Are foreigners allowed to buy land or property in Thailand?
Thailand land law generally prohibits foreigners from owning freehold land in Thailand. However, there are various exceptions in the law regarding this issue. There are also other methods available for acquiring valid and legal rights to land and real estate in Thailand that do not amount to outright ownership.
What are the different ways of acquiring land rights or purchasing property in Thailand?
Land Leases
Although Thailand real estate law restricts land ownership rights to non-Thai citizens, foreigners may hold 100% interest in a Thailand land lease. Thailand lease law allows a 30-year maximum lease period, with the possibility of renewing the lease for additional 30 year periods.
Company Ownership
Thailand registered companies with majority Thai ownership are able to buy land in Thailand. In the past it has been common for foreign nationals to acquire an interest in Thailand real estate as minority shareholders in a Thai majority company. For more information on company formation please contact info@expatbusinessservice.com
Investment
Thai real estate law allows foreigners to buy and own a limited amount of land based on investment of 40 million baht for five consecutive years, provided that the land is used for residential purposes.
Thai Spouse
According to Thai real estate law, a Thai spouse of a foreigner may be allowed to buy land or property in Thailand in his or her own name. However the married couple may be asked to sign declarations at the Land Department to state that the funds used are the separate property of the Thai spouse. This may have the effect of waiving any claim on the land or property by the non-Thai spouse. This may become problematic in a divorce case as it may be difficult for the non-Thai spouse to prove that the land was marital property. In this case, a skillfully drafted Thailand prenuptial agreement may come in handy to minimize the risk to the non-Thai spouse.
Usufruct Habitation and Superficies
A non-Thai may acquire a life term interest in certain types of property rights in Thailand. One example, a usufruct, is a right to use (and profit from) land and is similar to a leasehold but is non-transferable with some important differences.
Can Thai nationals buy real estate in their name and then execute an agreement that the land is held for a foreigner?
This is a risky approach because it is technically illegal under Thai property law for a Thai national to act as a nominee of a foreigner to buy real estate. Therefore, the agreement may be illegal and problematic. It is best to consult an experienced real estate lawyer in Thailand for the best available options.
Can foreigners own houses in Thailand?
In general, foreigners can own buildings and houses in Thailand as Thai real estate law places no nationality restrictions on ownership of houses or buildings in Thailand.
How is land measured in Thailand ?
Land in Thailand is measured in rai, ngan and wah. Land prices are expressed in baht per rai or baht per wah for smaller plots. The below will help you convert measurements:
1 sq.wah = 4 sq.m
1 acre = 2.471 rai or 43,560 sq.ft
1 ngan = 100 wah or 400 sq.m
1 hectare = 6.25 rai or 10,000 sq.m
1 rai = 4 ngan or 1600 sq.m
What are the types of title deeds with land in Thailand ?
There are four types
Chanote (Nor Sor 4)
A Chanote or Nor Sor 4, is a full freehold title deed giving full rights over the land.
Nor Sor 3 Gor
A Nor Sor 3 Gor is a document for Thailand land awaiting a Chanote title. The land is measured by the Thailand Land Department who sets its exact boundaries using an aerial survey to set parcel points and land area on the map. This type of land may be sold or transferred, just like land with a Chanote title. The owner of the Thailand land can file a petition to the Thailand Land Department asking to change it to a Chanote title and the Thailand Land Department can do so if there is no opposition made against the petition.
Nor Sor 3
A Nor Sor 3 document is for land that has not yet been measured by the Thailand Land Department; hence the land has no exact boundaries, it is a floating map with no parcel points. A document certifying the use of land, issued by the Thailand Land Department to the proprietor of land giving the legal right to possess the land, not a possession title. Nor Sor 3 may be improved to a Nor Sor 3 Gor then Chanote in the future.
Por Bor Tor 6 ( Possessory Right )
A Por Bor Tor 6 (Possessory Right) is a document confirming that tax payments have been made for the benefit of using the land. The land has not yet been assessed by the Thailand Land Department as to the person’s right to possess the land. It may not be possible to get title for the Thailand land. Importantly you cannot apply for and obtain approval to build on the land.
If you have any further questions please do not hesitate to contact us at info@huahinlandforsale.com