Foreigners Owning Land in Thailand: Legal Structures, Risks, and Safer Alternatives

Foreigners Owning Land in Thailand: Legal Structures, Risks, and Safer Alternatives

Why this matters

Interest in property is high, but the Land Code sets strict limits. Getting structures right protects capital, immigration status, and deal enforceability. We ground this guide in primary Thai authorities and official guidance, so foreign readers understand what is actually permitted.

1) What Thai law says about foreigners owning land in Thailand

Foreigners owning land in Thailand Under Section 86 of the Land Code, foreigners are generally prohibited from acquiring land unless permitted by a specific law, a treaty, or with permission under conditions prescribed by ministerial regulations. Section 96 bis empowers the Interior Minister to allow acquisition in limited cases, and sets conditions, including residential land with qualifying investment.

Key takeaways

• Default rule: an individual foreigner cannot hold land freehold in their own name.

• Limited permissions exist, including residence with qualifying investment and land necessary for investment-promoted businesses. Approvals are discretionary and condition-heavy.

2) Legal alternatives and workarounds that actually hold up

Legal alternatives for foreigners owning land in Thailand

A. Freehold condominium Foreigners may own condominium units freehold up to the 49 percent foreign quota for the sellable area of a project, subject to lawful funds remittance requirements. This is the cleanest freehold path for most individuals.

B. Long-term lease of land or buildings

• Under the Civil and Commercial Code, a lease of immovable property can be made for up to 30 years and must be registered to be enforceable against third parties. Renewals are possible but are not automatic and must be re-registered.

• For certain commercial or industrial projects, a special statute allows leases up to 50 years with a further extension not exceeding another 50 years, subject to strict conditions and registration.

• Inside the Eastern Economic Corridor, specific laws provide for longer state-land leases to catalyze strategic investment. These are project-specific and heavily regulated.

C. BOI-promoted company land Where land is necessary for an investment-promoted project, a promoted company may be permitted to own land tied to the approved activity, subject to conditions and subsequent disposal duties if the promoted use ceases. The Land Code recognizes investment-promotion pathways within Section 96 bis.

D. Foreign spouse of a Thai national A Thai spouse may own land in their own name if the funds are their separate property. The foreign spouse does not acquire ownership through marriage, and land officials scrutinize source-of-funds declarations. Plan for prenuptial or usufruct/lease safeguards if appropriate.

3) Structures to avoid: nominee or fronting schemes

Using a Thai “nominee” person or shell company to hold land on behalf of a foreigner risks seizure, fines, and criminal exposure. Authorities actively investigate nominee arrangements, and Thai government guidance warns against these structures. If the Thai company is not genuinely Thai-controlled with real capital and business substance, expect legal risk.

4) The 40-million-baht residential route

Thai law and implementing ministerial regulations allow, in very limited cases, permission for a foreigner to own up to a capped area of residential land if they invest at least the threshold amount for a prescribed period and obtain Interior Ministry approval. This is not an automatic right, involves multiple conditions, and approvals are discretionary. Always verify current criteria before relying on this path.

5) Practical due diligence checklist

• Order a full title search on Chanote title and check encumbrances at the Land Office.

• If using a lease, insist on registration and accurate land description. For 30-year leases, diarize renewal windows; for 50-year commercial leases, confirm the special-act eligibility.

• For BOI, align the land parcel with the promoted activity, keep corporate records clean, and comply with disposal conditions.

• For condos, monitor the project’s foreign quota and comply with FX evidence requirements on remittance.

6) When foreigners owning land in Thailand is realistic vs. when to pivot

Feasible paths

• Freehold condominium.

• Registered leasehold with realistic renewal planning.

• BOI-based ownership tied to an approved project, where strictly necessary.

High-risk or unsuitable

• Nominee or front companies without substance.

• Assuming marriage changes land ownership rules.

7) How GENTLE LAW IBL helps

• Land strategy assessment that avoids nominee risk.

• Lease structuring and registration.

• BOI feasibility and land permission mapping.

• Condo due diligence and FX documentation.

• Bilingual contracts and Land Office liaison.

Ready to structure land access the right way in Thailand? Book a consultation with GENTLE LAW IBL to protect your capital and keep your plan compliant.