Foreigners cannot buy land outright in Thailand except through one narrow 40-million-baht investment exception, so to buy land in Thailand as a foreigner you will almost certainly use one of the workarounds Thai law does allow: a registered long-term lease, a Thai company that owns the land, a usufruct or superficies right, purchase in a Thai spouse’s name, or a condominium unit (the one form of real property a foreigner can hold in their own name). Each route has different costs, different legal risks, and a different useful lifespan.
Why Direct Ownership Is Off the Table
The Land Code Act B.E. 2497 reserves freehold land ownership for Thai nationals. Section 86 allows a foreigner to acquire land only “by virtue of the provisions of a treaty” granting that right, and no such treaty is currently in force with any country. Even if one existed, Section 87 would cap holdings at 1 rai (about 1,600 square meters) for a residence, up to 10 rai for industry or agriculture, and less for other uses.1Thailand Law Library. Land Code Promulgating Act B.E. 2497 – Limitations of Foreigner Rights
One structural point shapes everything that follows: a foreigner can own a building but not the land beneath it. Build a house on leased land and the house is yours; the plot is not. That split runs through every legal pathway described below.
The 40-Million-Baht Investment Exception
Section 96 bis of the Land Code is the single exception to the ban on foreign land ownership. A foreigner who invests at least 40 million baht (roughly USD 1.1 million) in a qualifying Thai business can buy up to 1 rai for personal residential use.1Thailand Law Library. Land Code Promulgating Act B.E. 2497 – Limitations of Foreigner Rights The conditions are strict:
- The investment must be in a business that provides economic or social benefit to Thailand, or one approved by the Board of Investment.
- The investment must be maintained for at least three years from the date of application.
- The land must sit within Bangkok, Pattaya, a municipality, or a designated residential zone under Thai city planning law.
- The exception can be used only once, even after a later sale.
- If the land is not used for residential purposes within two years of registration, the government can order it sold.
Fail to maintain the investment and a forced sale follows. The Director-General of the Land Department can set a deadline of up to one year for the foreigner to sell, and will arrange the sale if the deadline lapses.1Thailand Law Library. Land Code Promulgating Act B.E. 2497 – Limitations of Foreigner Rights This route is realistic only for high-net-worth buyers willing to lock up significant capital in a Thai business for years.
Long-Term Leasehold
Leasing is the most common route for foreigners who want a specific plot. A registered lease gives you enforceable rights to use and occupy the land, and it survives a sale of the property.
Thai law caps leases at 30 years. A contract written for a longer term is automatically cut down to 30. Renewal is possible in theory after the first term ends, but renewal clauses built into the original contract are not reliably enforceable. Thailand’s Supreme Court held in case 4655/2566 that a renewal provision mirroring the original lease amounts to a circumvention of the 30-year cap and is void, and the court was particularly skeptical when the renewal rent and conditions were identical to the original. In practice, a “30+30” lease is a 30-year lease plus a hope that the landlord honors the second term voluntarily.
Any lease longer than three years must be registered at the Land Department to be enforceable. Skip the registration and a court will only recognize the first three years, no matter what the contract says. Registration requires both the landowner and the lessee to appear at the Land Department together, and the registration fee is 1% of the total rent over the lease term.
Buying Through a Thai Company
A Thai limited company can own land in its own name because it is a Thai legal entity. Many foreign buyers form such a company, sit on the board, and buy the property through it.
Under the Foreign Business Act B.E. 2542, any company where foreigners hold 50% or more of the shares is treated as a “foreign” entity and cannot own land.2Thailand Law Library. Thailand Foreign Business Law Q and A To stay clear of that classification, Thai nationals must hold at least 51%. Foreign control can still be preserved through share classes with weighted voting rights, preference shares, and directorship arrangements.
