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Conditions for Foreigners to Buy a House in Thailand
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While direct freehold ownership of land by foreigners is generally prohibited under Thailand's Land Code Act, there are several legal avenues to acquire a house or long-term land rights. These include long-term lease agreements, establishing a Thai company with majority Thai ownership, or qualifying under specific investment promotion schemes.
Foreigners are generally restricted from direct freehold ownership of land in Thailand, as stipulated by the Land Code Act B.E. 2497 (1954), Section 86. However, several legal mechanisms allow foreigners to acquire a house or secure long-term interests in land. The most common and practical methods include entering into a long-term lease agreement for the land, typically for 30 years with options for renewal, or establishing a Thai limited company where Thai nationals hold the majority shares (at least 51%).
Another, albeit less common and highly restrictive, method is through significant investment under Section 96 bis of the Land Code Act. This allows foreigners who invest a minimum of 40 million THB in specific government-approved businesses or assets for at least five years to apply for permission to own up to one rai (1,600 sqm) of land for residential purposes. This requires explicit approval from the Minister of Interior and Cabinet endorsement. Additionally, land ownership may be possible for companies promoted by the Board of Investment (BOI) for specific business purposes or through inheritance, subject to strict conditions and ministerial approval. It is crucial to seek expert legal advice to navigate these complex regulations and ensure compliance, especially regarding nominee shareholding, which is illegal.