For long-term residents of Thailand, it is important to understand the laws governing property ownership in Thailand, as the restrictions differ from those in many other countries.
1. Condominium Ownership (Freehold Condominium)
This is the only form of real estate ownership where foreigners are legally permitted to own (Freehold):
- Foreigner Rights: Foreigners can purchase and own fully owned condominium units.
- Legal Conditions: Foreign ownership of a building must not exceed 49% of the total unit area in that building (according to the Condominium Act of 1979).
- Source of Funds: The funds used to purchase real estate must be in foreign currency transferred into Thailand from overseas. Evidence of the transfer must be provided (e.g., a T.T. 3 form or a bank transfer certificate).
2. Land and House Ownership
Under Thai law, foreigners are not permitted to directly own land.
Therefore, there are two main options for foreign land ownership in residential developments:
A. Leasehold Right
This is the most popular and secure option for long-term residences:
- Leasehold: Foreigners can legally enter into lease agreements for land and houses with the landowner (in this case, the project) for a maximum term of 30 years.
- Registration: Long-term lease agreements must be registered with an official at the Land Office to ensure full legal validity and prevent future disputes.
- Renewal: Although the law stipulates a maximum lease term of 30 years, the lessee can agree with the lessor to extend the lease for another 30 years upon the expiration of the original term.
B. Ownership through a Thai Company
This involves foreigners establishing a limited company in Thailand to hold ownership of land and houses in the name of the juristic person.
- Caution: This method is complex and administratively expensive, as foreigners can hold up to 49% of shares, and the company must demonstrate that it is operating a business and not solely for the purpose of holding land on behalf of foreigners. Therefore, due diligence on transparency and legal requirements related to legal entity registration is of utmost importance.
Summary for "Baan Phuttaraksa" guests:
The project recommends that guests understand the long-term leasehold model for clarity and security during long-term stays of up to 30 years and to reduce legal complications related to managing a Thai juristic person.