A Primer On The Latest Property Laws In Thailand

Thailand is a great place to invest in property. The country has seen incredible growth in recent years, and the market shows no signs of slowing down. However, it is important to be aware of the latest Thailand property laws before you make any purchases. In this article, we will provide a quick primer on the most important existing and new aspects of Thai real estate law. So, whether you are a first-time investor or a seasoned pro, be sure to read on and do well to get in touch with a Thailand property law lawyer immediately!

Types of Property Ownership in Thailand

First and foremost, it is important to note that there are two types of property ownership in Thailand: freehold and leasehold. Freehold ownership means that you own the property outright and have the right to live there indefinitely. Leasehold ownership, on the other hand, means that you only have the right to live in the property for a set period of time (usually 30 years). After the lease expires, you will have to either renew it or move out.

Buying Property in Thailand

If you are looking to buy property in Thailand, there are a few things you need to keep in mind. Firstly, you will need to have a valid passport and be at least 18 years of age. You will also need to have proof of employment or income, as well as enough money to cover the purchase price and associated fees (such as stamp duty and transfer fees).

Lastly, it is important to note that foreigners are only allowed to own up to 49% of any given property in Thailand. The other 51% must be owned by a Thai citizen or legal entity.

Renting Property in Thailand

If you are not looking to buy property in Thailand but would still like to rent, there are a few things you need to know. Firstly, you will need to have a valid passport and be at least 18 years of age. You will also need to have proof of employment or income, as well as enough money to cover the rent and associated fees (such as security deposits).

In addition, it is important to note that most leases in Thailand are for one year. However, some landlords may be willing to negotiate a shorter or longer lease term.

Restrictions for Foreigners Buying Property in Thailand

When it comes to purchasing property in Thailand, there are some restrictions in place for foreign buyers. Specifically, foreigners are only allowed to buy freehold properties if they meet one of the following criteria:

●    They are married to a Thai national

●    They have invested at least 10 million Baht in Thailand

●    They have set up a company in Thailand with a minimum investment of 5 million Baht.

If you do not meet any of the above criteria, you can still purchase a leasehold property in Thailand. However, it is important to note that you will not be able to own the property outright. Instead, you will only have the right to live on the property for a set period of time (usually 30 years). After the lease expires, you will have to either renew it or move out.

Good News for Foreigners That Intend to Become LandOwners in Thailand- New Property Laws

The Thai Cabinet recently reached an agreement to allow foreigners to purchase houses in Thailand including up to a rai of land. The condition for this is you must be able to show that you have made an investment of at least 40 million baht. The directive will be made public in the Royal Gazette soon. The aim of this new law is to create opportunities for foreign investments in the country and to bring in foreigners with special expertise.

In the Light of Thailand Property New Law, Who is Eligible?

Wealthy foreigners, experts, retirees, etc can jump on this opportunity to buy houses and land in Thailand. You must however show that you have invested the minimum 40 million baht in Thailand. you must also be able to sustain that investment for at least three years.

What Does the Thai Government Consider as Investment Here?

The following are investments the directive provides for people who wish to apply.

●    Shares of trusts for investment in the development of properties

●    Bonds gave by the government, the Ministry of Finance, the Bank of Thailand, and state enterprises.

●    Shares in businesses that are qualified for Board of Investment(BOI) privileges.

●    Property funds Shares.

Where Can Foreigners Purchase Land and Houses in Thailand?

●    Bangkok

●    Pattaya

●    municipal areas

●    Marked residential areas

Note that Military areas are off-limits in this new purchase law.

Processes Involved in Foreigners Applying for Purchase of House and Land in Thailand

If you wish to purchase a house and/or land in Thailand, you must do well to connect with a Thailand property law lawyer to guide you. Thailand's property laws and acquisition processes are different from that of other foreign countries. Here, you will be required to fill out an application and submit it with the required papers to the Land Department Director-general.

After the Director-general verifies it, it will be forwarded to the Interior Ministry for authorization. When it receives authorization, the foreign buyer must inform the local land department within 60 days. 

The application process is very vital and your application can determine whether you will be granted authorization to purchase a house or land. You need to discuss this with a qualified Thailand Property law lawyer to help you through this process. Siam Legal Alliance is a Law as a Service (LaaS) platform spearheaded by the Siam LegalTech Center in Bangkok, Thailand.

Siam Legal Alliance has helped several locals and foreigners purchase properties in Thailand with not much stress. If you desire to purchase a property under 5 million THB, then you should go for their Basic package. Their Bronze package contains properties between 5 and 10 million TBH. The property value under the Silver package is between 10 and 20 million THB. If your budget for a property is between 20 and 50 million THB, then you should check out the Gold package. The Platinum package has properties over 50 million THB. The custom package is also available to suit your preferred and particular taste. Feel free to contact Siam Legal Alliance today and become a property owner without any stress!

Check out the answers to possible questions you may have about Siam Legal Alliance here