The Land of Smiles is one of the most popular tourist destinations on the planet, with more than 30 million tourists visiting in 2023, so it is no surprise that many westerners decide to spend their golden years in this enchanted land. The number of retirees in Thailand is growing exponentially and there are many reasons for this, and with that in mind, in this short article, we delve into property ownership in Thailand.
Foreigners are not permitted to own land in Thailand
This is unusual for a European; in the UK, for example, if you have the money to buy real estate, it matters not your nationality; however, third-world countries must be careful, otherwise rich foreigners could buy up regions of their country. This law was passed in 1954 to prevent Japanese investors from buying up Bangkok, yet not all is lost, there are ways to acquire real estate legally.
Set up a limited company
If you team up with a Thai national, you can set up a company with you holding 49% of the shares, while your Thai partner holds the remaining 51%. The business entity can acquire land, so you buy in the company name. You should know that, setting up a company with the sole aim of acquiring land is actually illegal and if the Thai authorities become aware that your business entity is not trading, they could confiscate the land. The company must be trading, pay taxes and keep accounts; you could, for example, set up a company with your Thai spouse and then open a restaurant, combining a business venture with the land purchase. There is affordable property for sale in Pattaya, Thailand from a leading real estate agent and they can handle the legal aspects on your behalf.
Leasing land (30×30)
This is the most popular way to secure your dream home; lease a plot of land for 30 years, with a further option of another 30 years, then you can build your dream home. The cost of the lease would be on a par with freehold prices, but you have an asset that you won (the house), you just don’t own the land it sits on. You can leave your home to someone in your will and the extra 30-year option is available, securing the property. If you are going to lease, ask a Thai lawyer to look at the lease before you commit, to ensure that you are protected. You might, for example, wish to extend and that should be agreed upon in the lease. Here is an informative article on choosing a builder for your project.
Foreign investment
If you are prepared to invest 40 million Thai baht, you can buy a small plot of land for residential purposes. Click here for information on investing in Thailand. There are a few treaties in place with some countries that allow specific nationals to acquire land in Thailand; check online.
