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Real Estate Law in Thailand with BOI-Promoted Companies
For foreign investors interested in exploring business opportunities in Thailand, land ownership is often an important consideration. While foreign ownership of land is generally restricted in Thailand, the Board of Investment (BOI) offers attractive benefits to encourage foreign investment and drive economic growth. These incentives include 100% foreign ownership and the opportunity for BOI-promoted companies to own.
This guide provides an overview of the key requirements for foreign entities to be able to own land through a BOI promotion.
Key points
- Real estate law in Thailand generally prohibits ownership of land for foreign-owned companies, except through BOI promotion, which allows full land ownership.
- BOI promoted companies are able to own 1 Rai of land for office and residential purposes.
- BOI-promoted companies must maintain a minimum paid-up registered capital of THB 50 million to be eligible for land ownership if they wish to own larger plots of land.
- Standard extended land ownership limits for BOI companies are: up to 5 rai for office use and up to 20 rai for workers’ residences, with specific location and usage requirements.
- Under Section 27 of the Investment Promotion Act, BOI-promoted companies can own land necessary for their approved business activities, potentially exceeding standard land ownership limits.
- If a company loses its BOI promotion status, it must dispose of the owned land within one year, or the Land Department will have the power to dispose of it under the Land Code.
What are the Land Ownership Rights for Foreigners in Thailand?
Under Real estate Law in Thailand foreigners are often prohibited from ownership of land, whether as individuals or through foreign-owned companies. Businesses must be majority Thai-owned (at least 51%), unless they qualify for BOI (Board of Investment) promotion, which allows full foreign ownership and additional benefits.
Foreigners can legally own property through alternatives like long-term land leases (typically 30-year terms, which may include renewal options that carry enforcement risks if the landlord acts in bad faith and can also raise inheritance complications, depending on how the agreement is drafted) or outright ownership of condominium units, provided foreign ownership does not exceed 49% of the building’s area.
Foreigners may also own structures built on leased land, such as houses or villas, as ownership of buildings is treated separately from land.
Can BOI Companies Own Land in Thailand?
One of the major benefits of receiving a BOI promotion is that promoted companies are able to own 1 Rai of land for office and residential purposes.
Certain BOI activities and promotions are entitled to own larger plots of land under certain conditions and restrictions. The option to own larger pieces of land depends on the category of promotion and business activities the company undertakes.
The BOI allows extended land ownership rights for certain sectors like manufacturing, tourism, technology, and select services. However, such BOI-promoted companies must use the land strictly for activities specified in their investment promotion. For instance, a manufacturing company can use the land for production facilities, warehouses, or related infrastructure.
Owning More Than 1 Rai of Land
As of January 2025, the Board of Investment (BOI) has enacted new and updated rules relating to land ownership by BOI-promoted foreign companies under Section 27 of the Investment Promotion Act B.E. 2520.
These new rules were published in BOI Announcement No. 16/2567 and P.8/2567, became effective as of November 2024 and establish the following:
Eligibility requirements for foreign BOI promoted companies to own land
- Companies must have and maintain a paid-up registered capital of at least THB 50 million throughout the period of land ownership.
- Land ownership in Thailand is assessed based on the legal entity (juristic person) that holds the title, rather than on an individual promotion certificate.
- The land must be used only for approved purposes and must comply with local rules, and community standards.
- Land used for office and residential purposes can either be located on the same property as the business premises or on separate sites.
Under the new rules, foreign owned companies can own the following amount of land:
- For office use: Up to 5 rai (approximately 0.8 hectares or 8,000 square meters).
- For Workers Residences: Up to 20 rai (approximately 3.2 hectares or 32,000 square meters).
If the company wishes to provide worker accommodations, the following conditions must be satisfied:
- The accommodate must be a building that exclusively houses workers of the promoted project.
- The number of rooms must relate to the actual number of workers in the project.
- The accommodation must be located within 10 kilometers via main public roads from the main business location.
Please note that if a foreign-owned company no longer undertakes its promoted activity or no longer holds a promotion award from the BOI, it must dispose of the land within one year from the date of the end of the promotion. Failure to do so will result in the Director General of the Land Department disposing of it. This can be done through the use of powers granted to the Director General under the Land Code.
Can BOI Promoted Companies Own a Larger Piece of Land if Their Business Requires It?
The BOI has specific investment categories that permit land ownership of larger land areas, such as manufacturing, tourism, technology, and certain service sectors. However, in such a situation, the usage of land owned by BOI-promoted companies must align with the activities specified in their investment promotion. The land should be utilized for the intended business purposes as outlined in their BOI agreement. For example, for a manufacturing company, the land can be used to set up production facilities, warehouses, or related infrastructure.
The ability for a foreign owned company to own additional land is stated in Section 27 of the Investment Promotion Act.
Section 27 states, “A promoted person shall be permitted to own land in order to carry on the promoted activity to such an extent as the Board deems appropriate, even in excess of the permissible limit under other laws.”
This means that under Section 27, the BOI allows promoted projects to own land necessary for carrying out their promoted activities. Normally, foreigners or foreign-owned companies face strict restrictions on owning land in Thailand under Thai law.
