Question 1

Can foreigners own property in Thailand?

Accepted Answer

Foreigners can own freehold condominium units (up to 49% of a building’s total units) but cannot directly own land. Alternatives include long-term leases (up to 30 years, renewable) or owning land via a Thai limited company with Thai majority shareholders.

Question 2

What are the restrictions on foreign land ownership in Thailand?

Accepted Answer

Thai law prohibits foreigners from owning land under the Land Code Act. Options include leasing land for up to 30 years or setting up a Thai limited company (51% Thai-owned) to hold the land title.

Question 3

How can foreigners buy a condo in Thailand?

Accepted Answer

Foreigners can buy freehold condos if the foreign ownership in the building is below 49%. Funds must be transferred from abroad, documented with a Foreign Exchange Transaction Form (FET). A lawyer is recommended for due diligence and title transfer.

Question 4

What are the costs and taxes when buying property in Thailand?

Accepted Answer

Costs include transfer fees (2% of appraised value), withholding tax (1% of appraised or sale value), specific business tax (3.3% if sold within 5 years), and stamp duty (0.5% if no SBT applies). Legal fees range from 20,000–30,000 THB. Condo buyers may also pay sinking fund fees.

Question 5

Can foreigners get a mortgage to buy property in Thailand?

Accepted Answer

Thai banks offer limited mortgages to foreigners (40–70% of property value, up to 15 years, with high interest rates of 6–9%). Eligibility requires proof of income and residency. Some developers offer financing, or buyers use overseas loans.

Question 6

What is the process for buying property in Thailand as a foreigner?

Accepted Answer

Steps include finding a property, hiring a lawyer and agent, conducting a title search, signing a purchase agreement, transferring funds with a FET, and finalizing ownership at the Land Office (30–60 days).

Question 7

Is it safe to buy property in Thailand as a foreigner?

Accepted Answer

Buying is safe with proper due diligence—hire a reputable lawyer, verify the seller’s title, and use registered agents. Risks include unregistered agents or buying without legal checks.

Question 8

Can foreigners rent out their property in Thailand?

Accepted Answer

Foreigners can legally rent out their property, subject to income tax on rental earnings (progressive rates based on income). Management companies can handle rentals, but owners must comply with TM.30 tenant reporting.

Question 9

What are the visa implications of buying property in Thailand?

Accepted Answer

Buying property does not grant visa privileges. However, investing 10 million THB in real estate may qualify for the Thailand Elite Visa (5–20 years). Standard visas (e.g., retirement, business) require separate applications.

Question 10

What are the risks of buying property in Thailand as a foreigner?

Accepted Answer

Risks include buying without due diligence, using unregistered agents, condo depreciation, neglected building maintenance, or legal issues with leaseholds or companies. A lawyer mitigates these risks.

Thai Law

Can Foreigners Own Property in Thailand? Here’s the Truth

THAILAND REAL ESTATE LAW – PROPERTY LEASES FOR FOREIGNERS

Discover

Contact Us

Newsletter