Buying Your Retirement Home in Thailand

Thailand has long attracted foreign investors over the past decades, and for many, their most important investment has been a holiday or retirement home. Cities and resort centers such as Bangkok, Chiang Mai, Phuket, Ko Samui, Pattaya and Hua Hin have drawn tens of thousands of retirees, who have purchased vacation or retirement homes, condominiums, and beach bungalows.

It is critical when making such an important investment that you understand the legal issues and formalities, failing which your investment might be in some jeopardy.

This article deals with the purchase of land & house; a second article will deal with the laws and procedures concerning condominiums in Thailand.

LAND & HOUSE

The principal issue we must take note of is the fact that Thai law generally prohibits foreigners from owning land in Thailand. The only significant exception relates to foreigners willing to invest THB 40 Million (GBP 830,000., US$ 1.2 Million, Euros 1 Million) or more in certain investments, who may be granted permission to own one rai of land (_____sq. m./ _____acres) on which they can build a residence.

As this option does not suit most investors, the alternatives that are most popular include the following:

Purchase of land using a property holding company;
Purchase of land using a Thai nominee as the sole owner;
Land lease or other similar rights mechanisms ("superficies", "usufruct").

The most reliable and popular option is to create a holding company that in turn will own the land. Although nominal Thai co-investors are required as part of this arrangement, agreements and voting rights are put in place that insures legal control by the foreign investor.

Alternatively, we can avoid the holding company structure in the following way: your Thai spouse--or nominee of your choice--takes legal ownership of the land, and you are in turn granted permission to build your home on the land and live on the land for the remainder of your natural life.

All of these options are recognized fully in Thai law, as documentation is filed at the Thai Land Department outlining your position and rights to the property.

To insure that you fully understand the property laws and regulations in Thailand, however, it is critical that you consult a legal advisor to correctly set up the required formalities.