Can Foreigners Buy Real Estate in Thailand? What Can They Legally Purchase?

The answer is that foreigners can purchase certain types of real estate in Thailand, subject to restrictions under Thai law—especially in the case of condominium purchases. However, real estate in the form of land or a house with land cannot yet be owned outright. Understanding the legal scope is therefore essential before deciding to buy.

In principle, Thai law limits foreign ownership of real estate in order to protect the country’s land interests. Relevant laws include the Condominium Act and the Land Code, which serve as key frameworks for determining how foreigners can buy real estate in Thailand and what conditions must be complied with.

Determining whether foreigners can purchase real estate in Thailand must primarily be based on the Thai legal framework, because the law does not focus only on entering into a sale and purchase agreement, but places primary importance on ownership. Understanding these legal structures helps foreigners plan their real estate purchase correctly and safely.

Key Legal Principles on Property Ownership by Foreigners

Thai law sets out fairly clear principles regarding property ownership by foreigners. Key relevant laws include:

• Land Code sets out the general principle that foreigners cannot directly own land in Thailand, unless they meet special conditions prescribed by law, which in practice are highly restrictive.

• Condominium Act is the law that allows foreigners to own condominium units, subject to the condition that foreign ownership must not exceed 49% of the total saleable area of the condominium, and that there must be proper evidence of funds remitted from abroad.

• Principle prohibiting direct land ownership This principle is a core pillar of Thai law. As a result, even though foreigners may be able to purchase certain types of real estate, they still cannot directly own land, which is a key national resource.

The Difference Between “Buying” and “Holding Title”

A point that often causes confusion is the legal difference between the terms “buying” and “holding title.”

In some cases, foreigners can buy real estate in Thailand but cannot hold title—for example, purchasing a house together with land. While a sale and purchase agreement can be executed, ownership of the land cannot be transferred into a foreigner’s name under the law.

For this reason, Thai law recognizes other forms of rights in lieu of ownership, such as long-term leases or certain types of usufruct rights, allowing foreigners to reside in or use real estate without violating the law. Choosing the appropriate form of right is therefore the key to purchasing real estate in Thailand for foreigners.

When it comes to buying real estate in Thailand, condominiums are the property type that Thai law most clearly allows foreigners to purchase and hold freehold title to. However, buying a condo in Thailand still involves conditions and details that must be considered carefully.

Condominium

Foreigners can buy a condo in Thailand provided they fully comply with the requirements under the Condominium Act. Key conditions include the following:

1. The condominium’s 49% quota

The law provides that foreigners may collectively own no more than 49% of the total saleable area of the entire condominium. If the quota is already full, ownership cannot be transferred to a new foreign buyer.

2. Remittance from overseas (FET)

A foreign buyer must remit the purchase funds from overseas into Thailand and obtain a remittance confirmation document (Foreign Exchange Transaction Form: FET) to support the registration of the condo ownership transfer.

3. Full freehold ownership rights

Once all requirements are met, foreigners will receive full freehold title to the unit and may sell, transfer, or lease it in accordance with the law, the same as Thai owners.

New-build vs resale condominiums

Buying a condominium can be divided into a new-build condo (from a developer/project) and a resale condo (from an existing owner), each with differences you should know.

1. Differences in documentation

New-build condos typically come with processes and documents prepared by the developer, while resale condos require more detailed checks of title documents, encumbrances, and ownership history.

2. What to check before buying

Whether buying new-build or resale, foreigners should check the condominium’s 49% foreign ownership quota, the unit’s title status, and the overseas remittance requirements to ensure the purchase is lawful and proceeds smoothly.

Understanding these conditions will help foreigners purchase real estate in Thailand with confidence and in the most legally compliant manner.

Although foreigners can purchase certain types of real estate in Thailand, Thai law still imposes clear prohibitions on certain asset types—especially real estate involving land, which is considered a key national resource. Understanding these restrictions helps avoid long-term legal risks.

Land

Under the Land Code, foreigners cannot directly hold freehold title to land in Thailand, unless they meet special conditions prescribed by law—which, in practice, are highly restrictive and very rarely applicable.

One common misconception is buying land through a Thai nominee arrangement, or having a Thai national hold title on one’s behalf. Such actions constitute a violation of the law and may result in revocation of rights, the contract being deemed void, and future criminal and civil liabilities.

Detached Houses / Townhouses

For detached houses and townhouses, although they may appear to be just the building, legally a house is property attached to the land and ownership cannot be separated.

For this reason, even if a foreigner can enter into a sale and purchase agreement for the house itself, they cannot own the land that forms part of that property. As a result, they cannot legally register ownership of a house or townhouse in their own name under Thai law. This is a key reason why house-and-land properties are not in the category of real estate that foreigners can purchase and hold freehold title to directly.

Understanding these limitations helps foreigners plan property purchases in Thailand correctly and choose appropriate legal alternatives instead of risking a violation of the law.

Where foreigners are not permitted to directly own certain types of real estate, Thai law provides other legal alternatives that can be used to lawfully reside in or benefit from the property. Choosing the appropriate approach helps ensure that holding real estate in Thailand is secure and compliant with the law.

Long-Term Lease (Leasehold)

A long-term lease (leasehold) is a popular option among foreigners who wish to live in a house or in types of real estate that cannot be directly owned.

