Land Dept Revises Guidelines for Foreign Ownership of Land

[webfact]

 

The Land Department has recently updated the criteria regarding foreign ownership of land in Thailand.

 

Inheritance: Non-Thai nationals who are legal heirs of foreigners permitted to hold land are eligible to inherit the land holdings.

 

However, such inheritance must adhere to the regulations outlined in the land-holding laws or the criteria governing land ownership by foreigners.

 

For instance, heirs may inherit up to 1 rai (0.160 hectares) of land for industrial use or up to 10 rai (1.60 hectares) for agricultural purposes. The utilization of the land must also align with the permissions granted to the original owners.

 

Land Purchase: According to Article 96 of the Land Code, foreigners are allowed to purchase 1 rai of land for residential construction upon investing a minimum of 40 million baht in the country.

 

This investment must contribute to Thailand's economic and social welfare or fall under the categories endorsed by the Board of Investment.

 

The investments should be sustained for at least three years, and the residential property acquired by foreigners must be situated in Bangkok, Pattaya, or any other municipality.

 

Land Transfer: Foreigners can undergo land transfer procedures in accordance with relevant laws, such as the Investment Promotion Act of 1977.

 

The department emphasizes that Thai nationals acting as nominees to hold land for foreigners may face a maximum imprisonment term of three years, a maximum fine of 6,000 baht, or both.

 

Foreigners found guilty of unlawfully acquiring land may face a maximum daily fine of 20,000 baht and/or a maximum imprisonment term of two years.

 

Picture courtesy: CaymanmarlRD

 

Source: THE NATION

 

-- 2024-06-08

 

Get our Daily Newsletter - Click HERE to subscribe

[KhunLA]

" upon investing a minimum of 40 million baht in the country."

 

Don't think I'd be living in TH if I had $1M+ liquid USD.

[webfact]

Foreigners can now own land in Thailand: Land Dept

by George Anderssen

 

Foreign land ownership in Thailand is a complex issue, primarily dictated by the Land Code Act of 1954, which generally prohibits foreigners from owning land outright. This law is designed to maintain national control over Thailand’s valuable natural resources.

 

There are, however, exceptions to this rule. The Board of Investment, for instance, permits land ownership for foreign investors in certain business categories. Also, according to Thailand’s Condominium Act, foreigners can own up to 49% total space of a condominium building.

 

Despite these allowances, the property ownership laws has been quite stringent for non-natives, and anyone interested in acquiring property in Thailand must be fully aware of these complexities. It’s important to ensure all property dealings abide by the country’s legal framework to avoid future complications.

 

We are not really there yet, but here is some positive changes for foreigners:

The Land Department has recently updated the criteria regarding foreign ownership of land in Thailand.

 

Inheritance: Non-Thai nationals who are legal heirs of foreigners permitted to hold land are eligible to inherit the land holdings.

 

However, such inheritance must adhere to the regulations outlined in the land-holding laws or the criteria governing land ownership by foreigners.

 

For instance, heirs may inherit up to 1 rai (0.160 hectares) of land for industrial use or up to 10 rai (1.60 hectares) for agricultural purposes. The utilization of the land must also align with the permissions granted to the original owners.

 

Land Purchase: According to Article 96 of the Land Code, foreigners are allowed to purchase 1 rai of land for residential construction upon investing a minimum of 40 million baht in the country.

 

This investment must contribute to Thailand’s economic and social welfare or fall under the categories endorsed by the Board of Investment.

 

The investments should be sustained for at least three years, and the residential property acquired by foreigners must be situated in Bangkok, Pattaya, or any other municipality.

 

Land Transfer: Foreigners can undergo land transfer procedures in accordance with relevant laws, such as the Investment Promotion Act of 1977.

 

The Land Department emphasizes that Thai nationals acting as nominees to hold land for foreigners may face a maximum imprisonment term of three years, a maximum fine of 6,000 baht, or both.

 

Foreigners found guilty of unlawfully acquiring land may face a maximum daily fine of 20,000 baht and/or a maximum imprisonment term of two years.

 

Source: Land Department / The Nation

 

Full story: The Thaiger 2024-06-08

 

Get our Daily Newsletter - Click HERE to subscribe

 

 

[Presnock]

anyone that has 40 million baht to invest here will look for a country with a STABLE government.  Seems to me that those that set these conditions on foreign ownership overvalue the local properties.

