The section of property in Thailand that covers the rights of use, possession and various kinds of ownership of immovable property is known as real estate or property law.
Thailand has a large number of foreign landowners:
- The Land Code Act governs land ownership in Thailand, and only Thai people are permitted to own land or have a verified right of possession of land under Thai land regulations. Foreigners may not own land in Thailand unless they have a treaty or exception that allows them to do so. Thailand presently has no treaties with any countries that allow foreigners to purchase land in Thailand. Any foreigner who violates the prohibitions on foreign land ownership could be fined or imprisoned for up to two years.
- Only foreigners who meet the requirements of section 96 bis of the Land Code Act are allowed to own up to 1600 square meters of land in certain regions for residential use. Under section 96 bis, foreign land ownership needs a minimum investment of 40 million Baht in BOI-approved Thai bonds and assets that must be advantageous to the Thai economy. If given foreign land ownership under this exemption, the right to possess the land is only provided for the duration of the person who was granted the right to own the land.
Ownership of a condo apartment in Thailand by a foreigner:
- The Thailand Condominium Act allows foreigners and foreign juristic persons to own an apartment unit in a building that has been registered and permitted. Foreign ownership of condominiums is governed by Section 19 of this act, which, among other things, sets a limit on foreign ownership in a condo building and prohibits foreign ownership of more than 49 per cent of all units in a condo project. When all apartments in a condo building have a combined floor space of 6000 square meters, up to 49 of them can be foreign-owned, but 51 or more must be Thai-owned.
Foreigners’ leases and tenancies:
- Foreigners have the same rights as Thai natives when it comes to renting or leasing immovable property in Thailand The Civil and Commercial Code, as well as the Thailand Supreme Court, govern the lease of immovable property for residential use. Foreigners are permitted to lease real estate property in Thailand for up to 30 years under Thai legislation. Unlike buying a condo unit freehold or leasing commercial property under the Hire of Immovable Property for Commerce and Industry by Aliens Act, foreigners do not have to bring foreign cash into Thailand when leasing an apartment, land, or home for residential reasons.
- A long-term lease or leasehold agreement is best described as a prepaid tenancy contract under Thai law. Lease is a personal contract right largely attached to the lessee and is included in Chapter Specific Contracts of the Thailand Civil and Commercial Code. It is not a real property right or true leasehold, but rather a personal contract right principally connected to the lessee. In Thailand, a lease agreement can be cancelled early, it cannot be mortgaged, it is not automatically inheritable due to rent regulations, and the lessee has only the legal right to sublet.
