Can Foreigners Buy a House in Thailand?
Foreigners are not allowed to directly own the land on which a house is built. However, they can purchase a house or villa along with the surrounding land through a Thai company, which is called Thai company freehold. In this scenario, the Thai company owns the property as an asset. Although foreigners cannot own more than 49% of a Thai company, lawyers usually set up a company where the remaining 51% is divided among many Thai nationals, allowing the foreigner to maintain control of the company.
The foreigner will be the sole director who oversees all company actions. This is a legal practice and is often utilized by billion-dollar international business chains. If a foreigner purchases a property that is under Thai company freehold, the name on the title deed does not change, and the only modification is the name of the company director.
By avoiding an actual name change on the cha-note, all parties involved can sidestep Thailand’s 6.8% property sales tax and transfer fees. Hiring an attorney is necessary to handle the paperwork, yet overall, quite cost-effective.
If a property is not under Thai company freehold, a new Thai company must be registered, which is relatively inexpensive at only 45,000 THB (approximately US$ 1500) with an annual running cost of approximately 20,000 THB.
The company also allows the foreigner to acquire a Thai visa and work permit, which permits them to stay legally in Thailand. Owning an asset boosts the company’s credibility for future business transactions.