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legal – real estate
Can foreigners own land in Thailand?
01/04/2022
Thailand has long been a popular choice for expats and retirees alike. Thailand boasts beautiful scenery, a lower cost of living than many countries and a high standard of living with everything a person needs for a comfortable life available.
These obvious attractions mean long-term living is a viable option for many, but can foreigners own land or property in Thailand? Foreigners can own condominiums (as long as 51% of the total units are Thai-owned), but cannot own land. It is possible for foreigners to set up a company in Thailand and purchase land through this company.
The lack of land ownership rights for foreigners could be problematic, as many foreigners who are married to Thai nationals purchase land via their spouse (i.e. the land is registered in the spouse’s name).
However, should the worst case scenario arise and a married couple split up, are there any ways for the foreign spouse to protect their interests and investment in any land and property on that land.
Key points
- Usufructs grants a right of use and allows the holder to obtain a limited amount of control over another person’s immovable property for a period of up to 30 years.
- The right of superficies legally separates the ownership of land and property for a period of up to 30 years.
- The right of habitation allows the beneficiary to live rent free in a property for a period of up to 30 years.
What rights do foreigners have in relation to land ownership in Thailand?
As mentioned above, foreigners cannot own land in Thailand, but they can however purchase and own buildings on the land. For example, your Thai Spouse would purchase the land in their name and then any house or building erected on that land could be kept in your name.
This leads to the question, what happens to the buildings owned by the foreigner should an issue such as divorce arise?
It would be far from ideal if a foreigner owns a building or structure on a piece of land in Thailand, but the building could be taken away or the ownership transferred through methods of which you may have little choice or control.
To protect your rights and interests in a home or building which you may have paid for, then it is always highly recommended to consider the following options.
Usufructs
A Usufruct grants a right of use and allows the holder to obtain a limited amount of control over another person’s immovable property.
The right of usufruct transfers possession, use and enjoyment of an immovable property from the owner to the beneficiary of the usufruct. It is important to note that a usufruct can only be registered over properly titled as immovable property. Additionally, there must be an agreement in place between the beneficiary and the owner. This agreement must be registered at the local land office.
In Thailand a usufruct can be granted for:
- a period of up to 30-years or;
- for the life of the owner of the land or;
- for the life of the beneficiary.
It is important to note that the usufruct does not prevent the sale of the property by the owner. However, upon the sale of the property, the usufruct nor the rights included are terminated.
The Right of Superficies
In Thailand, the right of superficies legally separates the ownership of the building from the land. The right of superficies is a legal principle which can be used when you build something such as a house or building upon a piece of land you do not own. A right of superficies establishes a registered right to use the land and to own the structures you build upon that land. The right of superficies means that the beneficiary of the right can build upon a piece of land without needing to obtain any ownership rights over the land itself.
A right of superficies can be granted for:
- a period of up to 30-years or;
- for the life of the owner of the land or;
- for the life of the beneficiary.
Please note that a properly registered right of superficies (for a specified term) is a transferable and inheritable interest in land. Once the right of superficies expires, the owner of the land can sell or take any of the structures on the land as long as they leave the land in its original condition.
The Right of Habitation
The right of habitation concerns only the right to live in a house and does not confer any ownership rights in the land or property. The beneficiary of the right of habitation has the right to live in the property and is not required to pay rent to the grantor.
Much like the 2 principles above, the right of habitation can be granted for:
- a period of up to 30-years or
- for the life of the owner of the land or
- for the life of the beneficiary.
If the beneficiary of the right of habitation has made or starts to make rental payments, the matter becomes that of a tenancy, and the right to habitation is lost.
What happens to the ownership of land if a Thai spouse passes away?
If you have a Thai spouse, and have purchased a plot of land in their name, upon their death, the Government allows the foreigner a period of 12 months to register the land in another Thai name, or the land will be confiscated.
Conclusion
Owning land and property can be a contentious issue in Thailand. Being a foreigner means you cannot own land, but you can build and own buildings upon a piece of land. Thai law offers protections for those who do choose to build upon land registered in another persons name through usufructs, the right of superficies and finally the right of habitation.
To learn more about real estate in Thailand, why not take a look at our Real estate services. Additionally, you can book a consultation with one of our real estate experts.
Please note that this article is for information purposes only and does not constitute legal advice.
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