There are two ways for foreigners to buy property in Thailand. The first is leasing a piece of land or a villa for a long period of time. The second is purchasing villas or land through the registration of a company in Thailand.
Long Term Lease
In Thailand, renting a piece of land or a villa for a maximum lease period of 30 years is the most effective way for foreigners to obtain temporary property rights in Thailand. The renewal of land leases can only last for up to three 30 year periods, or 90 years, and must be renewed each time. Once the lease term expires, the landowner cannot then be the owner of the building. If the land lease contract is not registered in the Land Registry, the land lease for more than three years will be calculated only for three years, so the 30-year land lease must be registered with the Land Registry. In addition, even if the land was sold by the owner, the original land lease treaty is still valid.
Buying property through a company registered in Thailand
Foreigners can purchase villas or land in Thailand and have permanent property rights, but they need to have a permanent property right in the form of a registered Thai company. However, unlike the time-consuming and laborious approval procedures of domestically registered companies, it takes only 7 days to complete the procedure in Thailand. Not only is the registration fee low, but the registrant will also have absolute control over the company. The registrant will be the legal representative of the Thai company. The legal representative has the final decision on the company’s finance, equity, personnel distribution, etc. This means that without your signature or stamp, all decisions are invalid.
The Thai company that is established generally does not need to actually operate, and only needs to pay a low-cost company billing fee each year. At the same time, a good lawyer and real estate agent can help you solve these problems and help you create a perfect home that you own permanently.
Land security problem
Usually, foreigners cannot own land in Thailand. Foreigners can only buy land in the name of a Thai company and then build houses and villas on the land they purchase. In fact, foreigners have owned most of Thailand’s villas and plots in this way for decades, and there have never been any cases of property rights problems. Of course, a reputable lawyer can better ensure that foreign buyers have absolute control over the company and its assets.