Foreign ownership of real estate

Foreign ownership of real estate

Thailand is a country where many foreigners are interested in buying and investing in real estate and tends to be more consistently even though the Thai law does not allow foreigners to own property freely.One reason may be because when compared to many other Asian countries, real estate prices in Thailand are still very low. Thailand is also a country with geographic features that are central to the region and are adjacent to many emerging economies, as well as it is a fertile country with delicious food and beautiful places to visit.Foreigners who are interested often come to buy or rent real estate as a residence, for investment or as a holiday home. Chiang Mai is another city where foreigners want to stay and make an investment because Chiang Mai has a great culture, customs and traditions and is the center of the economy, culture and tourism of the north and the region.

 

For real estate in Thailand, although it is very popular with foreigners but Thailand does not allow foreigners to hold freely as it has released the laws to limit real estate ownership which can be categorized as follows:

–  Land holdings

–  Condominium ownership

–  Lease of real estate

 

Land holdings by foreigners

 

1. Need to invest money in Thailand no less than 40 million Baht and such investment must be maintained for at least 5 years.
2. Must obtain permission from the Minister of the Interior.
3. The investment must be made in a business or a type of business as follows:

    –    Purchase the Thai Government Bonds, Bank of Thailand Bonds, State Enterprise                      Bonds or the bonds that the Ministry of Finance guarantees principal or interest.

    –    Invest in property funds to solve problems in financial institutions established under             the law on securities and property market.

    –    Invest in share capital of juristic persons that have been promoted according to the             law on investment promotion.

    –    Invest in the business that the Board of Investment has declared as the business                eligible for BOI privilege according to the law on investment promotion.

4. Regarding acquisition of land rights by inheritance, the aliens can inherit as the rightful       heir.Such inheritance must be approved by the Minister of Interior and the inherited land          when combined with the existing land must not exceed the amount prescribed by law.    The inheritance when combined with the original land will shall not exceed the eligibility       as follows:

    –    A residence for a family not more than 1 rai

   –    Commercial purposes, not more than 1 rai

   –    Industrial purposes, not more than 10 rai

   –    Farming, each family not more than 10 rai

    –    Religious purposes, not more than 1 rai

    –    Public charity, not more than 1 rai

    –    Cemetery, each family not over1/2 rai

 

5. Regarding buying via Thai spouse, all the money that Thai person used to buy the land    shall solely belong to the person of Thai nationality not a marital property or a property   that jointly earned.
6. Regarding establishment of company or juristic person, the foreigners can   hold up to 49% of the shares and then transfer their ownership on the real        estate to the company. The foreigners can reside as directors, not the owners.    The company will be the owner of such property.

7. Long term lease shall have a maximum lease term of 30 years and can be   renewed for 30 years up to two times. However, the consent of the lessor           must be obtained.

 

Condominium ownership by aliens

The condominium is considered to be the most popular property for foreigners since the Thai law allows foreigners to have ownership. However, the ownership is limited and is subject to the terms of the Condominium Act for foreigners.Together foreigners can buy a condo, not more than 49% of the units in the condominium.  In the future, a foreign owner can sell a condo and can transfer the money from the sale of the condo out of the country just present the condo purchasing contract from the land office to the bank.