FAQ in Thai

Are foreigners allowed to own land in Thailand?

As a general rule, foreigners are not permitted to own land in Thailand directly. There are limited exceptions under Thai law, but these are uncommon and subject to specific legal requirements and government approval.

Foreigners may, however, own certain types of property separately from the land. For example, a foreigner may own a condominium unit in their own name, provided that the foreign ownership quota of the condominium building has not been exceeded. Foreign ownership is generally limited to 49% of the total unit area of a registered condominium building.

A foreigner may also own a building separately from the land on which it stands, subject to the ownership structure and applicable registrations.

How can foreigners legally use or control land in Thailand?

One of the most common and legally recognised options is a registered long-term lease.

Another possible structure is for a properly established and genuinely Thai-owned company to own land for legitimate business purposes. However, a Thai company must not be established merely as a means for a foreigner to circumvent restrictions on foreign land ownership.

Thai shareholders must be genuine shareholders who have actually invested in and participate in the company. Using Thai nationals as nominee shareholders on behalf of a foreigner is prohibited by law.

For this reason, anyone considering purchasing property through a Thai company should obtain independent legal advice before proceeding.

What are the main types of land titles?

The strongest and most secure land title in Thailand is the Chanote, also known as Nor Sor 4 Jor. A Chanote provides full ownership rights and accurately surveyed boundaries marked by official land survey posts.

Nor Sor 3 Gor and Nor Sor 3 are land utilisation certificates that also allow the land to be sold, leased or mortgaged. However, their boundaries may be less accurately surveyed than those of land held under a Chanote.

Thailand also has several other types of land documents. These may provide more limited rights and should be carefully checked before purchasing or leasing the property.

How is land measured in Thailand?

Metric measurements are generally used for buildings and construction, while land is commonly measured using Thai units.

1 square wah = 4 sqm
100 square wah = 1 ngan = 400 sqm
4 ngan = 1 rai = 1,600 sqm

The advertised size of a house or condominium may refer to the total building or unit area and can include areas such as balconies, terraces or other designated spaces. Buyers should therefore confirm exactly how the stated area has been calculated.

Can a Thai company own land?

A properly established Thai company may own land in Thailand if it complies with Thai law and the company is genuinely Thai-owned and operated.

Foreign shareholders generally cannot hold 50% or more of the shares if the company is to be treated as a Thai company for purposes where foreign ownership restrictions apply.

However, simply arranging for Thai people to hold 51% of the shares on behalf of a foreign investor does not make the structure legal. Nominee shareholding arrangements intended to circumvent foreign ownership restrictions are prohibited.

What are the advantages of purchasing property through a legitimate Thai company?

Where a company has a genuine commercial purpose and the ownership structure complies with Thai law, the company can hold land as a permanent company asset rather than relying on a lease.

The company may also be able to sell, mortgage or subdivide the property, subject to applicable laws and approvals.

This structure can therefore be appropriate where the land is genuinely required for the company’s legitimate business activities.

What are the disadvantages of purchasing property through a Thai company?

A company structure involves significantly more legal and administrative responsibility than an individual property purchase.

The company must maintain proper accounting records, prepare and file annual financial statements, submit tax returns and comply with corporate regulations.

Most importantly, Thai shareholders must be genuine shareholders. A foreigner should not arrange for Thai shareholders to hold shares merely on the foreigner’s behalf or sign documents giving the foreigner beneficial ownership of those shares.

Thai authorities have increased scrutiny of nominee arrangements, particularly in real estate and land ownership.

For residential property purchased primarily for a foreign individual’s personal use, professional legal advice is strongly recommended before using a company structure.

Does a land or house lease have to be registered at the Land Department?

A lease for up to three years may generally be enforceable without registration.

A lease of more than three years must be registered with the Land Department to be enforceable beyond the first three years.

The standard maximum registered lease term for land or residential property is generally 30 years.

The lease agreement may contain a contractual promise or option to renew the lease, but a future 30-year renewal is not automatically guaranteed simply because it is written into the original agreement. A renewal normally requires a new lease registration at the Land Department.

For this reason, arrangements marketed as guaranteed 30 + 30 + 30-year leases should be treated with caution.

Special rules may apply to certain commercial or industrial leases.

What are the disadvantages of leasing property?

The principal disadvantage is that the lessee does not own the land.

At the end of the registered lease period, any extension will normally require the cooperation of the landowner or the person who legally owns the land at that time.

If a landlord has contractually promised to renew the lease but later refuses, the lessee may have to take legal action to enforce contractual rights. Litigation can be costly and time-consuming, and registration of the new lease may still be required.

Other disadvantages can include more limited financing options and a potentially lower resale value compared with freehold ownership.

A carefully drafted and properly registered lease agreement is therefore very important.

How is a condominium defined under Thai law?

A condominium is a building registered under Thailand’s Condominium Act in which individual units can be separately owned while common areas are jointly owned by the unit owners.

A condominium unit can therefore have its own individual title deed.

What are the requirements for a foreigner to purchase a condominium in Thailand?

A foreign individual or qualifying foreign legal entity may purchase a condominium unit in Thailand provided that the foreign ownership quota of the condominium has not been exceeded.

In the usual case, the purchase funds must be transferred into Thailand from abroad in foreign currency and correctly documented by the receiving Thai bank.

The buyer will normally need evidence from the bank confirming the foreign currency transfer. Depending on the amount and circumstances, this may include a Foreign Exchange Transaction Form or another bank certificate confirming that the funds were transferred into Thailand for the purpose of purchasing the condominium.

The condominium juristic person must also normally issue confirmation that sufficient foreign ownership quota is available before the ownership transfer can be registered.

Are there restrictions on foreign ownership of condominiums?

Yes. Foreign individuals and qualifying foreign legal entities may collectively own no more than 49% of the total unit area of all units in a registered condominium building.

Before purchasing, the buyer should therefore confirm that foreign freehold quota is still available.

Are long-term condominium leases available?

Yes. A condominium can generally be leased for up to 30 years. A lease exceeding three years must be registered with the Land Department to remain enforceable beyond three years.

The parties may agree to a future renewal, but an additional 30-year period is not automatically guaranteed and normally requires a new registration when the original lease expires.