Can Foreigners Buy a House in Thailand? How to Do It

According to the Land Code of Thailand (B.E. 2497), foreigners cannot directly own land in Thailand. However, due to economic incentives, the Thai government allows certain exceptions under specific conditions, enabling foreigners to hold real estate legally. Here’s a detailed guide.

Exceptions for Foreigners

Foreigners eligible to purchase property in Thailand usually hold a Long-Term Resident Visa (LTR Visa), allowing a stay of up to 10 years, with up to 4 dependents, a work permit, and tax benefits (personal income tax reduced to 17%). Eligible groups include:

1. High-net-worth individuals: owning assets of at least USD 1 million.
2. Retirees: aged 50+ with a stable pension or income.
3. Foreign employees: working for a foreign company with approved operations in Thailand.
4. Specialized professionals: experts working for universities, research institutes, training centers, or government agencies in Thailand.

Options for Owning Property

1. Long-term lease (Leasehold): Foreigners can lease land or houses for up to 30 years, renewable twice (each up to 30 years), totaling 90 years. The landowner cannot reclaim the property until the lease expires.
2. Limited company ownership: Foreigners can set up a Thai company where Thai shareholders hold at least 51% of the company. Foreigners may hold up to 49%. Using nominee shareholders is illegal.
3. BOI-promoted investment: Companies approved by the Board of Investment (BOI) may be allowed to own land under specific conditions. Verification with the Land Department is required.

Buying a Condominium in Thailand

Foreigners can fully own condominiums under Thai law, following these steps:

1. Transfer money from abroad: Purchase funds must be remitted from overseas and documented with a Foreign Exchange Transaction Form (FET) to comply with regulations. Payments are typically divided into:
   • Booking fee (via credit card or international bank transfer)
   • Down payment (20–30% of unit price)
   • Balance at transfer of ownership (via foreign currency transfer)
2. Verify property documents: Check the title deed and other related documents to ensure legality and prevent future disputes.
3. Sign a sale and purchase agreement: Draft a clear agreement covering all terms to protect both parties.
4. Transfer ownership at the Land Department: Complete the transfer, paying all fees and taxes as required by law.

Additional Conditions for Foreigners

• Land ownership is limited to 1 rai (1,600 m²) and must be for residential purposes only.
• Sellers must provide proof of ownership for the property.
• Significant investment (e.g., at least 40 million THB in legal businesses for 5+ years) may be required for special cases.
• Property purchase is allowed in designated residential zones such as Bangkok, Pattaya, or other areas specified in urban plans.
• Foreign ownership must be for personal residence; violations require resale to Thai nationals.

These rules allow foreigners to invest in Thai real estate while ensuring local housing needs are protected. If a foreigner is interested in buying property in Chiang Mai, they can also explore second-hand houses for sale Chiang Mai Hang Dong with Rochalia.