Last updated April 4th, 2024.
There is one country that undoubtedly comes to mind when someone mentions Southeast Asia: Thailand. Foreign property ownership in Thailand is among the most popular methods of direct investment in Asia.
Westerners will sometimes automatically direct their attention to the “Land of Smiles”. Thailand is among the most heavily-touristed countries on earth, after all.
People tend to invest in what they’re familiar with. This statement has been proven true time and again, which is why Thailand’s real estate market is a common choice.
Yet this desire isn’t typically borne out of sensible financial considerations.
Annual travel rankings consistently show Bangkok as the most visited city in the world. While that may be true, it doesn’t mean that the investment climate is ideal for foreigners.
In the past, we’ve covered the prices and the aspects to take into account when purchasing Bangkok real estate, and we’ve also considered some of the reasons why buying condos in Thailand might not be ideal.
This article covers all aspects of foreign property ownership in Thailand. Specifically, what types of real estate foreigners can and cannot own, requirements, and visa allowances.
First though, we’ll start off with the bad news about property investment in Thailand.
Foreigners Can’t Own Land in Thailand
It’s a sad reality of Asia, but more often than not, foreigners can’t legally own land or houses. Thailand is no exception.
This tends to be the sign of economies which haven’t yet fully adapted to the “Washington Consensus” – a set of economic prescriptions designed to help a country incorporate into global financial markets, eventually reaching the level of developed economies.
As such, because Thailand is still developing as an economy, it hasn’t had the opportunity to modify its policy prescriptions.
There ‘s always a bit of jingoistic zeal mixed in with these types of restrictions as well. But perhaps in time, this too will change.
For now, though, foreigners can’t legally own land in Thailand. It can only leased on a 30-year basis if you aren’t a local citizen.
It’s a bit of a strange concept to wrap your head around: foreigners can own structures (including houses and villas), but not the actual land it sits on.
While it’s common in Western nations for property ownership to be an all-encompassing concept, that is a bias of our own culture; legally speaking, the matter is far more complicated.
Lawyers in Thailand may deem property ownership to be a “bundle of rights” that can be bought, sold, and traded for prolonged periods of time.
What happens in Thailand, and many Asian countries, is that the “bundle of rights” gets unbundled. Hence, you can own property, but not the land it sits on.
Consider it like putting your car in a parking space. Once your parking meter runs out, there will be fines to pay if there is anything left standing there. Yet in practice, these types of agreements tend to be prolonged without major complications.
However, there are people who try to sidestep these potential legal issues and get around the land ownership rule by using a company or nominee structure. It makes sense, as corporations are technically distinct legal entities from its directors.
Unfortunately, while this is possible in some countries, it is specifically not allowed in Thailand. As such, a lot of effort is fruitlessly expended to try to bend the laws instead of trying to go with the grain.
Land ownership in Thailand isn’t possible as a foreigner. Instead of fighting the system though, why not do what is allowed and garner those benefits?