There are many available options for a foreigner to own realty in Thailand and this can only be possible if you understand the different ownership structures relating to land titles. There are basically three common forms of ownership, they are the leasehold, freehold through a condo title, and freehold through acquisition by a Thai company.

Bangkok Condo & Apartment Ownership

There are many available options for a foreigner to own realty in Thailand and this can only be possible if you understand the different ownership structures relating to land titles. There are basically three common forms of ownership, they are the leasehold, freehold through a condo title, and freehold through acquisition by a Thai company. These are the usual types of ownership that foreigners use. In some instances they may also own an Industrial property freehold. This is possible because the Thai Land Code considers “foreign” ownership to be property ownership by any foreign individual or company.

Condo Title Definitions

The definition of a condo in Thailand is that it is a multi unit building where there is a freehold ownership of individual units and a common interest along with all the other owners in the land and that of common areas as well. In other countries they refer to this as a strata title. These are the following facts about condo ownership in Thailand:

• The condo is registered at the Land Department and each individual unit has its own title deed.

• Foreigners are only allowed to own up to 49% of the area in a condo building in Thailand.

• The Land Department is where the percentage of foreign ownership of each condo building is registered.

• It is with the developers that purchasers of new condo buildings need to clarify with regarding how units will be registered as part of the foreign quota.

• It is with the vendors that purchasers of units in existing condo buildings should clarify with if the unit is already part of the foreign quota. If not, determine then if the foreign ownership quota is still available.

• If a foreigner purchases a condo all the money used must be remitted to Thailand as foreign currency.

• “Foreign Exchange Transaction Form” certificate is what foreign purchasers need to obtain for each payment from the beneficiary bank. Also these certificates must be shown to the Land Department in order to register the condo.

• A foreigner needs to include in the transfer instructions that the purpose is to buy a condo unit when sending the money to Thailand.

• A foreigner who has Thai baht possession in his bank account or has foreign currency bank account in Thailand can withdraw money from that account in paying the condo unit. In this scenario, the withdrawal slip and bank certificate issued by the bank would be needed to confirm that the funds were withdrawn from those certain accounts in buying a condo. The documents will be required to be presented at the Land Department.

• If foreigners have Thai spouses and they are buying a condo unit, they must comply jointly as well with the foreign ownership regulations and transfer all funds to purchase a condo from overseas.

• Foreigners who have Permanent Resident status in Thailand may not need to transfer funds from overseas.

• The name of the owner of the condo unit will be reflected on the title deed. The condo title deed must also clearly state the area which will also include balconies but exclude the columns and common areas. It will also need to show the ratio of ownership of the common areas.

There are also a number of ways to register car parks on the condo title deed. These are some examples:

• There may be an exact size and location of the defined car park spaces.

• There may be an alternative in the right of exclusivity pertaining to the car park spaces even without defining the area or location.

Condo / Apartment: Property Definition

In Thailand a residential or apartment building is held in a single ownership on an individual title. They also have a specific definition that describes the difference between an apartment and a condo. While other countries describe an apartment or condo as the same type of property this country specifically defines each as separate and not the same.

Apartment / Villa Leasehold Title Definition

30 is the number or years a foreigner may register ownership with the Land Office. They can also have the option to lease the condo, apartment, house/villa or land. The land or building owner must hold the property on freehold “Chanote” title or “Nor Sor 3 Gor”. There are also no restrictions if a foreigner wants to own a building outright and this entitles the ownership of the building over the land on a 30 year lease. The lessor can also grant the lessee a series of options if ever they want to renew the lease for further terms of another 30 years but this cannot be registered against the land title and is only valid on the contracting party’s end. This structure is guaranteed transparent and is in accordance as well with the Thai Law. Given that the threshold structure is complex it is recommended that the purchasers of a leasehold property seek qualified legal advice on this matter before entering into lease contracts.

Condo, Apartment, Villa or Land Ownership Using a Company

It is only by means of owning a Thai company can an indirect means of foreign ownership of property in Thailand be possible. However there are strict rules enforced when a Thai company has foreigners involved in it. It is also recommended that purchasers need to consult legal professionals who are well experienced in this area because the establishment of a Thai company and the law relating to foreign ownership of landed property is a specialist area and is quite complex as well.

Freehold Industrial Land

There are two different programs for which foreign investors engaged in industrial projects can be entitled to own real estate in Thailand. These are the ff.:

• The BOI or Board of Investment can grant permission to foreign companies to be able to own land or factory sites.

• Foreigners can also be allowed to purchase freehold land on industrial estates for manufacturing purposes. In Thailand an industrial estate is specifically defined as a property developed by or with a license from the Industrial Estate Authority of Thailand.

Freehold Definition

Freehold is defined as a property that can be owned in perpetuity. The owner will have the right to sell or lease the property. Land and building can be owned as well on freehold. It is also possible in Thailand to have condo titles where individual units in a building can be owned on freehold.

Leasehold Definition

Leasehold means that the building or land is held on lease from the land or building owner with a maximum fixed term of lease in Thailand for 30 years. It’s possible to contractually agree in options regarding renewal but this may not be registered at the Land Department.