This is where buyers get into serious trouble. The company has to be a real operating business. Putting Thai individuals on the share register in name only, while the foreigner supplies all the capital and makes every decision, is a “nominee” arrangement, and it is illegal. Section 36 of the Foreign Business Act carries a fine of 100,000 to 1,000,000 baht and up to three years’ imprisonment for both the nominee shareholders and the foreigner who set them up.3Thailand Law Online. Foreign Business Nominee Company Shareholder The Department of Business Development investigates these structures, and a finding of nominee activity can force the company to unwind and the land to be given up.
A legitimate company structure needs Thai shareholders with their own money at stake, a real business purpose beyond holding a single plot, and proper corporate governance. It fits best when a foreigner is genuinely running a business in Thailand and the land purchase serves that business.
Usufruct and Superficies
Two lesser-known rights give foreigners the ability to use land they do not own.
Usufruct
A usufruct gives you the right to possess, use, and profit from someone else’s land. You can live on it, farm it, or rent it out. The right can be for a fixed period or for the usufructuary’s lifetime; if no term is specified, it lasts for life.4Thailand Law Library. Thai Civil and Commercial Code – Usufruct A lifetime usufruct is valuable because it is not subject to the 30-year lease cap.
The catch is that a usufruct is personal and non-transferable. You cannot sell it, cannot sublease unless the agreement specifically permits it, and cannot pass it to heirs. When the usufructuary dies, the right ends and the land reverts to the owner with no compensation. Registration at the Land Department is required for enforceability.5Thailand Laws. Usufructs in Thailand
Superficies
A superficies right separates ownership of a building from ownership of the land. The landowner grants you the right to own structures built on or under the land, so you hold legal title to a house or other building while someone else owns the ground. Like a usufruct, it can be for a fixed term or for the lifetime of either party. If no term is set, either side can terminate on reasonable notice, or one year’s notice where rent is paid.6Thailand Law Library. Thai Civil and Commercial Code – Superficies
Both rights must be registered at the Land Department. Many foreigners combine a long-term lease with a superficies right for layered protection: the lease secures use of the land while the superficies secures ownership of anything built on it.
Buying in a Thai Spouse’s Name
A foreigner married to a Thai national can have the spouse purchase land in the spouse’s own name. The Land Department requires both spouses to sign a joint declaration confirming that the purchase money is the Thai spouse’s personal property, not marital assets, and that the foreign spouse has no claim over the land.
If both spouses are in Thailand, the declaration is signed at the Land Department on the day of registration. If the foreign spouse is abroad, the declaration is executed through a Thai embassy, consulate, or notary public and submitted with the registration documents. The legal effect is that the land belongs to the Thai spouse alone. In a divorce, the foreign spouse has no claim, regardless of who actually provided the funds.
Condominium Units
Condominium units are the one form of real property a foreigner can own outright. Section 19 of the Condominium Act B.E. 2522 permits foreign ownership so long as foreign-held units do not exceed 49% of the total unit space in the building.7Thailand Law Online. Thailand Condominium Buying Foreign Ownership Before buying, ask the building’s juristic person whether the foreign quota is already full.
To register foreign ownership, the full purchase price must be transferred into Thailand in foreign currency. The receiving Thai bank converts the funds to baht and issues a Foreign Exchange Transaction Form (FET form) for transfers of USD 50,000 or more; smaller transfers get a credit note letter containing the same information. Either document proves the foreign remittance and is required at the Land Department to complete the transfer.8Thailand Law Online. Condo Purchase Currency FET Form Remittance Without it, the Land Department will not register the unit under a foreign name.
Check the Title Deed Before You Commit
Not every land document in Thailand gives the same protection. The type of title deed on a plot determines how secure your rights are, whether you can register a lease, mortgage, usufruct or superficies against it, and how easily it can be transferred. Verify the deed type before you put money down.
