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The legal foundations governing foreigner land ownership in Thailand
Foreign investors continue to show strong interest in Thailand’s real estate sector, attracted by stable economic prospects, high rental returns and the country’s unique lifestyle. Yet despite its appeal, Thailand applies one of the strictest property ownership regimes in Asia. Under the Land Code Act B.E. 2497 (1954), foreigners are prohibited from owning land, and the authorities conduct rigorous checks to safeguard national land policy and prevent unlawful circumvention. These restrictions have historically led some foreigners to rely on Thai companies with nominee shareholders to bypass the law. Such structures violate the Foreign Business Act B.E. 2542 and expose both the foreign investor and the Thai nominees to criminal penalties, including imprisonment, fines up to THB 1,000,000, dissolution of the entity, and confiscation of the land. Understanding what is legally permitted is essential for any foreign individual or company seeking to invest safely in Thailand. This comprehensive guide explains the legal framework governing foreigner land ownership in Thailand, outlines the rare exceptions that allow ownership, and describes the lawful long-term rights available to foreigners.
Table of Contents
The Legal Prohibition: What Foreigners Cannot Do regarding Foreigner Land Ownership in Thailand
The starting point is clear: foreigners cannot own land in Thailand. This prohibition, stated in Section 86 of the Land Code Act, applies broadly to foreign individuals, foreign companies, and Thai companies deemed to be under foreign control. The Land Department and the Department of Business Development regularly investigate companies suspected of serving as nominee structures. These audits are particularly common in Phuket, Koh Samui, Pattaya, Chiang Mai and Bangkok, areas where foreign investment is most active. When nominee arrangements are uncovered, authorities impose severe sanctions.
Lawful Paths to Land Ownership in Thailand
Although the general rule is restrictive, three legal mechanisms exist that allow foreigner land ownership in Thailand. However, only two of them are relevant to real estate investors:
BOI-Promoted Companies for Land Needed in Hotel and Tourism Projects
The Board of Investment may grant permission for a foreign-owned company to possess land if the land is strictly necessary for the promoted activity. This applies mainly to hotel developments, resort complexes, wellness centres, and tourism-related infrastructure. The land must be used exclusively for the BOI-promoted project and remain under the BOI’s supervision throughout the project’s duration.
Land Ownership in IEAT Zones
Companies operating within the Industrial Estate Authority of Thailand (IEAT) may acquire land for industrial use. This mechanism rarely concerns real estate or hospitality investments.
Section 96 bis – The 40 Million THB Investment Scheme
Section 96 bis of the Land Code is the only provision allowing an individual foreigner to own land directly. It enables a foreigner to acquire up to 1 Rai (1,600 m²) of land for residential use, provided strict criteria are met. We detail this mechanism below because it is one of the most misunderstood aspects of foreigner land ownership in Thailand.
Foreign Ownership via 40 Million THB Investment (Section 96 bis) for Foreigner Land Ownership in Thailand
Section 96 bis allows a foreigner to own 1 Rai of residential land if the individual invests THB 40 million in eligible assets for at least five years.
To clarify measurements:
1 Rai = 4 Ngan = 400 Wah² = 1,600 m².
Eligible investments include government bonds, state enterprise bonds, approved funds, and infrastructure securities approved by the Ministry of Interior.
Another essential requirement is that the land must be located in a designated urban zone, which typically includes Bangkok, Pattaya, Chiang Mai, Phuket, Hua Hin and selected areas in major provincial cities. These “urban areas” are defined through ministerial regulations based on zoning, infrastructure, and residential planning requirements.
Although entirely legal, approvals remain rare. Applications undergo a detailed review, particularly regarding the source of funds and the future use of the land. Benoit & Partners assists high-net-worth clients in preparing full applications and verifying that the land lies within an eligible urban zone.
Leasehold (30-Year Land Lease): The Most Common Secure Structure
Leasehold remains the preferred and safest arrangement for foreign investors seeking long-term control over land without violating restrictions on foreigner land ownership in Thailand. Under Sections 537–571 of the Civil and Commercial Code, foreigners may lease land for up to 30 years, with the possibility of contractual renewals.
A properly registered lease at the Land Office provides robust legal protection:
- The lease continues even if the landowner sells the property,
- The lessee may construct a building on the land, and
- The structure can be combined with superficies to formalize ownership of the construction.
Benoit & Partners drafts highly protective lease agreements, including provisions on renewal rights, construction rights, succession planning, and registration formalities.
Usufruct for Family Situations
Usufruct grants a foreigner lifetime rights to use and enjoy land owned by a Thai spouse or relative. It survives a change in ownership, including by inheritance or sale, making it a valuable protection tool in mixed-nationality marriages. Although usufruct cannot be inherited, it ensures security for the foreign spouse throughout their lifetime and prevents third parties from interfering with their right of occupation. In practice, registering a usufruct also limits the ability of heirs or future purchasers to remove the foreign spouse from the property, which is particularly important when the land was acquired during the marriage.
Our firm regularly registers usufructs for clients who wish to protect their residence in cases of divorce, succession, or unforeseen family events, and we ensure that the contract wording provides the most extensive protection permitted under Thai law.
