Is it actually possible for a foreigner to buy land and run a tourism business in Thailand

[rikiderorck]

Hi everyone
I’m a European with a solid six-figure amount saved and I’m planning to move to Phuket to start a small tourism business. The goal is to get my money out of Europe and invest it into something stable and long term in Thailand. What I have in mind is buying land, building some small accommodation units, and using that property as a base to offer guided tours and experience packages.

The business would start small but focused. Guests would stay on site and also take part in activities I organise directly. These could include renting out gear I own, as well as offering guided trips to nearby islands.

I’m also open to eventually hosting small music events, things like DJ nights or social gatherings. It’s not the core idea but something that could develop later if it makes sense. If anyone thinks that’s a bad move or has advice on that side of things, I’m open to hearing it.

At first I assumed I could simply buy land and go from there, but after digging into it more, it figured out that foreigners cannot legally own land in Thailand outright. What I understand so far is that a foreigner can own up to 49 percent of a Thai company, and that company can own land, while the remaining 51 percent must be Thai-owned. If anyone here knows the facts for sure or has gone through  this process, please confirm or correct that for me. I don’t want to rely on half-truths or secondhand assumptions.

 

I also started looking into different options like: Investment routes such as the Board of Investment (BOI), Setting up a Thai company under the 49/51 ownership rule, Leasing land long term (30 years, possibly renewable), Other legal structures I may  not be aware of yet

At the same time I see plenty of foreigners, especially Russians, running similar businesses in Phuket. So my honest question is :

how are they doing it ?

Are they managing through Thai companies where they hold 49 percent?
Are they leasing land and building on it?
Are they using nominee setups that are technically illegal but common?
Or is it that some are doing this legally through boi or another setup Im not aware of ?

Just to be clear, I’m not looking for shortcuts. I spent about a year in Thailand over the past seven years across multiple trips, so I’m not someone who just visited once and got carried away. This idea has been in the back of my mind for a long time, and now I’m doing proper research before making any commitments.

Getting my money out of Europe and investing in Thailand is the goal, but only if it’s legally and structurally done. I’m not going all in if there are still major gray areas.

 

So what advice would you give me based on your own experiences and knowledge in the matter ? 

 

[Celsius]

Just now, rikiderorck said:

I’m a European with a solid six-figure amount saved

 

Thats nothing money.

[Yellowtail]

11 minutes ago, Celsius said:

 

Thats nothing money.

It's not nothing, it's Subway or KFC money. 

[marin]

First post.  b  o  b  

[rikiderorck]

16 minutes ago, Celsius said:

Thats nothing money.

@Celsius Thanks a lot for taking the time to answer me, genuinely grateful for that I appreciate it. That said, if you don’t mind, Im curious to hear your thoughts on the actual questions I asked in the post. That way I can get more insights.

[Celsius]

I meant its nothing for starting a legal business in Thailand, let alone Phuket.

 

My wife worked for a few foreigners between jobs. The bosses never used their own money, of course it was shareholder money with a nice story and presentation about booming business in a 3rd world country. One company after 10 years in country is still struggling to make a profit, but some reason they keep getting the capital from the fools.

 

How do you expect to achieve all this that you listed without thais getting in your way? The Russians and others are operating businesses illegally so their biggest loss is deportation or in a better scenario money under the table.

 

I just left thailand after 15 years and saved 500,000 Canadian while I was where. I never even considered putting my money in this country which has huge barriers for foreign businesses. Its just crazy to even consider transferring the money to "invest" in Thailand. 

 

I saved by buying a property in Canada and letting others pay my mortgage. I also opened Amazon account and did FBA and dropshipping. I came to thailand with less than 100k Canadian in cash. I never transferred any money except for living expenses.

 

What you have is a dream and not a realistic scenario. Don't bring money into Thailand. Its a financial suicide.

[Yellowtail]

How old are you? If you are retired, come spend some months shopping and see what you think. 

 

Lease a guest house with a restaurant for a year or two and see how you do with that.  

 

The country is full of plots of land in the middle of nowhere with small accommodations built on them that are 90% vacant. 

 

You are way undercapitalized for what you want to do. A bar or guest house maybe. 

[frank83628]

Unfortunately you will get  a very negative response from many here because they are involved with Pattaya sex pat environment. But yes you can set this up, but certian areas are better than others.

There are a few options. 

[novacova]

34 minutes ago, rikiderorck said:

What I understand so far is that a foreigner can own up to 49 percent of a Thai company, and that company can own land, while the remaining 51 percent must be Thai-owned. If anyone here knows the facts for sure or has gone through  this process, please confirm or correct that for me.

Yes, you can buy property through the method you describe.

