Property law in Thailand sits at the intersection of two competing forces: a constitutional preference to keep land in Thai hands and a clear legislative framework that opens defined, lawful pathways for foreigners to invest, occupy, and pass on real estate. For anyone planning to buy a condominium, lease a villa, secure a usufruct over a family home, or hold a hotel asset, the safest position is the one built directly on the text of the Land Code, the Condominium Act, and the Civil and Commercial Code, rather than on rumour or repeated marketing claims.

This guide explains, in practical terms, what foreigners can and cannot do under Thai property law, how the Land Department actually processes a transfer, what each ownership structure costs, and where the most serious legal risks lie. Throughout, the legal references point to the primary statutes, the relevant ministerial regulations, and a recent Supreme Court ruling that has reshaped how long-term leases must now be drafted.

The Statutory Framework Governing Property in Thailand

Thai property law is not codified in a single statute. The rules that determine who can own what, for how long, and on which conditions are spread across several pieces of legislation, each with its own enforcing authority.

The Land Code Act B.E. 2497 (1954), as amended, is the primary statute governing land ownership and is administered by the Department of Lands under the Ministry of Interior. The Civil and Commercial Code (CCC) regulates leases of immovable property in Sections 537 to 571 and creates the registrable real rights of usufruct, superficies, habitation, and servitude in Sections 1402 to 1434. The Condominium Act B.E. 2522 (1979), as amended, sets out a separate regime for the strata title ownership of apartment units. The Foreign Business Act B.E. 2542 (1999) restricts certain commercial activities and, alongside the Land Code, prohibits the use of Thai nominee shareholders to circumvent foreign ownership limits. Finally, the Land and Building Tax Act B.E. 2562 (2019) introduced a recurring annual property tax that replaced the older House and Land Tax and Local Development Tax.

Above the statutes sits the Constitution of the Kingdom of Thailand, which preserves the State's role in regulating land and natural resources, and below them sit ministerial regulations, departmental notifications, and Supreme Court decisions that often determine how the rules are applied in practice.

Can Foreigners Own Land in Thailand

The starting point of Thai property law is straightforward. Section 86 of the Land Code prohibits foreigners from acquiring land except where a specific treaty grants the right. Thailand's last reciprocity treaty allowing foreign land ownership was terminated in 1970, so today the treaty pathway exists in the statute but produces no practical result. The general rule, therefore, is that a foreigner cannot register freehold ownership of land in their personal name.

The Land Code carves out a narrow set of exceptions, each with strict conditions.

Land Acquisition Through 40 Million Baht Investment (Section 96 bis)

Section 96 bis, introduced by the Land Code Amendment Act (No. 8) B.E. 2542 (1999), allows a foreigner to acquire up to one rai (1,600 square meters) of land for residential use, subject to four core conditions:

• The applicant has brought into Thailand and invested at least 40 million baht in the assets specified by the Ministerial Regulation, which include Thai government bonds, Bank of Thailand bonds, mutual funds, and investments in BOI-promoted activities.
• The investment must be maintained for at least five years.
• The land must be located in a residential zone in Bangkok, Pattaya, or a municipal area.
• Permission must be granted by the Minister of Interior on a case-by-case basis.

Even when granted, this right is not transferable by inheritance. On the death of the owner, the heir must dispose of the land within a fixed period unless the heir independently qualifies. In practice, the 40 million baht route remains rarely used.

Land Held by Foreign Spouses of Thai Nationals

A Thai national married to a foreigner may purchase land in their sole name, provided both spouses sign a joint declaration at the Land Department confirming that the funds used are the personal property of the Thai spouse, not jointly owned marital property. The declaration is required under Land Department regulations and protects the Thai spouse's separate property right under Section 1471 of the Civil and Commercial Code.

Land Acquired Under Investment Promotion Laws

BOI-promoted companies, the Industrial Estate Authority of Thailand (IEAT), and certain regulated zones may be permitted to own land for the operation of the promoted business. These rights are tied to the promotion, expire when the promotion ends, and do not produce a personal residential title for foreign shareholders.

Condominium Ownership for Foreigners

The Condominium Act creates the only freehold pathway routinely available to foreign individuals. A condominium unit (a strata title apartment) carries its own title deed and can be registered in the personal name of a qualifying foreigner, subject to a building-wide quota.

