Real Estate Legal for Foreign Buyers

What a foreign national can and cannot own

The starting position under the Land Code is that foreign nationals cannot own land in Thailand. There are narrow statutory exceptions, principally the investment-based permission that requires a substantial qualifying investment and ministerial approval, and inheritance by a foreign heir, which in practice results in an obligation to dispose of the land within a set period rather than a right to keep it. Structures built to evade the prohibition, particularly nominee shareholdings in a Thai company formed to hold land, are unlawful and expose the parties to criminal liability under the Land Code and the Foreign Business Act B.E. 2542 (1999).

Condominium units are different. The Condominium Act B.E. 2522 (1979) permits foreign ownership of units in freehold, subject to the rule that foreign-owned units may not exceed 49 per cent of the total floor area of the units in the building. The purchase must be funded by foreign currency remitted into Thailand and converted to baht, evidenced by a Foreign Exchange Transaction form issued by the receiving bank, which the Land Office requires at transfer.

Buildings can be owned separately from land. A foreign national may own a house as a structure while holding a registered right over the land beneath it, most commonly a superficies or usufruct. These are real rights registered on the title deed, not contractual promises, and they survive a sale of the land to a third party, which is precisely why they are worth registering properly.

Ownership and tenure structures compared

Due diligence before you pay a deposit

• Title type matters: Chanote (Nor Sor 4 Jor) is a full title with surveyed boundaries; Nor Sor 3 Gor and lesser instruments carry weaker rights and slower transfer. Confirm the title class before negotiating.
• Obtain a current copy of the title deed from the Land Office and check the reverse for registered mortgages, servitudes, leases and usufructs.
• For a condominium, ask the juristic person for a certificate of the current foreign-ownership ratio and a debt-free certificate for the unit; the latter is required at transfer.
• Verify the developer's construction permit and, for off-plan purchases, the escrow arrangements. Thai law does not compel escrow for all sales, so its absence is a commercial risk to price.
• Check the access road. Land without a registered right of way is a recurring and expensive problem in resort provinces.
• Confirm zoning and building-control restrictions, particularly setbacks from the shoreline and height limits in coastal and heritage zones.

Transfer day at the Land Office

1. Funds and FET evidence: For a condominium, the foreign currency must arrive in Thailand and the bank must issue the Foreign Exchange Transaction form naming the buyer and stating the purpose as condominium purchase.
2. Document set: Passport, and for a married buyer sometimes a spouse's consent letter; for a company, affidavit of incorporation, board resolution and authorised signatory evidence, all current.
3. Tax and fee computation: Transfer fee, specific business tax or stamp duty, and withholding tax are calculated by the officer against the appraised or contract value. Who pays what is a matter of contract and should be agreed in writing beforehand.
4. Interpretation: Land Office documents are in Thai. Where the buyer does not read Thai, an interpreter should attend; officers in several offices require it before executing.
5. Registration and title issue: The transfer is registered on the deed and the new owner's name recorded. Take copies of everything signed on the day; reconstructing the file later is difficult.

Common mistakes and how we avoid them

More questions we are asked

Can my Thai spouse buy land while I fund it?

The Land Office requires a declaration that the funds are the Thai spouse's personal property, which has consequences on divorce. Take advice before signing that declaration rather than after.

Is leasehold in a condominium worse than freehold?

Usually yes for resale liquidity, because the buyer pool narrows as the term runs down. Leasehold units in quota-full buildings should be priced against that.

What taxes apply on resale?

Transfer fee, stamp duty or specific business tax depending on holding period, and withholding tax computed on a statutory basis. Rates are set by regulation and should be confirmed at the Land Office at transfer.

Can a foreigner inherit land?

A foreign heir may inherit but is generally required to dispose of the land within a period set by the Land Department. Planning through a condominium or a lease structure avoids the forced sale.

Do I need a Thai will for Thai property?

A Thai-law will covering Thai-situs assets makes probate materially faster than relying on a foreign will that must be recognised and translated. Both can coexist if drafted so neither revokes the other.