Krabi Property
 Know the Law
Foreign Ownership of Land
In Thai Law, foreigners are generally restricted from buying or owning land with a freehold title. However, it is currently possible to do so in some circumstances.
LIST OF CIRCUMSTANCES
- The Board of Investment (BOI) and the Industrial Estates Authority has the power to permit promoted companies to own freehold land for the purpose of the promoted business.
- Permission can also be granted under the Petroleum Act for use in approved projects.
- Banks and financial institutes that have become foreign owned.
- A foreigner who invests at least 40 million baht in authorized securities in Thailand, may buy up to 1 rai (1,600 sqm) of land for the residential purposes of the owner and their family.
This list of permitted circumstances of buying or owning freehold land does not cater for the majority of foreign investors. However, the following information sets out current legitimate ways for a foreigner to purchase property interests in Thailand.
Leasehold Property
Foreigners can lease land and or structures on short or long term contracts. Leases may currently be registered for up to 30 years and often have a renewal clause for additional periods of 30+30 years. Leases for industrial or commercial purposes can be for a term of up to 50 years, and this is again renewable for further 50-year periods. The majority of authorities agree that any such contracted renewal clause is enforceable against the original lessor. Any lease of 3 years or more must be registered on the title to the land at the appropriate land office in order for the lease to be enforceable for any term beyond 3 years.
Company Ownership of Freehold Property
A Thai Limited Company can purchase land as a juristic person. The company must be allowed to own land and invest in land in accordance with its objectives and Articles of Association. Foreigners can hold a maximum of 49% of the shares in such a Thai Limited Company, the balance must be owned by actual Thai investors.
It is vitally important that annual accounts are completed and relevant taxes are paid on time.
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