How to Buy Land in Thailand as a Foreigner?: A Simple Guide
Thailand is known for its wonderful beaches, busy cities, and vibrant cultures. But did you know that the country is also getting famous among foreigners? There are a lot of foreigners looking for a way to buy land in Thailand for relocation or business operation purposes.
If you are currently considering buying land in thailand, then first thing first, you must consult with the real estate experts to get through the process of buying land in Thailand.
As foreigners cannot legally buy and own land outright in Thailand, you must look for other alternatives if you wish to make an investment and reside in the country permanently. In this article, we’ll examine a few options and decide which is most accessible.
This guide will help you with valuable insights and strategies that can help you to buy land in Thailand.
The Advantages To Buy Land In Thailand: Region Based
If you are a foreigner and currently considering property acquisition, first, it is necessary to conduct research on which Thai region can be suitable for you to buy land in Thailand.
As you know, each region offers you specific advantages, it can be about business potential or the type of location.
Northern Thailand
In the northern region of Thailand, the properties are more affordable than in the Southern side of Thailand, the great tourist hub. This specific part is an ideal space for niche markets such as traditional handicrafts, retreats as well as experiences.
Central Thailand
Bangkok anbd other locations in central Thailand a prime locations for the thriving economy of the country and a huge customer base. You can also find modern infrastructure with a great cosmopolitan environment and great amenities.
Moreover, central Thailand also offers you great transportation and logistics networks for residential purposes or business operations.
Eastern Thailand
Eastern Thailand is a perfect location for businesses that involve great manufacturing, export, and import or free trading zones.
There are certain areas that also have the potential for various businesses, like hotels, retreats, and restaurants. So, there is a high potential for utmost growth and investment in the developing areas of the eastern.
Southern Thailand
The Southern part of the country includes Koh Samui and Phuket, making it an ideal spot for business as well as the tourism industry. You can buy land here to build hotels, restaurants, and various souvenir shops.
The southern Thailand also has some wonderful scenic beaches. This increases the high rental demand as tourists often demand beachfront properties.
What Are The Different Ways A Foreigner Can Acquire Land In Thailand?
Before we decide on the easiest method, let’s have a quick look at some of the available options for acquiring land in Thailand…
1. Buy land through a Thai company
Given the restrictions in Thai law preventing foreigners from owning landed property, you must look for ways to circumnavigate the rules.
Buying land through a Thai company is one of them. Of course, for this to work, the Thai company must be a legitimate business that generates revenue and has proper Thai shareholders.
Additionally, it is important to note that a foreigner can not own more than 49% of the shares in the said business.
2. Acquire land via leasehold agreement
Another popular alternative is renting property over the long term. For example, the landed property owner may lease it to you for up to 30 years (with the option to renew it afterward).
Technically, the property will not be yours. You will have exclusive possession (the right to undisturbed possession) for the entire duration of the agreement.
3. Buying land through marriage
As a foreigner is not allowed to co-own land, the alternative is buying the land in the name of the Thai spouse.
In which case a joint declaration must be made that the Thai national’s personal funds were used to make the purchase – even if the money is yours.
It is important to note that your Thai spouse will be able to mortgage or sell the property without your consent.
There is a good way of protecting your investment and solidifying the ownership. You can have your spouse lease the land to you for 30 years. This gives you unequivocal rights to remain in the property until the lease has expired.
Related: Selling Your Land In New Mexico: Tips & Tricks
4. Acquiring land through a friend
Another option is acquiring land for sale through a Thai friend. It is not uncommon for foreigners to transfer money to close friends who then purchase a property in their own name.
That way, you can own 49% interest in the property, though your name will not be on the deed.
Again, the Thai national with majority ownership will have the right to dispose of the property without your content. However, as mentioned above, you could settle on a lease agreement giving you a guaranteed 30-years.
What is the easiest option?
It all depends on your personal situation. Are you in love with a Thai national and plan to spend the rest of your life together? Then taking the Thai spouse route for acquiring land and property is best.
However, if you decide to pursue a “marriage of convenience,” you are putting yourself at tremendous financial risk.
Ultimately, the best approach would be to start your own business and grow it legitimately. That way, your Thai national shareholders will have a vested interest in keeping the company afloat. On the other hand, the property will be in your name.
These approaches to acquiring land are not “easy” in either case. They are complex with plenty of legal red tape, so do your research and approach with great care and consideration.
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