If you are a foreigner who wants to invest in real estate in Thailand, you may want to hire a local lawyer to navigate through the existing laws. You will need to learn the rules of foreign property ownership in Thailand in order to avoid getting yourself in trouble. Some of those rules are outlined below.
Land restrictions
In theory, owning both a home and land in Thailand is impossible. The laws that guide the real estate industry in the country prevent foreigners from owning land there.
As a foreign national, you cannot hold freehold land anywhere in Thailand.
If you acquire land in an illegal manner in Thailand, you will have about 6 months to dispose of it when you are found out. After the deadline, the government will dispose of it and you may end up losing your investment.
Thailand does not have any treaties that affect the real estate industry. You can therefore not use the allowance for freehold land ownership as a way to acquire property in the country. It will be against the laws and may land you in prison.
Getting around the Thai real estate laws
Acquiring property ownership
If you want to invest in a Thai company that owns freehold land, ensure that Thai nationals own at least 51% of the company. That way, you will acquire partial ownership of freehold land in Thailand. Otherwise, your ownership in the freehold land will not be accepted.
You may be able to acquire ownership of land as a statutory heir after inheriting it from a benefactor. However, you will still not be able to register ownership of that land. You should therefore sell it within a year to avoid losing it.
You can own a condominium unit if you want to invest in a home in Thailand provided you qualify as a buyer. However, at least 51% of those living within the condominium must be Thai nationals. In addition, the foreign currency you use to purchase the home must be at least equal to the purchase price of the apartment unit.
As a foreigner, you can also buy a building in Thailand, provided it is separate from the land it has been built on. In such a case, the land will belong to another party.
In some specific parts of Thailand, you can own up to about 1600 meters of residential space if you invest at least 40 million Baht in the Thai government bonds or some specified assets. However, should you acquire real estate property in this manner, ownership of your home cannot be passed on to your dependants as inheritance.
Rents and Leases
While you may not be able to buy a home in Thailand under some of the strict conditions that have been set by the government, you can rent titled buildings and home. Registered leaseholds can last as long as 3 decades. The leasehold can be renewed twice to allow you total ownership for a total period of 9 decades. This may be a great alternative to enable you to live in Thailand in the long term for a more affordable price.
If you are looking at a condo for rent in Bangkok then there are lots of options available to you.
Conclusion
It is in your best interest to educate yourself on the property laws, terms, and conditions pertaining to the real estate industry of Thailand. That way, any property whose ownership you acquire will be compliant with the existing laws.
