Understanding the Legal Landscape

Thailand’s property laws are designed to protect land ownership for Thai nationals. However, foreign investors have found legitimate ways to invest, especially in the condominium market, where foreigners can own up to 49% of a building’s total unit space. Long-term land leases (up to 30 years, with renewal options) and forming a Thai majority company are also common strategies

Thailand Law Online

InvestAsian

Best Option First: Buying Condos in Thailand as a Foreigner

If you’re a foreigner and want to buy property in Thailand, a condominium is your best and easiest option. Thai law allows foreigners to legally own freehold condos, meaning full ownership of the unit, completely legal, with your name on the title. Foreigners can own up to 49% of the total saleable area in any registered condominium building. That means nearly half of the units can be fully foreign-owned—no nominee structures or loopholes required.

But here's the catch: You can only buy if that 49% foreign quota isn’t full yet. So, always check before you agree to buy!

When it’s time to pay, you must send your money from outside Thailand, in foreign currency, to a Thai bank account under your name. After that, the bank will give you a document called the Foreign Exchange Transaction Form (FET Form). This paper proves that your money came from overseas, and it’s 100% necessary to register your name as the owner of the condo.

Be careful! Some buildings look like condos but are not legally registered as condominiums. These “condo-like” projects might seem cheap or flexible, but they don’t follow the law, which can be a big problem later. Always make sure the condo is legally registered and safe to buy.

Mini FAQ:

Can I rent out my condo? – Yes, foreigners can rent out their condos, either long-term or sometimes short-term. Just check local rules in your area.

What if the 49% quota is full? – Then you cannot register the unit in your name. You would need to lease it instead or look for another condo where the quota is still available.

How to Buy a Condo in Thailand: 5 Simple Steps

• Find a legal condominium – Make sure it’s officially registered and has room left for foreign buyers.
• Reserve your unit – Pay a small deposit to hold the condo.
• Send the money from overseas – In foreign currency, to your Thai bank account. Ask the bank for the FET Form.
• Check the documents – Hire a lawyer to check the contract, the title deed, and the developer’s history.
• Register the ownership – Go to the Land Office, pay the fees, and get your title deed.
• Why Foreigners Can’t Own Land Directly in Thailand

If you’ve ever wondered, “Can foreigners buy land in Thailand?” — the short answer is: not directly. According to Thai law (specifically the Thailand Land Code Act), land ownership is reserved for Thai nationals. This means that as a foreigner, you cannot own land in your name, no matter how long you live in Thailand or how much you invest.

What Does the Law Say?

Thailand’s Land Code Act is very clear: only Thai citizens and companies that are majority-owned by Thai nationals can legally own land. This law is designed to protect Thai territory and economy, which is why the rules are strict, even if you're married to a Thai citizen.

Any Exceptions? (Section 96 Bis)

There is one legal exception called Section 96 Bis, which allows certain foreigners to own up to one rai of land (about 1,600 square meters) — but it’s not easy. To qualify, you must:

• Invest at least 40 million baht (over $1 million USD)
• Get government approval
• Use the land for residential purposes only

In reality, very few foreigners ever get approved through this path. It’s technically possible, but it’s slow, complicated, and not a practical option for most buyers.

Nominee Structures: A Risky Shortcut

Some people try to get around the law by using a “nominee” — a Thai person who buys land in their name but holds it on behalf of the foreigner. While this might seem like a clever workaround, it’s illegal. Thai authorities are aware of this tactic, and if you’re caught, the consequences are serious:

• You could lose the land
• The nominee could face legal charges
• You could be banned from owning property or doing business in Thailand

Important Note: Don’t Try to Game the System

Trying to “cheat” the system by using fake Thai companies or nominee buyers is not worth the risk. It might look easy at first, but Thai law is strict, and once they investigate, you could lose everything. If you love Thailand and want to invest here, it’s much smarter to follow the legal paths (like buying a condo or leasing land) and protect your money and peace of mind.

Legal Alternatives to Buying Land in Thailand

So you can’t own land in Thailand as a foreigner — but don’t worry, you still have solid legal options. Many foreigners live happily in Thailand for decades using one of these workarounds. They may not give you full ownership of the land, but they still let you live, build, or invest legally and securely.

Leasehold Agreements (30 Years + Renewals)
This is the most popular option. As a foreigner, you can legally lease land or property in Thailand for up to 30 years. Most contracts also include an option to renew the lease for another 30 years — or even a third round, giving you a possible 90-year stay.
You’ll want everything in writing, registered at the Land Office, and reviewed by a lawyer. It’s a great choice if you want long-term use of a house, villa, or land without trying to bend the rules.

