Can Foreigners Buy Property in Thailand?

Can Foreigners Buy Property in Thailand?

Thailand is one of the most stunning countries in the world. With jaw-dropping natural landscapes and epic beaches, it’s no wonder that tourists flock to Thailand’s shores each year. It’s estimated that 39 million people visited Thailand in 2018, and the tourist numbers continue to grow. 

It's common for foreigners to become curious about owning property in Thailand. The conversation will come up, "Do you think we can buy property in Thailand?" 

There's a lot of misinformation about owning property in Thailand. The general perception is that Thai property law is complicated. Actually, the opposite is true. 

Buyers become confused about whether or not foreign property ownership is legal in Thailand because of the conflicting information they hear. Can foreigners buy property in Thailand? Of course, they can. 

Foreign Property Ownership

There's a lot of misinformation about owning property in Thailand. The general perception is that Thai property law is complicated. Actually, the opposite is true. 

The laws relating to foreign property ownership in Thailand are quite clear. Foreigners can buy and own "freehold condominiums". Foreigners can buy and own buildings and structures, such as villas (distinct from the land on which they sit). Foreigners can take leases on land and property in Thailand. Foreigners cannot own land directly.

Buyers become confused about whether or not foreign property ownership is legal in Thailand because of the conflicting information they hear. Can foreigners buy property in Thailand? Of course, they can. 

Foreigners can buy Condominiums

Thailand created a bill in 1979 called the Thai Condominium Act. They sought to stimulate foreign investment by extending freehold rights to foreigners. Under this legislation, foreigners can own freehold rights in a condominium. 

Purchasing condominiums can be attractive to foreign buyers. Many condominiums today are being built as a lifestyle product with a theme. Facilities can be amazing and the designs tasteful with units that for their size have plenty of storage space. Developers are taking the necessary time to plan and register their properties under the Thai Condominium Act. This helps make it a straightforward purchase for foreign buyers. 

Foreigners can buy Leasehold

When purchasing a leasehold property in Thailand, it is common to come across a 90-year (30+30+30) leasehold structure. 

Leasehold ownership in Thailand is registered at the land office in 30-year blocks. Your contract can grant 2 lease extensions for a total of 90 years. We are seeing more and more foreigners purchase as leaseholds. It has its benefits as taxes on leasehold are much lower in Thailand and it does not have to be declared in your home country.

Leasehold structure is common when a purchase involves land. The villa and structure can be put in a foreigner’s name as a freehold. The land under the villa must be leased for 90 (30+30+30) years. To buy property in Thailand, some foreign buyers will set up a Thai company to purchase the land. This is becoming less and less common as the leasehold structure is becoming more and more secure.

Foreign Property Ownership

So can foreigners buy property in Thailand? Yes, they can. The foreign property ownership laws together with the legal structures used to circumvent them appear to provide a balance of convenience for both sides: foreigners get to buy properties in Thailand and Thailand benefits from purchase money coming into the country, increased employment in the construction industry and increased revenue from visiting property owners and their guests, especially in the retirement segment. 

Keep your Foreign Exchange Transaction Form 

When buying a condominium in Thailand, you will need to obtain either a foreign exchange transaction form or a confirmation letter of international funds transfers from your bank. This document is presented to the Department of Land when registering ownership of foreign freehold condominiums.

Foreigners Can Buy Property in Thailand

It's hardly surprising that a lot of people who have traveled overseas have felt the temptation to purchase property in a foreign country.

Whether it's a vacation home, retirement property, or just an investment, buying a property in Thailand can be rewarding and profitable. There are plenty of attractive real estate opportunities in Thailand for foreigners with new property being constructed each year. 

To browse through some of the best property options or to buy property in Thailand, be sure to check out the listings available on our website.