Though it would be advised to hold back on the dreams until you’ve spent a good amount of time getting the lay of the scape first, like a couple few years and starting out small and changing things up on the fly.

[Yellowtail]

4 minutes ago, rikiderorck said:

@Celsius Thanks a lot for taking the time to answer me, genuinely grateful for that I appreciate it. That said, if you don’t mind, Im curious to hear your thoughts on the actual questions I asked in the post. That way I can get more insights.

That you are on a chat board asking legal questions says a lot.

 

You can buy a 49-51 business, but who is going to be your partner? 

 

I do not believe you do not have the capital for a BOI registered business, and I doubt very much tourist accommodations would meet the criteria for approval. The BOI has a great website. in English. 

 

Many businesses are fronts for illegal activity. Go to a business, watch it and take notes. Many do not make enough to pay the rent, much less the staff. 

 

 

 

 

[rikiderorck]

 

10 minutes ago, Yellowtail said:

That you are on a chat board asking legal questions says a lot.

 

You can buy a 49-51 business, but who is going to be your partner? 

 

I do not believe you do not have the capital for a BOI registered business, and I doubt very much tourist accommodations would meet the criteria for approval. The BOI has a great website. in English. 

 

Many businesses are fronts for illegal activity. Go to a business, watch it and take notes. Many do not make enough to pay the rent, much less the staff. 

 

Thanks for the reply. I'm in my thirties and plan to come with a family member in his fifties. I was thinking about Phuket but right now I'm just trying to collect as much clear info as possible.

I stayed in Phuket town for six months about a year ago. Didn't go near Patong for long-term living. After that I went back home and started talking to my family to see who might want to join.

Of course we're still cautious. That’s part of the process. If it was simple and risk-free everyone would be doing it.

I posted here because I believe even in forums like this I can get useful information. Maybe not always perfect, but enough to help shape the next steps. I'm in the preparation stage and never claimed to be fully ready. I’m here to gather knowledge, there will be good and bad input, I get that, but I’m hoping some of it will be genuinely helpful.

[simon43]

About the only thing that you can own 100% in your own name are condos/apartments.  You could buy a few and lease them out etc.  Whether that is a money-maker I don't know 'cos I've never done it.  But your initial investment is still all yours.

 

As for setting up tourist accommodation, I have done this 4 times in Phuket (I built the original Phuket airport hotel, then Phuket Airport 24/7 Hotel, Phuket airport Overnight Hotel and Phuket Airport Bed & Breakfast). But on each occasion I leased the land long-term, rather than trying to do some 'fiddle' to own it!

 

Additionally, I 'lost' one of those businesses when a Thai drug-dealer, aided by the local police (his customers), chased me off the business at gunpoint and I had to flee Phuket for my life.   The only karma that I could apply was to stop paying the land rent, causing the landowner to reposses the land and hotel.  But I lost about $60,000 in that venture...  

 

I'm not involved in any of those businesses nowadays (sold up or gave to Thai wife etc), and I would rather walk on hot coals than involve myself in such a venture nowadays 🙂

[Celsius]

1 minute ago, simon43 said:

 

 

As for setting up tourist accommodation, I have done this 4 times in Phuket (I built the original Phuket airport hotel, then Phuket Airport 24/7 Hotel, Phuket airport Overnight Hotel and Phuket Airport Bed & Breakfast). But on each occasion I leased the land long-term, rather than trying to do some 'fiddle' to own it!

 

You forgot to include the most important part. It was all taken from you.

[simon43]

4 minutes ago, Celsius said:

 

You forgot to include the most important part. It was all taken from you.

See my amended post above. 1 business was 'stolen'.  1 business was sold for a healthy profit and the 2 other businesses were gifted to my thai ex'es (not a divorce settlement).  1 of those hotels is still trading just fine 🙂

[NorthernRyland]

Why not talk with a lawyer in Phuket? They should have all the correct information for you.

 

Land in Thailand anywhere near anything of interest is outrageously expensive. I would look at the land prices first before you do anything else.

 

Just look at those prices. I bet you would need 1 million Euro to get something in a tourist area. It's no joke.

 

https://www.thailand-property.com/land-for-sale/phuket

[save the frogs]

If I was in my thirties, I would try to figure out how to generate income online and become a digital nomad.

 

Although it may not be easy to generate a lot of income online, the advantages are no need to risk massive investment, and possibly be cheated down the line. 

 

 

[frank83628]

44 minutes ago, Yellowtail said:

That you are on a chat board asking legal questions says a lot.

 

You can buy a 49-51 business, but who is going to be your partner? 

 

I do not believe you do not have the capital for a BOI registered business, and I doubt very much tourist accommodations would meet the criteria for approval. The BOI has a great website. in English. 

