Buying, selling, renting or renting out property in Thailand is subject to Thai law relating to foreign ownership or renting of real estate whether as an individual or as a registered foreign company. It’s essential to work with an experienced, bilingual property lawyer as the rules can be subject to change without notice and regional interpretation.
Land sizes
Land in Thailand is measured in rai, with one rai divided into 100 talong wah.
One rai is equal to 1600 sq m, an acre holds 2.48 rai and a talong wah equals four square metres. The ngan, a lesser used measurement, holds approximately 400 sq m. Most land offered for sale or lease is one rai or less, although rural plots can be larger. Plot sizes in gated moo baans(housing developments) in large cities are normally smaller than one ngan.
Title deeds explained
Of the six land title deeds in use in Thailand, only three apply to foreign leasing or purchasing land for the purpose of building a home. The most secure is the Chanote deed, also known as the Nor Sor Gor 4 Jor, with the Nor Sor 3 Gor and the Nor Sor 3 also useful.
Chanote Land Title (Nor Sor Gor 4 Jor)
The Chanoteland title is a certificate of legal leasing of a parcel of land, and is the preferred land title for foreigners as it is the most secure. The exact boundaries of the land are defined by GPS and give legal rights to occupation after confirmation by the local land office. In the case of multi-unit developments, the land may only be divided into nine or less plots, as its area is subject to the Land Allottment Law section 286.
Nor Sor 3 Gor
The Nor Sor 3 Gor land title gives occupation to a parcel of land measured out by hand and marked with wooden or concrete posts at its boundaries. It’s similar in legal structure to the Nor Sor 3, and gives the right to subdivide the land into smaller plots. Public declaration of developments on the land is not compulsory.
Nor Sor 3
This land title gives permission for legal construction of a house in the land to which it refers, but is simply a government-authorised usage certificate rather than a possession title. The person holding the title can use the deed as a legal document and benefit from the use of the land. Nor Sor Gor 3 is issued solely for independent, stand-alone plots and is seen as a ‘floating map’ containing no defined boundaries. A downside to this title deed is the lack of definition of the area itself, and any developments must be announced in the public domain for a minimum of 30 days.
Condo ownership
For foreigners wishing to own a home in Thailand, the purchase of a condo unit is the most popular option. Non-Thai nationals are allowed to fully own a unit as long as they satisfy the requirements of the Condominium Act by having permission to stay longer-term via a recognised visa. Although a number of Bangkok condo developments legally allow 100 per cent foreign ownership of the units available, most blocks outside the capital are restricted to 49 per cent foreign ownership.
The purchase of a freehold condo is straightforward, with full title transferred at point of purchase into the buyer’s name. Foreigners are required to transfer the funds for the purchase from an overseas bank to their Thai bank account, and the Foreign Exchange Transaction certificate provided by the Thai banks is a necessary part of the purchase regulations.
Land/house ownership
Individual foreigners living in Thailand are prohibited from owning land, although legal ownership of a property on leased land is allowed. If a foreigner has a Thai spouse, the land on which the marital home is built can now be legally owned by the Thai spouse. Previous to a recent change in the law, Thai women with foreign husbands were not allowed to own land.
Ways to own land
For foreigners without Thai spouses wishing to build a home on Thai land, there are several options:
• Land can be legally leased to non-Thai nationals for an initial 30-year period, with the possibility of two further 30-year extensions contractually promised but dependent on local land offices, which at present will only register 30-year leases. Including a right of superficies in the land lease will further secure ownership of the house built on the land
• If the foreigner has formed a Thai company with the legal 51 per cent of the shares held by Thai nationals, the company is permitted to own land in the company name. The company, however, must be a genuine operation
• If your plans include a substantial business investment in Thailand, the Board of Investment (BOI) programme waives the restrictions on land ownership by foreigners. Minimum investment is 40 million baht, with one rai of land able to be owned outright.
Visa types
Thailand offers five visa options for foreigners wishing to take up residence. All are described as ‘non-immigrant’ and allow renewals or extensions, usually annually, subject to certain conditions. In most cases, a 90-day report must be made at the local immigration office to confirm the place of residence of the foreigner.
• The one-year multi-entry non-immigrant visa (Non-Imm O) is valid for one year and can be extended for a period of three months. This visa can only be obtained outside Thailand, with those wishing to stay for an unlimited time required to exit the country to apply for another year’s visa. The 90-day report must be undertaken at a Thai border crossing or other overseas location, although several local immigration offices now provide this service
• The marriage visa, officially called the One Year Extension of Stay based in Marriage, gives foreigners married to Thai spouses a one-year stay without needing to exit the country. Annual renewals take place via the couples’ local immigration office, and usually include a visit to the marital home by immigration officers. The local 90 report must still be made
• The popular One-year Extension of Stay based on Retirement, known as the ‘retirement visa’, is available to those over 50 years of age provided they meet the financial criterion of 800,000 baht in a Thai bank for two months before the visa application. A combination of income plus capital in a Thai bank is, at present, also acceptable. For annual renewals, obtainable at the local immigration office, the 800,000 baht deposit needs to be in a Thai bank for three months prior to the renewal. 90-day local reports must be made.
• The Non-Immigrant B business visa is obtainable either before entry into Thailand from a Thai embassy in your home country or from a nearby country’s Thai embassy when a job has been offered and accepted. To work in Thailand, a work permit must be obtained from the local Labour Office, with the entire process taking around three months. 90-day local reports are also compulsory with this visa. If you are applying in your home country, you will be granted a 90-day visa, extendable to a one-year renewable visa on expiry.
• The 90-day Non-Immigrant visitor visa is issued at a Thai Embassy or consulate in your home country, and is extendable to a one-year work, marriage or retirement visa subject to proof of adequate finance. Extensions may be possible an immigration offices within Thailand.
Usufructs explained
The usufruct route to accessing foreigners’ legal right to land is less used but equally as efficient as obtaining a 30-year lease. A Usufruct Agreement is made on immovable property such as a plot of land between the owner of the land and the usufructury as to utilization of the land. The agreement must be registered at the local land office, thus notifying the general public of the usufruct burden on the plot. After registration the usufruct is entered into the land title deed. At the expiry of the usufruct, the land reverts back to the owner.
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