Buying Property in Thailand

Buying property in Thailand offers more than just access to beautiful golden beaches and delightful weather; it’s an opportunity to invest in a sought-after location favoured by tourists for its affordable real estate and low cost of living. This guide delves into what you need to know about navigating the local market, from understanding property prices to navigating legal requirements as a foreigner. Explore essential tips to help you purchase your dream home in Thailand.

What is the property market like in Thailand?

As you may be aware, after Covid-19, property prices in Thailand significantly decreased due to an unstable economy. This economic downturn was compounded by a shift in priorities among individuals and businesses, resulting in reduced demand. Specifically, the restrictions on international travel meant fewer foreigners were buying property in Thailand, leading to a noticeable decline in construction activities.

However, despite these challenges, condominiums have remained a popular choice for buying property in Thailand. Looking ahead, many economists predict a recovery in the overall Thai housing market. This anticipated rebound is contingent upon several factors, with the country’s economic growth trajectory being the most critical. A sustained economic improvement is expected to boost confidence and investment in the real estate sector.

Buying Land In Thailand as a Foreigner: What You Need to Know

Buying a property in Thailand for foreigners (unless it is a condo or apartment) is legally not allowed. However, there’s a strict policy even when it comes to purchasing one. The rule states that non-citizens cannot make up more than 40% of the total owners in an apartment block or condo. Therefore, if you are interested in buying a property in Thailand like a villa or larger property, you might be able to do so through a leasehold agreement, which allows you to use the property only for a specific period.

Another option is to set up your own private company if you want to buy land or a house. The company must combine Thai and foreign ownership, with foreign ownership capped at 49%. This allows the company to purchase land or property in Thailand. However, going through this route typically requires the assistance of a lawyer to help you with legal paperwork.

Buying Land In Thailand As An Expat

Expatriates interested in buying property in Thailand should note that Thai law restricts direct land sales to foreigners. However, there exists legislation that permits foreigners to own and construct buildings on leased land for periods ranging up to 30 years.

While leasehold purchases are typically straightforward, potential buyers must understand that lease agreements for properties in Thailand are now capped at 30 years. Extensions of ten to thirty years are possible under certain conditions, often involving a premium at renewal. For navigating these legal nuances, it is advisable to consult a reputable real estate agent well-versed in buying property in Thailand, especially concerning leasehold properties and agreements.

Ways For Expats To Purchase Landed Properties in Thailand

Buying property in Thailand can be done legally through a number of exclusions and workarounds. Even though these approaches are permissible by law, it is highly advised that you work with a brokerage and a lawyer to negotiate the details of these processes.

• Establish a Thai Company: Create a fully operational Thai company that generates consistent income within Thailand. You can utilise the company to purchase a villa, townhouse, penthouse, or any other type of property.
• Purchase Through a Thai Spouse:  When it comes to renting, leasing, mortgaging, or selling the property, your Thai spouse will have total power. Consider getting your spouse to sign a lease for the property that may last up to 30 years. This will give you some legal protection and offer the option to live in the house while she keeps ownership of the land.
• Board of Investment (BOI) Investment: Make an initial investment of THB 40 Million or a higher amount through the Board of Investment. This investment makes you eligible to own property covering an area of up to 1600 sq metres of land per THB 40 Million invested in Thailand through the BOI.
• Purchase Through a Thai Friend: Safeguard your interests by taking a lease on the property from your Thai friend. Be cautious, as legally, your friend’s name will be on the title deed, and your involvement may not be recorded. 

How can I find a property in Thailand?

When buying property in Thailand, considering local estate agents who are familiar with the market is wise, but caution is necessary due to the industry’s minimal regulation. It is recommended to thoroughly research the agent’s background and seek solid recommendations. Online property platforms can also be a convenient starting point for your search. Avoiding common pitfalls associated with buying property in Thailand is crucial. These include neglecting to hire a specialist real estate lawyer, failing to conduct due diligence on the property and developer, and the risks involved with non-refundable deposits.

Frequently Asked Questions