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Property ownership in Thailand

Freehold ownership of condominiums

Royal Phuket Marina Condominiums and Penthouses are available for outright Freehold ownership by foreigners. The Condominium Act of 1979 gives buyers a title to part of a building or buildings with multiple owners. It also confers a fractional interest in the land and other common assets and areas. Note that Thai Law allows foreigners to own only up to 49% of the units in a Condominium development. So supply is rather limited. In transferring title of a condominium unit, the foreign buyer and the seller are required to pay a government fee at the rate of 2% of the appraisal price of the property. The foreign buyer and Royal Phuket Marina are liable for joint payment of the government fee in equal amounts. Apart from foregoing Government fee, the foreign buyer is not liable to pay any other tax and fee for purchasing the condominium unit.

In transferring title of a condominium unit, the foreign buyer and the seller are required to pay a government fee at the rate of 2% of the appraisal price of the property. The foreign buyer and Royal Phuket Marina are liable for joint payment of the government fee in equal amounts. Apart from foregoing Government fee, the foreign buyer is not liable to pay any other tax and fee for purchasing the condominium unit.
Freehold or Leasehold ownership of Villa and Land
A foreigner may own, Freehold, all buildings and improvements to such buildings.

Currently under the Land Act, neither an individual foreigner nor a foreign corporate entity may purchase and hold title of land in Thailand; however, effective Land ownership can be secured, whilst complying with the laws of Thailand, via the following methods:

a) A safe and secure registered long term lease: an individual foreigner or a foreign corporate entity may enter into a long term lease agreement, i.e. 30 years for the right to use of such Property, typically with 2 x 30 year extensions, making a total of 90 years.

or

b) An individual foreigner or a foreign company may acquire and own a house and land through a Thai Company ("Holding Company") and have control over such company as a Director and via a preference share scheme. The shares held by Thai shareholders will be common shares, and the shares held by the foreign Investor will be preferred shares. Under Thai laws, the preferred shares mean shares with different rights from common shares. Preference shares in this case would give the holder control over the company.

Note that the ownership interest of Foreign Investor(s) will be protected through the Articles of Association of the Holding Company and registered with the MOC.