Freehold acquisition – Full ownership
Thanks to the Thai Condominium Act, promulgated in 1979, it is possible for non-Thai nationals to buy a freehold apartment in Thailand under the following conditions:
- Buying in a Condominium building eligible under the Condominium Act. This type of apartment is widespread in major cities such as Bangkok and Pattaya.
- Acquire it within the “foreign quota”, which represents 49% of the residence’s living area. In other words, for the purchase to be possible, foreigners must not own more than 49% of the total surface area of the building. The remaining 51% is reserved for Thai citizens.
- Transfer all funds covering the purchase from abroad in foreign currency. You must be able to prove that the funds used for the purchase came from abroad.
Buying a condominium apartment
It is therefore possible to purchase an apartment in a condominium on a freehold basis, provided, of course, that you do so in a complex that complies with the Condominium Act. In most of these “Condominium” apartments, you’ll find European quality standards, with services such as receptions, 24-hour security, communal swimming pool, gym… These services are maintained by the co-ownership.
For example, you could buy a fully-equipped apartment with a communal swimming pool, gym, SPA… The property can be used for residential purposes all or part of the year, or as an investment property for rental purposes.
Leasehold acquisition
A leasehold is a legal form of property or land ownership. This lease is written and registered with the Land Office.
The term of the lease may not exceed 30 years. The Thai Civil Code provides that this term may be renewed and, in practice, it is generally accepted by the Land Office that the initial term may be renewed twice, for a total term of 90 years. When signing a lease contract, it is preferable to include a clause stipulating automatic renewal of the lease.
During the holding period, it is possible to sell the property. This transfer will be registered with the Land Office.
Buying an apartment
You can buy a leasehold apartment. This type of property is often used in hotel investment real estate. Many programs offer buy-back by the developer at the end of a predefined period (often 5 to 15 years) and on predefined contractual terms. Here, the aim is not to acquire a property for life, but to make a return on investment with medium- to long-term capital recovery.
Buying a home
The most common way to own a house is to leasehold it, as it is not possible for a foreigner to fully own the land in Thailand. In this way, you acquire the land on a lease basis, while retaining ownership of the walls of your home.
To acquire a house, it is strongly recommended that you contact a lawyer specializing in property law in Thailand. Because the specific characteristics of each property vary, it’s important to have the right support.
Resale
You are free to resell your property during the lease hold period as freely as you acquired it.
Contact us so that we can provide you with all the legal and tax information you need for your project.