- Chanote (Nor Sor 4 Jor). Full freehold with precise GPS survey data and numbered boundary markers. Supports mortgages, registered leases, usufruct, and superficies. Insist on Chanote for any significant transaction.9Thailand Law Online. Thai Legal Terms – Title Deed
- Nor Sor 3 Gor. An accurately surveyed possession certificate, often based on aerial photography. Can be subdivided and may be upgradeable to Chanote.
- Nor Sor 3. Confirms possession but lacks accurate survey data. Boundary disputes are more common and transfers require a 30-day public notice period.
- Sor Kor 1. A bare notification of possession with very limited rights. Cannot be sold in the normal sense; possession passes by physical handover or inheritance. Do not build a legal structure around this document.
Only a Chanote gives real certainty about boundaries and ownership. A seller who promises to upgrade a Nor Sor 3 to Chanote is describing a process that takes time and is not guaranteed.
Taxes and Fees on Transfer
Every land transfer at the Land Department triggers several taxes and fees, calculated on the government-appraised value (often lower than the sale price).
- Transfer fee. 2% of the appraised value, typically paid by the buyer.
- Specific business tax. 3.3% of the appraised value (3% base plus a 10% municipal surcharge). Applies when the seller has owned the property less than five years or is in the business of selling real estate. When this tax applies, stamp duty does not.
- Stamp duty. 0.5% of the appraised value, payable only when the specific business tax does not apply.
- Withholding tax. For corporate sellers, typically 1% of the appraised or transaction value, whichever is higher. For individual sellers, the Land Department calculates it using progressive income tax rates (5% to 35%) applied to the appraised value divided by the years of ownership.
Who pays what is negotiable. The common split has the buyer covering the transfer fee and the seller taking the business tax or stamp duty and the withholding tax, but any allocation is possible. Put the allocation into the sale and purchase agreement before signing.
How the Registration Actually Happens
Once due diligence is complete and you have chosen a pathway, the transaction moves in stages.
The Sale and Purchase Agreement
First comes a signed sale and purchase agreement (or lease agreement for a leasehold). It sets the price, payment schedule, conditions for completion, and the allocation of taxes and fees. A deposit of 5% to 10% of the purchase price is typical. Include clear default provisions describing what happens if either side fails to complete.
Transfer at the Land Department
Transfer happens at the local Land Department office where the property is registered. Both parties, or their representatives holding a power of attorney, appear with identification, the original title deed, signed agreements, and company documents if a Thai company is involved. Officials verify the paperwork, check for existing encumbrances such as mortgages or court orders, and calculate the taxes and fees.
Once payment is made, both parties sign the transfer documents in front of the registering officer. For a company purchase, a new title deed is issued in the company’s name. For a lease, the lease is endorsed on the back of the existing title deed. Registration is what makes your rights enforceable against the world, not just between you and the seller.
Bringing the Purchase Funds Into Thailand
A Thai tax resident (broadly, anyone physically present in Thailand for 180 days or more in a calendar year) may owe Thai income tax on money brought in from abroad. Rules that took effect in January 2024 widened the scope: foreign-earned income later transferred to Thailand can trigger progressive Thai income tax, even if it was earned in a prior year. The previous rules only taxed foreign income remitted in the same year it was earned.
As of early 2026, the Thai Revenue Department is reviewing possible changes that could exempt certain remittances made within the year the income was earned or the following year. The rules remain in flux and depend heavily on individual circumstances, including any double taxation treaty between Thailand and your home country. Talk to a Thai tax specialist before moving large sums for a property purchase.
Use an Independent Thai Lawyer
Independent Thai counsel is not optional here. The structures are technical, the downside ranges from unenforceable agreements to criminal prosecution, and Land Department procedures are conducted in Thai. Your lawyer should run a title search at the Land Department to verify the Chanote, confirm there are no encumbrances, check zoning restrictions, and review the sale or lease agreement before you sign. Pick someone independent of the seller, the developer, and the real estate agent. The fee for a straightforward transaction is small compared with the price of the property and the value of what you are protecting.