Thinking about buying a property in Thailand? Whether you dream of a penthouse in Bangkok, a beachfront condo in Pattaya, or a serene pool villa in Phuket or Koh Samui, the idea is certainly tempting. But what does the law actually say? Can foreigners really own property in Thailand? You may have heard conflicting answers – some say “yes,” others say “no,” and some claim you can only own 49%.
Let’s clear up the confusion. YES, a foreigner can own a property in Thailand, but not any property, and there are some rules and laws to follow. This 2025 guide explains everything you need to know about foreign property ownership in Thailand – legally, clearly, and in practical terms.
Understanding Property Ownership Laws in Thailand
What Foreigners Can and Cannot Own
Thailand’s property laws are strict when it comes to foreign ownership, but that doesn’t mean it’s impossible. Here is what foreigners can and cannot legally own:
- ✅ Can own: Condominium units (with conditions).
- ✅ Can own: Buildings (like houses), but not the land beneath them.
- ❌ Cannot own: Land directly under personal name (with some exceptions).
These laws are meant to protect Thai national interests, but there are legal pathways that allow foreigners to invest safely.
Why These Restrictions Exist
The Thai Constitution protects land ownership as a matter of national sovereignty. The restrictions are designed to prevent excessive foreign control over Thai real estate and to ensure that land remains under Thai ownership long-term. However, Thai law also accommodates foreign investment in ways that align with national interests.
Buying a Condominium in Thailand as a Foreigner
What Is a Condominium Under Thai Law?
A condominium in Thailand refers to a multi-unit building where individuals can own their private unit and share common facilities such as hallways, elevators, pools, and gardens. Foreigners can legally purchase these units in freehold – with full ownership – under the Condominium Act of 1979, provided certain conditions are met.
The Foreign Quota (49% Rule)
Thai law allows up to 49% of the total living area of a condominium building to be owned by non-Thais. For example, if a building has 100 units of equal size, only 49 of them can be foreign-owned.
Once the foreign ownership quota is fully occupied, any remaining units can only be sold to Thai nationals or Thai-registered companies. However, a unit currently held under the foreign quota can still be sold – either to another foreigner (retaining its foreign quota status), or to a Thai individual or company. In the latter case, the unit is transferred to the Thai quota, which in turn frees up space in the foreign quota for future foreign buyers.
Foreign Exchange Requirement
To register ownership at the Land Office, the purchase funds must:
- Come from abroad.
- Be in foreign currency.
- Be transferred under the buyer’s name.
After transfer, the Thai receiving bank issues a Foreign Exchange Transaction Form (FET), also known as TT3, which is required for ownership registration.
Step-by-Step: How to Buy a Condo in Thailand as a Foreigner
- Find a condo within the available foreign quota.
- Open a Thai bank account (if necessary).
- Transfer funds from a foreign account in foreign currency.
- Collect the FET/TT3 form from the bank.
- Complete the sale and register the title deed at the Land Office.
Buying a House and Land in Thailand: What Are the Options?
Option 1: Leasehold Agreements (30 Years)
Foreigners may lease land in Thailand for a period of up to 30 years, with possible renewal clauses (though not guaranteed under law). The lease must be registered at the Land Office and professionally drafted by a lawyer. Leaseholders can also build and own a house on the leased land.
⚠️ Important: To resell, rent, or sublease the property, permission from the landowner is typically required.
Option 2: Buying via a Thai Company
Another legal workaround is to establish a Thai Limited Company to purchase land and buildings. The key points:
- Foreigners may own up to 49% of the shares.
- Thai nationals must hold the majority (51%).
- Thai shareholders often transfer voting rights to the foreign investor via power of attorney or other internal agreements.
⚠️ Warning: Buying land or a house in Thailand through a Thai limited company as a foreigner is not legally permitted if the company is created solely for the purpose of owning property.
✅ What is allowed:
- A Thai limited company can legally own land in Thailand.
- Foreigners can hold up to 49% of the shares, with the remaining 51% owned by Thai nationals.
- The company must be a genuine business, with actual operations, revenue, and compliance with Thai laws (tax filings, accounting, etc.).
❌ What is not allowed (and risky):
- Creating a “nominee” company – where Thai shareholders are listed only on paper to allow a foreigner de facto control of 100% of the company (and thus the land) – is illegal.
- Thai authorities (especially the Land Office and the DBD) are aware of this practice and have been cracking down on these setups in recent years.
- If such an arrangement is discovered, the property may be seized, and the foreigner may face fines, legal action, or deportation.
Option 3: BOI Investment Privileges
If a foreigner invests at least 40 million THB in Thailand in a Board of Investment (BOI)-approved project, they may be granted permission to buy land (up to 1 rai) for residential purposes.
- The land must be used as the investor’s residence.
- The investment must meet BOI criteria and receive official approval.
Comparison of Ownership Options (Table)
| Ownership Method | Own Land? | Own Building? | Time Limit | Legal Risk | Cost/Complexity |
|---|---|---|---|---|---|
| Condo (Freehold) | No | Yes | None | Low | Moderate |
| Leasehold (30 years) | No | Yes | 30 years | Medium | Low |
| Thai Company Structure | Yes | Yes | None | High | High |
| BOI Privilege | Yes | Yes | Conditional | Low | Very High |
Final Thoughts
Despite the restrictions, foreigners can own property legally in Thailand through several clearly defined channels. With proper planning and trusted legal guidance, investing in Thai real estate can be both safe and rewarding. Whether you’re seeking a personal residence or an investment opportunity, the Thai property market remains attractive and full of potential.
Need Help Navigating the Thai Property Market?
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