3 ways foreigners can buy real estate.
Foreign nationals wishing to purchase real estate in Thailand are currently only permitted to buy condominiums. While the government has implemented measures to attract foreign ownership and stimulate the Thai real estate market, several factors remain unresolved regarding allowing foreigners to purchase houses in Thailand.
For condominiums, the proportion of units foreigners can own has been increased. Foreign ownership is limited to a maximum of 49% of the total area of each condominium project. Once a building is fully owned by foreigners, foreigners can no longer purchase units in that building.
Furthermore, foreigners can only purchase the building itself, excluding the land, as Thai law prohibits foreigners from owning land.
Although foreigners cannot own real estate in their own names, there are still ways they can acquire property in Thailand:
__________________________________________
1. Purchase through a Thai limited company.
The company must be a joint venture between Thai and foreign nationals, with foreign investment not exceeding 49% of the total. Foreign nationals can maintain control of the company through the hiring of foreign managers, granting a majority of voting power to foreign shareholders, or through the legal authority of a lawyer representing the Thai shareholders.
If a foreign national wishes to use this method, they will need to hire a lawyer to assist with the process.
__________________________________________
2. Purchasing a Condominium
Legally, condominiums are the only type of real estate that foreigners can own in their own name. Foreigners can purchase the entire building, excluding the area where it stands.
__________________________________________
3. Joint Purchase with a Thai Citizen
Marrying a Thai national and purchasing real estate in the spouse's name may be unsafe, as ownership will belong to the Thai spouse. In case of problems or conflicts, the foreign co-buyer will be at a disadvantage, unable to legally claim ownership of the property.
However, foreigners can enter into a lease agreement specifying details such as the rental fee and conditions regarding the foreigner's desire to sell the property.
If a foreigner marries a Thai national and subsequently divorces, the property remains the property of the Thai spouse. Nevertheless, the foreign buyer can protect their rights by entering into a 30-year lease agreement with renewal options. The lease must be registered, with a suitable duration of 3 years for each renewal.
__________________________________________
After 30 years, the foreign buyer can renew the lease, but the lease agreement will not be registered. This means that Thai owners can sell the property without the foreigner being able to dispute it.
However, renewing a lease after 30 years without proper authorization carries the risk that the Thai tenant may sell the property even while the lease is still held by the foreigner. Furthermore, lease renewal costs tend to increase significantly over time compared to the initial price.
__________________________________________
Thank you for the valuable information from DD-Property.
