It can be tough to know what the rules are around buying, owning, and developing land in Thailand. This is why it is essential that you know exactly what you are doing, and how to do it. In general, foreigners are not allowed to own land, but there are a few exceptions and certain ways that make it legal and possible to do so. Here we will look at these and some of the key points to keep in mind if you are thinking of making the investment yourself.
The current rules for a Board of Investment
It is possible for a foreigner to own land in Thailand if they meet certain conditions, including:
- Investing 40 million Baht in Thailand
- The land can be for residential purposes
- It must be less than 1 Rai, or 1,600 Square Meters
There are many factors and checks to take into consideration, so you shouldn’t purchase land without doing all of the necessary research and consulting the up-to-date information available to make sure you aren’t breaking any laws.
It is easier to own property without owning the land it is on, such as condos for foreigners, and this is a path that many people choose to take.
Other options
There are other ways that foreigners can own and develop land or property that many people find preferable to a BOI. Here are the most common routes that people take:
- Buy a condo – while not quite the same as owning your own land, foreigners are permitted to own up to 49% of a condominium development free and clear, making this a popular choice for foreign investment.
- Marry a Thai national – once married you can buy land, but it must be in the native spouse’s name.
- Set up a Thai Company – again if you set up a company that is majority Thai owned, you can buy, own and develop land legally.
- Lease instead of buying – though your heart may be set on purchasing land, you can lease it instead for a period of thirty years with an option for two renewals equalling a 90-year lease. This is a fairly simple way to gain property or land for a long period though not the same as permanent ownership.
Key points to keep in mind
In general, foreigners cannot own land in Thailand, though they may own some property outright. As such, if you want to avoid the many issues that can arise from buying land through your spouse or a Thai owned company, then you should consider renting or buying condos instead.
While it is possible to try and buy land through the Thailand Board of Investment, this is a less common way of owning land or property – and does require a significant investment for a number of years.
The most important thing is to know exactly what you can and can’t do, choose the route that is right for you, and do your due diligence before purchasing any land in Thailand. Do it the right way, and you will be happy you did your research in the long run.