Legal framework
How rental yields, capital growth, ownership rules and taxes work for high-end property in Thailand
How rental yields, capital growth, ownership rules and taxes work for high-end property in Thailand
Thai property law is best approached with an experienced property lawyer at your side. Sound legal advice helps protect your purchase over the long term.
Thai law gives international buyers several established ways to hold property:
Foreigners cannot own land directly in their own name, so you will need to buy through a Thai company or set up a long-term land lease.
Foreign buyers can own condominiums in their personal name with full freehold rights, as long as total foreign ownership in the building does not exceed 49%.
A widely used option. Land leases are legally protected for a 30-year term and are routinely extended to up to a 90-year term through contractual agreements.
Property can be held through a properly structured, compliant Thai company set up in line with local laws.
The simplest way for a foreigner to own property in Thailand, with a clear title deed in your own name:
Freehold ownership with a clear title
Must be purchased with funds transferred from abroad
A Foreign Exchange Transaction form (FET) is required
Subject to the foreign quota (49%)
Can be registered in your own name
No minimum investment requirement
The usual structure for buyers of beachfront villas and houses with private land:
30-year leases registered at the Land Department
A renewal option is typically included in the contract
Secure when the contract has proper protections
Can include provisions for inheritance
Protection through usufruct or superficies rights
Suited to buyers who want long-term use
Less liquid than condominium ownership
A structure suited to buying land or holding several properties together:
A Thai limited company with a proper shareholder structure
Foreign ownership is limited to 49% of the shares
The company must have legitimate business activities
Annual compliance requirements apply
Operating the company has tax implications
Requires professional legal and accounting support
Nominee structures are under increasing regulatory scrutiny
The essential legal and property checks that we arrange before you sign the contract and pay:
Title verification at the Land Department
Verification of the seller's ownership rights
Checks for liens, encumbrances, or mortgages
Confirmation that the condominium's foreign quota is available
Review of the developer's track record and financial status
Verification of building permits and compliance
Environmental and infrastructure assessment
Checks for community regulations or restrictions
The steps Sabai Real Estate follows to guide you through a purchase:
Define your investment strategy, budget and target locations
Shortlist and inspect properties, ideally in person
Make an offer and sign a reservation agreement with a holding deposit
Instruct an independent lawyer to run full legal due diligence
Negotiate and sign the sale and purchase agreement
Transfer funds into Thailand in foreign currency and obtain FET documentation
Complete the transfer at the land office and pay taxes and fees
Register utilities, insurance and any rental management agreement
For finished homes, the legal transfer usually takes 30-90 days. For off-plan villas, it is divided into stages linked to construction milestones.
Our brokers in Thailand can introduce you to property lawyers who specialize in helping international buyers. We help arrange land history checks, title deed verification, contract negotiation, and company or trust setups.