Foreigners can indeed purchase property in Thailand, though the process differs from that for Thai nationals and requires careful research to navigate the available options effectively.

Owning Property in Thailand

Owning a condominium in Thailand under foreign freehold is the most straightforward option. Owning a home on a piece of land is also possible. Most buyers choose to lease the land while owning the structure on the land. Other buyers set up a Thai company whereby the land is held as a company asset.

Each option has its pros and cons, and those typically depend on what type of property is being bought. Let’s break this down by the types of property ownership mentioned above.

Can Foreigners Buy a House in Thailand?

Foreigners cannot directly own the land upon which a villa sits, but if they wish to buy a villa or house in Thailand and the land surrounding it, they may do so via one of two proven methods.

When purchasing from a developer, home buyers can lease the land from the developer while owning the structure of the home under foreign freehold. Lease agreements lower closing costs and run for 30 years. These leases can then be extended twice for an additional 30 years each–totaling a 90-year lease.

Other buyers prefer to register a company in Thailand whereby the land upon which a villa sits is owned under the company’s name. This is known as "Thai company freehold," whereby the Thai company holds the property as an asset. This ownership structure has worked for tens of thousands of homeowners. That being said, due to the added complexity of this type of ownership structure we suggest engaging a reputable lawyer to minimize risks.

How to Buy a Condo in Thailand Foreign Freehold

Whether you call it a condo, an apartment, or a flat, according to the 1979 Thai Condominium Act, up to 49% of a condominium block in Thailand can be owned by foreign nationals. This space is called the "foreign quota" and it is based on the total available living space rather than the total number of units.

Due to higher demand, foreign freehold space typically sells faster and it therefore holds a higher value on the market.

A legal requirement for foreign freehold property is that the funds used to purchase the condo must be transferred into Thailand from abroad. Upon receiving the funds, a Thai bank will issue a Foreign Exchange Transaction (FET) form which needs to be presented at the land office in order to receive ownership of the land title.

What is a Leasehold Title?

A low-cost and easy way for foreigners to obtain property in Thailand is through a leasehold agreement. Strictly speaking, the lease term runs for a maximum period of 30 years. However, two subsequent lease renewal periods of 30 years are recognized under the Thai Civil and Commercial Code and specified in the initial purchase agreement, resulting in a total ownership duration of 90 years.

We have a whole article about leasehold ownership of property in Thailand where you can find more information.

Power in Numbers—and the Law

According to InvestASIAN, “A greater number of foreigners buy property in Thailand than any other country in Asia.”

These investors are intelligent, fiscally savvy individuals who see the Thai property market for its true potential. Whether for investment or residential purposes, Thailand has proven itself as a secure and profitable option for over three decades.

Thai law is also clear where ownership rights are concerned. We recommend you conduct thorough research via reliable sources and find a reputable lawyer to help guide you through the process.

Phuket Property Consultations

From purchasing via a holding company to direct foreign freehold ownership of condominium units, contact us to find out more about the options available for foreigners looking to buy property in Thailand.

Here at Pulse Real Estate, we provide free property consultations to anyone interested in buying property in Phuket. The information we provide is always honest, current, and accurate. Whether you’re buying a residential or investment property, we’ll tailor our information to suit your preferences, your schedule, and your budget. Once we have the information we need, we’ll curate a shortlist of properties for your consideration.