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Own land as a in Thailand as a foreigner
Thailand considering allowing foreigners to own land
18/07/2022
Thailand boasts a lively expat community, with many having settled down and decided to stay long term/live in Thailand.
Currently, foreigners in Thailand can only purchase a condo and cannot purchase or own land (there are a few exceptions but these are outside the scope of this article).
However, a proposal is being drafted by the Thai Interior Ministry which would allow foreigners to purchase and own up to 1 Rai of land (around 1,600 square metres, 0.16 hectare or 0.4 acres).
Key points
- Foreigners could soon be able to purchase and own land in Thailand.
- The plots of land available for foreigners to buy will be limited to a size of up to 1 Rai (approx 1,600 square metres, 0.16 hectare or 0.4 acres) only.
- Purchasing land will require an investment (in Thailand) of 40 million THB over a period of 3 years
- For the most part foreigners cannot own land in Thailand (there are certain exceptions which are outside the scope of this article).
Can foreigners currently own land in Thailand?
Thailand’s Land Code Act limits land ownership to Thai nationals. Foreigners can not own land, with the exception of a few scenarios which are outside the scope of this article.
It is possible for foreigners to purchase a Condo. However, Thai law states that foreigners may only own 49% of a single condo development. Essentially, this means that foreign ownership in the development cannot exceed 49% of the total area of all condo units.
Therefore, as long as the foreign ownership quota has not been exceeded, there are no restrictions on the number of condominium units that a foreigner can buy.
Who will be able to buy land in Thailand under this proposal?
In order for a foreigner to be able to purchase land under this proposal, they will be required to invest 40 million THB in Thailand over a period of 3 years.
Also, as mentioned above, foreigners will be limited in the size of the plot of land they can own. The size of land that would be available to a foreign buyer will only be 1 Rai.
As an additional incentive, the government is planning to reduce transfer and mortgage fees to 0.01% for properties valued above 3 million THB.
It is important to note, that this proposal has not been approved yet, but will now go to Cabinet for discussion and approval soon.
In conclusion
As it stands, Thai law only makes it possible for foreigners to purchase a condo. However, should this proposed law come to fruition, foreigners will be able to purchase and own land in Thailand.
The Belaws team of real estate and taxation experts are readily available to assist you with all your needs relating to purchasing property in Thailand.
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Frequently asked questions
Can a foreigner own a condo in Thailand?
Foreigners can fully own condos in Thailand (subject to the condo developments foreign ownership quota).
Can a foreigner own a land in Thailand?
For the most part foreigners cannot own land in Thailand (there are certain exceptions which are outside the scope of this article).
Is there any fees when purchasing a condo in Thailand?
Purchasing property in Thailand is subject to the following fees.
Transfer Fee
The Thailand Land Department charges 2% of the appraised value of the property.
Business Tax
Business Tax is assessed at 3.3% of the appraised value. However, it’s only payable if the property is sold within the first five years of ownership. If not, stamp duty will be imposed instead.
Stamp Duty
A Stamp Duty of 0.5% of the total registered value of the property will be imposed. When specific business tax is applicable, stamp duty is not required.
Withholding Tax
Whether Withholding Tax is applicable depends on whether the seller is a company or an individual.
Withholding Tax for a company is fixed at 1% of the appraised value or 1% of the sales price (whichever is higher).
Withholding Tax for an individual is calculated at a progressive rate depending on the appraised value of the property.
What type of property can foreigners own in Thailand?
Thailand has no restrictions relating to nationality when buying/selling a condo, therefore a
foreigners can buy and own a condo unit.
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