A glimpse on the Thailand land scheme for foreigners to attract overseas investors

The Cabinet on Oct 2022 agreed to allow foreigners to purchase houses and up to a rai of land (around 0.16 hectares.)

Over a period of five years -- from 2022 through 2026 -- the government hopes to attract more than a million qualified people to invest in Thailand. It is estimated that 1 trillion baht will be injected into the economy, with an uptick of 800 billion baht in investment as well as 270 billion through revenue collection.

Q: What are the purposes of the new proposal?

• Attract expatriates in highly skilled professionals

• Attract affluent foreigners for lengthy stays with the aim to shore up the economy

• Increases land tax revenue

Q: Who qualifies under the new scheme?

• In order to be qualified, one must invest 40 million baht (US$1.09 million) in Thai property, securities or funds

• Maintain the investment for a minimum of three years, starting from the day they submit an application for the purchase

Q: Can I buy a Thai-landed villa if I am not eligible for the new program?

• Foreigners can hold land, villas or detached houses in the name of a company, which is very common in Thailand

Q: How to buy land or houses on behalf of a locally registered company?

• The most commonly used way is to set up a Thai limited company

• Thai citizens must own at least 51% of the company

• The company is owned by at least three shareholders and managed by at least one director

Steps on how to register a Thai limited company:

1. Registration of a company name

2. Draft of Memorandum of Association MOA and statutory meeting

3. Obtain the company certificate

4. Register VAT (Value Added Tax) and social insurance

5. Open a company bank account

6. Apply for Non-B Visa and work permit for foreigners

Most agents or developers provide one-stop services to help foreigners set up companies, which is a norm and practiced by many foreigners

Q: What kind of property can foreigners currently purchase in Thailand with the new scheme?

• Land and/or houses in Bangkok, Pattaya and other municipal areas or zones marked out as residential areas in provinces

• Foreigners can only buy one rai of land once, and the limit will apply even if the foreigner sells parts or all of the land

Q: What is the process of applying for the right to purchase lands or houses?

1. Submit the application and required documents to the Land Department director-general, who will verify and then forward them to the Interior Ministry for approval

2. Once approved, the buyer is required to inform the local land department within 60 days

3. If buyers withdraw their investment, they must inform related authorities within 60 days