30-Year Lease Agreement
A large number of foreigners lease land over the long term since they cannot own land in their name as a freehold. The foreign tenant does not own any interest in the land. This is generally completely acceptable with the Thai government and the foreigner can have a wide spectrum of rights to the land during the term of the lease. The Foreigner may, if the lease stipulates it, even be able to own any building structure on the land in his name.

Buying a House in Thailand.
Foreigners can’t own land in Thailand so be sure to set in place a lease or usufruct legally guaranteeing your right to inhabit the property undisturbed before even considering building a house. It is best to build on a Chanote property but a Nor Sor Sam Gor is acceptable. While an active, trading Thai majority owned’ company can purchase land, beware of setting up a company solely to purchase land as this is illegal and may result in legal problems. Additionally, Thai majority owned companies using nominee shareholders are being investigated as the use of nominee shareholders is illegal. It is important to note that theoretically a foreigner who invests 40 Million Baht in Thailand and receives ministerial approval can purchase 1 Rai of Non-inheritable land for residential purposes.

Buying Land in Thailand
Foreigners are not legally allowed to own land although with a few exceptions they can own one rai of non-inheritable land.That said, many foreigners started majority Thai owned limited companies with the sole reason of buying land and this loophole is now being closed as more land offices are cracking down on non-active companies that purchase land. The Thai government has issued guidelines for local Land Offices to follow in regards to partially foreign owned companies buying and holding land. The use of nominee shareholders is being eliminated and this is not a wise way to obtain land.

Land Department Registration
All land transfers and leases over 3 years must be registered with the land department. Taxes and transfer fees will be payable at this time.

Those entail:

– Specific Business Tax with a flat rate of 3.3% on a selling price
– Transfer Fees with a flat rate of 2% of an official appraised price
– Stamp Duties with a flat rate of 0.5% of the officially appraised price
– Income Tax with a flat rate of 1% on the selling price for a juristic person or a progressive rate on theselling price for a natural person.

Title Deed Search
Before buying property in Thailand it is very important to perform a Title Deed Search. This search will determine if the property has any liens, if the seller has ownership rights, and the type of property documentation.

A usufruct is a right granted by an owner of land in favour of a usufructuary where the usufructuary has the right to possess, use and enjoy the benefits of the property. The usufructuary can also have the right of management of the property.