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Ownership of land in Thailand is not open to non-Thai nationals. The Land Code prohibits foreign natural or foreign juristic persons from owning land in Thailand. Irrespective nationality, location or land title, foreigners can't own land in Thailand. Section 86 Land Code Act: 'Foreigners may acquire land by virtue of the provisions of a treaty giving the right to own immovable properties and subject to the provisions of this Code'. |
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The last treaty allowing foreigners to own land in Thailand has been terminated in 1970 and since then Thailand has no longer made any treaty with any country to allow a foreigner to acquire land in Thailand. Therefore: ownership of land is NOT open to non-Thai nationals. |
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It has been common practice for foreign investors to hold land under a Thai company structure, however, since the land office guidelines ( article) followed by the business registration rules and the proposed amendments to the Foreign Business Act the question is currently if a company incorporated to hold land on behalf of a foreigner is illegal and unlawfully holding land and if the government will clamp down on existing land holding companies. Currently partly foreign owned companies holding land are still ignored by the government, even though these companies could under present law as such nominee structured land holding companies easily be deemed illegal and a front for unlawful foreign land ownership. Foreigners who have set up companies to circumvent the law are very much at the mercy of the Thai government and how they will implement and enforce the law. Also stricter enforcement of existing laws relating to foreigners operating a business in Thailand could make it difficult or costly for foreigners to control a majority Thai owned company or to own land under a company structure. Also read section 'land holding companies' and 'companies and business'
Section 94 of the Land Code; 'All the land which an alien has acquired unlawfully or without permission shall be disposed of by such alien within the time limit prescribed by the Director-General which shall not be less than one hundred eighty days nor more than one year. If the land is not disposed of within the time prescribed the Director-General shall have the power to dispose of it. The provisions on the forced sale of land in chapter 3 shall apply mutatis mutandis'.
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Ownership of land is not open to foreign companies (including Amity (US) companies, BVI companies or any other foreign juristic entity). Foreign companies with substantial investments benefiting the Thai economy may have special privileges and exemptions granted under section 27 of the Investment Promotion Act, Under section 44 of the Industrial Estate Authority of Thailand Act or section 65 of the Petroleum Act (generally for the duration of their business in Thailand). |
The Thai government created one exception to the rule in the Land Code Amendment Act B.E. 2542 (1999) (section 96 bis Land Code Act) allowing foreigners to acquire 1 Rai (approx 1600 sq.m) for residential purposes. Under the amendment Act granting permission is subject to the permission of the Minister of Interior and among other rules and restrictions (location) requires the foreigner to remit not less than 40 million Baht (approx 800,000 EURO) into Thailand for specific investment purposes approved by the Board of Investment (BOI approval) benefical to Thai economy for a specific period of time (in addition to the investment in the real estate property). This is not a viable option for foreign individuals and the exception to the rule was invoked to enable foreign embassies and multi nationals to purchase large houses for their ambassadors and CEO's).
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Requirements to be granted the right to acquire 1 Rai with permission of the Minister of Interior: the land to be purchased shall be not more than 1 rai in area, and the following rules and conditions must be met:
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Bringing money not less than Baht forty million into the Kingdom for investment and maintaining the investment not less that three years; |
| 2. |
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Permission must be obtained from the Minister of Ministry of Interior; |
| 3. |
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Money brought into the Kingdom shall be invested in one of the following businesses or activities; |
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3.1 |
to purchase bonds of Thai Government, bonds of Thai National Bank, bonds of State Enterprise or bonds which the Ministry of Finance secures the capital or interest, |
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3.2 |
an investment in a property mutual fund, a property mutual fund or a mutual fund for resolving financial institution problems established under the law on Securities and Stock Exchange, |
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3.3 |
an investment in share capital of a juristic person who is granted permission of investment under the law on promotion of investment, |
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3.4 |
an investment in an activity as declared by the Board of Investment to be an activity eligible to be granted promotion of investment under the law on promotion of investment; |
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the land to be acquired shall be located in Bangkok Metropolis, Pattaya City , or Tessaban (Municipality), or in the area specified as residential zone according to the law on Town and Country Planning and shall not be located in a military safety zone according to the law on Military Safety Zone; |
The Acquisition of Land for Residential Purpose by Aliens
An alien bringing money not less than Baht forty million as specified in the Ministerial Regulation into the Kingdom for investment may apply for acquisition of land for residential purpose not more than one rai in area, provided also that permission must be obtained from the Minister. Under section 96 bis of the Land Code, the application for such acquisition of land shall be in accordance with rules, procedures and conditions prescribed in the Ministerial Regulation as follows:
1. In the case of an alien, who brings money for investment and wishes to apply for permission to acquire land for residential purpose, shall lodge an application (Alien 4 Form) to the competent official under section 71 of the Land Code together with the following documents:
