Condo in Thailand
foreign ownership

under the Thailand condominium act

In the nineties (the decade that began in 1990) foreigners could own 40% of the aggregate unit space in an apartment building registered under the Thailand Condominium Act (i.e. in case of 100 equal units 40 could be owned freehold by foreigners). Between April 1999 and April 2004 there was an exception created (condominium act no. 3 1999) which under certain rules and conditions and in specified areas allowed foreigners to own 100% of the aggregate unit space in a condo project. Currently foreigners are allowed to own up to 49% of the aggregate unit space in a condominium.

Thai Family Law
civil marriage in Thailand

Marriage in Thailand is governed by the Civil and Commercial Code book 5, sections 1435 to 1535. A marriage (section 1457) can take place only if the man and woman (who are at least 18 years old) agree to take each other as husband and wife, and such agreement must be declared publicly before the Registrar in order to have it recorded by the Registrar. Marriage in Thailand is created and completed on formal registration and inclusion in the government's marriage register.

Condominium Unit Ownership
and inheritance of foreign ownership

The main legal requirements and limitation of foreign ownership of condo units in the Kingdom of Siam can be found in section 19 of the Thailand condominium act, that is, (1) not more than 49% of the total floor area of all units in a condo licensed apartment building combined can be foreign owned (51% must be Thai owned), and (2) every foreigner buying a condo in Thailand must qualify for foreign ownership under section 19 paragraph 1 of the condo act.

Foreigners who qualify for foreign ownership of an apartment unit under section 19 obtain a personal non-transferable right of foreign ownership of the unit. Ownership of the unit is not freely transferable between foreigners and restricted by condominium laws. Also foreigners who inherit a condominium unit by succession must again personally qualify for foreign ownership under section 19 of the condominium act or they must dispose of the unit within one year of the date of acquisition.

Marriage law
divorce grounds in Thailand

Divorce formally terminates marriage in Thailand and is the legal ending of a marriage. Divorce in Thailand means the dissolution of a marriage by the judgment of a court pursuant the grounds for divorce as listed under section 1516 of the Civil and Commercial Code or by the Amphur in Thailand upon request in person by both spouses and when there is mutual consent on the terms of divorce between husband and wife.

Apartment buildings
and condominium license

Only multi unit apartment buildings licensed under the condominium act B.E. 2522 and registered with the land department as 'condominium' offer freehold ownership of the apartment units and government issued ownership unit title deeds (image on the right). Private apartment projects (not having obtained a condominium license) do not offer ownership nor individual unit title deeds but only possession of the units under private (lease) contract structures.

Land Laws
land title documents

Land documents and deeds evidencing a person's legal right or title to land. Large areas of Thailand do not have the status of titled land or land confirmed for private use and possession but are government or public land or at the best forms of land claims generally used by farmers. No juristic acts like a sale, lease, superficies or usufruct can be registered over these types of land, this is only possible over land titles offering private ownership or a confirmed right of possession, issued by the land department of Thailand.

Buying a condominium unit
foreign currency exchange requirement

To qualify for foreign ownership under the Thailand Condominium Act a foreign purchaser of a condo unit is required to remit the full purchase price for the condo in foreign currency into Thailand, unless he is a resident in Thailand or eligible for foreign ownership under one of the other less common grounds of section 19 of the Condominium Act.

Condo Laws
ownership deeds

The unit ownership 'title deed' is the official ownership document of an apartment unit in a condo registered under the Thailand Condominium Act and is issued and administrated by the competent official of the Land Department. The apartment title deed contains the following main particulars:

Marriage laws
benefits of a prenuptial agreement

Prenuptial agreements in Thailand, as a pre-marriage contract, are specifically governed by sections 1465 to 1469 of the Thailand Civil Code. Worldwide the content of a prenuptial can vary widely, but under Thai law a prenuptial contract can only deal with personal and marital property of husband and wife. In addition, the tough standard for drafting a prenup in Thailand is that the content may not be against the law or good morals.

Due diligence
lawyer's real estate checklist

Whether you lease land or purchase real property in Thailand, the property ownership title deed needs close scrutiny. The seller must be able to identify himself as the owner and provide complete certified copies of the documents of the land, land and house or condominium unit (e.g. a copy of the office government issued ownership's title deed front and back side, the previous land office sale agreement and other relevant documents). When the property includes a house the seller must submit a copy of the house book and building permit or previous sale agreement confirming his ownership.

Limited Company
nominee shareholders in a Thai company

A limited company in Thailand must have a minimum of 3 shareholder at all times. Thai nationals operating a business under a company often use nominee shareholders to complete the number of 3 shareholders in the limited company. There is no general restriction for Thais that prohibited the use of nominee shareholders in a business. This is different for foreigners. Foreign investors are prohibited from using nominee shareholders in a Thai company under the foreign business act. Also bearer shares (shares owned by whoever holds the physical share certificate) are prohibited.

Land Ownership in Thailand
foreign ownership restrictions

The restrictions of private foreign land ownership in Thailand is not absolute and can exist, pursuant section 86 of the Land Code Act, under a treaty (no treaty available) and foreigners can since 1999 qualify for land ownership under section 96 bis of the Land Code Act. In practice the exception in section 96 bis is so restrictive that this is not a viable option for foreigners. In general foreign land ownership in Thailand is prohibited and a foreigner who personally or through an agent (nominee) violates foreign land ownership restrictions is liable for fines and imprisonment (section 111 Land Code Act).

Inheritance Laws
succession of foreign owned real estate

Something you do not own, you cannot transfer by inheritance or last will, something you are not allowed to own as a foreigner in Thailand you cannot acquire by inheritance or by succession laws. Inheritance of land, leased land or condominium by foreigners in Thailand.

Usufruct in Thailand
Real Estate Laws: real property rights for individuals

Foreigners cannot own land in Thailand but they can obtain a right of usufruct by agreement with the Thai owner of the land or land an house. The essence of a right of usufruct is that it transfers the rights of possession, use, enjoyment and management of an immovable property from the owner to the usufructuary.

Inheritance tax
IHT proposed in Thailand

The Constitution Drafting Subcommittee yesterday floated an ambitious proposal to impose an inheritance tax and land tax as part of an effort to bridge income disparity.

Foreign Ownership
new property law stuns foreigners

Thailand's booming property sector has been thrown into confusion by a new regulation issued this month that requires all partly foreign-owned companies to prove the source of their funding before purchasing land, industry sources said Tuesday. The new Interior Ministry regulation that went into effect on May 25 has already started to slow sales of housing estates in Thailand's popular seaside resorts, such as Pattaya, Phuket, Hua Hin and Samui Island, which have been specifically targeting well-to-do foreigners as vacation getaways or retirement homes.

Company Formation
foreign and Thai shareholders

A Thai company is not subject to the Foreign Business Act and a Thai owned company (Thais holding more than half of the shares) will not be restricted by the Foreign Business Act. Foreigners are allowed to participate in a Thai company and control a Thai limited company. Due to the misuse of Thai nationals as nominee shareholders by foreigners the Thai government issued new 'business registration rules' preventing the use of Thai nominee shareholders by foreigners.

Alien Land Ownership
foreigners warned on land

Source Bangkokpost January 29 2007

Foreign investors holding property through shell companies using Thai nominees have been warned to restructure their holdings or face prosecution.