Finding a House in Thailand - Catch 22-1

"What about building a house in Thailand?" This is one of the more common questions expats and retirees ask about living in Thailand.

What follows is a shameless plug for the Leisure Club retirement resort style community concept ...

... but the information that follows is "fact" as we understand the laws and rules of the Kingdom.

For the unaware investor/homebuilder, Thailand's property and business laws can rise up and severely taint your retirement dreams. It has happened before and will continue to happen.

Caveat Emptor: We strongly urge and advise you to consult with an attorney expert in Thai real property law before considering any investment in Thailand ... and to make sure that attorney is competent and legitimate.

Many western embassies have recommended law firms listed on their web sites.

Home Ownership for Foreigners

Generally: "You can own the house, but you cannot own the land on which it is built."

Why? - Thai property laws simply don't allow it. Land titles can only be recorded in the names of

• Thai citizens
• Juristic entities aka companies that are 51% Thai ownership.
• Juristic entities organized under a Trust (Bt 500 million+).
• Juristic entities promoted by the Thai BOI - take note

So what's wrong with putting the land in a wife or friend's name? Nothing ... assuming

• Your relationship is sound and permanent
• You realize that you can be evicted with very little legal recourse.

So why not form nested Thai companies to gain control, then get the Thai companies to buy land?

• The scheme requires nominees and proxies who don't know each other
• If the company doesn't pay taxes on operations for 5 years, it can be dissolved
• The arrangement is illegal and can be attacked by the land department

Okay ... I'm American and the Amity Treaty allows me to own 100% of a Thai Company

• True - but a company registered under the Amity Treaty cannot own land

Maybe you're right ... how about a condo? Condominium ownership has its own pitfalls.

• Consider that, someone owns/controls the land and common facilities ... and may, at his/her whim Ignore maintenance of the common area
• You have absolutely no control over who lives across the hall or next door
• For title to be vested in your name, the condo must be purchased from the developer at the registered price.

So ... what are my legal realistic options? Those that we know of are:

• Condominiums - assuming there are any you like where you want to live.
• Stock ownership and rights of possession in developments as proposed by Leisure Club and are:
• Organized under Thai BOI rules with 100% foreign ownership
• Organized under Unit Trusts (Bt 500 million minimum) with 100% foreign ownership
• There may be other legal means that we have not yet discovered

Okay, I'll rent a place. There must be hundreds. See ... Catch 22-2

The issues above are opinions, and facts as we understand them. You should take them in the same spirit and skepticism you would any other information.

Nuances in laws and rules may alter your experiences and perceptions of the issues.

We are not legal experts and take no responsibility for omissions or errors on this page. We strongly recommend that you consult an attorney before making any arrangements subject to Thai law.

For those pedants who like to argue the finer points aka legend and hearsay gleaned from self styled experts riding barstools ... we aren't interested.

However ... sincere information and feedback is sought and welcomed.