Laws and conditions
laws and regulations regarding property ownership
For guests who wish to stay in Thailand for an extended period, understanding the laws related to property ownership is crucial, as there are restrictions that differ from those in other countries.
1. Freehold Ownership in Condominiums
This is the only form of property ownership that foreign nationals are permitted to hold according to Thai law:
- Rights of Foreign Nationals: Foreign nationals can purchase and own freehold title in condominium units within condominium buildings.
- Legal Conditions: The ownership of foreign nationals in the building must not exceed 49% of the total area of all condominium units in the building (pursuant to the Condominium Act B.E. 2522).
- Funding Sources: The funds used to purchase real estate must be in the form of foreign currency transferred from abroad to Thailand, and must be accompanied by documentation of the transfer (e.g., Form TB-3 or bank certification of the transfer).
2. Land and House Ownership
According to Thai law, foreign nationals are not permitted to directly own freehold title to land. Therefore, there are two main options for foreign nationals to own land and houses in Thailand:
A. Long-term Leasehold Rights
This is the most popular and secure option for long-term residence:
- Leasehold Rights: Foreign nationals can enter into long-term lease agreements for land and houses with the landowners (in this case, the project) according to the law, with a maximum term of 30 years.
- Registration: Long-term lease agreements must be registered with the relevant land office to have full legal effect and prevent future disputes over rights.
- Renewal: Although the law sets a maximum lease term of 30 years, lessees can negotiate with lessors to extend the lease for another 30 years upon expiration of the original agreement.
B. Ownership Through Thai Legal Entities (Thai Company)
This involves foreign nationals establishing a Thai limited company to hold ownership rights in land and houses on behalf of the legal entity.
- Important Considerations: This method is complex and involves high management costs, as foreign nationals can only hold up to 49% of shares, and the company must demonstrate actual business operations, not just serve as a front for foreign land ownership. Transparency and compliance with relevant laws regarding legal entities are therefore crucial.
Summary for guests visiting "Far Land":
The project encourages residents to understand the concept of leasehold rights for clarity and security during long-term residency of up to 30 years, and to reduce legal complexities related to managing Thai legal entities.
- Cannot work in Thailand (except for LTR visas which may receive a Digital Work Permit if other conditions are met, or O-X visas for authorized volunteer work)
- Must have health insurance as per the conditions: Specifically, Non-Immigrant “O-X” visas require a policy covering medical expenses (outpatient and inpatient) up to the specified limit.
- Must maintain sufficient funds in a Thai bank account according to the rules and conditions of each visa type to maintain visa status.
The "Far Land" team is ready to provide guidance and assistance with legal documentation to ensure all guests can stay in Thailand smoothly throughout their visit.