewing a rental or purchase agreement for possible warning signs or fraud attempts.
  • Facilitating the transfer of ownership of the property
  • Legal representation before criminal or civil courts in the event of property disputes or criminal charges.
  • Examination of the land register extract and the seller's ownership history
  • Drafting real estate contracts and ensuring their fairness and legal validity

    • Contact Siam Legal to arrange a consultation today and secure your dream property quickly and easily, without having to worry about losing money through fraud or violations of Thai law.

    LIVE SUPPORT

    CALL

    CHAT

    Chat with our employee