Buyer's Guide

Thai law prohibits foreigners from owning land directly. However, there are alternatives for foreigners to legally occupy land, such as long-term leases or owning land through a Thai company. Here are steps to follow if you wish to own properties in Thailand

1. Determine Ownership Structure:

• Decide on the ownership structure that aligns with Thai laws and your investment goals. Options include long-term lease agreements, setting up a Thai company with majority Thai ownership, utilizing marriage to a Thai national, or exploring Board of Investment (BOI) privileges.

2. Conduct Due Diligence:

• Engage a qualified Thai lawyer to conduct due diligence on the property. This includes verifying the property’s title deed (Chanote), checking for any encumbrances or disputes, and ensuring the seller’s legal right to sell the property.

3. Negotiate and Draft Purchase Agreement:

• Negotiate the terms of purchase with the seller, including the purchase price, payment schedule, and any conditions precedent.
• Have your lawyer draft a purchase agreement that outlines all terms and conditions, protecting your interests as a buyer.

4. Secure Funding and Transfer Funds:

• Arrange financing if needed. Transfer funds from your home country to Thailand in foreign currency.
• Convert the funds to Thai Baht through a Thai bank. Obtain a Foreign Exchange Transaction Form (FET) for amounts over $50,000, which is required for property registration.

5. Register the Transfer of Ownership:

• Both buyer and seller, or their authorized representatives, must be present at the Land Office to register the transfer of ownership.
• Pay the applicable transfer fees, typically around 2% of the property’s assessed value, and any other taxes or fees required by Thai law.

6. Comply with Legal Requirements:

• Ensure compliance with all legal requirements throughout the purchase process, including tax obligations and regulatory filings.
• Obtain legal advice on structuring the ownership to avoid illegal nominee arrangements and adhere to Thai regulations.

7. Receive Title Deed (Chanote):

• Upon completion of registration and payment of fees, receive the title deed (Chanote) or other relevant documents confirming your ownership rights.

8. Maintain and Manage the Property:

• Manage ongoing responsibilities such as property maintenance, utility payments, and compliance with local regulations.
• Consider engaging a property management company if you do not reside in Thailand year-round to oversee these responsibilities.

9. Plan for Exit Strategies:

• Have contingency plans for selling the property if necessary. Understand the market conditions and legal requirements for property sales in Thailand.

Navigating property ownership in Thailand as a foreigner requires careful planning, legal expertise, and adherence to Thai laws. Seeking guidance from qualified professionals, such as lawyers specializing in property law and reputable real estate agents, can help ensure a smooth and legally compliant transaction.