Buying a Property

Under Thai law, foreigners cannot directly own land in their own name. However, they can legally purchase condominium units, as long as foreign ownership in the building does not exceed 49% of the total unit area. This is the most straightforward method of property ownership for non-Thais. Alternatively, foreigners can acquire land through leasehold arrangements (up to 30 years, renewable) or Thai companies under specific, strictly regulated conditions. The use of Thai nominees is prohibited and can lead to legal consequences, so it is essential to structure the investment lawfully and transparently.

Buying property in Thailand involves several key documents. Each document has its own legal purpose and must be carefully reviewed:

These documents should always be reviewed and, preferably, drafted by a qualified Thai lawyer to avoid loopholes or illegal terms.

Foreign investors who wish to acquire property in Thailand often explore alternative legal structures. One of the most common approaches is to establish a Thai limited company in which Thai nationals hold at least 51% of the shares. It is essential that these Thai shareholders are genuine and not acting as nominees, as the use of nominee shareholders is illegal under Thai law. The company must operate as a legitimate business, with real commercial activity, not merely as a vehicle for land ownership. This structure, while viable, requires careful planning and strict adherence to regulatory compliance to avoid legal issues.

In addition to corporate ownership, foreign nationals may also consider government-endorsed programs like the Thailand Board of Investment (BOI) and the Thailand Elite Visa. The BOI offers specific privileges to investors in targeted industries, including extended land lease rights and potential tax incentives. The Thailand Elite Visa, on the other hand, provides long-term residency options and may offer additional property-related benefits, such as ease of property leasing or transfer. These programs are designed to attract foreign investment and can be a strategic option for those looking to combine residency benefits with real estate opportunities.

Choosing the right legal structure and investment pathway is a crucial decision that should be based on your long-term goals, tolerance for risk, and the regulatory landscape. Incorrect structuring can result in fines, forced divestment, or even criminal liability. For this reason, investors are strongly encouraged to work with experienced legal and financial advisors. These professionals can help navigate complex laws and ensure that your property acquisition is both compliant and strategically sound. For official guidelines and legal resources, visit the Thailand Land Department’s website.

The Sale and Purchase Agreement (SPA) is a critical legal document in any real estate transaction in Thailand. It defines the rights and obligations of both the buyer and the seller and includes essential elements such as payment terms, property details, conditions for ownership transfer, penalties in case of default, and mutual representations and warranties. A properly structured SPA provides legal protection to both parties and ensures a smooth transaction process.

Without a well-drafted SPA, buyers may face significant risks, including fraud, unclear ownership rights, or disputes over payment terms. To minimize these risks, the SPA should always be reviewed by a legal professional and drafted in both Thai and English to ensure mutual understanding. Taking these precautions helps avoid costly legal issues and ensures that the transaction complies with Thai property laws. For more guidance on property transactions in Thailand, you can refer to the Department of Lands.

Transferring property ownership in Thailand involves several administrative steps that must be completed at the local Land Office. Below is a summary of the key actions required from both the buyer and seller to ensure a smooth and legal transaction.

If you’re acquiring land through a lease or company structure, the Land Purchase Agreement governs the transfer of land or lease rights. It ensures the transaction is legally compliant and protects both parties involved.

Due diligence is a crucial step that must be completed before signing any agreements or making payments when purchasing property in Thailand. It helps protect buyers from potential legal and financial risks by thoroughly examining the property’s legal and physical status. This process typically includes verifying the Chanote (title deed) to confirm legal ownership and boundaries, checking for existing mortgages or encumbrances, and ensuring that zoning and land-use regulations permit the intended use of the property (residential, commercial, etc.).

If purchasing land or off-plan units, buyers should also review construction permits and plans and confirm that the seller has the legal authority to transfer ownership. For condominiums, it’s essential to verify that the unit complies with the Condominium Act, especially for foreign buyers. This comprehensive review should ideally be handled by a qualified Thai lawyer experienced in real estate transactions, who understands both the legal framework and local practices. For further guidance, visit the Thai Ministry of Land.

While hiring a real estate agent is not legally required when purchasing property in Thailand, it can make the search and negotiation process more efficient—especially for foreigners unfamiliar with the market. However, it’s important to proceed with caution. Real estate agents in Thailand are not always subject to strict regulation, and some may prioritize the seller’s interests over yours. Be sure to work with a reputable agent who understands your needs and can act in your best interest.

Engaging a lawyer is highly recommended. A qualified lawyer can conduct due diligence on the property, verify the legitimacy of the seller, and ensure that the title deed is clear of encumbrances. They will also draft or review contracts, advise on taxes and transfer fees, and represent you at the Land Office if needed through a power of attorney. Considering the risks of fraud or non-compliance, the legal cost is minimal and offers invaluable peace of mind. For more guidance, consult the Thailand Law Library by the Office of the Council of State.

A Leasehold Agreement in Thailand allows foreigners to use and control land or property without owning it outright. The maximum lease term permitted by Thai law is 30 years, with the possibility of two additional 30-year renewals. However, it’s important to note that renewal clauses are not automatically enforceable, meaning they depend on the willingness of both parties at the time of renewal.

A well-drafted Leasehold Agreement should clearly define the lease term and renewal conditions, the permitted use of the property (residential or commercial), maintenance responsibilities, rights to sublease or resell, and provisions regarding inheritance or transfer. For the agreement to be legally valid and enforceable beyond three years, it must be registered at the local Land Office. Only registered leases offer full legal protection under Thai law. Without proper registration, the lease may be deemed invalid after three years.

When buying property in Thailand, it’s important to understand the various taxes and fees involved. These costs vary based on whether the transaction is with a developer or a private seller, and whether the property is freehold or leasehold. Below is a breakdown of the main costs typically encountered during the purchase process:

Buying property in Thailand is an exciting opportunity but requires a solid understanding of local laws, procedures, and documentation requirements especially for foreign investors. From selecting the right ownership structure to conducting thorough due diligence and registering your ownership, every step must be carefully managed. At Themis Partner, our bilingual legal team offers all the necessary contracts and legal guidance in English and Thai to ensure your investment is secure and compliant with Thai law. Whether you’re purchasing a condominium, building a villa, or structuring a leasehold, we’re here to protect your interests and make the process as smooth as possible.