Buying property in Thailand: A comprehensive guide for expats and investors

Buying property in Thailand appeals to many foreigners, drawn by vibrant cities, island living, and relatively accessible prices. In 2024, foreign buyers completed 14,573 condo transfers, with Americans accounting for about 4% – roughly 609 units. With around 52,400 US residents in the country, American ownership likely numbers in the low thousands.

This guide is tailored for expats and investors looking to enter the Thailand real estate market, and is brought to you by Taxes for Expats — a top-rated team helping Americans abroad stay compliant with IRS filing requirements. Are you a US expat considering property in Thailand? Let us help you ensure your US tax obligations are covered while you invest abroad — learn more about our services or contact us.

Thai property – legal rules for foreign ownership

For a foreigner to own real estate in Thailand is tightly defined and consistently enforced – Americans face the same rules as all non-Thais. If you’re weighing getting one, focus on the legal mechanisms that the Land Office actually registers.

1. As a baseline, foreigners can own land in Thailand only in rare, approval-based exceptions, while condominium units can be held freehold within each project’s 49% foreign quota.

2. For houses on land, use a registered land lease up to 30 years, optionally paired with a right of superficies or the 2019 Sap-Ing-Sith right to separate and protect building ownership.

3. Visas don’t change ownership rules, so know that the LTR/Thailand Privilege improves stay/work/tax convenience, but does not grant land-ownership rights.

4. Nominee company/shareholder structures workarounds are illegal under Thai land rules, under the Foreign Business Act, and are an active enforcement focus in 2024–2025 – stay compliant by choosing condo freehold, lease + superficies, or Sap-Ing-Sith structures.

5. Transfer & mortgage registration fees reduced to 0.01% through June 30, 2026, for qualifying Thai national buyers only, up to THB 7 million; foreign buyers are not eligible.

NOTE! Always keep an eye out for policy changes: 99–year lease proposals were floated again in 2025, but not law as of Aug 2025; changes would be significant if enacted – monitor developments. Fee holidays for Thai buyers run to June 30, 2026; developers may still pass on sweeteners to foreign buyers informally, so negotiate.

Condo purchase: clear rules, smart choices

Condominiums are the cleanest freehold path for non-Thais because only registered condos allow foreign title, and the foreign quota is capped at 49% of the building’s sellable area. One way foreigners can buy property in Thailand is by purchasing a condo, which is usually straightforward once you verify the foreign ownership quota with the juristic office.

Pros include titled ownership, easier resale, and governance clarity; cons include common fees, building by-laws, and zero control over the land beneath. For a US citizen who might otherwise try to buy a house, Thai property law keeps land out of reach – making condo freehold the practical route.

To register smoothly at the Land Office, prepare these core items:

• Proof of inbound foreign funds – a Bank of Thailand Foreign Exchange Transaction (FET) for FX ≥ USD 50,000, or a bank credit-advice/SWIFT letter for smaller amounts, showing your name and condo-purchase purpose.

• Juristic confirmation – a letter stating that the 49% foreign quota still has capacity and that common fees are clear.

• Identification set – passport with current entry stamp plus sale-and-purchase agreement consistent with bank documents.

• Project/unit papers – condominium registration status under the Condominium Act and the unit’s title deed for due diligence and transfer.

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Why foreigners can’t own Thai land

Thai Property Law makes it clear: foreigners are barred from holding land freehold unless a specific law or treaty authorizes it. Under the Land Code, “aliens” include foreign individuals and foreign-controlled juristic persons, so ownership is restricted by default.

There is no current treaty expanding rights, which keeps the framework tight for an expat buyer. That’s why buying property in Thailand usually means condo freehold or registered real-rights over land, not land title itself.

Which Thai law exceptions actually help?

There are narrow, codified carve-outs that allow access to real estate without breaching the land ban. Below are the practical routes recognized today – none rely on nominee tricks.

1. Condominium freehold – Foreigners may own units in a registered condo so long as the foreign quota stays within 49% of the sellable area and purchase funds are remitted from abroad.

2. Section 96 bis (Land Code) – 1 rai via investment – With ≥ THB 40 million invested under Ministerial rules and Minister of Interior approval, a foreigner may acquire up to 1 rai for residence in designated zones. Rare in practice.

3. BOI-promoted business land – Under Investment Promotion Act s.27, BOI-promoted companies can be permitted to own land strictly for the promoted activity, subject to disposal if promotion ends.

4. EEC special regime – In the Eastern Economic Corridor, foreigners can secure 50-year leases + one renewal up to 49 years, and hold land for business use (plus condo for business/living) subject to specific EEC approvals per project rules.

5. Real rights over land – Superficies lets you own the building on another’s land; Sap-Ing-Sith creates a transferable, mortgageable real right (typically 30 years) for control and financing flexibility.

Legal routes to control land in Thailand

Freehold land stays off-limits to most non-citizens, yet you can still secure long-term control through well-tested legal instruments. Below are the options serious buyers use when buying property in Thailand, whether it’s an apartment or a villa – without risking ownership violations.