| 1.1 |
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An alien identification card issued by the Police Station in whose jurisdiction the alien is domiciled or a certificate of residence issued by the Immigration Division, National Bureau of the Royal Thai Police Force or a passport indicating the nationality of the alien; |
| 1.2 |
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Evidences of an investment in the business or activity that falls under Ministerial Regulation prescribing rules, procedures and conditions concerning the acquisition of Land for residential purpose by aliens B.E. 2545: |
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1.2.1 |
Letter of investment confirmation from bond seller and bonds of Thai Government, bonds of Bangkok of Thailand, bonds of State Enterprise or bonds which the Ministry of Finance secures the capital or interest; |
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1.2.2 |
Letter from the Asset Management Company confirming that an alien has invested in property mutual fund, property mutual fund or mutual fund for resolving financial institution problems established under the law on Securities and Stock Exchange, and an evidence of investment in such fund; |
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1.2.3 |
Evidences concerning investment in share capital of a juristic person who is granted promotion of investment under the law on promotion of investment, certificate of registration as a juristic person, name list of the juristic person's share holders, and a certificate indicating that such juristic person is granted promotion of investment from the Board of Investment; |
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1.2.4 |
Evidences of engagement in an activity that entitles for being granted promotion of investment under the law on promotion of investment according to the announcement made by the Board of Investment, certificate of registration as a juristic person, name list of the juristic person's share holders, and the Board of Investment's letter indicating that an activity being operated entitles for being granted promotion of investment. |
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The evidences mentioned in para. 1.2.1 to 1.2.4 either the evidence in one para. or one combines with the other(s) can be used but the total amount shall be not less than Baht forty million. |
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Evidences of bringing a foreign currency into the Kingdom or the withdrawal of the money from a foreign currency account or from a non-resident Baht account for investment.
Either one or more of the above mentioned evidences can be used but the total amount shall be not less than Baht forty million. |
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In the case of the land to be acquired is not located in Bangkok Metropolis, Pattaya City or Tessaban (Municipality); the letter of confirmation from the Provincial Office of Town and Country Planning is required certifying that the land to be acquired is located within a residential zone under the law on Town Planning. |
| 1.5 |
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Letter of Ministry of Defense or of the agency concerned confirming that such land is not located in a military safety zone under the law on Military Safety Zone. |
| 1.6 |
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The sketchy map showing the location of land seeking for permission. |
| 1.7 |
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In the case where an applicant has already had right on land by the time the application is being lodged, an applicant shall produce such land right document; |
2. A person who is granted permission shall maintain the investment period not less than five years. He/she is required to produce the evidence of possession in the investment in 1.2 as the case may be as current, which shall be not less than Baht forty million, to the competent official according to section 71 once a year, on five consecutive years and each year shall be no later than the date making the acquisition registration of the aforementioned land.
3. A person who is granted permission shall utilized such land for a residential purpose of his/herself and the family in a way that is not contrary to the local custom or good living of the local community.
4. A person who is granted permission shall inform such land utilization for a residential purpose to the competent official of land office according to section 71 within sixty days as from the date of utilization.
5. A person who is granted permission shall facilitate the competent official supervising the use of such land to ensure that the utilization is in accordance with rules and conditions prescribed in the law once he/she receives a written notifications from the competent official under section 71.
6. If a person granted permission withdraws an investment in the business or activity before the due date of investment in 2, he/she shall inform in writing to the competent official according to section 71 within sixty days as from the date of making the withdrawal.
7. A person granted permission shall utilize such land for residential purpose within two years as from the date of the land acquisition registration.
8. If a person granted permission does not comply with the rules and conditions in 2-6, the Director General shall have the power to order such person to dispose of the land in a portion of his possession within the period of not less than one hundred eighty days and not more than one year. If the time limit elapses the Director General shall have the power to dispose of such land. Also, if the person does not comply with the condition in 7, the Director General shall have the power to dispose of such land.
9. Any foreign language document shall be translated into Thai language. The translation shall be certified according to the Ministerial Regulations (B.E. 2540) issued under the Purview of Administrative Procedure Act B.E. 2539. (Phraratchabunyat Vithipratibut Ratchakarn Thangpokkhrong B.E. 2539)
10. In the case of a person bringing money into the Kingdom to the amount of Baht forty million for investment and has bought the land less than 1 rai , if later and within the period of investment, that person wishes to buy additional land, in this instance, the documents attached to the current investment can be used along with the application for acquisition of the additional land.
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