ownership · Thailand

Property Ownership Structures in Thailand for Foreign Investors

Updated 9 min readBy Global Investments

Thailand is one of Southeast Asia's most popular destinations for international property investors, drawing buyers with its quality of life, low cost base, and well-developed condominium market. But the kingdom imposes one of the region's strictest regimes on foreign land ownership. Understanding what foreigners can and cannot own directly — and what the legitimate alternatives are — is the essential foundation for any investment here.

This guide is for general information only and does not constitute legal or tax advice. Thai property law is complex and changes; always seek independent legal advice from a licensed Thai lawyer before making any investment decision.

The Core Restriction: Foreign Land Ownership

The Land Code (1954) and the Condominium Act (1979, as amended) together form the backbone of Thai property law for foreign buyers.

The core rule: Foreign nationals cannot own land in Thailand in their own name. "Land" includes land with a house, villa, or any structure built on it. This prohibition is broadly applied and not easily circumvented through documentation tricks.

What foreigners can own directly: A condominium unit. Under the Condominium Act, foreigners may own freehold title to a unit in a registered condominium building, subject to a quota: no more than 49% of the total floor area of any one building may be foreign-owned. This "foreign quota" applies building-by-building; in popular developments it may already be exhausted, in which case the only option is a 30-year leasehold.

Condominium Freehold: The Cleanest Route

For foreign investors, a condominium unit purchased within the foreign quota is the only form of direct freehold property ownership available. The buyer holds the title (Chanote or Nor Sor 4 Jor — the highest-grade title document in Thailand) in their own name.

Conditions for a foreign individual to hold condominium freehold:

  1. The unit must be within the 49% foreign quota of the building.
  2. The purchase funds must be remitted from overseas in a foreign currency and converted to Thai Baht in Thailand. The bank in Thailand must issue a Foreign Exchange Transaction Form (FET Form / Thor Tor 3) as evidence of the inward remittance. This document is required at the time of title transfer.
  3. The purchase price must be paid in full — partial payment from Thai Baht funds is not allowed for the portion attributed to foreign quota ownership.

Failing to obtain the FET Form or using THB already held in a Thai bank account disqualifies the buyer from registering under the foreign quota. This is one of the most common mistakes made by first-time buyers.

Long-Term Leasehold (30 + 30 + 30 Years)

Where freehold is not available — because the development is land-and-villa (not a condominium), because the building's foreign quota is exhausted, or by buyer preference — a long-term lease is the most common alternative.

How it works: Under Thai law, the maximum initial lease term for a private individual is 30 years. The lease must be registered at the Land Department to be enforceable. Many developers offer an initial 30-year term with options to renew for a further 30 years (sometimes with a third 30-year option), giving a headline figure of "90-year lease." However, the enforceability of the renewal options under Thai law is uncertain.

The 2008 Supreme Court ruling (Dika 8 ped 2551) has been interpreted as limiting the automatic enforceability of pre-agreed lease renewals. A renewal option written into a lease is not guaranteed to be upheld — in practice it gives moral and commercial leverage, and reputable developers honour them, but a foreign lessee cannot be certain the renewal will be legally compelled. Legal opinion on this point is not unanimous; the question remains a live debate among Thai property lawyers.

Practical protections:

  • Register the lease at the Land Department (a registered lease is binding even if the land is sold to a third party).
  • Include a pre-emption right (right of first refusal to purchase if the landlord ever sells the land) to the extent Thai law permits.
  • Obtain a lease from a corporate landlord (a company), not an individual, since individual landlords die and their heirs may not honour options.
  • Consider whether the lease passes to your heirs in the event of your death; registered 30-year leases generally can be bequeathed under Thai and international succession law.

Thai Limited Company Structure

Some foreign investors use a Thai limited company in which they hold shares — and the company purchases the land. This structure is often marketed as a workaround for the land ownership restriction.

The legal position: Thai law prohibits foreigners from using Thai nominees in a company specifically to circumvent the foreign land ownership restriction. The Land Code and the Foreign Business Act 1999 prohibit the use of Thai nationals as nominees to hold shares on behalf of a foreign national for this purpose. The Land Department and authorities have periodically cracked down on such structures.

A legitimate Thai company in which the foreign investor genuinely does not hold the majority of shares (i.e., Thai nationals hold 51% or more as genuine shareholders with real economic interest) is technically lawful. In practice, if the Thai shareholders hold shares on a nominee basis — taking direction from the foreign investor with no genuine stake — the structure violates Thai law and is at risk of prosecution and forced divestment.

Legitimate uses of a Thai company:

  • A genuine Thai-foreign joint venture where Thai partners have a real interest.
  • A company operating a business (e.g., a serviced villa for short-term rental) where land ownership flows from the business purpose and Thai shareholders have genuine involvement.

For a simple residential investment, a nominee company structure carries serious legal risk and should not be relied upon. Any Thai law firm recommending a nominee company as routine practice for residential investment without substantial caveats is not giving sound advice.

