Foreign property ownership in Thailand

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Foreign property ownership in Thailand

Published: 6/09/2010 at 12:00 AM
Newspaper section: Business

A growing number of expats now own properties in Thailand. Are you one of them and if so, can you confidently say that you own your property legally?

In recent years the market in Thailand has opened up somewhat to foreigners who wish to legitimately own properties. However, there are some grey areas and expats who continue with the structures they put in place some years ago might be in for a shock if they are challenged.

It is illegal for foreigners to own land in Thailand. As an expat you cannot own the land your house stands on. Strata title ownership is allowed. Most apartments and condominiums are strata title leasehold, allowing foreigners to own the units. However, the law caps ownership by non-Thais at 49% of the space in a given development. It thus does not follow that just because you find a leasehold condominium that you can automatically own a unit. The developer must obtain government approval to have a portion of the units foreign-owned and then there is a strict control over the allocation to ensure that majority Thai ownership is maintained. Developers have been known to be less than honest when it comes to this allocation. They have sometimes allocated space by means that the government disallows, and thus foreigners illegally own their units.

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About the author

: Writer: Andrew Wood; Position: Writer

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Octavian

Discussion 1 : 06/09/2010 at 11:20 AM1
"If you are one of these owners, how do you feel about it all now?"

I'm guessing some people have a lot more money than me, so this becomes a bigger issue for them. I "own" land, though not really. I tell everyone (family and friends) it's mine and my house, though I don't think that'll fool you...

The land and house I suppose is legally my wife's. The land was given to us by her father, and I paid the money to build the house (it wasn't much, this is in rural Thailand).

I want to "buy more land" in the future and make another house. I'll do it in my daughters name, who is Thai.

I've got no problems at all with the laws. I can frankly understand it. Thai land is cheap right now, and some people could buy half of rural Thailand if the country let them. The 49% ownership I understand is a real annoyance for some people, but it's a decent enough idea. The dilema might be that tough laws encourage illegal activity, which is something for others to consider; scam and informal agreements that can lead to conflict amongst the individuals involved. Luckily, I trust my wife enough, I know she'd never betray me. I feel sad for other foreigners who can not trust their wife and children.

Foreign property ownership in Thailand | Bangkok Post: business