Can Foreigners Own Land in Thailand?

A Guide for Foreign Land Buyers

According to Thai law, foreign nationals are generally prohibited from purchasing freehold land. However, with proper legal support, there are ways to control and own property. Foreigners can own no more than 49% of the shares in a Thai limited company that owns freehold land. They are also allowed to own buildings, such as condominium units, separate from the land.
How Can Foreigners Own Land in Thailand?

The two most secure methods for foreigners to own land in Thailand are through a leasehold agreement or by setting up a Thai limited liability company.

There are three main types of land title deeds in Thailand

Understanding Thailand Land Titles

Chanote (Nor Sor 4 Jor)

  • Description: The Chanote is the most recognized and preferred land title in Thailand, granting full ownership rights. With a Chanote, you can subdivide, sell, transfer, assign, or use the land as collateral. This title is the most accurate in terms of land measurements, making it ideal for those planning to own land in Thailand. Most condominiums are built on Chanote titles.

Nor Sor 3 Gor

  • Description: This title is issued for land awaiting a full Chanote deed. The land is surveyed by the Land Department, providing exact boundaries. Nor Sor 3 Gor land can be sold, transferred, mortgaged, or subdivided. The owner can petition to upgrade this title to a Chanote if there is no opposition.

Nor Sor 3

  • Description: Issued by a district land officer, the Nor Sor 3 title has not been fully surveyed, leading to potential boundary disputes. This title gives the right to possess the land, but not full ownership. Any transfer or sale must be publicized for at least 30 days. Nor Sor 3 can later be upgraded to Nor Sor 3 Gor or Chanote.

Additional Land Titles Other land titles exist but offer limited rights and are not recommended for foreign buyers.

Land Measurement in Thailand

Land in Thailand is measured differently than in Europe, the UK, or the US. Common units include Wah, Talang Wah, and Rai.

Advantages of Freehold Property

  • A freehold property purchase, while potentially slower and more expensive than a leasehold, offers the advantage of complete ownership. You can sell, lease, or develop the property under Thai law.

Advantages of Setting Up a Thai Company to Buy Land

  • Owning land through a Thai company offers permanent ownership as long as the company exists. This method is beneficial if you plan to set up a business in Thailand or purchase land as an investment, as it allows for mortgaging or subdividing the land.

Disadvantages of Setting Up a Thai Company to Buy Land

  • Foreigners (except Americans) cannot own more than 49% of a Thai company’s shares. You will need Thai shareholders who will sign over control of their shares to you, which requires careful legal arrangements to protect your investment. Additionally, you must maintain regulatory compliance to avoid de-listing of an inactive company.

Thailand Land Leases

Do You Need to Register a Land Lease? Leases up to 3 years do not require registration. Leases of 3 years or more must be registered at the Land Department.

Maximum Lease Term The standard lease term is 30 years, with an option for two extensions of 30 years each. Each renewal must be registered. For industrial land, foreign companies may lease land for up to 50 years, with a possible extension of another 50 years.

Advantages of Leasing Property

  • Leasing is the quickest and most cost-effective method for foreigners to secure property in Thailand. It also involves less responsibility compared to ownership.

Disadvantages of Leasing Property

  • Leasing offers less control compared to freehold ownership. Even though leases can be renewed up to 90 years, there is a risk that the lease may not be renewed due to changes in law or the landowner’s decision. Legal disputes over lease renewals or violations can be costly and time-consuming, and obtaining a mortgage for a leasehold property is challenging.