 

Many businesses are fronts for illegal activity. Go to a business, watch it and take notes. Many do not make enough to pay the rent, much less the staff. 

 

 

 

 

I wouldnt say 'illegal activity' as in implying  drugs, scams etc, more nominee companies so the farrang can stay long term on non b visas or subvert the rules to live here, practically everyone i know has this type of company set up. However, now there is a bit of a crack down

[NoDisplayName]

1 hour ago, rikiderorck said:

a solid six-figure amount saved and I’m planning to move to Phuket to start a small tourism business

 

Not really enough to fulfill the dream of opening a bar.

 

Have you considered buying a tuk-tuk?

[Hummin]

40 minutes ago, rikiderorck said:

 

 

Thanks for the reply. I'm in my thirties and plan to come with a family member in his fifties. I was thinking about Phuket but right now I'm just trying to collect as much clear info as possible.

I stayed in Phuket town for six months about a year ago. Didn't go near Patong for long-term living. After that I went back home and started talking to my family to see who might want to join.

Of course we're still cautious. That’s part of the process. If it was simple and risk-free everyone would be doing it.

I posted here because I believe even in forums like this I can get useful information. Maybe not always perfect, but enough to help shape the next steps. I'm in the preparation stage and never claimed to be fully ready. I’m here to gather knowledge, there will be good and bad input, I get that, but I’m hoping some of it will be genuinely helpful.

The hardest thing is to keep staff. You training them, put responsibility on them, and they disappear. Very few I know managed to avoid staff leaving especially during stressful and critical time for high seasons. 

 

It is possible, but it will take you a few years to understand the working culture here. Language barriers is one problem, and the few I know who made it speaks decent Thai, and also have a Thai wife who carry the burden with respect and dignity against the workers. 

 

Another thing, you can not work as a guide or dj and your possibilities for what you physically can do is limited. Im also making plans for building a business when I will come back, but I know my limitations. For every baht I invest, I will invest another two to make it pay back for the daily day to day expenses, and I'm sure I will never see the money again, except my wife will have a piece of valuable land in return, and maybe a business she can run in future without me. 

 

Good luck

 

I would rather put my savings in BTC than a a Thai company coming in fresh from without any experience at all. And I personally will never invest in btc, that should tell you what I think about your plans.

 

You make business for your Thai wife or family, not for your self. Very few succeeded. Conti ue to make your six siffers abroad spend it in Thailand. Best advise you will have today

[rikiderorck]

30 minutes ago, Hummin said:

The hardest thing is to keep staff. You training them, put responsibility on them, and they disappear. Very few I know managed to avoid staff leaving especially during stressful and critical time for high seasons. 

 

It is possible, but it will take you a few years to understand the working culture here. Language barriers is one problem, and the few I know who made it speaks decent Thai, and also have a Thai wife who carry the burden with respect and dignity against the workers. 

 

Another thing, you can not work as a guide or dj and your possibilities for what you physically can do is limited. Im also making plans for building a business when I will come back, but I know my limitations. For every baht I invest, I will invest another two to make it pay back for the daily day to day expenses, and I'm sure I will never see the money again, except my wife will have a piece of valuable land in return, and maybe a business she can run in future without me. 

 

Good luck

 

I would rather put my savings in BTC than a a Thai company coming in fresh from without any experience at all. And I personally will never invest in btc, that should tell you what I think about your plans.

 

You make business for your Thai wife or family, not for your self. Very few succeeded. Conti ue to make your six siffers abroad spend it in Thailand. Best advise you will have today

Thank you sir, really genuine and honest opinion . I’ll keep your points in mind. Unfortunately, I’m not into the whole Thai wife thing or really interested in Asians in general , just not my style, to be honest. I’m heading there for business, not for personal relationships.

 

[MalcolmB]

What you want to do is possible.

But I suggest you take your time and spend a year here before investing in anything.

In that year learn to speak Thai.

 

If you don’t you will end up relying on a Thai who can speak a English to organize nearly everything for you and they will probably charge you a lot more than what you need to pay and/or mess everything completely up.

 

I know you don’t want to but ask yourself if you could not speak any English in your country would it be optimal to start a business there?

 

Learning Thai would reduce the odds of failure a lot.

[FritsSikkink]

18 minutes ago, rikiderorck said:

Thank you sir, really genuine and honest opinion . I’ll keep your points in mind. Unfortunately, I’m not into the whole Thai wife thing or really interested in Asians in general , just not my style, to be honest. I’m heading there for business, not for personal relationships.

 

Then your first task is to find a reliable Thai business partner who will own the 51%. While doing that, learn to read and speak Thai.