 

[redwood1]

Laws change like the wind here......Dont trust any of it especially if you are a farang..

[retarius]

24 minutes ago, KhunLA said:

" upon investing a minimum of 40 million baht in the country."

 

Don't think I'd be living in TH if I had $1M+ liquid USD.

Can I ask where you would be living? $1 million is not what it was. It will barely buy a house in the US or UK. 

[AhFarangJa]

I have an idea for the British Government. Ban all Thai people from owning land and property in UK unless they meet the same requirements as here. Also, all Thai businesses in UK must be 51% owned by Brits. I wonder what this Government would say then?

[freeworld]

It is all rather complicated to invest 40000000 Baht.

 

What happens to the property ownership after the 3 years of stipulated investment period.

 

Refer to BOI website:

https://www.boi.go.th/index.php?page=procedures

https://www.boi.go.th/index.php?page=eligible_activities

 

 

 

[KhunLA]

25 minutes ago, retarius said:

Can I ask where you would be living? $1 million is not what it was. It will barely buy a house in the US or UK. 

Not sure it would be the USA again, but quite easy to live there with 1M.  Not sure where it would be, or if anywhere permanent at my age.  

 

If I had $1M liquid 23 yrs ago, I don't think I would have come to TH, or rather, stayed in TH, after divorcing 1st Thai wife.

 

A temperate zone country with no air / water pollution would be a better choice.

[gamb00ler]

1 hour ago, webfact said:

The department emphasizes that Thai nationals acting as nominees to hold land for foreigners may face a maximum imprisonment term of three years, a maximum fine of 6,000 baht, or both.

 

Foreigners found guilty of unlawfully acquiring land may face a maximum daily fine of 20,000 baht and/or a maximum imprisonment term of two years.

 

There seems to be an imbalance in the penalties for participating in land title violations.

[CallumWK]

43 minutes ago, retarius said:

1 hour ago, KhunLA said:

" upon investing a minimum of 40 million baht in the country."

 

Don't think I'd be living in TH if I had $1M+ liquid USD.

Can I ask where you would be living? $1 million is not what it was. It will barely buy a house in the US or UK. 

 

40 million baht is more than $1 million to start with, but also it means you must have a lot more than that.

 

You need 40 million to lock up for 3 years, on top of the money to buy the land and build the house, and living expenses for at least 3 years.

 

Sounds more like you will need like 80 million baht to be able to buy 1 Rai of land in your name.

 

BTW, everything in the OP is known to me for many years, so where are the changes?

[Celsius]

And the weed was legal and now it's not

[Liverpool Lou]

1 hour ago, retarius said:

$1 million is not what it was. It will barely buy a house in the US or UK. 

$1m would, very comfortably, give a purchaser a vast choice of properties in the UK.

[KhunLA]

12 minutes ago, CallumWK said:

 

40 million baht is more than $1 million to start with, but also it means you must have a lot more than that.

 

You need 40 million to lock up for 3 years, on top of the money to buy the land and build the house, and living expenses for at least 3 years.

 

Sounds more like you will need like 80 million baht to be able to buy 1 Rai of land in your name.

 

BTW, everything in the OP is known to me for many years, so where are the changes?

Not seeing any changes either.

 

If you have $1M, and can't make it, there is something seriously wrong with you.   First thing I'd do is buy 10 houses ($500k spent) and Section 8 them.   That would generate $8k - $10k a month income.  There's your living expense, and the other $500k for house & toys ... if ... planning on being stationary, though doubtful.

[Liverpool Lou]

42 minutes ago, Liverpool Lou said:

$1m would, very comfortably, give a purchaser a vast choice of properties in the UK.

...and in the US.

[watchcat]

2 hours ago, KhunLA said:

" upon investing a minimum of 40 million baht in the country."

 

Don't think I'd be living in TH if I had $1M+ liquid USD.

 

Hell no.

[ChipButty]

2 hours ago, AhFarangJa said:

I have an idea for the British Government. Ban all Thai people from owning land and property in UK unless they meet the same requirements as here. Also, all Thai businesses in UK must be 51% owned by Brits. I wonder what this Government would say then?

I've said the same for years, they can just rock up and buy a football club, Tony rocked up and bought Man City he had to get rid quick as the government knew he wasn't a fit and proper person, 

[freeworld]

3 hours ago, webfact said:

Land Transfer: Foreigners can undergo land transfer procedures in accordance with relevant laws, such as the Investment Promotion Act of 1977.

from a Siam legal article

 

Some Basics of Thai Investment Promotion Law

''In order to be eligible for investment promotion, the applicant must incorporate a company in Thailand either before or after promotion has been granted.