The 49 Per Cent Foreign Quota

Under Section 19 bis of the Condominium Act, the aggregate floor area of all units in a single condominium juristic person owned by foreigners may not exceed 49 per cent of the total saleable floor area. The remaining 51 per cent must be owned by Thai nationals or by Thai juristic persons that meet the Act's eligibility criteria. The quota is tracked by the condominium juristic person and verified by the Land Department before each transfer registration.

If the foreign quota in a building is exhausted, a foreign buyer cannot register freehold ownership and must either wait for a Thai owner to sell to a foreign buyer (which does not free up new quota), look for another building, or consider a registered long-term lease of the unit.

Eligibility Under Section 19

Section 19 of the Condominium Act lists who qualifies as a foreign owner. The five categories include foreigners with permanent residence in Thailand, foreigners admitted under the Investment Promotion Act, juristic persons treated as foreign under the Land Code that are nevertheless promoted under investment laws, foreign-incorporated juristic persons promoted by the BOI, and the most common category, foreigners or foreign juristic persons who have brought funds into Thailand through proper banking channels in the form of foreign currency.

The Foreign Exchange Transaction Form (FETF)

For most individual buyers, eligibility flows from Section 19(5). The full purchase price must be remitted into Thailand in foreign currency and converted into Thai baht inside Thailand. The receiving Thai bank issues a Foreign Exchange Transaction Form (FETF, formerly Thor Tor 3) recording the inbound transfer, the original currency, the baht conversion, and the stated purpose ("for the purchase of a condominium unit"). For any single inward transfer of USD 50,000 or equivalent and above, the FETF is mandatory and is reported to the Bank of Thailand. The Land Department will not register the foreign-quota transfer without the FETF.

Inheritance of a Condominium Unit

A foreign heir who inherits a condominium from a previous owner faces a binary outcome under Section 19(7). If the heir independently qualifies under one of the Section 19 eligibility categories, the unit can be registered in the heir's name within the foreign quota. If the heir does not qualify, the law requires the heir to notify the competent official within 60 days of acquiring ownership and to dispose of the unit within one year. Failing to do so, the Director-General of the Department of Lands has the power to dispose of the unit on the heir's behalf.

Long-Term Leases of Land or Built Property

Where freehold land is unavailable to a foreigner, a registered long-term lease is the most widely used legal alternative.

The 30-Year Statutory Maximum

Section 540 of the Civil and Commercial Code provides that the duration of a hire of immovable property cannot exceed thirty years, and that any longer term is automatically reduced to thirty years. Under Section 538, a lease of immovable property for more than three years must be in writing and registered at the Land Department; otherwise it is enforceable for only three years regardless of what the parties agreed.

Hire of Immovable Property for Commerce and Industry

The Hire of Immovable Property for Commerce and Industry Act B.E. 2542 (1999) allows commercial and industrial leases up to 50 years, renewable for a further 50 years. The Act applies only to leases registered under it for genuine commercial or industrial use, and the relevant regulations require minimum project size and Land Department approval. It is not a residential vehicle.

The End of the 30+30+30 Lease Structure

For many years the property market relied on lease contracts that combined a 30-year initial term with two pre-paid, pre-signed 30-year renewals, marketed to foreign buyers as a 90-year lease. In Supreme Court Judgment No. 4655/2566 (March 2025), the Court held that pre-agreed automatic renewal clauses are personal contractual promises only. They do not bind the land, do not bind any subsequent owner of the land, and cannot be enforced as a real right against third parties. Practically, this means that:

• A registered lease has a maximum enforceable term of 30 years.
• Any "renewal" is a fresh contract, requiring the then-current registered owner's consent at the time of renewal.
• A pre-paid renewal premium is not protected if the land is transferred or inherited.

Foreign buyers should now treat any 30-year lease as a 30-year right, not a 90-year right. Drafting techniques that genuinely improve the buyer's position include registered superficies for the building, reciprocal options to purchase tied to a Thai counterparty's solvent estate, and structuring the transaction so the building (which can be foreign-owned) is held separately from the land.