1. Maximum lease term

Under Thai law, a lease of land or real estate may be made for a term of no more than 30 years per contract and may be renewed subject to the agreed terms. Any renewal must be executed as a new agreement and properly registered.

2. Who it is suitable for

A long-term lease is suitable for foreigners who want to live in Thailand long term, who are not focused on investing to obtain ownership, or who want flexibility without taking on the legal risks associated with land ownership.

Setting Up a Company in Thailand

Another option often discussed is setting up a company in Thailand so that the company holds the real estate instead of an individual.

1. Conditions and limitations

A company that holds land or real estate must have a shareholding ratio and business operating structure that comply with Thai law; it must not be established solely for the purpose of holding property.

2. Risks to be aware of

Establishing a company using Thai nationals as nominee shareholders is a violation of the law and carries high risk, including revocation of rights and legal liability. It should therefore be carefully considered, and professional advice should be sought before proceeding.

Other Rights of Use

In addition to leasing and setting up a company, Thai law also recognizes certain types of rights of use that may be used as alternatives for residence.

1. Usufruct

This is the right to use and derive benefits from another person’s property without owning it. It is suitable for long-term residence in a house or on land.

2. Habitation

This is the right to reside in another person’s property, limited to residential use only, and does not include renting it out or seeking commercial benefits.

Selecting the legal option that best fits one’s objectives and personal circumstances will help foreigners lawfully benefit from real estate in Thailand and reduce long-term legal risks.

If you ask how foreigners can buy a condo in Thailand, the answer is that it’s not difficult—but you must complete all required steps, especially the 49% foreign ownership quota and proof of funds remitted from overseas, so that the transfer registration is carried out correctly in accordance with the Condominium Act.

1. Check the condominium’s 49% quota

Before signing the contract, you should verify that the project’s foreign ownership ratio has not yet exceeded 49% of the total saleable area. If the quota is already full, the unit cannot be transferred to a new foreign buyer, even if the buyer is ready to pay in full.

2. Remit funds from overseas into Thailand

A key step in buying a condo is bringing the funds in from abroad through a bank in Thailand, to serve as evidence of the source of funds as required by law. In general, this should be handled clearly from the outset to avoid issues on the transfer date.

3. Prepare all required documents

Key documents commonly used for foreigners buying a condo include a passport, documents relating to the remittance of funds from overseas (such as an FET), and supporting sale/transfer documents from the seller or the project. Having complete documentation helps the process move quickly and reduces the risk of missing paperwork.

4. Register the ownership transfer at the Land Office

The final step is to register the transfer of ownership of the condominium unit at the Land Office in the area where the condo is located. The officer will review the documents and the buyer’s qualifications. Once everything is in order, the fees are paid and the owner’s name is officially changed on the condominium unit title deed.

In addition to legal requirements, taxes and fees are another key issue that foreigners should consider before deciding to purchase real estate in Thailand—especially in cases where foreigners buy a condominium in Thailand, as there are costs that must be paid on the ownership transfer date. Understanding the fee structure in advance will help you plan your budget accurately and avoid misunderstandings later on.

Transfer Fee

The ownership transfer registration fee is a primary cost payable to the Land Office on the date the transfer is registered. It is calculated based on the Land Department’s appraised value or the purchase price, whichever is higher. In practice, the buyer and seller can agree on who will be responsible for this fee, or they may share it.

For foreigners purchasing real estate, knowing the transfer fee rate in advance helps ensure a smooth transaction and prevents disruption to the ownership transfer process on the actual transfer date.

Related Taxes

Purchasing real estate in Thailand involves several types of taxes, which should be clearly considered separately, as follows:

• Ownership Transfer Tax is a tax arising from the registration of the ownership transfer of real estate, calculated based on the property value in accordance with the Land Department’s criteria. This tax must be paid together with the transfer fee on the ownership transfer date.

• Income Tax / Other Related Taxes. In general, income tax is more often the seller’s responsibility than the buyer’s; however, in some cases the buyer should understand these tax structures for negotiation purposes or to calculate the total cost of purchasing real estate in Thailand. In addition, there may be other taxes or fees depending on the nature of each transaction.

• Land and Building Tax is an annual tax that the property owner must pay while holding ownership. It is calculated based on the property’s appraised value and the type of use, in accordance with legal criteria.

In summary, foreigners can purchase only certain types of real estate in Thailand. The clearest legally recognized form is foreigners buying condominiums in Thailand, subject to the condition that foreign ownership must not exceed 49% of the condominium building and that funds must be properly remitted from overseas. Meanwhile, land, detached houses, and townhouses remain assets that cannot be directly owned under Thai law

For those who wish to live in or utilize property types that cannot be owned outright, suitable options include long-term leases (leasehold), statutory rights of use, or structuring ownership through other legally accepted arrangements. Each approach has different advantages, limitations, and risks, and should be considered in line with the purpose of residence or investment

Planning to buy real estate in Thailand as a foreigner should begin with understanding the law, thoroughly verifying all documents, and avoiding approaches that risk violating the law, so that the investment remains stable and sustainable in the long term. If you are looking for information or properties suitable for foreigners, you can learn more and get advice from experts at 9asset.com, a real estate platform that makes investing and living in Thailand easier and more confident