In Thailand, as a foreigner, if you want to invest in real estate, several elements have to be taken into account:
If you want to purchase a condominium unit:
Since the condominium act of 1979, foreigners are allowed to buy in freehold and in their own name a condominium (co-ownership), provided to respect the following conditions:
· Check if the building has the legal status of condominium which governs the vertical co-ownership and split the building in lots.
· Check the foreigner quota owner in the building (with a maximum of 49%)
· Transfer the whole funds used to buy the property from the oversea bank in foreign currency which will allow obtaining the Foreign Currency transaction exchange form (FET) from the bank.
· The sender or receiver of the amount covering the purchase has to be the future owner.
The purchase can be made in its own name in freehold: a condo unit title deed will be changed into the name of the buyer after the registration of the property at the land department.
Note: It is possible to buy a condo unit under two names, but if one of them is a foreigner, the rules described above will apply.
If you want to purchase a villa:
As a rule, a foreigner is not allowed to own a land Thailand except if that foreigner has invested more than 40,000,000 THB and been permitted from the land department.
However, foreigners are allowed to own the property built on it and lease the land for 30 years (renewable for another 30 years). It’s called a leasehold. The process is 100% legal, this right must be registered to the land department.
Another option for the foreigner to acquire a land would be to purchase the land through a company which will own the land and will have the authority to rent out and sell the land.
Our real estate attorney can assist you to review your contracts, perform due diligence, prepare documents for the registration at the land department office, and to assist you for the redaction of your Will in order to prepare your succession and secure your investment.
This article is a general briefing note which does not replace the advice for any individual situation, the firm shall not be rendered liable for its content.