Guide to Real Estate in Phuket: land ownership
Sometimes it is difficult to understand all intricacies of legal norms and rules that govern search and purchase of Phuket real estate. Let's try to clarify some juristic nuances together.
When it comes to Phuket real estate, there is a firm rule: any land of the Kingdom can not belong to a foreign person. In other words, you as a foreigner cannot get land ownership. Actually the same resolution exist either in China, Vietnam, Switzerland, the Czech Republic or in Bulgaria. And if you have already been interested in buying properties in one of these countries, you know there are a couple of legal ways to circumvent the law.
The easiest and most legitimate way to purchase any kind of real estate in Phuket located on land is long-term lease. The buyer can lease land in Thailand for first 30 years and then renew the lease twice until the total term does not reach 90 years. Many realtors believe this option is quite simply and increasingly safely. We recommend taking into consideration the extension conditions and read the rental agreement behind lines. There must be clearly stated that the landlord has no right to fail in renewing the lease for a further period if the tenant has not broken the terms of the contract.
A potential foreign investor may be also offered other ways to make a legal real estate ownership. For example, you may register a thai company which will become an official owner of the land. The point is the legislation of Thailand does not prohibit Thai companies to own land, but it should be said at least 51% of the shares of a company must belong to Thai shareholders.
Another option is purchase of shares of an offshore company, which is a stockholder of any Thai company owned a plot of land. But this method may seem to be not quite reliable because in fact you as an owner will not receive any papers confirming your ownership, you will have only documents confirming the purchase of shares of this offshore company.
The document confirming land, house or condo ownership is drawn up in The only Thai language, is approved by the red stamp and is the Land Department. Together with the documents the seller must give the buyer the house register, so called Blue Book or Tabien Baan where all residents are recorded. This information is necessary to put in the book because in case of the lack of it only thai people are filled in the certificate.
