As a foreigner you can legally own your apartment or your house (not the land though).

The Thai Authorities have recently facilitated the access for foreigner to the real estate market under certain conditions:

It is therefore possible for a foreigner to buy a property in his own name in some urban zones determined by the Thai government: Bangkok, Phuket or Pattaya provided that the payment is wired from an overseas bank account.

The law specifies that up to 49% of a building units can be owned by foreigners.This decision stimulated the real estate market New programs and renovations alike.Unless you were granted the permanent residency (discretionarily delivered by the immigration department after 3 continuous years of legal residence in Thailand and following an examination of the request) an expatriate working in the country cannot own a property in his name.

Indeed, before the transaction, an amount equivalent to the total value of the property, including the down payment, must be transfered from a foreign account and automatically converted into local currency. The wire transfer can be made in the currency of your choice.

The «Foreign Currency Exchange Control Form» or «Tort Tor Sam» is a crucial document issued to the future buyer by the Thai bank in which a special bank account has been opened.

It must be reminded that the sender’s name must match the buyer’s name and that the purchase of a property must actually be specified as the sole purpose of the transaction. Our lawyer shall see to it.

For the individuals, the passport and the Foreign Currency Exchange Control Form are the main requested documents.

The companies must show the qualified administration the documents of the company bearing its statutes and the list of its shareholders.

These documents must be certified by a notary in the country where the company is listed and certified by the Thai embassy in the very country, before being subjected to the Thai administration.

Do not expect foreign companies or individuals to be able to finance their condominiums or their houses with any local bank. They generally don’t grant such loans to foreigners unless they acquired the permanent residency in Thailand.

To buy a piece of land or a house here are 3 options:

1. Finding an arrangement with a Thai partner

2. Setting up a Thai company (« Company Limited »), owned at 51% by Thai nationals.

3. Signing a land contract giving right to a 30-year-lease as well as the ownership of the house.

Should you decide to set up a company in Thailand, these are its main characteristics:

- The shareholders of the company must be at least 7 persons or entities,

- The Thai shareholders must represent at least 51 % of the capital expressed in percentage or in shares.

- Foreign investors can be appointed administrators of the company as long as one of them can provide a tax registration number in the preliminary steps of the company set up (former/current holder of a work-permit).

- Altghough in minority in the capital, the foreign investor can nevertheless obtain the control of the company by the effect of the shares known as “preferential”, increasing his voting and dividends rights in the statutes of the company. In practice, it is possible to increase the rights of the foreign shareholder by 10 times more than the other shareholders’ rights.

- It is thus that at the time of a vote during a general assembly of the shareholders, the foreigner with only 49% of the capital will hold 490 votes (49 X 10) while the Thai shareholders will only get 51 votes for 51% of the capital. The foreign investor logically holds the actual majority of the company.

Moreover it is a common practice to arrange a trust deed and an Act of Pledge of the shares for the benefit of the foreign shareholder.

For further details, we suggest you seek legal council from our law department.