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Land ownership by foreigners?
David Tan
In general foreigners (non-Thais) have no legal rights to land ownership in
Thailand, except for a few rare exceptions.
This means that the possibility of land ownership by a foreigner desiring to
reside or to reside and to do business in Thailand is, in most cases, none.
Consequently, this gives rise to the need to “work around the rules” or to look
for alternative ways to own land in Thailand. Well, there are various structured
ways being used:
(1) A foreigner leases a plot of land from a Thai person or company for 30 years
(The longest lease period under the law), the lease of land contract signed by
the lessor and lessee is registered at the Land Office.
Also, it is stated in the lease of land contract that “upon the completion of
the 30 years lease term, the lessor agrees to renew the lease period for another
2 x 30 years lease period”. This allows a foreigner to possess (not own) the
land and to use the land for 30 years, plus maybe another 2 x 30 years lease
terms. (Note: If the land is sold to a new owner, this new owner is not
obligated to renew the lease period for another 30 years lease period. The lease
period renewal is a promise made only by the lessor).
(2) A Thai person, possibly a Thai girlfriend, wife or trustworthy friend, owns
the plot of land and the foreigner owns the house or building situated thereon.
(Thai law does not restrict a foreigner having ownership of a house or
building).
(3) A foreigner buys share(s) of a company limited that already owns the desired
plot of land. To have ownership title of the land, the company limited must have
a majority of its shares or capital held by Thais or Thai companies; or
(4) A foreigner incorporates a company limited with the majority of its shares
or capital owned by Thais or Thai companies. After incorporation, this company
limited buys and own the plot of land. To have ownership control over the
company limited, the Thai shareholders are either: nominee shareholders of the
foreigner (illegal) or having their shareholders’ voting rights reduced (may
become illegal given current proposed changes to the law).
Real Estate Tip
A wise reader will see that, unless he or she wants to risk a
relationship with a Thai person going very sour and losing the land and house or
getting involved with a company limited structure with hidden illegality or
potential illegality, the relax and worry free way will be to lease the desired
plot of land for only 30 years from a Thai person or Thai company who has
ownership title of the land.
Relax your mind and relax your heart, lease a nice plot of land from a Thai land
owner for 30 years, register this long term lease at the Land Office and pay the
rent up to 30 years only. At the end of 30 years, negotiate with whoever is the
owner then to renew the lease. Otherwise, buy and own for yourself a beautiful
condominium unit(s) overlooking the sea, beach and the sunset.
Note: David Tan is a lecturer of Business Law at Asian University. Any
comments or questions to David should be sent to [email protected].
Hafele celebrates young designers at Bangkok awards
The five winning designers are
pictured with Methinee Suwannabut,
the president of Thailand Interior Designers’ Association and management
representatives of Häfele (Thailand) Limited.
The Hafele’s Dream Kitchen Contest 2008 was successfully held
recently with more than 100 students from universities nationwide participating
in the event. The various awards were judged and presented at the “TIDA Night”
organized by Thailand Interior Designers’ Association at the Royal Paragon Hall
on Friday, September 05, 2008.
On this auspicious occasion, Methinee Suwannabut, the president of Thailand
Interior Designers’ Association, and the management team of Häfele (Thailand)
Limited presented the awards to five winners of the contest.
The awards ceremony was a high spirited affair with many interior designers and
contestants’ friends all joining in to congratulate the winners and participants
for their outstanding achievements.
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