Usufruct Rights: Use the Land Without Owning It
A usufruct is a legal right that allows you to live on or use someone else’s land for your lifetime, but you don’t own it. This right must be agreed with the Thai landowner and registered at the Land Office.

 It’s best for personal use, like living in a home or renting it out short-term (with permission). But keep in mind, it ends when you pass away — it cannot be inherited or sold.

Superficies: Own the Building, Not the Land
With superficies, you can own a house or building that sits on land you don’t own. You’ll usually combine this with a lease on the land itself. This setup is useful if you want to build a custom home in Thailand but can't own the land.
Think of it like this: You own the house, but you’re borrowing the land it sits on.

Habitation & Servitude: Less Common Options
Habitation gives you the right to live in someone else's house (but not rent it out). It’s like usufruct, but more limited.
Servitude is a legal right to use part of another person’s land, like a shared driveway or access path.
These are less popular and usually apply in specific legal cases — not the best fit for most property buyers or expats.

The Bottom Line:
Even though you can’t buy land in your own name, there are plenty of safe and legal ways to live, build, and enjoy property in Thailand. Just be sure to talk to a qualified lawyer, register everything correctly, and always follow Thai property laws — that’s the key to peace of mind.

Legal Alternatives to Owning Land in Thailand: Leasehold, Usufruct & Superficies

If you're a foreigner exploring property in Thailand, you’ve probably discovered that owning land directly isn't allowed under Thai law. But that doesn’t mean you're out of options. Thailand offers several legal frameworks that let foreigners live, build, and invest safely, without violating ownership laws.

Leasehold is the most common and straightforward option. As a foreigner, you can lease land or property for up to 30 years, with the possibility of renewing for another 30 or even 90 years total. While you won’t own the land, you get full legal rights to live on it, build (with the owner's consent), or rent it out. It’s ideal for long-term living or investment. Learn more about leasehold vs usufruct here.

Usufruct gives you the legal right to use and live on someone else’s land for your lifetime. It must be registered at the Land Office. While you can live there like an owner, you don’t technically own anything, and this right ends when you pass away. It’s best for personal use, especially if you’re married to a Thai national. More details on usufruct and superficies here.

Superficies is a great option if you want to build or own a house on land you don’t own. You can legally own the structure while leasing the land underneath. This right can last up to 30 years, is renewable, and—unlike usufruct—can be inherited. It’s perfect for foreigners who want to build a custom home while staying within the law. Read more about superficies rights here.

Comparison Table

Option	Can Foreigners Use?	Duration	Inheritable?	What You Control	Best For
Leasehold	Yes	30 years + renewal	No	Use of land/property	Long-term rental or home stay
Usufruct	Yes	Lifetime	No	Use of land/property	Living with Thai spouse
Superficies	Yes	30 years + renewal	Yes	Ownership of buildings	Building on leased land

Why You Should Avoid Nominee Structures

Some foreigners try to get around Thai land laws by forming a Thai company with nominee shareholders—Thais who hold 51% of shares but have no real control. This used to be a common workaround, but today it’s considered illegal, and authorities are actively investigating and prosecuting it. Learn more about legal risks from Samui For Sale.

Real Case Study

A British investor, Mark, purchased land in Koh Samui by forming a Thai company. Thai nationals were listed as majority shareholders, but in reality, Mark controlled everything. A few years later, Thai authorities reviewed the company and found that the Thai shareholders were just nominees. The result? Mark lost the land, faced legal consequences, and was blacklisted from property ownership in Thailand. He later admitted that if he had bought a condo or secured a long-term lease, he could have saved his entire investment. For more insights, read case examples from InvestAsian and Conrad Properties.

Can You Still Form a Thai Company to Own Property?

Yes—but only for real businesses, not just to buy land. The company must operate legally with real Thai shareholders, active income, and local staff. If it’s discovered to be a “fake” setup, the land can be seized. Thai officials now strictly enforce rules against nominee shareholders, especially in high-interest areas like Phuket, Samui, and Pattaya.

• The Bottom Line
• The safest options for foreigners are:
• Buying a condo (within the 49% foreign ownership quota)
• Leasing land or property long-term
• Registering a legal usufruct or superficies agreement

Trying to bypass Thai law using nominee structures is a major risk. Today, Thai authorities are actively cracking down—and it's simply not worth it. Choose one of the many legal, safe, and long-term paths to property in Thailand, and enjoy your investment with peace of mind.