Usufruct, Superficies, and Habitation

Beyond ownership and leasing, the Civil and Commercial Code creates three personal real rights that can be registered against a title deed and enforced even after the land is transferred.

Usufruct (Sections 1417 to 1428)

A usufruct grants the holder the right to possess, use, enjoy, manage, and take the fruits of an immovable property owned by another. The usufructuary can lease the property to a third party (within the usufruct's duration), live in it, or earn income from it, but cannot sell the underlying land. A usufruct may be granted for a fixed term up to 30 years or for the lifetime of the usufructuary. The right is registered at the Land Department against the title deed and survives a transfer of ownership.

Superficies (Sections 1410 to 1416)

Superficies grants the holder the right to own buildings, structures, or plantations on land owned by another. It is the most common legal device used by foreigners who buy or build a house on land held by a Thai spouse or Thai company; the foreigner registers the building in their name and the land remains in the Thai owner's name. A superficies can be granted for a fixed term up to 30 years, for the lifetime of the owner, or for the lifetime of the superficiary, whichever is agreed.

Habitation (Sections 1402 to 1409)

The right of habitation allows a person to live in another person's house, free of charge. It is personal, non-transferable, and lapses on the holder's death. It is most often used in family arrangements, including post-divorce living provisions, rather than as a commercial structure.

Comparison of the Main Foreigner Property Structures

Holding Land Through a Thai Company: The Nominee Trap

One of the most persistent myths in Thai real estate is that a foreigner can lawfully buy land by setting up a Thai company in which Thai shareholders hold 51 per cent of the shares while the foreigner controls the company through preferential voting rights or side agreements. This structure is unlawful when the Thai shareholders are nominees acting for the foreigner.

The combination of Section 113 of the Land Code and Section 35 of the Foreign Business Act targets the use of Thai nationals or juristic persons as a front to enable a foreigner to circumvent statutory ownership limits. Where a Thai national holds land as agent or nominee for a foreigner, the law treats the land as belonging to the foreigner and orders disposal under Section 94 of the Land Code. The criminal penalty for nominee arrangements under the Foreign Business Act is imprisonment of up to three years and a fine of 100,000 to 1 million baht, with a daily fine until compliance.

Since 2024, the Department of Business Development (DBD) and the Department of Special Investigation (DSI) have intensified enforcement. The land transaction itself can be voided, the company struck off, and the directors and Thai nominee shareholders prosecuted. Genuine Thai-majority companies with substantive Thai shareholders running a real business are not the target of these investigations; the target is the structure where a foreigner controls a company in form only to hold residential or recreational land.

For a deeper treatment of nominee enforcement and how to structure compliant Thai majority shareholding, see our companion guide on Nominee Shareholders in Thailand and How to Stay Compliant.

Title Deeds: What You Are Actually Buying

Not every parcel of "land" in Thailand carries the same legal status. Before signing anything, the title document needs to be checked against the Land Department's records.

The Buying Process at the Land Department

A property purchase in Thailand culminates at the Land Department branch where the title deed is registered. The process typically follows the steps below.

1. Legal due diligence on the title deed, the seller's legal capacity, encumbrances, the condominium juristic person's foreign quota, planning permissions, environmental restrictions, and any pending litigation. The Land Department issues an authoritative title search on request.
2. Reservation agreement with a refundable or partly refundable deposit pending due diligence outcome.
3. Sale and Purchase Agreement with conditions precedent (clear title, foreign quota availability, FET evidence) and clear allocation of the transfer fee, taxes, and stamp duty.
4. Inbound funds transfer through a Thai-licensed bank, in foreign currency, converted to baht in Thailand, supported by an FETF for amounts at or above USD 50,000 per transfer.
5. Land Department registration, conducted in person (or by a duly authorised attorney with a notarised power of attorney). The Land Department officer verifies identity, the FETF where applicable, the SPA, the title deed, the foreign quota letter from the juristic person, and collects all government fees and taxes.
6. Issuance of the new title deed in the buyer's name, or registration of the lease, usufruct, or superficies on the back of the deed.

For a straightforward condominium purchase, registration is typically completed in a single day at the Land Department, provided all documents are in order. Complex transactions involving a company purchaser, BOI promotion, or environmental clearance can take several months.

