May A Farang Buy Land In Thailand?

[phayao]

I was told that a farang in Thailand may buy up to 1 rai (1,600 sqm) of land.

Can anybody give me a straight answer?

[leoleo]

I was told that a farang in Thailand may buy up to 1 rai (1,600 sqm) of land.

Can anybody give me a straight answer?

You can buy up to 1 rai of land in a company name, as long as there is a property on it.

Could you point to any sources for this information? Is this a recent change in Thai law?

Thai authorities said almost two years ago that companies with foreign ownership set to own land have two years to make changes and comply with Thai legislation. The deadline is October 08. I wonder if anyone heard of any plans/actions to be taken once the deadline passed?

And - of those who own land through companies, who read this forum - have you done anything? Personal lease from your own company is often advised. Has anybody done it? What are the costs? Do you actually have to pay the lease money by a bank transfer etc to your own company to justify the lease for authorities?

Uhm, lots of questions..

[donx]

I was told that a farang in Thailand may buy up to 1 rai (1,600 sqm) of land.

Can anybody give me a straight answer?

There is a law on the books that does technically allow a farang to buy up to 1 rai of land. The problem is that practically speaking, it isn't possible. One of the requirements is for the farang to invest 40 million baht in specific Thai government securities. Another requirement is the approval of some high level Minister whom, to my knowledge, has never given approval to anyone. So technically it is possible, but it is practically impossible.

[LennyW]

I was told that a farang in Thailand may buy up to 1 rai (1,600 sqm) of land.

Can anybody give me a straight answer?

There is a law on the books that does technically allow a farang to buy up to 1 rai of land. The problem is that practically speaking, it isn't possible. One of the requirements is for the farang to invest 40 million baht in specific Thai government securities. Another requirement is the approval of some high level Minister whom, to my knowledge, has never given approval to anyone. So technically it is possible, but it is practically impossible.

Correct - theoretically possible, but dam_n near impossible to do !

[phayao]

Many thanks for your answers.

I still think that there must be ways of buying a small piece of land to built your house: usufruct contract, 30 years lease, through a midle company, etc...

[tornado40]

And - of those who own land through companies, who read this forum - have you done anything? Personal lease from your own company is often advised. Has anybody done it? What are the costs? Do you actually have to pay the lease money by a bank transfer etc to your own company to justify the lease for authorities?

Having purchased my house in 2003 in Samui for 1.75m THB - via the company route on recommendation, I considered that it would be a good idea to lease from the company

This was easily achieved and now hold a 30 lease and a rent is shown in the accounts resulting in a profit and subsequently I pay tax twice a year at around 6,000 THB for the year

Back then I considered that my detached bunglelow was cheap by western standards and therefore worth paying the tax

[bendix]

Correct - theoretically possible, but dam_n near impossible to do !

Not correct. It's been done many times, and Ministerial approvals has been given often. The firm I work for does it all the time as a matter of course.

[donx]

Correct - theoretically possible, but dam_n near impossible to do !

Not correct. It's been done many times, and Ministerial approvals has been given often. The firm I work for does it all the time as a matter of course.

bendix,

Thank you for this information. This is the first time I have ever heard of anyone gaining Ministerial approval. Are you also confirming that the individuals that were able to purchase land also were required to invest 40 million baht into special Thai government investments or was this requirement waved/modified?

Just for clarification, you are referring to individual foreigners, not foreign companies, right?

[donx]

Many thanks for your answers.

I still think that there must be ways of buying a small piece of land to built your house: usufruct contract, 30 years lease, through a midle company, etc...

Yes, as you say, there are ways of doing this as you state. In addition to the three you listed there is ownership via a Thai spouse/partner. I didn't go into these since your original question appeared to specifically relate to the only Thai law that explicitily allows foreigners to own 1 rai or less of land. For the methods you listed above, there is no restriction on the size of the land. For example, you can get a usufruct on a 20 rai of land if you want.

[phayao]

This is getting more interesting every time !

Thanks to those that have shed some light on the issue, keep posting.

Phayao

[bendix]

Correct - theoretically possible, but dam_n near impossible to do !

Not correct. It's been done many times, and Ministerial approvals has been given often. The firm I work for does it all the time as a matter of course.

bendix,

Thank you for this information. This is the first time I have ever heard of anyone gaining Ministerial approval. Are you also confirming that the individuals that were able to purchase land also were required to invest 40 million baht into special Thai government investments or was this requirement waved/modified?

Just for clarification, you are referring to individual foreigners, not foreign companies, right?

Yes, they have been individual foreigners, NOT companies.

And yes there were required to invest 40 million into government approved investments. These were usually governtment bonds etc.

[donx]

Correct - theoretically possible, but dam_n near impossible to do !

Not correct. It's been done many times, and Ministerial approvals has been given often. The firm I work for does it all the time as a matter of course.

bendix,

Thank you for this information. This is the first time I have ever heard of anyone gaining Ministerial approval. Are you also confirming that the individuals that were able to purchase land also were required to invest 40 million baht into special Thai government investments or was this requirement waved/modified?

