The issue of foreign land ownership in Thailand is intricately tied to the Land Code Act of 1954, which generally restricts outright land ownership by foreigners. This legislation is aimed at safeguarding Thailand’s natural resources and maintaining national control over valuable land assets.
However, there are exceptions to this rule. For instance, the Board of Investment allows foreign investors in specific business categories to own land. Additionally, under Thailand’s Condominium Act, foreigners are permitted to own up to 49% of the total space in a condominium building.
While there have been recent positive changes regarding foreign land ownership in Thailand, property laws for non-natives remain stringent. Individuals looking to acquire property in Thailand must navigate these legal complexities diligently to ensure compliance with the country’s regulatory framework and to prevent potential complications down the line.
Recently, the Land Department has revised the criteria pertaining to foreign land ownership in Thailand, incorporating aspects such as inheritance, land purchase, and land transfer:
Inheritance: Non-Thai nationals who are lawful heirs of foreigners authorized to own land are eligible to inherit the land holdings, subject to compliance with relevant land ownership regulations. The size of land inheritance for industrial or agricultural use is limited and must align with the permissions granted to the original landowners.
Land Purchase: Per Article 96 of the Land Code, foreigners can purchase 1 rai of land for residential construction upon making a minimum investment of 40 million baht in Thailand. This investment must contribute to the country’s economic and social welfare and be sustained for at least three years. The residential property acquired by foreigners should be located in specified areas like Bangkok or Pattaya.
Land Transfer: Foreigners can engage in land transfer procedures following the guidelines laid out in relevant laws, such as the Investment Promotion Act of 1977. The Land Department cautions that Thai nationals acting as nominees for holding land on behalf of foreigners may face legal penalties, including imprisonment and fines. Foreigners unlawfully acquiring land may be subject to fines and imprisonment as well.
Navigating the regulations surrounding foreign land ownership in Thailand requires thorough understanding and adherence to legal provisions to ensure a smooth and compliant property transaction process.
