Buying In Thailand
For the past decade or more Thailand has been growing in popularity as a destination for British property buyers. The country’s incredibly beautiful coastal regions including the best-known names such as Phuket and Ko Samui, have lured buyers in who also appreciated the relatively low prices and the country’s good investment potential.
However, there have always been some questions hanging over the legal ins and outs of buying property – as Thailand has a very different land and property ownership system compared to Europe, Australia or the US, for example.
The law is quite complex but in outline you should be aware that:
* The Thai law relating to property has always allowed and encouraged foreigners to buy property in Thailand – but what you can’t buy is land.
* Don’t believe anyone who suggests there are ways of ‘getting around the law’. This is incorrect. This may have been true in the past but since the military coup of 2006, the government has gone to great lengths to ensure that the law is properly upheld.
* Now there is stricter interpretation of the rules regarding ownership of property through a company. If a foreigner is going to operate a business in Thailand then he may purchase the freehold of the land through his Thai limited company. The land will be owned by the Thai Company, not by the individual.
* The company must be a legitimate enterprise and properly set up under Thai law. You will need to seek advice from a qualified lawyer as to the most suitable structure to adopt.
* Purchasers of condominiums may buy the freehold so long as total foreign ownership does not exceed 49% of the whole structure.
* So although there are a number of other ways to purchase freehold in Thailand, the avenue open to most foreigners is to lease land for 30 years. This is well defined under the law and although you don’t own the land you are permitted to own the structure built upon it.
Thailand is a beautiful and most desirable country in which to live and there are many thousands of foreigners who have purchased property within the Kingdom of Thailand.
Generally foreigners are most welcome in Thailand, so long as they adhere to the law. Recent speculation has dented confidence in investing in Thailand, but stems not from an anti-foreigner sentiment, but more to close the loopholes that allowed too many to undermine the law under the last government.
However, there have always been some questions hanging over the legal ins and outs of buying property – as Thailand has a very different land and property ownership system compared to Europe, Australia or the US, for example.
The law is quite complex but in outline you should be aware that:
* The Thai law relating to property has always allowed and encouraged foreigners to buy property in Thailand – but what you can’t buy is land.
* Don’t believe anyone who suggests there are ways of ‘getting around the law’. This is incorrect. This may have been true in the past but since the military coup of 2006, the government has gone to great lengths to ensure that the law is properly upheld.
* Now there is stricter interpretation of the rules regarding ownership of property through a company. If a foreigner is going to operate a business in Thailand then he may purchase the freehold of the land through his Thai limited company. The land will be owned by the Thai Company, not by the individual.
* The company must be a legitimate enterprise and properly set up under Thai law. You will need to seek advice from a qualified lawyer as to the most suitable structure to adopt.
* Purchasers of condominiums may buy the freehold so long as total foreign ownership does not exceed 49% of the whole structure.
* So although there are a number of other ways to purchase freehold in Thailand, the avenue open to most foreigners is to lease land for 30 years. This is well defined under the law and although you don’t own the land you are permitted to own the structure built upon it.
Thailand is a beautiful and most desirable country in which to live and there are many thousands of foreigners who have purchased property within the Kingdom of Thailand.
Generally foreigners are most welcome in Thailand, so long as they adhere to the law. Recent speculation has dented confidence in investing in Thailand, but stems not from an anti-foreigner sentiment, but more to close the loopholes that allowed too many to undermine the law under the last government.
