legal issues
The Legal Package
Land will be leased for terms of 30 years and can be extended for two terms of 30 years each, for a total of 90 years. As a foreign national, you may own your home
Can a foreigner buy land or purchase property in Thailand?
To cut a long story short - YES!
Setting up either of the options below takes about half an hour and your signature about 30 times.
Our associated layers at Koyao Law Office (KPD) provide “one stop shopping”: This full service reaches from opening a bank account to negotiations with official government organizations to filing applications or translation services.
Thai law, in general, prohibits non-Thai citizens from buying land or purchasing property in Thailand. However, there are various exceptions to the law, as well as methods for foreigners who want to buy land or purchase property to acquire rights to land and property in Thailand legally.
Our licensed attorneys have been supervising land purchases in Thailand for a long time. With the background of a well repudiated international law firm “Niederer Kraft & Frey” (www.nkf.ch) and in cooperation with “Germing Frey Inc., Hotels & Resorts” Holding”
( www.GermingFrey.com) we are specialized in protecting foreigners' rights in Thailand according to western standards and expectations.
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What are the options available for buying land or property in Thailand?
For a foreigner wishing to buy land or purchase property in Thailand, there are mainly four options worth exploring. These include using
- Investment
- Leasing
- Owning a Company
- Marrying a Thai Spouse
Option 1 - Investing
With significant investment of funds, foreigners may be allowed to own a limited amount of land under Thai property law. Some foreign companies seek and obtain the approval of the Board of Investment (BOI) to purchase land for a limited period. This option, however, is not available to the vast majority of non-Thai nationals seeking to obtain a second home, retirement home or investment in Thailand because of the legal restrictions involved. As a result, other options must be examined.
Option 2 – Leasing
Thai property law allows a foreigner to lease land for a maximum of 30 years, with lease renewal options of 30 years. Many foreigners choose this method to secure land or property ownership. In comparison to setting up a company, land leasing is easier and requires less maintenance. The lessor's heirs are bound by law to honour the agreement, and the lessee can bequeath the lease to his/her heirs in a Last Will and Testament.
Option 3 – Owning a Company
A foreigner may use a Thailand-registered company to obtain property rights or land interest in Thailand. This "Thai" company must be at least 51% owned by Thai shareholders, while the remaining 49% or less may be held by foreigners.
Option 4 – Marrying a Thai Spouse
A recent revision of Thai law has provided the opportunity for a Thai with a foreign spouse to buy land or property in Thailand. Prior to registering the land parcel at the Land Department, the couple may be asked to sign declarations, declaring that the funds for the property came solely from the Thai spouse. This may, in effect, result in the non-Thai spouse waiving his/her rights on the land or property. Such declarations may become problematic in a divorce case as the non-Thai spouse may have difficulties proving that the land was marital property This beautifully simple solution is, for reasons we will not discuss here, the least popular option. It is, however, not uncommon, and thank goodness for that!
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How useful is a limited liability company for a foreigner who wishes to buy land or purchase property?
This is one of the most popular methods employed by foreign investors who want to buy land or purchase property in Thailand. Although Thai law generally requires Thai nationals to own a majority interest in a company in order to legally purchase land or property, various legal documents and procedures can be used to provide greater protection for foreign minority shareholders.
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I am an American who owns 100 per cent of a Thailand-registered company under the Amity Treaty.
Am I able to use this Amity Treaty company to buy land or purchase property? Unfortunately, an Amity Treaty company only allows Americans to transact in certain types of businesses. Under the Treaty, Americans can own a majority share in a Thai company but they are not granted the right to buy or purchase land in Thailand.
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How many types of title deeds are available for private land ownership?
There are mainly three types of title deeds for private land ownership in Thailand. The best title deed for land ownership is the Chanot (Nor Sor 4), which must be registered at the Land Department in the province in which the land is located. Although it is possible for a land parcel to be commonly held by several individuals, only the person whose name is indicated on a Chanot has all the legal rights to that land. The deed can act as evidence of ownership, and it can be used to engage in legal acts upon that land as allowed by the law.
The second and third best title deeds are the Nor Sor 3 Gor and the Nor Sor 3. For Nor Sor 3 title deeds, the Land Department does not utilize official markers to designate land boundaries. As a result, these title deeds have less specific land demarcation than the Chanot.
Foreigners who intend to buy land should also be aware of the problematic "possessory right". This land-ownership right is not substantiated by a title at the Land Department but it is shown using tax payments.
| Title Deed |
Definition |
| Chanot (Nor Sor 4) |
Full title deed |
| Nor Sor 3 Gor |
Second best title deed. Used while awaiting measurement for a Chanot. |
| Nor Sor 3 |
Second best title deed. Used while awaiting measurement for a Chanot. |
| Possessory Right |
One of the weakest land rights. Normally an inherited land right proven by tax payments at the local administrative office. |
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Can you tell me more about land mortgages in Thailand?
An application made in writing, followed by a registration at the Land Department of Thailand are two necessary procedures for land mortgages in Thailand. Buildings built on the land after the mortgage date will be not covered unless they were agreed upon prior to the signing of the mortgage documents. Such buildings and other immovable structures should be mortgaged and registered separately at the Land Department or local Amphur (province).
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I would like to know the pros and cons of utilizing company formation to own land in Thailand.
With this approach, foreigners are able to acquire ownership interest in a freehold land in Thailand. This ownership is deemed permanent if the company stays in operation and does not sell or transfer the land. Company formation for the purpose of owning land would be suitable for people considering setting up businesses in Thailand; people with intentions of holding land for investment or for long duration; and as inheritance for future heirs. One other advantage of this type of ownership is the possibility of mortgaging and/or subdividing the land for resale purposes. This is a right normally conferred by land leases.
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For further information please visite http://www.legalthai.com or http://hutterdhira.com |