Inheriting Property in Thailand: What Foreigners Should Know

If you're a foreigner living in Thailand—or planning to retire here—understanding inheritance laws is crucial. Whether you’ve invested in property or live with a Thai spouse, the way property is passed down matters. Thai law treats land, condos, and lease rights differently when it comes to inheritance.

Can Foreigners Inherit Land in Thailand?

Technically, a foreigner can inherit land, but they cannot legally own it. If a foreign national inherits land from a Thai spouse or relative, they are given one year to sell the land to a Thai national or transfer it. After that, the Land Office can force a sale. This is part of Thailand’s effort to protect land ownership for Thai citizens. You can read more about this policy via Samui For Sale’s inheritance guide.

The One-Year Rule Explained

Thailand’s Land Code gives foreign heirs 12 months to dispose of inherited land. This rule prevents long-term foreign ownership of land, even in cases of family inheritance. After the one-year grace period, continued ownership becomes illegal, and the land may be confiscated or forced into sale.

Condo Inheritance Rules Simplified

Condos work differently. Foreigners can legally inherit a condominium unit if the unit falls within the 49% foreign ownership quota for the building. If the quota is full at the time of inheritance, the heir must sell the condo within a year—similar to land. But if quota space is available, the foreign heir can take full ownership and register the unit in their name. This makes condos a much more inheritance-friendly option for expats. For more information on condo laws, check Thailand Law Online.

Special Note for Retirees & Long-Term Expats

If you're planning to retire in Thailand or have lived here for many years, it’s smart to plan your estate and property strategy early. Avoid buying land in your Thai spouse’s name, thinking your children or heirs will retain it—it doesn’t work that way under Thai law. Instead, consider safer structures like:

• Purchasing a condo within the foreign quota
• Setting up leasehold or usufruct agreements
• Using superficies to separate land and house ownership
• You can learn about these options from Frank Legal & Tax and ThaiLawOnline.

Pro Tip: When This May Be Viable—and When to Avoid It

If you're a foreigner married to a Thai spouse, buying land under their name and using legal tools like usufruct or superficies may work during your lifetime—but it does not guarantee protection after death. If inheritance is your goal, focus on assets you can legally pass on, like condos, cash, and movable property. Always consult a qualified Thai lawyer to structure your assets correctly.

Real Estate Taxes & Fees in Thailand

When buying or selling property in Thailand, it’s important to understand the real estate taxes and transaction fees involved. Whether you’re purchasing a condo or selling a villa, these costs can significantly affect your budget and profits. Here’s a full breakdown of the key taxes, who pays what, and what to expect during the process.

Transfer Fee

The transfer fee is typically 2% of the appraised value (as assessed by the Land Office, not the market price). This fee is usually split 50/50 between the buyer and the seller, unless otherwise negotiated in the contract. This fee applies to all property transfers and is payable at the Land Office on the day of transfer. 

• Withholding Tax (WHT)
• WHT applies to the seller and is either
• 1% of the appraised value or selling price (whichever is higher) for companies, or
• Based on a progressive tax rate for individuals, depending on how long the property has been owned.
• This tax is calculated and deducted at the Land Office during the sale.

Specific Business Tax (SBT)

If the property is sold within 5 years of purchase, the seller is also subject to Specific Business Tax, which is 3.3% (including local tax). However, this can be waived if the seller has owned and used the property as their primary residence for more than 5 years. More on SBT from Frank Legal & Tax.

Who Pays What During the Sale?

While it’s common for the buyer and seller to share the transfer fee, the seller typically pays the withholding tax and specific business tax. However, everything is negotiable and should be agreed upon in the sale contract.

Hidden Costs to Watch For

• In addition to government fees, watch out for:
• Legal fees (for contract reviews or due diligence)
• Agent commissions (typically 3% of the sale price, paid by the seller)
• Common area fees (condo maintenance, which may be prorated on sale)
• Stamp duty (0.5%, sometimes applied in place of SBT if exemption criteria are met)

Sample Breakdown: Buying a $150,000 Condo in Bangkok

Here’s a rough cost estimate if you’re buying a condo for USD $150,000 (approx. 5.4 million THB):

Transfer fee: 2% = 108,000 THB (shared 50/50 = 54,000 THB each)

Legal fees: ~30,000 THB (depends on provider)

Common area fund (one-time, if required): ~50,000 THB

Furniture package (optional): ~100,000 THB

Total Estimated Buyer Costs: Around 234,000 THB (~USD $6,500)

These figures can vary based on the condo, developer, and deal terms.

