Thailand foreign land ownership moved a step closer to reality with the Cabinet signing off on a proposal that would allow expats to own up to one rai of land for residential purposes. However, potential buyers shouldn’t get too excited about the scheme which has a THB40 million investment requirement attached.
The proposed new law on Thailand foreign land ownership may also suffer similar issues to the THB10 million condominium investment visa which never gained much traction despite high hopes. That was due to a convoluted application process that most people found unnavigable.
Should a person meet the investment threshold, they would then need to submit an application to the Director-General of the Land Department for their proposed land ownership. The Land Department would then pass this on for approval from the Ministry of Interior. Once that is complete, the investor must inform their local land office.
Unlike the Thailand Board of Investment (BOI), which has vast experience in dealing with overseas investors as well as a track record of cutting through bureaucracy, going through two different departments to gain approval seems like it will be problematic for potential applicants.
This isn’t to say it won’t work, but the process will need to be transparent for both foreigners applying for land ownership and those handling applications. At the moment, that does not seem to be the case.
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Thailand foreign land ownership investment requirements
Thailand foreign land ownership requires a THB40 million investment in one of five areas. These are:
- Bonds issued by the Thai government, the Bank of Thailand, state enterprises or the Ministry of Finance
- Real estate mutual funds or infrastructure mutual funds, or mutual funds to rehabilitate debts of financial institutions under the Securities and Exchange Act
- Real estate investment trusts under the Legal Problems of The Trust for Transactions in the Capital Market Act
- Capital stock of a juristic person under the Investment Promotion Act
- Activities or companies operating under the BOI
Additionally, those applying for land ownership will be required to maintain that investment for a minimum of three years. Assuming the requirements are met, you’ll be obliged to follow several rules. For starters, the land purchased may not be larger than one rai. Other rules state it can only be used for residential purposes and must be for end use only.
While Thailand foreign land ownership may be possible, the hoops applicants are being asked to jump through are suboptimal. Especially when considering how straight forward the process is in neighboring Malaysia.
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