Real Estate Ownership and Investment in Thailand.​

Under Thai law, real estate comprises land and the structures permanently affixed to it, along with the legal rights associated with such property. The primary legal frameworks governing real estate in Thailand are the Civil and Commercial Code (CCC) and the Land Code

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Investment in Real Estate in Thailand

Thailand's real estate sector offers diverse investment opportunities, especially in residential, resort, and commercial developments. However, investors must navigate regulatory requirements and title structures carefully.


Common Investment Structures

  • Leasehold Property: Typically 30-year leases, with options for renewal, are popular among foreign investors.

  • Thai Company Ownership: Investors may hold property via a company registered in Thailand (with majority Thai ownership), but strict scrutiny applies to prevent nominee arrangements.

  • Real Estate Funds & REITs: Thai regulations permit investment through Real Estate Investment Trusts (REITs) and property funds for both local and foreign investors.

Legal and Regulatory Environment

  • The CCC and the Land Code are the core legal texts.

  • Certain incentives are sometimes offered by the government, such as reduced transfer fees or higher loan-to-value (LTV) limits, to stimulate the property sector..

Ownership and Title of Land

Land can be held as either freehold or possessory right:

  • Freehold Land: The strongest form of ownership, evidenced by a land title deed (Chanote), which certifies full legal ownership and is considered the most marketable form of title in Thailand.

Land with Possessory Right: This includes certificates such as:

  • Certificate of Land Utilization (Nor Sor 3 Gor)

  • Certificate certifying Land usage (Nor Sor 3)

  • Claim Certificate (Sor Kor 1)

    These rights typically allow usage or occupation for specific purposes under the Land Code. Some of these can be upgraded to a full land title deed upon fulfilling certain conditions.

Ownership of Houses and Buildings

Although buildings are generally treated as part of the land they sit on, if the land and building are owned separately (e.g. by a lessee building on leased land), the two are considered distinct assets. While building title deeds are not issued under Thai law, construction permits and official building sale contracts are accepted as evidence of ownership.

Foreigners cannot directly own freehold land in Thailand, but they can:

  • Lease land for up to 30 years (renewable).

  • Own the building constructed on leased land.

  • Acquire land through a Thai majority-owned company (with regulatory limitations).

In exceptional cases, own land through Board of Investment (BOI) privileges or under specific laws (e.g. for industrial estates).

Condominium Ownership in Thailand

The Condominium Act allows foreigners to legally own condominium units under certain conditions, offering the most accessible form of real estate ownership for non-Thais.

Key Features:

  • Unit and Common Property Ownership: A condominium is divided into:

    • Individual units: Privately owned.

    • Common property: Shared areas (e.g. lobby, pool), jointly owned by all unit holders.

  • Foreign Ownership Quota: Foreigners may own up to 49% of the total saleable area of all units in a condominium project.

  • Title Deed: Each unit comes with a condominium unit title deed, similar in function to a land title deed, which evidences ownership of the unit.

  • Fund Transfer Requirement: The purchase must be funded through foreign currency transferred into Thailand, with evidence provided by a Foreign Exchange Transaction Form (FET) issued by a Thai bank.

  • Inheritance: Foreign heirs can inherit condominium units but must comply with the 49% quota. If the inheritance causes the quota to be exceeded, the unit must be sold within a year.

Conclusion

Thailand’s real estate laws are highly specific, protective of Thai nationals, and often complex in their application—particularly when it comes to foreign ownership and investment structures. While there are legitimate avenues for foreigners to participate in the property market, navigating the legal framework requires careful consideration of ownership types, title deed classifications, and regulatory compliance.

Professional legal consultation is not just recommended—it is essential. At every stage of a real estate transaction, from initial interest to final purchase, expert guidance can help prevent costly mistakes, ensure compliance with Thai law, and safeguard your investment.

We offer comprehensive legal support services including:

  • Title deed verification

  • Encumbrance checks

  • Land and condominium due diligence

  • Transaction structuring advice

  • Custom legal guidelines for investors

These services are designed to protect your interests and ensure that every document and transaction meets legal requirements. Before making any commitment, let us help you verify, assess, and proceed with confidence.