Consider This Before Selling Within 5 Years

If you plan to sell your property within five years, be prepared for higher taxes. Selling too early means you'll likely pay Specific Business Tax, and the withholding tax may be higher, depending on your holding period. This is especially important for short-term investors looking to flip property quickly. Be sure to consult a lawyer or tax professional before deciding to sell. More info at GPS Legal.

How to Avoid Legal Trouble: Due Diligence for Foreign Buyers

Buying property in Thailand can be exciting—but if you don’t do your homework, it can also lead to costly legal mistakes. Many foreigners run into problems simply because they skipped proper due diligence or relied too heavily on a real estate agent. Here’s how to protect yourself and your investment from day one.

Why You Should Hire a Thai Property Lawyer

• No matter how trustworthy the seller or agent may seem, always work with an independent Thai property lawyer. A lawyer will
• Review the sale and purchase agreement
• Verify the legal status of the property and title
• Check for any outstanding debts, liens, or mortgages
• Ensure the contract terms protect your rights
• Handle the land office registration process
• This is especially important if you’re buying off-plan or entering into a lease agreement. 

How to Verify a Title Deed in Thailand

• Not all land in Thailand is equal. Always confirm that the property has a valid and transferable title deed, such as:
• Chanote (Nor Sor 4 Jor) – The most secure and preferred title deed
• Nor Sor 3 Gor – Legal, but slightly less accurate in terms of boundary mapping
• Nor Sor 3 – Legal but less developed; often used in rural areas
• Avoid any property without a registered title, or with land documents that cannot be transferred. 

Role of Agents vs. Legal Advisors

Real estate agents can help you find a great condo or villa—but they’re often paid by the seller and may not prioritize your legal safety. Their job is to market and sell.

A legal advisor or lawyer, on the other hand, works solely for you. They ensure that the deal is safe, the title is clean, and the contract is fair. The best approach? Work with both—a trusted agent to find the property and a lawyer to protect your rights.

Pro Tip: Don’t rely on verbal promises or “standard contracts.” Always get everything in writing, reviewed by your lawyer, and officially registered at the Land Office.

Where Should You Buy? Top Locations for Foreigners in Thailand

Thailand offers something for every lifestyle—whether you're looking for an investment property, a peaceful retirement retreat, or a vacation home. Here’s a breakdown of the top cities where foreigners are actively buying property, along with the pros and cons of each.

Bangkok – City Living & Investment Hubs

Bangkok is the heart of Thailand’s economy, making it a hotspot for condo investments and long-term rentals. It's perfect for those seeking urban convenience, access to international schools and hospitals, and consistent rental demand. High-rise condominiums in central areas like Sukhumvit, Sathorn, and Silom are especially popular with expats.

For investment tips in Bangkok, check out InvestAsian’s Bangkok property guide.

Phuket & Samui – Resort-Style Villas & Condos

These islands are ideal for buyers looking for a tropical, resort-style lifestyle. Phuket offers a wide range of luxury condos and private villas near the beach, while Koh Samui is more boutique and relaxed. These areas attract digital nomads, retirees, and short-term renters. Just be cautious with villas on leased land—use proper contracts like leasehold or superficies.

Chiang Mai & Pattaya – Budget-Friendly Lifestyle

Chiang Mai is a favorite among retirees for its peaceful environment, cooler weather, and affordable living. Pattaya offers a mix of urban energy and beach access, with many condos available at lower prices than Bangkok or Phuket. Both cities have growing expat communities and good infrastructure—but condo rental demand may be more seasonal.

Final Thoughts: Is Buying Property in Thailand Worth It?

Yes—if you follow the legal path and invest wisely. Thailand offers many opportunities for foreign buyers through condo ownership, long-term lease agreements, or superficies rights. But timing and location matter. Avoid rushed purchases, unregistered projects, or land bought under nominee setups. When in doubt, wait, research, and get expert help.

Always Work with a Legal Expert

Before signing anything, speak to a qualified Thai property lawyer. Review the title deed, check the foreign ownership quota, and register your rights properly. For peace of mind, use guides from trusted legal sources like Thailand Law Online or work with licensed agents who have a proven track record.

Ready to Buy or Just Exploring?

Whether you’re serious about buying or just starting to explore your options, it’s always smart to speak with a real estate expert who understands Thai property law. They’ll help you make informed, legal, and stress-free decisions.

Talk to a Trusted Thai Real Estate Expert Today
 Get the legal clarity and property insight you need—before you commit.