Foreigners are not allowed to own land in Thailand, but they are allowed to own buildings. Therefore, one option for a foreigner to buy a property in Thailand is to set up a Thai company and use it to purchase the property. A foreigner who takes part of the company should not own more than 49 percent of the shares of the company. Thai shareholders should have a majority of the shares.
Here are the general steps you would need to take:
- Choose a Thai company structure: You can choose from several types of Thai companies, such as a limited company or a public company. It’s advisable to consult with a local lawyer to determine which type of company is best for your situation.
- Register the Thai company: To register a company in Thailand, you will need to submit several documents, including a Memorandum of Association, Articles of Association, and a list of shareholders and directors. You will also need to have a registered office in Thailand.
- Apply for a Foreign Business License: As a foreigner, you will need to obtain a Foreign Business License from the Department of Business Development in order to own a majority share in the Thai company. This license will allow your company to operate in certain business activities in Thailand, including property ownership.
- Open a Thai bank account: To purchase the property, you will need to transfer the funds to a Thai bank account. The Thai company will need to have a bank account in order to make the transaction.
- Purchase the property: Once the Thai company is established and the funds are in the Thai bank account, you can use the company to purchase the property in Thailand. The ownership of the property will be in the name of the Thai company, with the foreigner as the majority shareholder.
It’s advisable to seek the assistance of a local lawyer and accountant to ensure compliance with all applicable laws and regulations.