This is an introduction on Thailand Real Estate Property Ownership and how to own property in Thailand. I will cover the legal ownership structures for real estate property in Thailand.
In countries like Europe and The United states buyers can own property on a freehold basis, however, in Thailand freehold ownership of real property by non Thai citizens is prohibited.
We will cover the 5 types of legal interests that can be acquired by a foreign investor.
FOREIGN FREEHOLD CONDOMINIUMS
Foreign buyers are allowed to own on a freehold basis up to 49% of private living space of a legally registered condominiums. The remaining 51% needs to be owned by a Thai National. It is worth noting that condominium developments are highly regulated.
According to the Condominium Act of Thailand, Condominium Developers are subject to several legal requirements and regulations, including prohibiting false advertisement, limiting late payment fees and setting standard terms for sale and purchase agreements.
The maximum term of a registered residential lease term in thailand is 30 years, which applies to both foreign and thai investors alike. A 30 year lease is not a particularly attractive investors for for investors looking for long term property ownership, but many developers offer contractual renewals for multiple term leases.
COLLECTIVE LEASEHOLD OPTIONS
Savvy developers offer protected or collective leasehold structure to international buyers in residential developments. In addition to getting a 30 year lease, the investor is also provided a share in an offshore company which in turn owns shares of a limited Thai company which owns the project land. This allows buyers acting collectively to exercise control over certain important decisions of the land owning company related to the land, including lease renewal contracts.
OWNERSHIP OF BUILDINGS
International investors should note that foreign investors can own buildings in Thailand directly in their own name, but it is important to ensure that paperwork for registering and transfer of building ownership is in order to avoid complications later trying to sell the building or if the land goes up for sale.
Fractional ownership refers to the partial ownership of property by multiple investors who each invest a fraction of the cost of the property and in return are entitled to a certain use right in proportion to investment.
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The information contained herein is provided as an information service only and may be subject to errors, omissions, changes, withdrawals, and deletions.I am not liable for direct, indirect or incidental damages resulting from the use of the information contained herein for any purpose.