Real estate buyer & investment guide for people looking to buy property in Thailand!
In this video, we review foreign property ownership laws and ways to acquire real estate in the “Land of Smiles”!
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*** VIDEO TRANSCRIPT ***
Buyer Guide: Can foreigners buy property in Thailand?
1. The 3 rules of foreign property ownership in Thailand
Foreign Property Ownership Laws in Thailand are generally straightforward and easy to understand. Potential foreign buyers & investors should just remember 3 rules:
– Foreigners cannot own land.
– Foreigners can however own buildings and structures located on a plot of land.
– Foreigners can own Condominium Freehold Titles (Condos).
2. Condominium Freehold Titles (Condos)
Condominium Freehold Titles commonly referred to as “Condos” are the most direct way for foreign nationals to acquire property in Thailand.
Condos are a form of “Share of Freehold”, where each individual condo owner is entitled to a proportional co-ownership of the land, building and co-owners association (Juristic Person Office).
Condo projects in Thailand are subject to a “Quota System”. Thai nationals must maintain 51% ownership and foreign buyers can only buy up to 49% of a condominium.
3. Landed Property (Villas, Houses and Shophouses)
At present foreigners cannot own land and the only way for them to directly control this asset type is through Leasehold Titles. Thai Law currently offers a maximum of 30-year Leasehold.
Some Foreign Buyers have tried to circumvent the strict laws on property ownership, using the following strategies:
– Buying through a Thai Spouse/ Thai Partner.
– Buying “90-year” Leasehold.
*x2 Contractual Lease Renewals (30 years+ 30 Years+ 30 Years)
– Buying through a Thai Company.
*Note the company will still need a majority Thai Shareholding of 51%.
These 2 strategies (90-years lease and buying through a company) are in the “grey area” of Thai Law and are not recommended. The Thai Government can possibly pass legislation that may limit the effectiveness of these practices.
4. What type of property should you buy?
As a Central Bangkok Property Agency, we recommend buying condos.
The ownership structure is more direct and less troublesome, the resale market for condos is more liquid and they tend to be easier to rent out!
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