Buying property in Thailand: what you should know

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In today's article we will discuss the options available to foreigners when buying property in Thailand. There are four basic ways a foreigner can own property in Thailand:

  • Leasehold, i.e. the lease of land
  • Purchase of land to a Thai company
  • Buying a plot of land for a Thai partner
  • Buying a condominium

In this article we will discuss the first option, i.e. leasehold.

Leasehold

A leasehold is essentially a lease of land for a fixed term, in this case 30 years. At the end of this period, the land is forfeited to the original owner, i.e. the Thais or the Thai company.

Benefits:

  • Price is usually lower than other options
  • The property is immediately available
  • You don't have to worry about setting up a company
  • Costs of company formation and other related tasks are eliminated

Disadvantages:

  • After 30 years, the land will be forfeited to the Thais
  • You cannot sell or donate the property

Details:

You are registered in the Land Registry as the owner of the building and tenants of the land for 30 years. According to Thai law, the leasehold can be extended for another 30 years, and can also be secured through a future contract. A leasehold is usually secured by a promissory note against the lease, where the landowner owes the tenant an amount equal to the purchase price.

When is leasehold suitable?

Leasehold is suitable for those who:

  • They want to use the property for business
  • They don't have enough money to buy the land
  • They want to have the property immediately available

Conclusion:

Leasehold is an interesting option for those who want to own a property in Thailand but do not have enough funds to buy a plot of land. However, it is important to note that after 30 years, the land will be forfeited to the owner unless continuity is ensured by a subsequent agreement.

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