However, the project is only permitted to own land that is necessary for carrying out its approved project. The BOI will determine the appropriate amount of land required and will grant approval based on the specific needs of the project, in this case a hotel.
Please note that if a foreign-owned company no longer undertakes its promoted activity or no longer holds a promotion award from the BOI, it must dispose of the land within one year from the date of the end of the promotion. Failure to do so will result in the Director General of the Land Department shall have the power to dispose of it under the Land Code.
How to Buy Land With a BOI Company?
Buying land through a BOI-promoted company is more complicated than purchasing as a Thai owned company or individual. This is because BOI companies must obtain approval from the BOI before acquiring land.
To obtain approval from the Board of Investment (BOI), companies must complete the following process:
Prepare a Formal Request Explaining the Need for Land Ownership
In order to receive authorisation from the BOI to purchase land, the company must prepare a formal request to justify their need for the land. This request should details such as:
- The location of the proposed land purchase,
- Size of the land,
- The intended use of the land i.e. office, factory or residence for the Director, and
- How the purchase of the land aligns with the company’s BOI promotion.
The company will also need to provide supporting documents alongside the request, such as:
- company registration certificate,
- the BOI Promotion certificate
- investment plan.
BOI Review and Approval
Once the request and support documents have been submitted, the BOI will review the request and decide whether the land acquisition complies with investment promotion conditions. If the request is approved, the BOI will issue an official letter authorizing land ownership.
Register the Land with the Land Office
Once the BOI approval letter has been received, the applicant can go to the local Land Department to complete the land registration.
Please note, that if the land office is unfamiliar with BOI land ownership rules this could lead to delays or additional scrutiny from the Land Office. In such cases, an experienced lawyer may be needed to clarify regulations and facilitate the process. This could be an issue if the intended land is located in an area where there is not a lot of BOI activity or companies.
How can Belaws help?
For more information about buying land as a BOI promoted company in Thailand, why not talk to one of our experts now?
Please note that this article is for information purposes only and does not constitute legal advice.
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Consultations can be hosted via WhatsApp or Video Conferencing software for your convenience. A consultation with one of our legal experts is undoubtedly the best way to get all the information you need and answer any questions you may have about your new business or project.
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Frequently asked questions
Can foreigners own land in Thailand?
No, foreigners generally cannot own land in Thailand, whether as individuals or through foreign-owned companies. However, there are exceptions, such as through BOI-promoted companies, which allow full foreign land ownership under specific conditions.
What is the BOI (Board of Investment) and how does it affect land ownership?
The Board of Investment (BOI) is a government agency that promotes foreign investment in Thailand. BOI-promoted companies can benefit from 100% foreign ownership and land ownership rights, which are otherwise restricted. These companies can own land necessary for their approved business activities.
How much land can BOI-promoted companies own in Thailand?
Under Section 27 of the Investment Promotion Act, BOI-promoted companies can own:
- Up to 1 rai (1,600 sqm) for office and residential purposes.
- Up to 5 rai (8,000 sqm) for office use.
- Up to 20 rai (32,000 sqm) for worker accommodations, subject to specific conditions.
What are the requirements for BOI-promoted companies to own larger plots of land?
To own more than 1 rai, BOI-promoted companies must:
- Maintain a paid-up registered capital of at least THB 50 million throughout the period of land ownership.
- Use the land strictly for approved business purposes.
- Ensure worker accommodations are located within 10 km of the business premises.
Can foreigners own property in Thailand through alternatives?
Yes, while land ownership is restricted, foreigners can legally own:
- Condominium units, provided foreign ownership does not exceed 49% of the building’s area.
- Long-term land leases, typically for 30 years, with possible renewal options.
- Buildings on leased land (houses or villas), as building ownership is treated separately from land.
What happens if a BOI-promoted company loses its BOI status?
If a company loses its BOI promotion status, it must dispose of the land within one year. Failure to do so allows the Director General of the Land Department to dispose of the land under the Land Code.
How do BOI-promoted companies apply for land ownership?
The process includes:
- Preparing a formal request detailing the location, size, and purpose of the land.
- Providing supporting documents, including:
- Company registration certificate
- BOI promotion certificate
- Investment plan
- Submitting the request to the BOI for review and approval.
- Registering the land at the Land Department once BOI approval is granted.
What are the benefits of BOI-promoted land ownership for foreign investors?
- 100% foreign ownership of land.
- Ability to own larger plots for business operations.
- Tax incentives and streamlined regulatory procedures.
- Enhanced legal security under BOI regulations.
Are there restrictions on how BOI-promoted companies can use the land?
Yes, land owned by BOI-promoted companies must be used strictly for the approved business activities specified in their promotion certificate, such as:
- Manufacturing facilities
- Tourism projects
- Technology hubs
- Worker accommodations
What are the risks of long-term land leases for foreigners?
While long-term leases offer a legal alternative to land ownership, they carry risks such as:
- Renewal uncertainties if the landlord acts in bad faith.
- Inheritance complications, as lease agreements may not automatically transfer to heirs.
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