Acquisition of land in Thailand.
As known, according to the laws of the Kingdom of Thailand, a land plot cannot be owned by a foreigner, whether natural or company. Then how can you buy a villa in full ownership or invest in a commercial project?
There are two ways to solve this problem.
The first option, according to the law of Thailand, a foreigner can take a land plot for rent for up to 30 years with the right of further extension. Typically, the seller enters into such a lease for up to 90 years (30 + 30 + 30). At the same time, everything that is built by the leased person on the land plot can be registered in full ownership.
This scheme is convenient if you buy a property for personal use or for commercial purposes, excluding the further sale of land. You buy a villa or apartment in order to live or rent. Or, for example, you are building a village of villas or a hotel that you are not going to sell, but plan to work with this property in the future. In this case, renting can be even more interesting, since the registration of the right to lease and its further assignment (if required) is cheaper than the registration of real estate in full ownership.
The second option, more suitable for both large investors and those who consider the lease is not reliable enough.
In the case where you want to use a land plot for commercial purposes, with the possibility of further reselling it in whole or in parts - you need to own this land rightfully, that is, you must have a Channot.
In this case, the best way is to buy a land in the name of the company registered in Thailand. A legal entity registered in Thailand can rightfully own and dispose of the land. The same applies to residential real estate - apartments. If you want to buy an apartment in full ownership, but the limit of apartments that can be issued is exhausted - you can purchase them for a company registered in Thailand too.
As in the case of long-term leases, and in the case of the purchase of land for the company, there are many nuances not described in this article. To avoid risks, we recommend that you seek legal advice before signing the transaction.
In addition to this, it is worth considering some differences in the laws of the regions of Thailand: Pattaya, Phuket, Koh Samui, Krabi, Hua Hin, and others. Therefore, it is better to seek legal advice from the region where the transaction will take place.
Our experienced lawyers will advise you in all matters related to the acquisition and lease of land in Thailand and, if necessary, will help to conduct such a transaction with minimal risks.