|
Read about some of the most common legal questions around owning a home in Thailand. Our team will be more than happy to answer any further questions you may have, assist you in making the legal choices that suit your needs, and get you in contact with trusted legal advisors to make your investment a hassle free and safe transaction.
|
The key issue is that foreigners cannot own land in Thailand. However, they can own a house or a condominium, and there are multiple ways to secure real estate investments. Which way is the best depends on the individual situation and requirements of the real estate investor and should be subject to legal counseling.
|
FREEHOLD
|
|
Are You a Natural or a Juristic Person?
Under the Civil and Commercial Code of Thailand a juristic person enjoys the same rights and is subject the same duties as a natural person.
The Foreign Business Act and Section 97 of the Land Code provide that alien person includes a juristic person with half of the shares constituting its capital held by alien. Therefore, a company with less than half of the shares held by alien has the same rights as a Thai Person.
Under Section 1144 of the Civil and Commercial Code, every limited company shall be managed by one single director or multiple directors under the control of the general meeting of shareholders and according to the by-laws of the company.
|
Mortgage
Foreigners are entitled to acquire mortgages in their favour as collateral for financial support to Thai persons or Thai companies. There is no period limit on such mortgage.
|
LEASEHOLD
|
|
|
Foreign customers have the possibility to possess their land through other legal instruments.
The most popular of these is a lease agreement.
|
Typically, the lease period is 30 years, with option to renew two times, bringing the total lease period to 90 years. Furthermore, the lease agreement will include an option for the customer to convert the lease agreement into a freehold ownership at any time should the customer wish (e.g. if the Thai law changes and allows foreigners to own freehold land, or if the customer obtains Thai citizenship, or if the customer sells the property to a Thai person or company).
|
|