BOI Long-Term Resident (LTR) Visa and Property Rights

Thailand's Board of Investment introduced the Long-Term Resident (LTR) visa in 2022. One category — the Wealthy Global Citizen — requires a minimum investment of USD 500,000 in Thai property among qualifying assets. LTR visa holders gain the right to a long-term renewable visa (up to 10 years, renewable), work permits for themselves and family, and importantly, under BOI notification, certain LTR visa holders may be permitted to own land of up to 1 rai (1,600 sq m) for residential purposes — subject to conditions including the minimum investment threshold and approval by the BOI and Land Department.

As of 2026, this is a relatively new mechanism and individual approvals depend on BOI review. It is not a guarantee of land ownership for all foreign investors meeting the financial threshold, and the practical implementation continues to be clarified. Investors genuinely exploring this route should take current advice from a BOI-registered law firm.

Thai Property Fund / REIT Structure

For investment exposure to Thai property without direct ownership, a foreign investor can hold units in a Thai Property Fund or a Thai Real Estate Investment Trust (REIT) listed on the Stock Exchange of Thailand (SET). This avoids ownership restriction issues entirely and provides liquidity. It is not a direct property holding and the investor does not own any specific unit or land, but it is a legitimate and regulated route to Thai property market exposure.

Inheritance and Succession in Thailand

Thailand has no bilateral inheritance treaty with most foreign investors' home countries. On the death of a foreign condominium owner, the unit can be inherited by non-Thai heirs, including foreign nationals, provided the inherited unit (combined with any other foreign-owned units in the building) does not cause the building's foreign quota to be exceeded. If it would, the heir must sell the unit within one year of inheriting.

For leasehold properties, the lease may be inheritable under the terms of the lease deed; confirm this explicitly in the lease documentation.

Practical steps:

  • Execute a Thai will covering Thai property specifically, or a global will that expressly extends to Thai assets and specifies who should receive the property and under which jurisdiction's law.
  • If no Thai will exists, Thai intestacy law applies to Thai-situated assets — the distribution may not match the investor's intentions.
  • Probate of a foreign will in Thailand requires a Thai court procedure (a process that can take 12–18 months or more); a Thai will avoids much of this delay.
  • Appoint a reliable Thai executor or a Thai law firm as administrator to manage the process locally.

Taxes on Property Ownership in Thailand

Transfer tax and fees on acquisition:

  • Transfer fee: 2% of the assessed value (payable at the Land Department on registration, typically split equally between buyer and seller by convention).
  • Specific Business Tax (SBT): 3.3% of the sale price or assessed value (whichever is higher) if the seller has owned the property for fewer than 5 years; replaced by withholding tax in other cases.
  • Withholding tax: calculated on a sliding scale based on the seller's assessed gain; collected at the Land Department.
  • Stamp duty: 0.5% of the higher of the sale price or assessed value (only where SBT does not apply).

Annual holding costs:

  • Thailand's Land and Buildings Tax (LBT) replaced the outdated house and land tax from 2020 onwards. Rates depend on usage: residential use by the owner is taxed at very low rates (as low as 0.02% of assessed value); investment or rental use is taxed at 0.3% of assessed value; vacant land rises over time.
  • There is no capital gains tax on property transactions as a separate levy for individuals; gains are incorporated into personal income tax calculations where applicable, but the SBT/withholding framework at the Land Department essentially works as a transaction tax.

Practical Recommendations for Foreign Investors

  1. Buy a condominium freehold within the foreign quota for the cleanest title and simplest administration. Always verify the quota remaining before committing.
  2. Remit funds from overseas and obtain the FET Form — this is non-negotiable for foreign quota registration.
  3. Use a 30-year registered lease for villa or land-based property; insist on a corporate (company) landlord and a registered lease; do not rely on nominee company structures.
  4. Draft a Thai will immediately after purchase — hire a Thai lawyer with succession expertise. A Thai will dramatically reduces the time and cost for your heirs to deal with the estate.
  5. Take advice on the LTR visa if you are investing USD 500,000 or more and want to explore the land-ownership route specifically authorised for LTR holders.

How Global Investments Can Help

Global Investments works with established Thai property lawyers and developers experienced in structuring purchases for foreign buyers. We can help you identify condominiums with foreign quota availability, navigate the FET Form remittance process, and connect you with legal advisers for lease documentation and will drafting.

We understand the frustrations of buying in a restricted market and can guide you through the structures that are genuinely enforceable under Thai law — and away from those that are not. Contact our team to discuss your requirements.

This guide reflects the law as understood in June 2026. Thai property law is subject to change; this is not legal advice. Always seek independent advice from a qualified Thai lawyer before proceeding.

This guide is for general information only and does not constitute financial, legal or tax advice. Programme rules, prices and tax rates change; verify current requirements with a qualified adviser before acting.