Foreigners can now own land in Thailand: Land Dept
Thailand updates criteria for foreign land ownership: heirs can inherit land, investors need 40 million baht, writes The Nation.
Foreign land ownership in Thailand is a complex issue, primarily dictated by the Land Code Act of 1954, which generally prohibits foreigners from owning land outright. This law is designed to maintain national control over Thailand’s valuable natural resources.
There are, however, exceptions to this rule. The Board of Investment, for instance, permits land ownership for foreign investors in certain business categories. Also, according to Thailand’s Condominium Act, foreigners can own up to 49% total space of a condominium building.
Despite these allowances, the property ownership laws has been quite stringent for non-natives, and anyone interested in acquiring property in Thailand must be fully aware of these complexities. It’s important to ensure all property dealings abide by the country’s legal framework to avoid future complications.
We are not really there yet, but here is some positive changes for foreigners:
The Land Department has recently updated the criteria regarding foreign ownership of land in Thailand.
Inheritance: Non-Thai nationals who are legal heirs of foreigners permitted to hold land are eligible to inherit the land holdings.
However, such inheritance must adhere to the regulations outlined in the land-holding laws or the criteria governing land ownership by foreigners.
For instance, heirs may inherit up to 1 rai (0.160 hectares) of land for industrial use or up to 10 rai (1.60 hectares) for agricultural purposes. The utilization of the land must also align with the permissions granted to the original owners.
Land Purchase: According to Article 96 of the Land Code, foreigners are allowed to purchase 1 rai of land for residential construction upon investing a minimum of 40 million baht in the country.
This investment must contribute to Thailand’s economic and social welfare or fall under the categories endorsed by the Board of Investment.
The investments should be sustained for at least three years, and the residential property acquired by foreigners must be situated in Bangkok, Pattaya, or any other municipality.
Land Transfer: Foreigners can undergo land transfer procedures in accordance with relevant laws, such as the Investment Promotion Act of 1977.
The Land Department emphasizes that Thai nationals acting as nominees to hold land for foreigners may face a maximum imprisonment term of three years, a maximum fine of 6,000 baht, or both.
Foreigners found guilty of unlawfully acquiring land may face a maximum daily fine of 20,000 baht and/or a maximum imprisonment term of two years.
Source: Land Department/The Nation
