Buying property in Thailand as a foreigner

Under the Land Code, foreigners generally cannot own land in Thailand in their own name. There are narrow exceptions (for example certain Board of Investment projects, or a large investment approved case by case), but they're rarely used for a home on the islands.

That's why island property for foreigners is usually sold as one of: a freehold condominium unit, a registered lease, or a house owned separately from the land.

A foreigner can own a condo unit outright, in their own name, as long as foreign ownership in the building stays within 49% of the total unit floor area (the foreign quota).

The purchase money must come into Thailand from abroad in foreign currency. Your Thai bank issues a Foreign Exchange Transaction form (or a credit advice letter for smaller amounts) that the Land Office will ask for when the unit is transferred to you — keep it, you'll also want it when you sell.

Ask the seller or developer for written confirmation that a foreign-quota unit is still available, and check it at the Land Office or with the condo's juristic person.

Most villas and land sold to foreigners on Samui, Phangan and Tao are leasehold. A lease of land can be registered at the Land Office for up to 30 years; it's written on the back of the title deed and protects you even if the land is sold.

Contracts often promise one or two renewals ("30+30+30"). A renewal promise is a contract between you and the landowner, not a registered right — whether it can be enforced, especially against a new owner or heirs, is uncertain. Price a lease on the registered term, not the promised one.

A lease over three years must be registered to be enforceable for its full term. Unregistered long leases are a common and expensive mistake. See our guide to leasehold for the details.

A foreigner can own a building separately from the land under it. Buyers often lease the land and own the house in their own name (through the construction permit, or by registering the purchase of the building), sometimes combined with a registered right of superficies.

This gives you a clearer claim to the house itself, but the land is still leased — what happens when the lease ends must be set out in the contract.

You'll still hear about buying land "through a Thai company". A Thai company can own land, but using Thai nominee shareholders who don't really invest — so that a foreigner controls the company and its land — is illegal under the Land Code and the Foreign Business Act. Land Offices check company structures, and authorities have run crackdowns on nominee arrangements in tourist areas.

If someone suggests a nominee company, get advice from an independent lawyer who isn't connected to the seller.

Use your own independent, licensed lawyer — not the seller's or the agent's.

Have the title deed checked at the Land Office: who owns it, its type (chanote, Nor Sor 3 Gor…), existing mortgages, leases or servitudes. See our guide to title deeds.

Check legal road access (a registered servitude if access crosses someone else's land), electricity and water connections, and the building permit for any existing house.

On the islands, also check slope, height above sea level and coastal setback rules for building — some hillside and beachfront land can't be built on, or only with limits. The local municipality (tessaban) or Tambon office can tell you what applies to a plot.

Pay deposits into a lawyer's escrow or against a signed contract that says when the deposit is refundable.

At the Land Office, the usual government charges on a sale are a transfer fee (2% of the official appraised value), plus either specific business tax (3.3%, typically when the seller has owned for under five years or is a company) or stamp duty (0.5%), and withholding tax on the seller's income. Registering a lease costs 1% of the total rent plus 0.1% stamp duty.

Who pays what is negotiable and should be written in the contract. Rates and temporary reductions change — the Land Office confirms the exact amounts on the day.