Things to know before buying land in Thailand

Foreigners can own land through various official channels, including obtaining BOI approval, purchasing under the name of a local company, long-term lease mortgage and etc. Purchasing land must be carried out carefully whether at home or abroad, and there is no exception in Thailand. Here are a few things you must pay special attention to when buying land in Thailand.

1. Zoning: Make sure the land use you choose is in the correct area. In Thailand, land zoning is divided into different colors. For example, red indicates central business areas and green indicates agricultural areas. Different types of buildings can be built in different zones. If you want to build a factory building, you need to choose the so-called purple area. If you unfortunately choose the wrong area or if the urban planning changes after the land is transferred, there are still ways to change the zoning, but this process is quite difficult and may not be successful. I suggest that before you consider purchasing any particular land, it is best to go to the local township office or the land department to inquire beforehand.
2. Floods: Floods are quite common in Thailand, especially in the central and southern parts of Thailand. But the good thing is that flooded areas are somewhat predictable. Before buying a property, make sure it’s not located near these flood areas. The best way to confirm whether your property has a flooding problem is to visit the location during the rainy season. The rainy season in Thailand is usually around May to October. If you happen to miss the rainy season, you can ask local residents for advice.
3. Tax valuation: Land value varies drastically depending on the location. Make sure you check the land valuation, otherwise you might be looking at high yearly property tax. This especially important if you purchase the land for commercial purposes (office, warehouse, factory and so on), because the commercial land and buildings are taxed much higher than residential property. The tax multiplier for commercial properties is set at 0.3% of the land and building value.
4. Access road: When you see the road leading to your land, you might think that the said road must a public road, belongs to the state. The road is even paved with concrete/asphalt and has utility poles from the government, surely the road has to belong to public. But to the surprise of some land buyer, the access road to the land may not belong to the public or local government. In the title deed and official document, the road may not even exist. This causes all sort of troubles later down the line, so make sure that you check with local land office before you buy the land, especially the land is in the suburb or rural area.
5. Types of title deed: There are various title deeds or property rights in Thailand. The strongest one is called “Chanote” or Nor Sor 4. Ideally you want to purchase land that has the Chanote document. Other property right such as Nor Sor 3 Gor and Nor Sor 3, does not have the land boundary clearly defined and it’s not measured by satellite, so it’s less ideal for most foreigner or investment purpose. If you found a land that you really like, but it’s of weaker property right such as Nor Sor 3 Gor or Nor Sor 3, I suggest you require the seller to have the land properly surveyed by the land office and convert it to Chanote before the transaction.
6. Land survey: It always best to do the land survey before buying land in Thailand, regardless if it’s Chanote or not. It’s possible that the current owner is encroaching other people’s property line, the land might larger or smaller than registered on the property right and so on. In local land office, survey technician should be available for your inquiry.
7. Land Mortgage: Before buying or selling land, be sure to confirm whether the land was purchased under a mortgage or is an collateral of an existing loan. Land that is still under mortgage or loan can still be bought and sold in Thailand, and you must go through the procedures with the bank. But of course, the procedures will be more complicated.

For more information please visit Department of Land.

Want to buy land in Thailand?

Hopefully this guide will provide you with some guidance when buying land in Thailand. If you want to know more about investment in Thailand, please refer to my other detailed guide. In addition to land related matters, there are also BOI applications, factory building knowledge and more. If you are looking for consultation services please see my “services” page. Feel free to call or email me to get your first consultation for free.