Haris & Associates Phuket Thailand Legal Blog

Thailand Real Estate market has been thriving over the past decade and more foreigners are making Thailand their second home. Many foreigners desire to own land in Thailand. Before taking this important step, it is vital for a foreigner to hire the services of a registered lawyer and a reputable real estate agent. Foreigners have a number of options to choose from. These options are:

 

Option 1: Forming a Thai Company

Foreigners cannot own any land in their name in Thailand. However, you can use a Thai-registered company to own land. There several types of business units in Thailand. The most common business entity is a Thai Limited Company. A foreigner must meet several registration requirements to incorporate a limited company in Thailand. Americans are permitted to do business in Thailand through the Thailand Amity Treaty although the structure does not permit them to own land.

Owning land under a limited company has its own share of problems. One, the interest of the other shareholders may be different from yours.

 

Option 2: Leasehold Agreements

Buying Thai Real Estate property under a leasehold agreement is not only popular but the most preferred option for foreigners who wish to own property in Thailand. There are several reasons why foreigners prefer this alternative. This option is straightforward and simple and offers a maximum lease term of 30 years. Additionally, the foreigner will get full leasehold interest throughout the specific lease term. This alternative also allows a foreigner to transfer leasehold interest or sell it just like you would do in other Thai freehold title conveyance.

It is vital to note that renew of the lease will not be automatic. Renew of the lease depends on the discretion of the lands registrar and careful drafting of the agreement.

 

Option 3: Marrying a Thai

It is possible for a foreigner to buy real estate property in Thailand if he/she is married to a Thai national. However, this option has certain limitations. As a non-Thai or foreigner spouse, you are required to indicate that you hold no rights over the land. This condition waives your rights to claim the land property. Although you are the one who purchased the land, it should be in the name of your Thai spouse and not your name. The married couple may be requested to sign declarations at the Department of Land indicating that the money used to purchase the land is the separate property of the Thai spouse. In case of separation or divorce, problems may arise since it will be difficult to prove that the land is matrimonial property.

Thai law provides basic guidelines in the management of matrimonial property. In this case, a prenuptial agreement drafted skillfully by an expert may help to reduce the risks of a non-Thai spouse.