Just for clarification, you are referring to individual foreigners, not foreign companies, right?

Yes, they have been individual foreigners, NOT companies.

And yes there were required to invest 40 million into government approved investments. These were usually governtment bonds etc.

Thank you again bendix for this very informative post.

I remember a while back a thaivisa poster that looked into getting his 1 rai of land through this method. His conclusion was that the government investments that he would have to invest in were not a very good investment choices so he didn't pursue it any further. I suppose for anyone with over a million US$ that they have just sitting around in a bank acount, this legal avenue for foreign land ownership is a possibility. Needless to say, I don't fall into this category, but who knows, maybe I will someday.

I'm actually very glad to hear that the Thai government does allow foreigners to own land even with such stringent restrictions. It indicates to me that in the future these requirements may be less stringent. I assumed they made these requirements so stringent just to keep any foreigner from buying land. You have shown that this is not the case.

So, bendix, have you purchased 1 rai of land through this method?

[12DrinkMore]

Not correct. It's been done many times, and Ministerial approvals has been given often. The firm I work for does it all the time as a matter of course.

Well, give us an idea and roughly how many per year are given? I have never met anybody who has gone down this route.

[Patriciachas]

Not correct. It's been done many times, and Ministerial approvals has been given often. The firm I work for does it all the time as a matter of course.

Well, give us an idea and roughly how many per year are given? I have never met anybody who has gone down this route.

I was told today that americans are allowed to buy 1 rai of land does anyone know if this is correct.some agreement with usa and thailand after vietnam war had ended????.Correct or false.

[donx]

Not correct. It's been done many times, and Ministerial approvals has been given often. The firm I work for does it all the time as a matter of course.

Well, give us an idea and roughly how many per year are given? I have never met anybody who has gone down this route.

I was told today that americans are allowed to buy 1 rai of land does anyone know if this is correct.some agreement with usa and thailand after vietnam war had ended????.Correct or false.

False. There may have been some agreement in the past, but currently and for as long as I've had an interest in Thailand (since 1995) this has not been the case.

I'd love to again be proven wrong since as an American I would benefit from such an agreement.

[jumnien]

There seem to be no restrictions on farang buying or paying for land in Thailand. The only restriction is that farang cannot own land. Farang can pay for as much land as they want.

[quiksilva]

Not correct. It's been done many times, and Ministerial approvals has been given often. The firm I work for does it all the time as a matter of course.

Well, give us an idea and roughly how many per year are given? I have never met anybody who has gone down this route.

I was told today that americans are allowed to buy 1 rai of land does anyone know if this is correct.some agreement with usa and thailand after vietnam war had ended????.Correct or false.

You are talking about the treaty of amity which allows Americans to own 100% of their firms in restricted businesses (list 3). However, they are not classed as Thai firms, and thus are still not allowed to purchase land.

There are exceptions to this though when legitimate companies are involved. The Board of Investment will allow qualifying firms to purchase land for the director's residence, head office, and a factory (which is also possible via IEAT).

They can also grant land ownership privileges to qualifying firms who will build and own a hotel so long as it has at least 100 rooms.

Edited August 15, 2008 by quiksilva

[sunray69]

There seem to be no restrictions on farang buying or paying for land in Thailand. The only restriction is that farang cannot own land. Farang can pay for as much land as they want.

Okaaaaaaaaaaaay.... Suuuuuuuuuuuuuuuuuure and Happy houuuuuuuur...

[DavidWenman]

In reply to your question can a farang buy a house......

In March 2007 we were staying on Koh Sukorn, a small island in the Andaman sea off the south west coast of Thailand (Trang province).

We met a Thai woman and her Canadian husband, married 7 years, who had bought several properties on the island. They showed us a small derelict resort with 5 bungalows and a restaurant. The resort was called “The small sea”

Mike was very keen on the idea of teaching English on the island and we being English Language teachers made plans to open a small school. After a few weeks we agreed that Gop would buy “The small sea” and then issue us a 30 year lease. (In Thailand a non Thai cannot buy land)

Soon after the money was transferred to Gop there were problems with registering the lease. Then Gop and her husband had to go on a trip to Canada so before they left they issued us a 3 year lease and a letter promising to make out a thirty year lease on their return. When Gop returned to Thailand ,with her new boyfriend, she said her and Mike were getting a divorce. In the ensuing weeks Gop and her new boyfriend drank and smoked dope every day.

Their attitude to us became abusive when we talked about the lease. They made demands for large amounts of money. We refused. Then our bungalow was broken into and the intruder took picture of his penis with my camera and left the camera in the bungalow. At this time we went ahead and built the school, equipped it and started teaching English.

