Foreign Ownership of Real Estate Property
Definition of “Foreigner”
“Foreigner” or “Alien” refers to non-Thai individual and foreign juristic person (more than 49% of shares owned by foreigner)
“Real Estate” consists of land and the buildings on it as well as Condominium Unit.
The possession of real estate in Thailand can be either in the form of freehold or leasehold.
In accordance with Condominium Act B.E 2522 any foreigner can buy and own a condominium within the foreign ownership quota which is 49% of the total size area of the condominium building.
The foreigner will be able to acquire a condominium unit by inheritance when the foreign ownership of such condominium does not exceed the foreign quota. However, if such condominium already has foreign ownership exceeding the quota, the foreigner who acquires the condominium will not be able to own the unit and must sell the unit within 1 year after the date of acquisition by inheritance, otherwise, the foreigner shall be forced to dispose or sell by auction and will be entitled to earn benefit from the selling after the deduction of all debts (if any).
Real Estate Property
Short-term lease refers to the lease for a period of not more than 3 years. There is no requirement to register the lease with the Land Department. However, written lease agreement is important in order to be legally enforceable.
Long-term lease granted for a lease period of over 3 years. This type of lease must be done in written and register with the Land Department in order for it to be enforceable, otherwise, the lease shall have legal binding between the parties for 3- year period only. The long-term lease can also refer to the lease of land for commercial and industrial purposes pursuant to the Commercial and Industrial Leasing Act B.E. 2542 which allows the maximum lease term for up to 30 years but not over 50 years with possibility to renew for another 30 years but not over 50 years for the type of commercial and industrial granted by laws.