Understanding Foreign Land Ownership in Thailand

Understanding the rules around land ownership in Thailand as a foreigner can be complex. With this blog post we try to clarify the legal framework governing foreign land ownership in Thailand and we give a concise overview of all, ensuring you stay informed and compliant with the local laws.

General Restrictions on Foreign Land Ownership

In Thailand, foreign land ownership is generally prohibited. According to the Land Code Act, foreigners cannot own land directly. Violations of these restrictions can result in severe penalties, including fines and imprisonment.

Historical Context and Treaties

Before 1970, Thailand had treaties with 16 countries allowing their nationals to own land in Thailand.

These countries included the USA, England, Switzerland, Germany, Denmark, Norway, the Netherlands, France, India, Belgium, Sweden, Italy, Japan, Burma (Myanmar), Portugal, and Pakistan.

However, these treaties were terminated on February 27, 1970, and since then, no new treaties have been made to allow foreign land ownership.

Current Legal Framework: Section 96 bis

Foreigners can acquire land in Thailand under specific conditions outlined in Section 96 bis of the Land Code Act. These conditions include:

Investment Requirement: Foreigners must invest at least 40 million Baht in Thailand. This investment must be maintained for at least five years and can include investments in government bonds, property mutual funds, or businesses that benefit the Thai economy and are approved by the Board of Investment (BOI).
Approval and Location: Foreigners must obtain permission from the Ministry of Interior. The land must be used for residential purposes and be located in Bangkok, Pattaya, municipalities, or designated residential zones, excluding military safety zones.
Usage Restrictions: The land must be used solely for residential purposes, and the usage must comply with local customs and community standards.
Compliance: If a foreigner fails to meet these conditions, they must dispose of the land within a specified period (180 days to one year). If the land is not used for residential purposes within two years, authorities have the power to dispose of it.

Section 96: Preventing Illegal Acquisition

Section 96 of the Land Code Act addresses situations where land is acquired by foreigners indirectly through Thai nominees or agents.

If discovered, the Director-General of the Department of Lands has the authority to order the disposal of such land within a specified timeframe.

Inheritance and Marriage Provisions

Foreigners can acquire land by inheritance, but with area limits:

Residential Purpose: Not exceeding 1 rai per household.
Commercial Purpose: Not exceeding 1 rai.
Industrial Purpose: Not exceeding 10 rai.
Agricultural Purpose: Not exceeding 10 rai per household.

Thai spouses of foreigners can purchase land if they confirm that the funds used are their separate property and not jointly acquired.

Fees & Taxes

Fees: 0.01% of the valuation price for land in development projects, otherwise 2%.
Taxes and Duties: Paid according to the Revenue Code.

Why Choose Closer Law?

Understanding the intricacies of foreign land ownership in Thailand is crucial for compliance and making informed investment decisions.

If you have any questions or need legal assistance regarding land ownership, our experienced team at Closer Law is here to help. Contact us today for personalized legal advice and support; our phone number is listed below.

We provide:

Expert legal advice tailored to your specific situation
Assistance with documentation and fair practices
Representation in negotiations or, if necessary, in court

Together, we can safeguard your success and ensure your peace of mind.

Contact us today

📞 Call us: +66 (0)61 645 8553