Thinking of Buying Property in Thailand as a Foreigner?

Foreigners in Thailand can own condominiums (up to 49% of a building) but not land directly. They can lease land for up to 30 years or use legal tools like superficies agreements. Talks are ongoing to raise condo ownership limits to 75% and extend leases to 50-99 years, but no changes have been passed as of June 9, 2025. These national laws apply equally across all regions, including Hua Hin, Chiang Mai, Bangkok, and Phuket.

Thailand’s Property Laws: What Expats Should Know

Thailand welcomes millions of foreign visitors and residents every year. Whether you’re retiring in Hua Hin, working remotely from Chiang Mai, or investing in Bangkok, understanding how property ownership works is crucial.

The country has strict national laws to protect land ownership, but there are still clear and legal ways for expats to own homes – mainly through condominiums or long-term leases.

A Brief History of Property Ownership in Thailand

For centuries, land in Thailand was passed through generations in rural villages, mostly by custom rather than legal record. Major changes came in the late 1800s under King Chulalongkorn, who introduced formal land title registration and ended slavery. This allowed more Thai families to legally own property.

By the mid-1900s, with urbanization and economic growth, the real estate market began to expand. Condominium development accelerated in the 1980s and 1990s, especially in Bangkok. From the early 2000s onward, towns like Hua Hin, Chiang Mai, and Phuket saw increasing interest from foreigners.

What Can Expats Legally Own in Thailand?

Thailand’s national property laws apply uniformly across the country. Whether you’re in a city or coastal town, the same restrictions and rights apply:

1. Condominiums

• Foreigners can own up to 49% of the total floor space in any condo building.
• You must transfer foreign currency into Thailand to legally purchase.
• Ownership is recorded in your name at the Land Department.

2. Houses on Leased Land

• Foreigners cannot own land, but they can own the structure built on it.
• Common method: sign a 30-year land lease, often with options to renew.
• You can register a superficies agreement to own the building separately from the land.

3. Land Leases

• Maximum lease term is 30 years, renewable at the landowner’s discretion.
• Leases should be registered with the Land Department to be legally enforceable.
• Be wary of “90-year lease” advertisements – only the first 30 years are protected by law.

4. Owning Land via Thai Company

• A foreigner can hold land through a Thai Limited Company with majority Thai ownership (51%).
• The company must be legitimate – not a shell to hold land – or it risks being invalidated.
• Americans may benefit slightly under the US-Thai Treaty of Amity, which affects business ownership but not land directly.

5. BOI Investment Exception

• If you invest 40 million baht (about USD 1.2 million) in Thailand for specific projects, you may apply to own up to 1 rai (1,600 m²) of residential land.
• This requires Board of Investment (BOI) approval and is rarely granted.

Legal and Transaction Costs to Expect

When buying or leasing property in Thailand, expats should plan for:

• Transfer Fee: 2% of the registered value (usually shared between buyer and seller)
• Stamp Duty: 0.5%
• Withholding Tax: 1% when purchasing from individuals
• Rental Tax: 12.5% on income if you rent the property
• Property Tax: Not charged on primary residences occupied by the owner

Current Market Trends (2024–2025)

Accurate, up-to-date numbers provide insight into Thailand’s real estate and economic climate:

• Tourism:
  Per Kasikorn Research Center (May 2025), Thailand welcomed 36 million international tourists in 2024. A decline is expected in 2025, bringing the total down to 34.5 million.

• Real Estate Transfers:
  According to the Real Estate Information Center, Thailand recorded 250,580 property transfers in the first three quarters of 2024 – a 7.4% decrease from the previous year.
  
  • Low-rise housing transfers fell 12.8%.
  • Condominium transfers rose 5.6%, driven by foreign and urban buyers.

These figures reflect broader trends like high household debt, tighter lending policies, and growing reliance on foreign investment – especially in areas like Hua Hin and Phuket.

Potential Legal Changes: What Might Come Next

In June, 2025, national media and expat communities discussed new proposals aimed at boosting the property sector:

• Increasing the foreign condo ownership cap from 49% to 75%
  
• Extending land lease terms from 30 years to 50 or even 99 years
  

These proposals are designed to attract long-term foreign investment but have not yet been passed into law. As of June 14, 2025, they remain under government review and would need parliamentary approval.

Expat reactions online have been mixed – some hopeful, others cautious – waiting for clear confirmation.

How to Stay Safe as an Expat Buyer

The rules may sound complicated, but many expats safely buy and lease homes in Thailand each year by taking the right steps:

• Always register leases or ownership at the Land Office.
• Use a qualified property lawyer who understands Thai real estate law.
• Verify land titles – especially for houses in rural or semi-developed areas.
• Be cautious of offers that promise things beyond what the law allows.

Final Thoughts

Thailand’s property laws are firm but not impossible to navigate. Expats can legally own condominiums, lease land, and live long-term in homes across the country – from the beaches of Hua Hin to the hills of Chiang Mai.

While proposed reforms may eventually make things easier, as of now, the key is to work within the system – and with expert support – so you can build a safe and legal home in Thailand.