For many foreigners, owning a land or property in Thailand is a lofty dream.  After all, Thailand, as one of the world’s leading expat destinations, has a whole world of sights and culture to offer.

For many foreigners, owning a land or property in Thailand is a lofty dream.  After all, Thailand, as one of the world’s leading expat destinations, has a whole world of sights and culture to offer.  However, as with any other country, property ownership for foreigners is governed by somewhat stringent rules—rules which any foreigner ought to fully understand.

Two Basic Kinds of Property Ownership

At the outset, a non-Thai national must comprehend that there are essentially two kinds of property ownership—freehold and leasehold.

Freehold property ownership is defined as absolute and perpetual ownership of land or property, or both.  Such ownership carries with it full rights to sell, lease or transfer property ownership.  This is the most secure form of property ownership even as it offers ownership of the property in perpetuity.  Under Thai law, however, a non-resident cannot own freehold rights to land.  He can only own freehold title to a property which sits on a piece of land, such as a condominium unit for example.

Leasehold property ownership is a contract of lease wherein the buyer leases the property from the land owner for a maximum period of 30 years.  At the end of the agreed time period, both parties can opt to renew the lease for another set of 30 years.  This kind of ownership has a few disadvantages, foremost of which is the risk of not being granted renewal after the agreed time frame which would mean loss of return of investments.

Property Ownership Options for Foreigners in Thailand Apartment or Villa Leasehold Title In this ownership option, a foreigner can own freehold rights over a building which sits on a land which is under leasehold for a maximum of 30 years.  In essence, the foreigner purchases the land leasehold and the property freehold.  Legal advice must be sought out in this arrangement for clarity of terms.

Apartment, Villa, Condo or Land Freehold Ownership Using a Company A foreigner can obtain freehold ownership of land if he establishes a company in Thailand. Such rare privilege may be thought of as a reward for foreigners who establish job-generating and tax-paying companies in Thailand.   It is important to note, however, that the establishment of a Thai company and the property laws pertaining to it can be pretty complex as to require professional legal advice.

Freehold Industrial Land Another special privilege is granted to foreigners who invest in industrial projects in Thailand.  In such a case, the foreign investors are granted freehold ownership of the industrial land or estate.  In Thai law, an industrial estate is defined as land which has been granted license by the Industrial Estate Authority of Thailand.  Such tracts of land are generally used as factory or manufacturing sites and are therefore hugely beneficial to the country.

Condominium Ownership Probably the safest and easiest property ownership option for any ordinary foreigner is to simply buy a condominium.  With this option, a foreign buyer can obtain freehold ownership of the condominium unit.  The land on which the condominium sits is owned by the Condominium Juristic Person which is registered with the Thai government and consists mostly of Thai citizens.