Buying Landed Property in Thailand: What Foreigners Must Know
Thailand’s real estate laws are not a copy-paste of Western systems. If you're a foreigner, you can’t own land directly in your name, but that doesn't mean owning a house or villa is out of reach.
Here’s how foreign buyers legally acquire homes that sit on land:
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Leasehold: This is the most common and secure option. You lease the land (typically for 30 years) and own the building above it. Some contracts allow for renewals, but it's crucial to get this written clearly.
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Company Ownership: You may set up a Thai Limited Company, where the company holds the land. This structure requires Thai shareholders, proper accounting, and annual audits. It’s perfectly legal when set up and managed properly, but it must not be used as a fake ownership loophole.
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Through a Thai Spouse: If you’re married to a Thai citizen, the land can be in their name. However, a legal declaration will be needed stating the funds used were not contributed by the foreign spouse. You’ll also want to protect your interests through a usufruct, lease, or right of habitation agreement.
Before you fall in love with the sea view, double-check who owns the land, what kind of title deed it has, and what legal options apply to your situation.
For an in-depth breakdown of these structures, see our Ownership Options in Thailand guide.
Condo and Apartment Units: Easier for Foreigners, but Still Needs Caution
Foreigners can buy condominiums with a freehold title outright, as long as foreign ownership in the building doesn’t exceed 49% of the total area.
What do you actually own?
- Your individual unit, with a personal title deed (Chanote)
- A proportional share of the land underneath the building
- Access and co-ownership of all communal areas: lobby, pool, gym, gardens, rooftop, etc.
But don’t be fooled by simplicity. You’ll still need to:
- Ensure your funds come from overseas in foreign currency, with proper proof (via Foreign Exchange Transaction Form)
- Check if the condo has any outstanding debt or legal disputes
- Review the juristic management, reserve fund, and annual financial statements (yes, even if it looks clean and modern!)
Condo purchases are generally faster and safer for foreigners, but skipping due diligence is still risky.
Understanding the Real Costs: It’s More Than Just the Sale Price
When budgeting for your dream home in Thailand, remember: the sale price is just the beginning.
Here are the most common additional costs you’ll encounter:
- Transfer Fees: Usually 2% of the registered sale price, shared equally between buyer and seller unless negotiated otherwise.
- Stamp Duty / Business Tax: These depend on how long the seller has owned the property. If it's under 5 years, a business tax (3.3%) usually applies. Otherwise, expect stamp duty (0.5%).
- Withholding Tax: This is the seller’s responsibility, but if you’re buying from a company or a foreigner, this may impact your side of the deal.
- Legal Fees: Budget ฿30,000–฿50,000 for a reputable property lawyer to perform due diligence, check the land title, write contracts, and register the deal properly.
- Company Set-Up (if applicable): If you're buying via company ownership, setting it up may cost ฿30,000–฿60,000+, depending on complexity. Don’t forget annual reporting and accounting.
- Lease Registration: For leasehold purchases, registering the lease with the Land Office costs 1.1% of the total lease value (over 30 years).
- Furniture and Renovation: Many resale homes come partially furnished or in need of upgrades. Be realistic about your post-purchase investment.
- Utilities & Name Transfers: Changing the names on electricity, water, internet, and pool maintenance contracts takes time and usually involves small fees.
- Condo Juristic Fees (for apartments): These are ongoing monthly or annual maintenance fees, often paid upfront for the year. They cover building upkeep, staff, and communal areas.
In short, you should factor in around 6–10% of the purchase price for taxes, legal work, and other costs - more if you're going the company route or planning renovations.
Final Thoughts
Thailand’s resale market is full of opportunities. You can find homes with character, prime locations, and beautiful surroundings - often at a better value than off-plan units. But the key to a smooth deal isn’t luck - it’s knowledge.
Do your research. Work with professionals. Ask the right questions early.
