What Foreigners and Investors Need to Know
Land ownership in Thailand is one of the most misunderstood topics for foreign investors. While the law is restrictive, there are legal, practical, and commonly used structures that allow foreign individuals and companies to secure land for residential, commercial, and industrial use.
This guide explains what is allowed, what is not, and what works in practice — especially for investors planning factories, warehouses, or long-term operations in Thailand.
Can Foreigners Own Land in Thailand?
General Rule
❌ Foreign individuals cannot own land in Thailand
This restriction applies regardless of visa type or length of stay.
However, there are important exceptions and alternative structures that investors commonly use.
Legal Ways Foreigners Can Control Land
1. Long-Term Land Lease (Most Common)
Foreigners and foreign-owned companies can legally lease land for:
- Up to 30 years
- With renewal options commonly structured as 30 + 30 + 30 years
Key points:
- Lease must be registered at the Land Office
- Renewal terms are contractual, not automatic
- Leasehold rights can be sold, transferred, or inherited (if structured correctly)
📌 This is the most practical option for factories, warehouses, and commercial projects.
2. BOI-Promoted Company Land Ownership
Companies promoted by Thailand’s Board of Investment (BOI) may:
- Own land for approved business use
- Even if the company is 100% foreign-owned
Conditions:
- Land must be used only for the promoted activity
- Excess or unused land may need to be disposed of
- Ownership ends if BOI promotion is cancelled
📌 This is the only direct land ownership route for foreign-controlled industrial projects.
3. Thai Company with Foreign Shareholding
A Thai company may own land if:
- It complies with Thai law
- Foreign shareholding does not exceed legal limits unless BOI-approved
⚠️ Warning:
- Nominee structures are illegal
- Land Department scrutiny is strict
- Violations can result in forced sale and penalties
This structure must be designed carefully and legitimately.
4. Condominium Ownership (Residential Only)
Foreigners may own:
- Up to 49% of saleable area in a registered condominium project
This does not apply to:
- Land
- Houses with land
- Industrial or commercial property
Land Leasing in Detail
Lease Duration
- Standard maximum: 30 years
- Renewal clauses are allowed but not guaranteed by law
- Some investors mitigate risk through:
- Multiple contracts
- Call options
- Lease + superficies structures
Lease Registration
For enforceability:
- Lease must be registered at the Land Office
- Unregistered leases over 3 years are unenforceable beyond 3 years
Common Lease Structures for Investors
- 30-year registered lease
- Lease + building ownership
- Lease + superficies (right to own buildings on land)
- Lease with purchase option (BOI or future restructuring)
Industrial Land Considerations
Zoning (ผังเมือง)
Before buying or leasing land, confirm:
- Industrial zoning
- Factory-permitted land use
- Environmental restrictions
Zoning mistakes are one of the most common and costly investor errors.
Industrial Estates vs Private Land
Industrial Estates
- Clear zoning
- Faster approvals
- Utilities ready
- Higher cost
Private Land
- Lower cost
- More flexibility
- Higher due diligence requirement
- Slower permitting
Land Title Types You Must Understand
Not all land titles are equal.
Common types:
- Chanote (Nor Sor 4 Jor) – Best, full ownership
- Nor Sor 3 Gor – Upgradeable, acceptable with caution
- Nor Sor 3 – Higher risk
- Sor Por Gor – Agricultural only, cannot be sold freely
📌 Serious investors should avoid weak or restricted titles.
Taxes & Ongoing Land Costs
Land-related costs may include:
- Transfer fees
- Withholding tax
- Specific Business Tax (if applicable)
- Annual land & building tax
Lease structures and ownership structures affect total tax exposure.
Common Land Risks for Foreign Investors
❌ Buying land through nominees
❌ Assuming lease renewals are automatic
❌ Ignoring zoning and environmental rules
❌ Using incorrect land title
❌ Not registering lease agreements
❌ Overpaying without valuation
Most of these risks are avoidable with proper structure and due diligence.
Is Buying or Leasing Better?
Leasing is usually better if:
- You are foreign-controlled
- You want flexibility
- Your industry is not eligible for BOI
Buying (via BOI or Thai entity) may make sense if:
- Long-term industrial operation
- Capital-intensive factory
- BOI promotion secured
Practical Advice
Land strategy should be decided before:
- Company registration
- BOI application
- Factory design
- Building permit submission
Changing land structure later is often expensive and slow.
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