Registered leaseholds with renewal clauses

A land lease can be registered for up to 30 years, and any lease over 3 years must be in writing and registered at the Land Office to be enforceable beyond three years. Registration fees are typically 1% of total rent plus 0.1% stamp duty; plan cash flow and timelines around the Land Office appointment. Pre-agreed multi-term “30+30+30” arrangements are not automatic rights – the Thai Supreme Court reaffirmed in 2025 that renewals are contractual promises, not guaranteed property rights.

Using a Thai company for land use

A genuine Thai-majority operating company may hold land, but nominee/shareholder schemes set up for a foreigner are illegal and heavily enforced in 2024–2025. Where business needs exist, BOI/EEC-promoted projects can unlock land use or extended leases for operations – this is not a shortcut for a private apartment or personal residence. Treat this path as corporate infrastructure planning, not a backdoor to personal land title.

Marriage to a Thai national

Marriage does not grant land rights; the title is registered only in the Thai spouse’s name, with the foreign spouse signing a Land Office declaration that the land is the Thai spouse’s personal property. If the Thai spouse dies, the foreign spouse typically must dispose of inherited land within one year.

• Legal implications: Land can be acquired by the Thai spouse, but the foreign spouse cannot be on the land title; a joint declaration and proof of personal funds are standard at registration. If land is inherited by a foreign spouse, Land Department practice requires disposal within about a year, or the state may sell and deduct a fee.

• Safeguards: Use a prenup to clarify separate property; register usufruct for lifetime use or superficies to own the house structure on leased land; make coordinated Thai–US wills.

These structures let families live in a home with long-run security while respecting land-title rules. Choose documented, registrable rights – and avoid any arrangement that resembles a nominee setup.

Buying property in Thailand – the steps

When purchasing a Thai property, expect a formal, paperwork-heavy process – yet a predictable one if you prepare. These steps mirror standard practice across Thai real estate and align with Land Office requirements.

Step 1: Verify title (e.g., Chanote), encumbrances, and condo-juristic letters – including confirmation that the foreign quota is within the 49% limit before you commit. Confirm your money-in path early with your bank so you can present an FET form or bank credit advice proving foreign currency remittance at registration.

Step 2: Sign a clear SPA or lease that allocates who pays government charges and sets milestones for possession and handover of ownership documents. If leasing for more than three years, budget a lease registration fee of 1% of the total rent plus 0.1% stamp duty at the Land Office.

Step 3: On the transfer day, payment is typically by Thai cashier’s check at the Land Office, with passport, FET/credit advice, and juristic confirmations submitted. Expect government charges: transfer fee 2% (appraised value), SBT 3.3% if applicable, stamp duty 0.5% when SBT doesn’t apply, and withholding tax (1% for companies or progressive for individuals).

Thailand property: major risks to expat buyers

The Thai market rewards careful buyers – but the pitfalls are specific and unforgiving. If you plan to buy property in Thailand, verify the legal status and banking paperwork before you sign.

• Forged deeds and phantom projects – Counterfeit title documents and unregistered/off-plan schemes do surface; verify the Chanote at the Land Office and note that authorities have investigated and, in some cases, revoked improperly issued titles.

• Nominee shareholding to skirt restrictions – Using Thai nominees to hold land or run restricted businesses is illegal under Thai property law and the Foreign Business Act, with penalties up to 3 years’ imprisonment and 100,000–1,000,000 in fines, plus court-ordered unwinding. Crackdowns intensified through 2024–2025.

• Leases with automatic renewals – Residential leases cap at 30 years; renewal options are contractual, not guaranteed, and a 2025 Supreme Court precedent (decided in 2023) rejected automatic long-term extensions. For an expat, treat any 30+30 as a fresh negotiation.

• Condo transfers blocked by funding proof gaps – Land Officers require evidence that purchase money came from abroad (FET for transfers ≥ USD 50,000, or a bank confirmation letter below that threshold); missing or mis-named paperwork can halt registration.

Costs – taxes, fees, and yearly charges

Buying a home in Thailand comes with predictable government charges and building dues. If you’re a US citizen, the mix and timing of these costs hinge on whether you buy a condo freehold or hold a villa via lease and related rights.

Keep US filings in sync with Thai property

US citizens should keep Thai contracts, Land Office receipts, and bank FET/credit-advice letters, and report activity correctly – rental income on Schedule E, sale gains on Form 8949 flowing to Schedule D, and claim foreign tax credits on Form 1116 where Thai taxes are paid.

If you hold or use foreign accounts or entities, meet disclosure rules – FBAR (FinCEN Form 114) and Form 8938 for accounts/assets above thresholds, plus Forms 5471/8865 for foreign companies/partnerships and Forms 3520/3520-A for trusts when applicable.

Taxes for Expats will prepare and file the right filing forms for American expats, align your Thai documentation with US requirements, and help you avoid unnecessary IRS scrutiny after your purchase.

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