LEGAL ASPECTS

Here at SIAM PROPERTIES we are often asked about how one can legally own property in Thailand…FURTHER INFO…
OK…regarding the foreign ownership situation...
Foreigners can own a condo in their own name and get the title deeds. The Thai government allows foreigners to own up to 49% of a condo development. Once the development has reached the 49% level a foreigner has to use a Thai company or a nominated Thai national (normally their husband or wife) to buy the condo...should he still want to buy in that specific project.

Foreigners cannot buy land or houses…but they can be a shareholder in a Thai Company that owns the property. Give us a call to discuss this point!

Here we list the 4 most popular methods to buy land or houses:

Via a Thai Registered Company
This is probably the most popular method of property ownership. Being a company, there will be a tax obligation, as there would be in any country, however the costs here are minimal and your lawyer will have an accounting department able to assist you with the above.

Lease with option to buy
This is probably the safest way to buy a house and land in Thailand. You still require a Thai Nominee but the deal is made safe for the buyer by having a 30 year lease plus option registered on the land. There is a tax payable on the lease income however this is minimal. The lease is a legally binding document registered at the lands office. The initial term of the lease as well as the extension periods are declared as paid in advance and incorporated into the agreement is an option allowing the Lessee (buyer) to purchase the land outright should the law change and permit foreigners to own land in Thailand. However the option to extend the lease is tricky and needs to be considered case by case

Thai Nominee
This is the easiest method of house purchase, all you need to complete this form of house purchase is money and a Thai national who is willing to own a property that you the buyer have paid for. The nominee is usually a Thai wife or partner and can be risky if the relationship fails at some time in the future.

A Nominee with Mortgage
This is a very safe method of house and land purchase. Once again you will need a Thai Nominee in order to affect a property purchase in this manner. Instead of a lease agreement, this purchase method relies upon a mortgage to secure the buyers investment. The way this works is, the buyer has a Thai Nominee to buy the property then the property is registered as mortgaged at the lands office. Once again there is a tax applicable to this, it is however minimal. The property cannot be sold until the mortgage lender signs the title documents declaring the mortgage cleared. This once again gives 100% control over the property although not ownership. The buyer may remove the nominee should any problems arise and transfer in a new nominee at any time.

If you want to talk this through face-to-face as customers often do…just call to make a mutually convenient appointment… HOTLINE TELEPHONE NUMBER +66 89 499 1000.

For impartial advice we will always assist you in finding a Lawyer