| Can a foreigner own land in Thailand?
The Land Code of Thailand generally prohibits the ownership of land by foreigners in Thailand. There are a few limited exceptions to that prohibition, most notably when the Board of Investment ("BOI") grants a foreigner the right to own land on which to conduct a promoted activity. Most often that would apply to a manufacturing facility, but the BOI has also authorized foreign ownership of land for resort and villa developments.
Can the Thai spouse of a foreigner own land in Thailand? Yes.
This FAQ is FAI-frequently answered incorrectly. Previously the Land Department had a policy of denying land ownership to spouses of foreigners. This policy was based on the assumption that the Thai would be holding all or part of the interest in the land for the benefit of the foreign spouse. This policy fell especially hard on Thai women, who frequently would refrain from registering their marriages in Thailand out of fear of losing the right to own land. In theory the policy also applied to Thai men, but in practice it was not really an issue because under Thai law and tradition a man retains the Thai equivalent of the title "Mr.", so his marital status goes undetected by the Land Office. In contrast, upon marriage a woman must assume the Thai equivalent of the title "Mrs.", thus making her marital status apparent to the Land Office.
However, a few years ago the Land Office revised its policy. The policy now allows a Thai spouse of a foreigner to own land so long as the foreign spouse presents the Land Office a signed letter waiving all interest in the land. The Land Office provides a form for this waiver ofinterest.
Can a foreigner hold a mortgage on land in Thailand?
A foreign individual can hold a mortgage on land in Thailand. The Land Code only prohibits foreign ownership of land. There is no similar provision regarding a foreigner being a mortgagee. Under Thai law, in the event of foreclosure of a mortgage, the mortgagee must sell the land at public auction. A foreign mortgagee could not purchase the land at the auction, but he can retain the proceeds of the sale to repay the debt secured by the mortgage. So, a foreigner's holding a mortgage on land does not risk violating the prohibition on foreign ownership.
A foreign company cannot hold a mortgage on land in Thailand. Land Office policy considers the lending of money secured by mortgage to be an aspect of the "business of banking". In order to engage in the business of banking in Thailand a company must be a financial institution licensed to do business in Thailand, so a foreign company cannot qualify. Similarly, a Thai company cannot hold a mortgage in Thailand unless it is licensed as a financial institution.
Can a Thai-registered company with foreign shareholders own land in Thailand?
For purposes of the Land Code prohibition on foreign land ownership, the definition of "foreigner" includes a Thai-registered company in which foreigners own more than 49% of the shares. So, if the foreign ownership of the Thai-registered company does not exceed 49%, the company can own land in Thailand.
Under policy of the Land Department, however, the local Land Office cannot register ownership of land by a company if foreigners own 40% or more of the shares. An application to transfer land to a company in which foreigners own 40% or more of the shares is forwarded by the local Land Office to the Land Department. The Land Department conducts an investigation into the background of the company to assure that the company is not held by Thai nominees on behalf of foreigners. The transfer can only be registered after the Director General of the Land Department has approved the application.
Can a foreigner own a condominium unit in Thailand?
The Condominium Act allows some foreigners to own condominium units. To qualify for condominium ownership, the foreigner must meet one of five criteria contained in the Act. These are:
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