Superficies: Owning the Building Without Owning the Land for Foreigner Land Ownership in Thailand
Superficies legally separates ownership of the land from ownership of the structure. Under Sections 1410–1416 of the Civil and Commercial Code, a foreigner may own a villa or building constructed on land owned by a Thai person or company, provided that the foreigner holds long-term rights over the land, such as a lease or usufruct. This structure offers strong legal certainty for investors building high-value villas, as it clearly recognizes the foreigner as the lawful owner of the construction. It also facilitates resale or transfer of the building independently from the land, provided the underlying land rights remain valid and properly registered.
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Thai Companies and Nominee Structures: Legal and Criminal Risks
A Thai company can legally own land only when its Thai shareholders are genuine, meaning they contribute real capital, vote independently, and participate in the business.
However, many companies promoted to foreigners in tourist areas are nominee structures that exist solely to hold land. These are explicitly illegal.
Land Department investigations have intensified since 2022, and foreign-owned structures are being examined with increasing scrutiny. Prevention remains the strongest form of protection, and investors should never sign contracts or transfer funds before obtaining a full legal review of the structure and the transaction.
Condominium Ownership: The Only Simple Freehold Option
Under the Condominium Act B.E. 2522, foreigners may own up to forty-nine percent of the saleable area in a condominium building. This remains the only simple and direct form of freehold ownership available to foreign buyers and is therefore a central element of foreigner land ownership in Thailand. Before signing any agreement, investors must verify that the foreign quota is still available, as ownership registration is impossible once the quota is fully allocated.
Foreign purchasers must also transfer funds from overseas to obtain the Foreign Exchange Transaction Form (FET form), which is required by the Land Office to register the unit in a foreigner’s name. In addition, the title deed of the unit, the building licences and the condominium’s internal regulations must be carefully reviewed to ensure that the project complies with the Condominium Act and the Building Control Act.
Benoit & Partners conducts full due diligence on both the building and the individual unit, confirms quota availability, reviews all construction and legal documents, and prepares secure contracts for registration. Our support ensures that foreign buyers benefit from the strongest protection available within the framework of foreigner land ownership in Thailand.
Due Diligence and Secure Investment Strategy for Foreigner Land Ownership in Thailand
Due diligence is a decisive step for any foreign investor concerned with foreigner land ownership in Thailand, as it determines whether a property can be safely acquired and legally transferred. The process begins with a full review of the title deed, including the verification of encumbrances, servitudes, existing leases, mortgages and court orders recorded at the Land Office. Confirming that the land boundaries match the official survey is essential, particularly in coastal and resort areas where boundary disputes are frequent.
Zoning regulations must also be assessed to ensure that the intended use—residential, hotel or commercial—complies with local planning laws. For properties with existing buildings, reviewing the construction permits and land-use certificates helps confirm that the structure was legally built and can be lawfully sold.
When the land is held through a Thai company, due diligence must include a corporate review to ensure the company is not a nominee structure, which remains one of the main risks associated with foreigner land ownership in Thailand. This involves examining shareholder records, capital contributions, and financial statements to confirm genuine Thai control, as required by law.
For condominiums, foreign buyers need to confirm that the foreign quota is available and that funds are transferred from overseas in compliance with exchange control regulations.
At Benoit & Partners, our due diligence reports identify all legal, structural and regulatory issues before any contract is signed, allowing foreign investors to proceed with confidence and full compliance with Thai law.
How Benoit & Partners Assists Foreign Investors
Benoit & Partners provides a full spectrum of legal services related to foreigner land ownership in Thailand:
- Assessment of land ownership restrictions based on the investor’s profile,
- Structuring through leasehold, usufruct, superficies and servitudes,
- Legal support for hotel developers seeking BOI land approvals,
- Full due diligence for villas, condominiums and land plots,
- Contract drafting and negotiation (SPA, lease, superficies, usufruct, reservation agreement),
- Representation at the Land Office for registration,
- Inheritance planning for real estate held in Thailand
- Advice and defence in nominee investigations.
Our team of Thai lawyers and international advisors ensures that foreign investors receive comprehensive and legally compliant advice.
Conclusion
In 2025, foreigner land ownership in Thailand remains governed by strict rules designed to protect national land policy. While the general prohibition on direct ownership continues to apply, foreigners can still secure long-term, legally protected rights through well-structured mechanisms such as leasehold, usufruct, and superficies. Condominium freehold also offers a straightforward solution when the foreign quota is available, and due diligence is properly conducted.
For specific hospitality and tourism projects, BOI promotion may allow land ownership when the land is genuinely required for the approved activity. The Section 96 bis investment route also provides a limited but legitimate path for high-net-worth individuals seeking ownership of up to 1 Rai within designated urban zones. Both options demand careful preparation and realistic expectations regarding approval timelines.
Because each structure carries its own legal and practical implications, navigating foreigner land ownership in Thailand without professional assistance is risky. Benoit & Partners guides foreign investors through every stage of their real estate project—due diligence, structuring, contract drafting, negotiations and registration—ensuring full compliance with Thai law and long-term protection of their investment.
FAQ
In most cases, no. Land ownership is prohibited unless the foreigner qualifies under BOI, IEAT, or Section 96 bis of the Land Code.
It is legally valid but rarely approved. It remains an option for high-net-worth individuals seeking ownership of up to 1 Rai in urban areas.
A foreigner may own the building but not the land. Ownership must be structured through leasehold, usufruct or superficies.
A registered 30-year lease combined with a superficies grant provides strong legal protection and clear rights over both land use and building ownership.
A foreigner may inherit land but must sell it within one year unless an exception applies.