Buying Property in Thailand: Everything You Need to Know (For Foreign Buyers)
Thailand’s stunning beaches, welcoming culture, and affordable living costs make it one of the most attractive destinations for foreigners looking to buy property. Whether you’re considering a beachfront condo in Phuket, a luxury villa in Chiang Mai, or a city apartment in Bangkok, purchasing real estate in Thailand requires careful consideration of local laws, ownership structures, and market dynamics.
This guide outlines the most important things to know before buying property in Thailand.
1. Foreign Ownership Laws in Thailand
The first and most critical point: foreigners cannot legally own land in Thailand outright. However, there are legal structures that allow foreigners to invest in and control property:
a) Condominium Ownership
Foreigners are allowed to own condominium units in Thailand.
The building must have no more than 49% of total units owned by foreigners.
Ownership is freehold and registered with the Land Department.
Condos are the simplest and safest way for foreigners to own property in Thailand.
b) Leasehold Agreements
Foreigners may lease land or houses for up to 30 years, with options to renew.
Leaseholds can be extended twice (up to 90 years in total), but these extensions are not automatically enforceable under Thai law.
The lease should be registered at the Land Department if it’s more than three years.
c) Thai Company Ownership
Some foreigners set up a Thai company (with majority Thai shareholders) to own land.
However, authorities scrutinize nominee structures, and misuse can be illegal.
This method requires legal and accounting oversight.
d) Married to a Thai National
A Thai spouse can own land, but the foreign spouse must declare that the funds used do not claim marital property.
The land will be in the Thai partner’s name.
2. Types of Properties Available
Understanding what kind of property suits your goals is crucial.
a) Condos
Easy to purchase, manage, and resell.
Often come with shared amenities: pools, gyms, 24/7 security.
Available in urban centers, tourist areas, and beach towns.
b) Houses and Villas
Can be owned via leasehold or Thai company structure.
Ideal for retirees or long-term residents.
Usually located in suburban or resort-style developments.
c) Land
Only Thai nationals or companies can own land.
Foreigners can lease it or build a house on leased land.
Always conduct due diligence before leasing or attempting indirect land ownership.
3. Legal Process and Due Diligence
a) Hire a Lawyer
Thai property law is complex.
Always use an independent lawyer, not just the seller’s or developer’s lawyer.
Your lawyer should conduct a title search and review all contracts.
b) Check the Title Deed
There are different title deed types in Thailand:
Chanote (Nor Sor 4): The highest title, fully transferable and clearly surveyed.
Nor Sor 3 Gor: Legally recognized, with accurate measurements but not fully surveyed.
Nor Sor 3: Older version with limited rights; land can be upgraded to Chanote.
Avoid land with no formal title, or those under Por Bor Tor or Sor Kor 1 status.
c) Review Building Permits and Zoning Laws
Ensure any structures have the correct permits.
Zoning laws may affect land use, especially near the coast or in national parks.
4. Costs and Taxes
Buying property in Thailand comes with associated costs:
a) Transfer Fee
2% of the appraised value (usually shared between buyer and seller).
b) Stamp Duty or Business Tax
Either 0.5% stamp duty or 3.3% business tax, depending on how long the seller has owned the property.
c) Withholding Tax
Ranges from 1-5%, depending on whether the seller is an individual or company.
d) Legal Fees
Around 1–2% of the property value if you hire a lawyer.
e) Ongoing Costs
Common area fees for condos.
Property maintenance, utilities, and possibly lease renewal fees.
5. Financing Options
Thai banks rarely offer mortgages to foreigners, unless they have long-term visas or work permits.
Some banks (like Bangkok Bank) offer foreign currency loans, usually requiring higher deposits.
Most buyers use cash, including funds brought in from abroad.
✅ Note: Funds for property purchases must be transferred from overseas in foreign currency, labeled “for the purpose of purchasing a condominium.” This is required to receive a Foreign Exchange Transaction (FET) form, which you’ll need to register ownership.
6. Popular Areas for Foreign Buyers
a) Bangkok
Urban condos with great rental potential.
Strong expat and business infrastructure.
b) Chiang Mai
Quiet, green, and ideal for retirees or remote workers.
Lower prices and relaxed pace of life.
c) Phuket & Krabi
Beachfront villas and condos.
High tourism demand, good for short-term rentals.
d) Pattaya
Popular with long-term expats.
Condos with sea views at competitive prices.
e) Koh Samui
Tropical island living, popular for luxury villas.
Leasehold villa developments are common.
7. Buying Off-Plan or New Developments
Pros:
Often cheaper than resale.
Customization options available.
Modern designs and amenities.
Cons:
Developer risk – always check reputation and history.
Delays in construction.
Ensure contracts protect you in case of non-completion.
8. Rental Income and Investment Potential
Condos in tourist-heavy locations like Phuket, Bangkok, or Pattaya can generate solid short-term rental income.
Ensure the condo’s juristic office allows short-term rentals, as many buildings prohibit Airbnb-style operations.
Thai law restricts short-term rentals under 30 days without a hotel license.
Long-term rentals (6–12 months) are a safer and more legal path.
9. Residency and Visas
Buying property does not grant permanent residency or a visa.
However, owning property can help support visa applications, especially retirement or business visas.
Thailand offers long-stay visa programs such as:
Thailand Elite Visa (5-20 year residency privileges).
Long-Term Resident (LTR) Visa (for investors, retirees, remote workers).
10. Common Pitfalls to Avoid
Buying land illegally under a nominee name – it can be confiscated.
Skipping due diligence or not hiring a lawyer.
Assuming lease renewals are guaranteed – they are not enforceable.
Not registering the lease – leases over 3 years must be registered.
Buying in projects without EIA approval (Environmental Impact Assessment), especially near coasts or protected zones.
11. Tips for a Smooth Purchase
Visit Thailand first and view multiple properties.
Use a reputable property agent familiar with foreign buyers.
Get everything in writing, especially verbal promises from sellers or developers.
Negotiate, especially with resale properties – prices are often marked up.
Keep digital and printed copies of all documents, including payment proofs and contracts.
Conclusion: Should You Buy Property in Thailand?
Thailand can offer excellent lifestyle and investment opportunities, especially through condominiums and long-term leaseholds. But success depends on understanding the legal limitations and planning your purchase carefully. Partner with reliable professionals, do your homework, and don’t rush into decisions. With the right guidance, buying property in Thailand can be both safe and rewarding.