Government Fees and Taxes on Property Transfers

Transfer taxes are calculated on the higher of the official appraised value (the Treasury Department's valuation) and the contract price, except where the law specifies otherwise. The standard rates are set out below.

The government has, on a renewing basis, reduced the transfer fee and mortgage fee for qualifying primary-residence purchases by Thai nationals up to certain price ceilings; foreigners are generally not eligible for those promotions. The current rates and any active reduction can be confirmed with the Land Department or with our team.

Annual Land and Building Tax

The Land and Building Tax Act B.E. 2562 (2019) replaced the old House and Land Tax. It is administered by the local administrative organisation (the Bangkok Metropolitan Administration, the Pattaya City Administration, or the relevant municipality or sub-district administration). Assessment letters are typically issued in February and the tax is due by 30 April of each year, payable in a single sum or up to three instalments.

The Act sets statutory ceiling rates by use category, with the actual rate applied set by Royal Decree. The ceilings are:

• Agricultural use: maximum 0.15%
• Residential use: maximum 0.30%
• Other use (commercial, industrial): maximum 1.20%
• Vacant or unused land: maximum 1.20%, increasing every 3 years up to 3% if left unused

For a Thai national who owns both the land and the building used as their primary residence and whose name appears in the Tabien Baan, the first 50 million baht of combined assessed value is exempt. For an owner of the building only used as a primary residence (typically a condominium occupier whose name is in the building's house registration), the exemption is 10 million baht. Foreign owners are eligible for the lower applied rates but generally not for the residence-based exemption, since the Tabien Baan registration is normally a Thai-national document.

Drafting Pitfalls That Foreign Buyers Should Avoid

Several recurring issues lead to costly disputes or registration refusals at the Land Department. The most common are unregistered "side letters" promising lease renewals without value, dual-language contracts where the Thai version conflicts with the English version (the Thai version generally controls before a Thai court), unverified condominium foreign quotas leading to a stranded purchase, payment of the purchase price into a personal Thai account rather than a regulated escrow or lawyer's client account, and signature blocks that do not comply with Thai juristic person rules (one director versus two-director signing authority depending on the company affidavit).

Each of these can be addressed through pre-signing legal review and through the negotiation of a properly drafted SPA whose conditions precedent are tied to documentary evidence (a foreign quota letter from the juristic person, a Land Department title search dated within 30 days, and a complete FETF prior to transfer registration).

Estate Planning for Foreign-Owned Thai Property

Thai property is governed by Thai succession law as a matter of immovable property situated in the Kingdom. A foreign will may be recognised under the Civil and Commercial Code Sections 1623 onwards if it complies with the formal requirements of either the law of the testator's nationality or Thai law, but a Thai-language will signed before two witnesses in Thailand simplifies probate considerably. The Thai will should:

• Identify each Thai asset by title deed number, parcel number, and amphur, or by condominium unit number and juristic person registration
• Allocate the foreign-quota condominium to a foreign or Thai heir (with the Section 19(7) implications addressed above)
• Address the limited transferability of usufruct, habitation, and personal lease rights, which lapse on death
• Name a Thai-resident executor empowered to file the probate petition before the relevant Provincial Court

Frequently Asked Questions on Thai Property Law

Why Legal Review Matters Before You Sign

Thai property law looks deceptively simple at first reading. The ownership of a condominium is a single line on a title deed, the lease is a registered three-line entry on the back of a Chanote, and the usufruct is a brief notation. The complexity lies in everything around those entries: the matching of FETF amounts to the contract price, the foreign quota letter, the verification of company shareholding and signing authority, the survey of the parcel against the Land Department's master plan, the encumbrance check, and the careful drafting of fall-back rights when a registered structure cannot deliver the buyer's full commercial intention.

Juslaws & Consult advises foreign buyers, developers, hospitality investors, and family offices on the complete cycle of Thai property work, from due diligence and SPA drafting through registration, lease and usufruct structuring, BOI and IEAT-promoted land matters, and probate of Thai estates. If you are evaluating a transaction or want a second opinion on a draft contract, our team can review the documents, explain the practical risks, and help you secure the registered protections that the law actually provides.