Legal information

Thai law does limit the rights of foreigners to buy and own land in private ownership (Freehold). However, according to the same law, there are two options that are completely legal solutions to this problem:

Ownership of the rights to a long-term lease (Leasehold Property)

Foreigners can lease land under a contract for a short or a long time.In this contract, the lease can be from 3 to 30 years. If this is the case, one of the paramount conditions of the contract is that, at the point at which the contract is registered the tenant requests exclusive rights to the extension of the lease. The lessee has the right to extend the initial contract concluded for a period of 30 years, and again each 30 years. As a result, the general term of the lease may not exceed 90 years. Most of the major experts confirm that such an item to the buyer of the contract is enforceable.

Ownership of the rights of freehold (Freehold Property)

As a legal entity, a Thai Limited Company Legally has the right to purchase land.That is in accordance with the scope and registered Company Charter (Objectives and Articles of Association), it can own land and to invest in land.

The nuance is that foreigners can own no more than 49% of the shares of such companies, and the remaining 51% must be owned by real and actually existing Thai investors. However, the foreign partner may own special, privileged shares within the Company, as well as being the official director of the Company thus having unlimited powers. In this case the foreigner fully retains control of the Company for themselves.