Forms of Ownership



Forms of Ownership 

Foreigners who decide to buy real estate in Thailand can chose from the following options:



The property is in this case fully in your personal ownership. In Thailand this form of ownership has certain restrictions for foreigners:

1.   It can be used only when buying an partment, not when buying land or a house.

2.  In each individual project, foreigners may own a maximum of 49% of the total area of retail housing units (example: if a building has 10,000 sqm of residential area, foreigners may own a maximum of 4,900 sqm of this area). If the quota is exceeded, only ownership through a Thai company or a Thai citizen is eligible. 


Ownership through a company

This form of ownership is basically the only eligible form of ownerhip of land or a house for foreign investors. Although as per Thai law 51% of the stake must be owned by a Thai legal entity, the structure of the company can be adjusted so that the foreigner has full control over the company at all times. 



Leasehold is basically a long-term lease of land. The maximal rental period is 30 years with the possibility of extension up to 90 years. The lease agreement musí be registered with the land office. The lease is entered in the title deed and the lease agreement therefore remains in force even if there is change of ownership.


Buying an apartment

The easiest way to acquire your own property in Thailand is through buying an apartment or condo in a building in which the 49% quota for for foreigners has not been met. In this case you can acquire the property into personal ownership and it's further use is fully up to you. In case the quota is filled, it is still possible to buy an apartment on a Thai company or to use the possibility of long-term rental ("Leasehold").


You can use any "hard" currency to buy real estate in Thailand. The financial amount must be transferred to the Thai account or to the developer's account whete it will be transferred to THB according  to the current exchange rate. To receive the necessary documentation, the amount must be higher then USD 5,000 and the bank order must specifically state that the purpose of the transfer is to purchase real estate. 


Buying a house or land

The only way to own a house or land in Thailand is through a Thai company where a 51% stake in the company must be owned by a Thai legal entity.  However the structure of the company can be adapted so that the foreigner retains absolute control over the company. If you have found your dream proprety do not get discouridged by Thai law. After all this form of ownership is widely used by both individual private owners and large international investment companies.