According to the law of Thailand, foreigners are not permitted to own a land in this country. But if interested, a non-citizen investor has two options to choose from, to buy the property through a limited company or to opt for a 30 year leasehold. In addition, foreign investors can also purchase apartment as long as the 51% of the property is owned by a natural born citizen in Thailand.
With this law stated restrictions in Thailand property market, a lot of foreign nationalities seek alternative options to a direct property purchase, outlined below are some of them.
Speaking of Thailand property investment, be aware that a certain land can have various titles, which depend on factors like the location or whether the property is available for rent to a foreigner or not. In this country, there are seven types of land titles but only three of them are allowed to be leased with foreign nationalities: Nor Sor Saam, Nor Sor Saam Gor and Chanot.
Leasing Land in Thailand
If you are not a local resident in Thailand, the government will allow you to rent a land for around 30 years. However, renting is rather unusual, the common practice of some foreigners is to marry a Thai. Take for example, a Thai woman who is a natural born citizen of the country will buy a land and stipulates a contract with her non-Thai husband.
It doesn't really matter who you will rent from, you just have to make sure that all information on the lease deed or agreement is concrete and accurate, and that the leased property has the right title and legal papers. The lease agreement usually contains the duration of the rent, the registration fee, and the right of the buyer to resell it to others.
Buying an Apartment as a Foreigner
Because of the law stated restrictions on property investment in Thailand, as previously noted, many of the foreign nationalities prefer on choosing to acquire an apartment or condominium in Thailand. But the foreigner is only permitted to buy an apartment or condominium in his own name, and as long as the building is still legally owned by Thai people for at least 51 percent.
Purchasing Land Through a Company
Lastly, additional option when buying property Thailand foreigners, is to build a Thai limited firm. If you think that this alternative way will work best for you, keep in mind that as a foreign investor, you are not allowed to hold half or more than half of the shares in the company. In short, the firm has to be at least 51 percent owned by a legal citizen of Thailand. Only after then that Thai citizens can agree to sign over their rights to the company to you. The Thai immigration is well-aware of this kind of practices, so take note that your business will constantly monitor by this department.
Above information are some of the basic details you have to know if you are really interested in having a property located outside your country. Change is constant especially when it comes to foreign policies so keep yourself updated from time to time to avoid related issues.