Guide: How Foreigners Buy Property in Thailand
Foreign investors can and do buy property in Thailand every day—but the key is understanding the correct structures, legal limits, and common pitfalls. This guide lays out the main ownership routes, cost breakdowns, due diligence steps, and FAQs so you can proceed with clarity.
Ownership Options for Foreigners
1. Condominium Freehold
Foreigners can directly own condo units freehold in projects where no more than 49% of unit area is foreign-owned. Payment must come from overseas in foreign currency with proper FET forms from the bank.
2. Long-Term Leasehold (Land & Villas)
Foreigners can hold land/villas via long-term registered leases (30 years, often renewable to 60–90 years). These must be registered at the Land Office and give strong but time-limited control.
3. Thai Company with Proper Use
Some foreigners establish Thai companies to control land. Caution: nominee structures are illegal. Only consider if you have a genuine Thai partner and business purpose. Strict legal guidance essential.
4. BOI/Amity Treaty / Elite Visa Route
Business investors may gain land rights via Board of Investment (BOI) approval or the U.S. Treaty of Amity. Elite Visa does not grant land ownership but smooths stay/transactions.
5. Superficies & Usufruct Structures
Legal instruments that give rights to use/benefit from land or to build on it. Useful adjuncts to leases for villas. Must be registered and drafted by competent counsel.
Step-by-Step Buying Process
- Choose your target property (condo or villa).
- Engage independent legal counsel before paying a reservation.
- Conduct title search at Land Office (Chanote title preferred).
- Draft & sign reservation / sale & purchase agreement.
- Transfer funds correctly (foreign currency for condos).
- Register ownership/lease/rights at the Land Office.
- Receive title deed / lease registration and keys.
Taxes & Transaction Costs
| Fee / Tax | Rate / Amount | Notes |
|---|---|---|
| Transfer Fee | 2% of registered value | Typically split buyer/seller |
| Withholding Tax | 1% (individual) or corporate rates | Seller-side |
| Stamp Duty | 0.5% if no business tax | Seller-side |
| Specific Business Tax | 3.3% if sold within 5 years | Seller-side |
| Legal Fees | $2,000–$5,000 typical | Depends on scope |
Due Diligence Checklist
- Verify title deed type (Chanote = strongest).
- Check developer’s building permits, EIA approval.
- Confirm foreign quota availability (condos).
- Review lease/rights registration terms.
- Examine utility connections, access road rights.
- Review past litigation/encumbrances on land.
- Ensure purchase funds routed correctly for repatriation rights.
Common Pitfalls to Avoid
Nominee companies: Illegal and risky—avoid any lawyer suggesting this.
Unregistered leases: Paper leases not registered at Land Office offer little protection.
Overseas transfers skipped: Without proper FET forms, resale can be problematic.
Buying without inspection: Always verify build quality, permits, and actual land boundaries.
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FAQs
Can foreigners own land outright?
No, direct freehold land ownership is restricted. Foreigners usually buy condos freehold, or use long lease/superficies structures for villas.
Is a 30-year lease secure?
If registered at the Land Office, yes, for the lease term. Renewal clauses are contractual but not guaranteed—hence pairing with superficies is common.
Can I get a mortgage in Thailand?
Thai banks rarely lend to foreigners. Some offshore/international lenders can finance condos, but most foreign buyers use cash or equity release abroad.
What type of title deed should I look for?
Chanote (Nor Sor 4) is the gold standard: surveyed, GPS coordinates, full ownership rights. Other deed types carry more risk.
Disclaimer: This article is for general educational purposes and does not constitute legal advice. Always consult licensed Thai legal counsel before committing to any purchase.