Can Foreigners Buy Houses in Thailand? Legal Summary and Real Ownership Options

In recent years, Thailand has become a popular destination for long-term foreign residents, retirees, and investors. To attract more foreign capital and stimulate the property market, the Thai government has introduced policies allowing foreigners to buy houses and even own land under specific legal conditions.

Understanding the Legal Definition of “House” and “Land”

Under Thai law, a “house” is considered a building that can be inhabited or used by a person, regulated under the Building Control Act. “Land,” on the other hand, refers to any physical plot including mountains, valleys, ponds, and rivers and ownership must be verified by a title deed in accordance with the Land Code Act.

In essence, foreigners can own a house structure but not the land it sits on unless they meet special conditions or use specific ownership structures.

Property Ownership Options for Foreigners in Thailand

1. Buying a Condominium

Foreigners can own up to 100% of a condo unit, provided that the total foreign ownership within the building does not exceed 49% of the total sellable area.All funds used for the purchase must be transferred into Thailand in foreign currency with a Foreign Exchange Transaction Form (FET) as proof.

For those seeking lifestyle and investment opportunities, exploring a chiang mai luxury villa or a high-end condominium might be a great start, as these offer full ownership and strong resale potential.

2. Buying a House Through a Thai Spouse

Foreigners cannot directly own land in Thailand, but if married to a Thai citizen, the land can be purchased under the Thai spouse’s name. To comply with the law, the couple must declare that the money used to buy the land belongs solely to the Thai spouse, not as a marital asset.The foreign spouse may, however, legally own the house built on the land.

3. Long-Term Leasehold (30-Year Lease)

A practical and legal way for foreigners to live in Thailand is through long-term lease agreements.Foreigners can lease land or houses for up to 30 years, with an option to renew.All lease contracts must be registered with the Land Office, and the property owner must report the foreign tenant’s residence to the Immigration Bureau within 24 hours.

This is a popular choice among retirees and expats who prefer peaceful residential areas like Hang Dong, Chiang Mai, where many chiang mai villa for sale listings offer serene living and modern facilities.

4. Ownership Through a Thai Company

Another approach is to set up a Thai Limited Company, where the foreign shareholder owns no more than 49% of the shares.This structure is common for commercial investments such as resorts, restaurants, or boutique developments.However, caution is required setting up a nominee company (one that exists solely to hold property for a foreigner) is illegal and can result in civil and criminal penalties.

Special Case: Direct Land Ownership for Foreigners

In limited circumstances, foreigners can own up to 1 rai (1,600 square meters) of land for residential use if they meet the following conditions:

• Invest at least 40 million baht in Thailand

• Maintain the investment for at least 3 years

• The land must be located in a designated area such as Bangkok, Pattaya, or within municipal or residential zones

• Obtain approval from the Minister of Interior

Foreigners who receive investment promotion privileges from the Thai Board of Investment (BOI) may also be granted permission to own land for business operations as approved by the authorities.

Legal and Tax Considerations

Foreign buyers must also account for taxes and fees involved in property transactions, such as:

• Withholding tax

• Specific business tax or stamp duty

• Transfer fees

• Annual land and building tax ranging from 0.01% to 3% of the property’s appraised value

For property transfers, it’s recommended to have a lawyer review contracts and ensure all transactions are completed at the Land Office before authorized officers.

When transferring money from abroad, use Telegraphic Transfer (T/T) and state the purpose as “for purchasing property in Thailand.”The Thai bank will issue a Foreign Exchange Transaction Form (FET), which must match the buyer’s name on the title deed.If there are joint buyers, both names should appear on the transfer documents from the start.

Which Option Is Best for Foreign Buyers?

For foreigners planning to live or invest in Thailand, the right ownership option depends on their goals.Those looking for convenience and fewer legal hurdles may prefer buying a condominium.For families or couples, purchasing a house under a Thai spouse’s name or entering a long-term lease can be practical and legitimate.Meanwhile, investors seeking a blend of lifestyle and capital appreciation might explore a chiang mai real estate for foreigners in a growing residential market like Hang Dong or Mae Rim.

With the government’s pro investment policies and transparent legal framework, buying property in Thailand is now more accessible to foreigners than ever before.Whether for living, retirement, or investment, taking time to understand the legal processes and ownership structures will ensure a safe and compliant purchase. For those considering property in northern Thailand, especially in Hang Dong, you can reach out to Belmont for trusted local expertise and curated home options that match your needs.