Buying Property in Thailand as a Foreigner 2025: What Is Actually Possible

WHAT FOREIGNERS CAN OWN OUTRIGHT: CONDOMINIUMS The only Thai real property that foreigners can own on a freehold (ownership) basis is a condominium unit under the Condominium Act. The rule: no more than 49% of the total floor area of a condominium building can be foreign-owned at any given time. The remaining 51% must be owned by Thai nationals or Thai entities. What this means in practice: if you are buying a condo in a building where the foreign ownership quota is already at 49%, you cannot take freehold ownership — you must either buy on a leasehold basis, wait for a foreign unit to be resold, or buy in a different building. Your freehold condo ownership is registered as a Chanote (land title deed) in your name at the local Land Department. This is proper, legal ownership — the strongest title available in Thailand. WHAT FOREIGNERS CANNOT OWN: LAND Foreign nationals cannot own Thai land (only the building structure, not the land it sits on). This applies to houses, villas, commercial property, and agricultural land. There are very limited exceptions (LTR visa holders with BOI-approved investment can hold certain land rights — confirm with a qualified lawyer). OPTION 1: LEASEHOLD A lease gives you contractual rights to occupy and use land and/or a building for a defined term. Thai law allows lease registration at the Land Department for terms up to 30 years. Some developers offer 30+30+30 year lease structures (three sequential 30-year leases written into the original contract), but the enforceability of the second and third lease periods is legally uncertain under current Thai law — they depend on the developer or subsequent landowner honouring them, not on a statutory right. Registered leasehold provides real security for the initial 30-year period. It is recorded on the title deed and binds all subsequent owners of the land (you cannot be evicted by a new landowner during the registered lease term). Leasehold is the most common structure for foreigners buying Thai villas, houses, and resort-style properties. OPTION 2: USUFRUCT A usufruct is a registered right to use and benefit from another person's property for your lifetime or a fixed period (up to 30 years by statute, but in practice often written as a lifetime right for a specific named person). It is registered at the Land Department. A usufruct gives you the right to live in the property, rent it out, and receive the rental income. You cannot sell the property (since you don't own it) or grant a mortgage over the underlying land. The underlying land remains owned by the Thai individual or entity who granted the usufruct. Usufruct is commonly used by foreign spouses of Thai nationals for the family home — the Thai spouse owns the land, the foreign spouse holds a usufruct for their lifetime. OPTION 3: THAI COMPANY STRUCTURE Some foreign investors hold Thai property through a Thai-registered limited company in which they own a minority stake (Thai law requires at least 51% Thai ownership for a standard Thai company). The Thai company then owns the land. This structure is controversial and carries legal risk. The Thai Land Department and the Revenue Department have been increasingly scrutinising company structures where Thai nominee shareholders appear to hold shares purely to comply with the 51% requirement with no genuine business purpose. Using nominees to circumvent the foreign land ownership rules is illegal under the Land Code. What this means in practice: the structure exists, it is widely used, and it is not being universally prosecuted — but it is a legal risk, particularly on the enforcement timeline of a 30+ year property holding. If you use a Thai company structure, ensure the company has genuine business activity and that the Thai shareholders are not pure nominees. Take qualified Thai legal advice. PRACTICAL BUYING PROCESS (CONDOMINIUM) 1. Due diligence: verify the building's foreign quota availability through the Land Department or a reputable agency. Verify the title (Chanote is strongest; Nor Sor 3 Gor is acceptable; avoid lower-grade titles). 2. Reservation agreement and deposit: typically 1–5% of purchase price. 3. Sales and Purchase Agreement (SPA): review with a Thai property lawyer. Confirm payment schedule, defect warranty period, transfer date. 4. Payment: funds transferred from overseas to Thailand must be in foreign currency and converted to THB upon arrival (this is how you prove the source is overseas — a critical requirement for foreign condo ownership). Your bank issues a Foreign Exchange Transaction Form (FETF). 5. Transfer at Land Department: both parties (or their legal representatives) attend the Land Department. Transfer fees and taxes are settled. Your name is recorded on the title deed. TRANSFER FEES AND TAXES Transfer fee: 2% of assessed value (not market price — assessed value is typically lower) Specific Business Tax (SBT): 3.3% (if property is sold within 5 years of purchase) Withholding tax: 1% of assessed value (or graduated rates if the seller is an individual) Stamp duty: 0.5% (in lieu of SBT if SBT does not apply) In practice, buyers and sellers often negotiate who pays each item. This is general guidance only, as of June 2025. Thai property law is complex and the practical application of rules varies by property type, location, and individual circumstances. Always engage a licensed Thai property lawyer for advice specific to your situation. Not legal advice. No outcome guaranteed.