Can a Foreigner Buy Property in Thailand?
Can a Foreigner Buy Property in Thailand?
Owning Property in Thailand as a Foreigner
The Land of Smiles is one of the most popular countries in the world for tourism. Every year more travelers fall in love with the culture, the people, weather, cities and the beaches. Many people find they just don’t want to leave. One of the most common questions asked by foreigners from all over the world when they fall in love with Thailand is, “Can a foreigner buy property in Thailand?”
A quick search online may be a bit discouraging at first. The landscape may appear to be hostile and unwelcoming, especially regarding restrictions on direct land ownership for foreigners. But before you get worried or put off by the idea, rest assured knowing that legions of other Thailand expatriates and investors have paved the way for you.
Can a Foreigner Own a Condo in Thailand?
Whether you’re searching for the perfect retirement, vacation, rental, or investment condominium in Thailand, you’ll want security for your condo property. Fortunately, condominium ownership is straightforward. Read more on property investment in Thailand
Outright ownership is only permitted for condominiums in Thailand – this means a full title deed and ownership rights as pertains to the condominium unit. This is the most secure type of property for foreigners to purchase, as no legal restrictions exist that must be skirted. The only rule is 51% of condominiums in a building must be owned by Thai people or in a limited Thai company name. For an in-depth breakdown on this take a look though our complete guide to Buying Property in Thailand as a Foreigner
Foreign Ownership of Land in Thailand
Foreign ownership of land is restricted in Thailand – as a form of protectionism for the developing local economy, it makes sense. This can make it seemingly impossible to appropriate a home or land in Thailand. Although a bit of work has to be done, there are ways around it while ensuring ownership security.
Limited Liability Companies can be formed, with foreign ownership restricted to 49% of existing shares. With remaining shares disbursed to a number of different Thai people, effective control of land, property, and businesses owned by the LLC is in your hands – you just need 2% of the other share holders to go along with you.
The LLCs can be somewhat daunting to set up, and incur additional fees to maintain, but the resulting ownership security can is well worth it. Alternatively, 30 year leaseholds on land can be set up that offer legal protection for the duration. Although not technically owning the land and the property on it, the effective result is the same. The Thai government is currently discussing extending leasehold for foreigners from the existing 30 years to 50 years, and that will most certainly be a welcomed step in the right direction – More information on that featured in The Nation Newspaper
Can a Foreigner Buy Property in Thailand on Finance
As a foreigner, you’ll be required to bring in foreign funds in order to purchase property or land in your name. This is largely for condominiums, townhouses, and homes themselves, as foreigners are unable to hold land in their name. In order for a foreigner to purchase and hold property in their name, funds must be proven to have originated from outside of Thailand.
Furthermore, the funds transferred from abroad will often have to be in a lump sum for the full amount. Thai banks are generally unwilling to lend to foreigners looking for a mortgage, even those who are working and living in Thailand long term have to go through a long and tedious selection process.
Even if a mortgage and loan are successfully negotiated, proof of funds originating from outside of Thailand must be submitted. The difficulty here is considerable for foreigners who are unable to purchase property or land outright.
The best and easiest way to secure financing on a property in Thailand is via finance and payment plans directly from property developers who will offer monthly payments of up to ten years for foreigners as long as you have a specified deposit amount in place.
Don’t be discouraged if you’ve been asking the question can a foreigner buy property in Thailand…
So, can a foreigner buy property in Thailand? Well, like all of the best things in life, you may have a lot of hoops to jump through to get to owning your dream property in Thailand as a foreigner. Giving up will ensure you never get what you want.
The Land of Smiles is undoubtedly one of the best places to live in the world. Property acquisition may be a bit challenging, but the rewards are more than worth it. Whether you’re looking for that perfect property for personal use, or looking for a rental property with good returns – there’s ways to make it work.
Still considering buying a property in Thailand? Why not take a look at our complete guide to Buying Property in Thailand as a Foreigner