Activities that the BOI designate for promotion are those which are eligible for investment promotion by the Board are those which are “important and beneficial to the economic and social development, and security of the country, activities which involve production for export, activities which have high content of capital, labour or service or activities which utilise agricultural produce or natural resources as raw materials, provided that in the opinion of the Board, they are non-existent in the Kingdom, or existent but inadequate, or use out-of-date production processes.”

An applicant’s investment proposal must be economically and technologically sound. In considering the project, the BOI shall take into account the following factors etc....''

 

So perhaps the investor does not own the property but the company.

 

 

[freeworld]

Deleted comment.

[BuddyPish]

2 hours ago, AhFarangJa said:

I have an idea for the British Government. Ban all Thai people from owning land and property in UK unless they meet the same requirements as here. Also, all Thai businesses in UK must be 51% owned by Brits. I wonder what this Government would say then?

 

I think the UK government can use every penny it can get its hands on right now. Its own nationals can barely afford to buy property so why would it stop people with the means from doing so?

Protectionism is something that every country is guilty of to some degree so pick up your toys and stop whining. Unlike the UK, Thailand's not a first world economy with developed markets so allowing foreigners to bowl in buying up land from under ordinary Thais' feet would be unacceptable. 

[retarius]

1 hour ago, Liverpool Lou said:

$1m would, very comfortably, give a purchaser a vast choice of properties in the UK.

The median price of a home in the UK is now 300K quid......you want to live near London look at 500K pounds....and yes that pokey semi in and ex council house in Wythenshawe is over 250K....even the council homes around London are selling for 1 million pounds.....you better believe it if you plan to move there.

Also property is very cheap to open in Thailand, not so the UK or US....20 years ago I was shelling out over US 20K property taxes in NJ. It's like having another mortgage.  

I million pounds is not your father's 100K pools win....set for life. But then again if you come from Merseyside maybe there are some nice houses in that area for 50Kquid....if you don't mind the drive by shootings, the awful weather, the football hooligans and the filth all over the place; but why would anyone want to inflict that on themselves? Not me, that's for sure. 

[BigStar]

4 hours ago, webfact said:

The department emphasizes that Thai nationals acting as nominees to hold land for foreigners may face a maximum imprisonment term of three years, a maximum fine of 6,000 baht, or both.

 

Foreigners found guilty of unlawfully acquiring land may face a maximum daily fine of 20,000 baht and/or a maximum imprisonment term of two years.

 

We're not playing our usual scary music for the members owning houses(land) in company names. And similarly, condos?

[GypsyT]

Only a fool will take a risk when you get $ 50 000 on CD interest a year.

[connda]

Not a word about leasing or Usufruct. 

 

Nobody in their right mind would plow 40M THB ($1.11M USD) in order to purchase 1 rai of land in order to build a house.  "Investing 40M THB."  Then you are limited to your options of "investing" which is another can of worms. 

 

With significantly less than $1.11M USD, you can purchase a second passport in a number of countries including some in tropical and semi-tropical locations then buy land and build away.  Thailand's bent towards rabid nationalism and protectionism began back in the 1930s with the first set of the 12 Thai Mandates.

 

Mandate 2 - On preventing danger to the nation, issued 3 July 1939:

    "Thai people must not engage in any business without considering the benefit and safety of the nation."
    "Thai people must never reveal anything to foreigners that might damage the nation. These actions are a betrayal of the nation."
    "Thai people must not act as agent or spokesman for foreigners without considering the benefit of the Thai nation, and must not express opinion or take the side of foreigners in international disputes. These actions are a betrayal of the nation."
    "Thai people must not secretly purchase land on behalf of foreigners in a way that endangers the nation. These actions are a betrayal of the nation."
    "When a person has betrayed the nation, it is the duty of Thai people to actively and quickly put a stop to it."
- Source:  Wikipedia Thai Cultural Mandates

 

So distrust of all foreigners as well as the restriction of the sale of land to foreigners is pretty well baked right into the Thai Cultural cake. 

[connda]

Just now, connda said:

So distrust of all foreigners as well as the restriction of the sale of land to foreigners is pretty well baked right into the Thai Cultural cake. 

