In general foreigners (non-Thais) have no legal rights to land ownership in Thailand, except for a few rare exceptions.
This means that the possibility of land ownership by a foreigner desiring to reside or to reside and to do business in Thailand is, in most cases, none. Consequently, this gives rise to the need to “work around the rules” or to look for alternative ways to own land in Thailand. Well, there are various structured ways being used:
(1) A foreigner leased a plot of land from a Thai person or company for 30 years (The longest lease period under the law), the lease of land contract signed by the lessor and lessee is registered at the Land Office.
Also, it is stated in the lease of land contract that “upon the completion of the 30 years lease term, the lessor agrees to renew the lease period for another 2 x 30 years lease period”. This allows a foreigner to possess (not own) the land and to use the land for 30 years, plus maybe another 2 x 30 years lease terms. (Note: If the land is sold to a new owner, this new owner is not obligated to renew the lease period for another 30 years lease period. The lease period renewal is a promise made only by the lessor);
(2) A Thai person, possibly a Thai girlfriend, wife or trustworthy friend, owns the plot of land and the foreigner owns the house or building situated thereon. (Thai law does not restrict a foreigner having ownership of a house or building);
(3) A foreigner buy share(s) of a company limited that already owns the desired plot of land. To have ownership title of the land, the company limited must have a majority of its shares or capital held by Thais or Thai companies; or
(4) A foreigner incorporates a company limited with the majority of its shares or capital owned by Thais or Thai companies. After incorporation, this company limited buys and own the plot of land. To have ownership control over the company limited, the Thai shareholders are either: nominee shareholders of the foreigner (illegal) or having their shareholders’ voting rights reduced (May become illegal given current proposed changes to the law)
Tip
A wise reader will see that, unless he or she wants to risk a relationship with a Thai person going very sour and losing the land and house or getting involved with a company limited structure with hidden illegality or potential illegality, the worry free way will be to lease the desired plot of land for only 30 years from a Thai person or Thai company who has ownership title of the land.
Relax your mind and Relax your heart, lease a nice plot of land from a Thai land owner for 30 years, register this long term lease at the Land Office and pay the rent up to 30 years only. At the end of 30 years, negotiate with whoever is the owner then to renew the lease. Otherwise, buy and own for yourself a beautiful condominium unit(s) overlooking the sea, beach and the sunset.
(*Published in Pattaya Mail newspaper - September 19, 2008 issue) Written by David Tan. The writer is a lecturer of Business Law at Asian University. Any comments or questions to David should be sent to blas.inter@yahoo.com
This means that the possibility of land ownership by a foreigner desiring to reside or to reside and to do business in Thailand is, in most cases, none. Consequently, this gives rise to the need to “work around the rules” or to look for alternative ways to own land in Thailand. Well, there are various structured ways being used:
(1) A foreigner leased a plot of land from a Thai person or company for 30 years (The longest lease period under the law), the lease of land contract signed by the lessor and lessee is registered at the Land Office.
Also, it is stated in the lease of land contract that “upon the completion of the 30 years lease term, the lessor agrees to renew the lease period for another 2 x 30 years lease period”. This allows a foreigner to possess (not own) the land and to use the land for 30 years, plus maybe another 2 x 30 years lease terms. (Note: If the land is sold to a new owner, this new owner is not obligated to renew the lease period for another 30 years lease period. The lease period renewal is a promise made only by the lessor);
(2) A Thai person, possibly a Thai girlfriend, wife or trustworthy friend, owns the plot of land and the foreigner owns the house or building situated thereon. (Thai law does not restrict a foreigner having ownership of a house or building);
(3) A foreigner buy share(s) of a company limited that already owns the desired plot of land. To have ownership title of the land, the company limited must have a majority of its shares or capital held by Thais or Thai companies; or
(4) A foreigner incorporates a company limited with the majority of its shares or capital owned by Thais or Thai companies. After incorporation, this company limited buys and own the plot of land. To have ownership control over the company limited, the Thai shareholders are either: nominee shareholders of the foreigner (illegal) or having their shareholders’ voting rights reduced (May become illegal given current proposed changes to the law)
Tip
A wise reader will see that, unless he or she wants to risk a relationship with a Thai person going very sour and losing the land and house or getting involved with a company limited structure with hidden illegality or potential illegality, the worry free way will be to lease the desired plot of land for only 30 years from a Thai person or Thai company who has ownership title of the land.
Relax your mind and Relax your heart, lease a nice plot of land from a Thai land owner for 30 years, register this long term lease at the Land Office and pay the rent up to 30 years only. At the end of 30 years, negotiate with whoever is the owner then to renew the lease. Otherwise, buy and own for yourself a beautiful condominium unit(s) overlooking the sea, beach and the sunset.
(*Published in Pattaya Mail newspaper - September 19, 2008 issue) Written by David Tan. The writer is a lecturer of Business Law at Asian University. Any comments or questions to David should be sent to blas.inter@yahoo.com
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