The short answer is yes, but the long answer is a little bit more complicated. Foreigners CAN own property, but only condominium units. There are ways to purchase houses and land as a foreigner but, it is not as secure and you cannot put them in your own name as it requires you to be the managing director of a dormant, non-trading Thai company which we will get into later on.
Foreign Quota
The only way a foreigner can own a property in Thailand in his/her own name is with a condo in foreign name. The best translation for “foreign name” would be freehold. You can only own a condo in foreign name in a building where the quota of owners is AT LEAST 51% Thai, where as the remaining 49% can be foreign. A registered owner (co-owner of the condominium), also has voting rights regarding the control & management of the building.
If a Thai national purchases a condo that is in foreign name, then that will make an additional foreign quota available. To find out if there is available foreign quota, you would need to contact the management office of the condominium you wish to purchase at.
Also worth mentioning is that if you purchase a condo that is within the foreign quota, be aware that if you die, your heirs or whoever inherits the condo will have to sell it to another foreigner (who must bring the funds in from off shore) within one year or it will automatically return to being in Thai quota.
To purchase a condo in foreign name it requires a TT-3 or Thor Tor Saam (Foreign Exchange Transaction Form or FET) which is a document that confirms the funds to purchase the condo have come from outside of Thailand and is required to transfer the condo into your name.
Advantages
- Your name can be on the title deed
- Higher demand and resale value
- No yearly accountant or company fees
Disadvantages
- Transfer fees
- TT-3/Thor Tor Saam required to purchase proving that funds come from outside of Thailand
Thai Company Name
A foreigner can also control, but not own in his/her name, a condo that is in “Thai name” by forming a company. You would then become the managing director of this company and the holding company, which is a dormant, non-trading company that holds assets (i.e. a condo, house, etc.) would be the registered owner on the title deed. However, that company still needs to have an accountant to do the annual audit, VAT tax returns, etc. The cost for this will be approximately 10-15,000 Baht per annum or approx. 1,000 Baht per month.
Basically, if a buyer buys a condo that is owned by a company, he buys the company which holds the asset/s i.e. the condo. The company is also able to lease/rent out the condo which is perfectly legal.
With a Thai company, you can also purchase land or houses/villas, but the foreigner’s name will not be on the title deed.
Advantages
- No TT3 or Thor Tor Saam required to purchase
- No need to prove the funds came from abroad to buy the property
- You can buy houses or land in Thai company name as a foreigner
- A condo you are interested in may not be available in foreign quota, but is purchasable in Thai company name
- Purchase price of a condo in Thai company name will be approx. 20% less than foreign name
- Changing managing directors of a holding company is significantly cheaper than transfer fees for foreign name at the land office
Disadvantages
- The property cannot be put into your name
- Must pay an annual fee of approx. 10-15,000 Baht to an accountant for tax audit and VAT tax returns, etc.
- A cost of approx. 30-50,000 Baht to dissolve the company if needed
- Resale potential is lower for Thai company name than foreign name