The break-in was reported to the police in Trang who said if we ever needed their help we should contact them. A little while later Gop and Lee (the new English boyfriend) threatened us with a gun. We contacted the police again and they talked to Gop who then transferred the property to our Thai Lawyer (Tom) and then the police demanded a payment of 500,000bht ($15,000 US). When Tom tried to register our agreement at the Land office, they refused. The land office then asked for a bribe of 36,00bht ($1000 US) Gop at this point fled Thailand. We are now told we are about to be taken to court and could face heavy fines and deportation. Our lawyer, Tom, is to face criminal and civil cases and could lose his license. Gop although being out of the country for more then 6 months is also to face criminal charges.

11 August 2008

Contact details

Karen Wenman (British national)

David Wenman (British national)

Both the above are English language teachers now living in Chiang Mai, Thailand

Condo 1137

Hillside Condominium 4

Huau Kaew Road

Chiang Mai 50300

THAILAND

Edited October 10, 2008 by Jai Dee
Email address and telephone number deleted as per forum rules

[quiksilva]

That story raises more questions than it provides answers.

How can you be taken to court for signing a 30 year lease?

As I read it the problem in this case seems to stem more from the land owners that it does the tenants. Although quite why the land was transferred to lawyer is anyone's guess, did the lawyer pay for it?

Even if so I fail to see how it involves you. Unless of course you have set up a firm using him as a nominee shareholders (????) a structure which (as has been reported many times here) is illegal and carries both civil and criminal charges.

[ThaiLawOnline]

There is a direct link to the Department of Land about this subject. And the text of from last year:

http://www.dol.go.th/guide/land_080745_eng.htm

S.

[phayao]

There is a direct link to the Department of Land about this subject. And the text of from last year:

http://www.dol.go.th/guide/land_080745_eng.htm

S.

Thank you, Issanlawyers, that is what I was looking for. I had read that paragraph some time ago but I couldn't remember where.

So, theoreticaly speaking a farang may buy and own land in Thailand, but practricaly it's very difficult or almost impossible.

Keep posting if you have more info.

[DavidWenman]

That story raises more questions than it provides answers.

How can you be taken to court for signing a 30 year lease?

As I read it the problem in this case seems to stem more from the land owners that it does the tenants. Although quite why the land was transferred to lawyer is anyone's guess, did the lawyer pay for it?

Even if so I fail to see how it involves you. Unless of course you have set up a firm using him as a nominee shareholders (????) a structure which (as has been reported many times here) is illegal and carries both civil and criminal charges.

[lazygourmet]

I was told that a farang in Thailand may buy up to 1 rai (1,600 sqm) of land.

Can anybody give me a straight answer?

Buying for what?!? We are just passengers...

[Gary A]

The bottom line is that MOST people don't have 40 million baht to invest in Thailand and most people don't even have 40 million baht. Tell it like it is. You CANNOT own land in Thailand.

[eljeque]

Einstein said "It is better to be gennerally right, than precisely wrong."

No, a foreigner cannot own land in Thailand.

For the very few who find a way, congratulations to them.

[philstone]

Einstein said "It is better to be gennerally right, than precisely wrong."

No, a foreigner cannot own land in Thailand.

For the very few who find a way, congratulations to them.

Stop this BS

I had no troble buying land in Thailand I have just brought 450 Rai of land in wife name and her brothers name what is your problem just trust your wife and her wonderful family

[eljeque]

Sir, I am happy for your purchase and hope that it all goes well for you and your family.

Yet, you did not buy (your name) the land, although you did pay for it.

[kiakaha]

I was told that a farang in Thailand may buy up to 1 rai (1,600 sqm) of land.

Can anybody give me a straight answer?

if the person of Caucasian appearance(farang) has acquired Thai nationality then they may.

if the person of Caucasian appearance(farang) is not a Thai national then they may not.

there used to be a BOI approved investment scheme where 40million Baht invested into an approved scheme would allow a 1 rai land purchase, but i dont know if this still exists.

[kjhbigv]

To me it is straight forward, there seems to be a lot of confusion about who can 'own' property and who can 'pay' for property.

My understanding (and I am sure someone will correct me if I am wrong) is:-

1. A westerner can buy (pay for) any amount of land or property that he likes, BUT it has to be in a Thai's name, so in reality you don't own it. The Thai person could shaft you and do the off as they are the legal owners.

2. The 'Top Man' will give up to 100 foreigners Thai citizenship every year, but I would imagine that this 100 would count out 99.999999% of westerners....ie. reserved for very very special cases indeed.

3. You pay for the property, the property ownership is in the name of a Thai individual BUT you can then set up a lease, to lease the property from that person on a 30 year renewable lease. The benefit of this, is that, the Thai owner can not sell the property as you have a legal lease on the property. A good example of this is when buying an apartment, same as UK, you have a lease for a set period of time from the owner of the property (the freeholder) who actually owns the building and land it sits on. So, buying an apartment is quite a safe investment.

So, in basic simple terms, NO an average individual foreigner CAN NOT OWN land or property in Thailand.

Correct me if I am wrong?