Khaolak
Basically, there are two types of land tenure in Thailand, namely leasehold and freehold. Lease hold titles are normally granted by the government, government agencies and institutions. However, some private owners with freehold land also offer leasehold titles to the private sector.
Thai law states that foreigners may not own land or property in Thailand in their own name, but they can own buildings. To purchase land in Thailand, a foreigner has two options:
Land is purchased on 30 year leasehold with an option to extend that lease for further 30 year periods.
The property cannot be seized by the Lessor prior to the expiry of the lease.
The lease must be registered at the Land Department and a fee for its entire term is payable, calculated on a percentage of the rent.
The lease will remain in force even if the property is resold.
Leases for a term of more than three years of the life of the lessor or lessee are enforceable only for three years unless registered with the relevant Land Department Office. The duration of lease may not in any event exceed 30 years. Each extension of a lease may not exceed 30 years.
A foreigner may purchase the freehold of land by the formation of a company (Thai Limited company). This is probably a more attractive way by which foreigners may be able to purchase land in Thailand.
The land will be owned by the company and not the individual.
Thai law requires that the company has a 51% Thai ownership.
To give greater protection to foreign shareholders the Thai Law permits the foreigner sole directorship.
