Understanding Land Laws in Thailand: What You Need to Know
- Foreigners generally cannot own land outright in Thailand, but exceptions include owning condominium units under the Condominium Act, Board of Investment privileges, and land in industrial estates.
- The Land Code Act regulates land allocation, rights over land, land surveying, and limits on foreign ownership to protect national interests while allowing foreign investments.
- Besides direct ownership, foreigners can opt for limited leaseholds of up to 30 years with renewal options, and potential changes in laws might further facilitate foreign ownership in the future.
In general, individual foreigners and foreign-owned businesses buy property in Thailand for numerous reasons, including investment opportunities, affordability, ease of doing business, and retirement.
From a legal standpoint, foreigners (those not holding Thai citizenship) are restricted in the purchasing and holding of land in Thailand.
There are, however, a few exceptions that we will discuss further in this article, including Board of Investment Thailand privileges.
The Land Code
As a civil law system, Thailand’s land regulation can be primarily found in the Land Code Act, B.E. 2497 (1954), which extensively details the legal framework for the ownership of property and conducting real estate legal transactions.
The Land Code Act, alongside various other statues, ensures that the ownership and usage of land in Thailand is regulated to protect Thailand’s national interests, while ensuring that foreign investment can continue unabated.
Key provisions in the Land Code Act
While there are various provisions contained within the Land Code Act, we have set out below some of the most important aspects of the Act:
- Allocation of land: The Act details various land allocation elements, ensuring that land across Thailand is distributed for the needs of the population.
- Rights over land: The Act governs the rights of individuals and businesses in land, including the rights to issue land title deeds.
- Surveying of land: The Land Code details the correct procedure and guidelines for the recording of land boundaries and land ownership.
- Limitations on foreign ownership: Under Section 86 of the Act, foreigners in Thailand are prohibited from owning land outright in the country.
Alternative avenues for foreigners to own property in Thailand
At first glance, it may seem that Thailand imposes stringent restrictions on foreign property ownership. However, there are alternative legal mechanisms available that enable foreigners to legally own property in the country.
- Owning a condominium: Under the premise of the Condominium Act, B.E. 2522 (1979), foreign nationals can own condominium units in Thailand. There is however the exception that foreigners cannot own more than 49 percent of the total units in a condominium building. There are talks ongoing between governmental authorities to raise the threshold.
- Board of Investment privileges: Under privileges granted by the Board of Investment Thailand, foreign businesses may own a specific amount of land.
- Industrial estates: Foreign companies located in industrial estates owned and operated by the Industrial Estate Authority of Thailand can own land in the estates.
- Limited leaseholds: Some foreigners are permitted to lease land up to 30 years, with another option to renew for an additional 30 years. Similar to recent discussions surrounding condominiums, there are talks of extending leases for foreigners.
Developing a knowledge of the intricacies of land law in Thailand is essential for both individuals and businesses. The Land Code Act and other relevant legislation provides a comprehensive legal framework that governs the ownership of property and land and real estate transactions.
As experts in real estate law, WSR International lawyers are well placed to assist both businesses and individuals with all their real estate needs.