It's not even economic - it's cultural which makes it essentially culturally endorsed racism expressed as rampant nationalism and overt protectionism.  It's amazing that Thailand has so firmly held on to these highly charge negative, ethnocentric, and discriminatory sentiments toward non-Thais for nigh-on 90 years, especially those held by Thailand's leaders in parliament and the HiSo-wealthy in Thai society. 

However these sentiments may die out in the long-run as the ethnic Thai population simply dies out (Thai youth no boom-boom and have kids) and is replaced by Myanmar and Cambodian labor (who do boom-boom and have lots of kids) whom are welcomed into the country to "do the jobs that Thais don't want to do."  As well, over the next decades I expect highly skilled labor (foreign STEM graduates/digital nomads/engineers/etc) to equally flood the country in order to "do the jobs that Thais don't have the brains to do) in order to keep Thailand technologically relevant on the world stage - and many of these highly skilled labor will come from places like India and other developing nations as well as Zoomers from the West.  Those highly intelligent and highly motivated foreigners may find paths to citizenship as well as places within Thai upper-crust society over time, and eventually begin to break-down the cultural road-blocks and nationalist fervor, which is at the present so anti-foreigners and anti-migrant.  It will change over time, I have no doubt, but not within my lifetime.

[connda]

4 hours ago, retarius said:

Can I ask where you would be living? $1 million is not what it was. It will barely buy a house in the US or UK. 

Which is why what use to be the Western middle-classes, especially the children of middle-class Westerners, are finding themselves living in tents, vans, and RVs on the streets (or in mum and dad's basement) even though they have jobs.  Housing prices have sky-rocketed as wages decline in parity.  So $1M USD is still $1M USD for most of the middle-class cum poverty-class working poor: more money than they can make in a decade or more.  Well, unless you are a Zoomer investing in Roaring-Kitty Game-Stop getting in at the bottom and selling at the top.  But that ain't most Zoomers or Millennial middle-class now inflation-induced poverty-class working poor finding the reality of "The America Dream" draining into the gutters of the decaying streets of the United States as illegal migrants look down from the windows of their government and NGO paid hotel rooms, wave their government stipend-cash cards, and laugh. 

[AhFarangJa]

4 hours ago, BuddyPish said:

 

I think the UK government can use every penny it can get its hands on right now. Its own nationals can barely afford to buy property so why would it stop people with the means from doing so?

Protectionism is something that every country is guilty of to some degree so pick up your toys and stop whining. Unlike the UK, Thailand's not a first world economy with developed markets so allowing foreigners to bowl in buying up land from under ordinary Thais' feet would be unacceptable. 

Judging by the quality and content of your replies to posts, and denigrating other members, I would think you never had any toys in the first place. For your information my post was not a whine, or drip, I am very, very comfortable here, and have been for more than 30 years, so I suggest you get back in your pram, suck your dummy, and consider lightening up on the other members of this forum, gooday Sir.

[BuddyPish]

1 hour ago, AhFarangJa said:

Judging by the quality and content of your replies to posts, and denigrating other members, I would think you never had any toys in the first place. For your information my post was not a whine, or drip, I am very, very comfortable here, and have been for more than 30 years, so I suggest you get back in your pram, suck your dummy, and consider lightening up on the other members of this forum, gooday Sir.

So not dealing with any aspect of my comment; just attacking me and telling  anyone who can be bothered to read how comfortable you are as if I suggested you were indigent? 

You need help.

 

[webfact]

Here are the only legal methods foreigners can own land in Thailand
By Online Reporter

 

 

If you have lived in Thailand for any length of time, you’ve probably heard all manner of schemes or ways in which it is claimed that foreigners can own land in Thailand.

 

But Thai law restricts land ownership to Thai nationals, with few exceptions.

 

Sometimes, in order to circumvent these restrictions, foreigners often use nominee companies. A Thai majority shareholder is on record, while the foreigner holds minority shares but retains control through various agreements.

 

However, this is illegal and there’s a crackdown on such currently being carried out by the authorities in Thailand.

 

Full story: HUA HIN TODAY 2024-06-10

 

Get our Daily Newsletter - Click HERE to subscribe

[lordgrinz]

On 6/8/2024 at 9:10 AM, retarius said:

Can I ask where you would be living? $1 million is not what it was. It will barely buy a house in the US or UK. 

 

Let me guess, you believe the universe revolves around California?