Foreigners May Be Able To Own Land in Bangkok & Pattaya Soon
There are numerous restrictions on foreigners to own land in Bangkok and Pattaya, often they are only allowed to purchase condos indirectly as things get complicated related to purchasing property.
However, as per the new plan it would be possible for foreigners to purchase land through various proposed means. Let us learn more about it.
The most direct means of owning a property is to invest in a freehold condominium. As per the law of Thailand 49% of the area of condominium can be owned by foreigners. Foreigners following the legal means of property ownership will be able to own the property on permanent basis.
The property would fall under Fractional Interest with regard to the common areas within the building. The customer will have the right to own a piece of car park, gardens, reception area and even the swimming pool. With this ownership they are entitled to have their share within the owners association.
Combining the hotel and a condominium legal structure to own a property in Thailand. Individual properties can be owned by foreigners and they can rent it out as hotel, under the following conditions:
- Owner will be able to use the unit annually within certain allotted days such as 2 weeks and a month. Rest of the year the property may be rented out as a hotel that would function as a resort and a rental business.
- It would either be a rental return or provide an entry into a rental pool. If it is a rental pool then the owners require participation in offering their units for rental that would be their pooled income where each owner will be sharing the profits.
- A Condotel will have the licenses of hotel and condominium the units can be rented out on daily or weekly basis, similar to Airbnb.
Often referred as luxury property or villas these are similar to few owned properties by foreigners in Phuket where the foreigners are allowed to purchase branded properties and own these properties on freehold.
The developments are full with plush interiors, high quality furnishings, designs by the world-renowned architects that add to its beauty and luxury.
For these very reasons branded residences are high on net worth of investors. It is almost like a 5 star hotel chain where the property is resort managed given the option of rental pool.
Purchasing through an Offshore Company
It is simpler to own a property through an offshore company as it becomes easier to own a condo. The owner controlling the company share will be the owner of the condo as well.
Transferring the condo shares becomes easier to the new owner as the simple most process of owning it.
One such means is setting up a Thai Company Ltd. The company however should be running a legal business that includes revenue generation and having proper Thai shareholders.
Thai shareholders should be legal investors in the business, have their say in the company matters. The only rule is that a foreigner is allowed to own 49% of shares within the company.
Leasehold is possible when an individual rents a property on long term basis from the original owner who is also a freeholder. The property such as a house or a villa may be leased by a foreigner for 30 years flat.
- The foreigner gains the exclusive possession during the lease, where they are allowed to use the property as home or rental during the time of lease.
- Registration of each lease is done with the local Land Office, once this is done the lease agreement acts as lien against the title deed.
- When the initial lease term expires, it will be renewed further for two more 30-year terms that would make it in total of 90 years on lease.