Covid crisis and all its negative effects have pushed the Thai government to search for an economic solution, and some go through Foreigners investment.
Laws and regulations on land ownership for foreigners could, if the value of the house and land is at least 10 million THB, allow foreigners to buy and own a house including the land on which the house is built.
Also, the quota of condominium units that foreigners can own is expected to be increased from the current 49%.
Furthermore, the maximum terms for land leases are planned to be increased significantly. Please find below a summary of these items:
1-Condominium Act amendments
The Condominium Act, B.E. 2522 (1979), as the law currently only allows a maximum of 49% of the area to be owned as freehold by foreigners. The remaining only by leasehold. This limit could be lifted to between 70% and 80%.
The other face of the coin is that the right of vote of foreigners shall be limited to a maximum of 49% of foreign owners at owners’ meetings.
This limitation in voting rights is to protect Thai interests.Quid if foreigners lessees obtain from his Thai lessor his right of vote?
2-Land ownership and Land Leases
Currently, land-ownership is possible only for residential purposes and for investments of more than 40 million THB, provided that through the Board of Investment investissement concerned some designed targets(Section 96 bis of Land Code Amendment Act (1999)).
The proposal is to decrease the minimum investment between 10 and 15 million THB.
However, this lower range will only affect properties in housing estates, in which foreigners may then be allowed to buy no more than 49% of the houses in the respective housing development.
A kind of transposition of the condominium quota to land and houses.
There are also proposals to increase land lease terms from 30 to 50 years, with the option to extend another 40 years.
True will of change or simply empty announcement, no one knows but this can help to improve economic situation and attract foreigners investments. Shall become a reality, we will make a new article to inform you and explain the roundabout. If you are in need of a real estate lawyer or for more information feel free to contract us at any time.