WAYS YOU CAN OWN LAND IN THAILAND

When it comes to land ownership, only Thai citizens can own it directly in their name. Foreigners can own a house or building, but not the land itself. Foreigners have two options for land ownership: renting through a legally recognized lease at the Land Office or owning it through a Thai company that holds the land as an asset. Your choice will depend on your specific situation and preferences.

LAND RENT

This is the most common way of owning land in Thailand. In this situation, the land where your house is located is owned by a Thai citizen or a Thai entity. When you buy a property, you create a 30-year lease with the landowner, which is recorded on the land title deed, known in Thai as a “Chanote”. This land lease agreement, called the Land Lease Agreement (LLA), is officially recognized by the Thai government. It ensures that the landowner cannot cancel or interfere with your right to use the land during the lease term. Thai law so far only allows the maximum lease term of 30 years to be officially registered at the land office. This 30-year lease is a guaranteed right protected by the Thai government. You, as a tenant, have the legal right to use the land, and no one can deny you access or use of the land during this lease period. In addition, you have the right to transfer or lease the land to anyone without the prior consent of the owner of the land.

FREEHOLD

Usually only Thai citizens can own land in Thailand. However, if you are a foreigner and want to own a house and land without restrictions, there is an option. You can buy land through a Thai company. Here’s how it works: A lawyer helps you set up a Thai company where you become the majority shareholder and manager of the company. Foreigners can own up to 49% of the company, with the remaining 51% owned by at least 2 Thais. Even if you are a foreigner, you can still have majority ownership and control of the company as its chief executive and sole decision maker. Many foreigners prefer this method of company ownership because they believe it offers better protection and real ownership rights compared to land leases. However, as a company owner, you will need to file annual taxes and prepare financial statements, which will require the help of an accountant, costing approximately 12,000-20,000 THB per year. It is important that you do not use this company for business activities, as it can complicate your tax situation when you decide to sell the property later.