Thailand Property Laws for Foreigners in 2025: What You Can (and Can’t) Own
Thailand continues to draw foreign property buyers with its tropical appeal, affordability, and high lifestyle quality. But in 2025, the rules around foreign ownership remain complex and for most, full land ownership is still out of reach.
If you're considering a purchase this year, here’s what’s legal, what’s changing, and what’s risky to attempt.
What Foreigners Can Buy in Thailand (as of mid-2025)
Foreigners are still prohibited from owning land outright, unless they receive approval under a rarely used route involving a minimum investment of 40 million THB (USD 1 million). Even then, ownership is limited to one rai of land (about 1,600 square metres), and only for personal residence not investment or development.
The most common and legal form of ownership is via condominiums, where foreign buyers can fully own units provided foreign ownership within the building does not exceed 49% of total floor space. This remains unchanged in 2025.
Another well-used structure is the long-term leasehold, typically granted for 30 years, with options to renew for two further 30-year terms. Though these renewals are not guaranteed by law, well-drafted agreements with clear renewal clauses are enforceable and widely accepted.
Additionally, foreigners may own the structure of a house on leased land using a legal tool called superficies. This grants rights to the building independent of the land below, which is usually leased from a Thai partner or developer.
What About Buying Through a Thai Company?
Forming a Thai company to acquire land is a common (but controversial) workaround.
Under Thai law, companies must be majority Thai-owned to legally purchase land. In the past, some foreigners created “nominee” companies where Thai shareholders held majority control only on paper.
While this was widely practiced, it now carries considerable legal risk. Thai authorities have increased scrutiny of such companies, particularly where there’s clear evidence of nominee arrangements. If a company is found to be set up solely to circumvent foreign land ownership laws, the land can be confiscated, and criminal penalties may apply.
For foreign investors seeking a legitimate structure, BOI-promoted companies (under the Board of Investment) offer a compliant path. These entities can be majority-foreign-owned and are permitted to buy land, but only if the business engages in BOI-approved activities (such as technology, manufacturing, or large-scale tourism development) and meets capital and employment thresholds.
New Property Taxes Introduced in 2025
Thailand has implemented two new taxes this year:
An annual property tax ranging from 0.3% to 1% based on assessed value and use.
A luxury property tax of 2–5% on residential properties valued over THB 10 million.
Thailand’s new property taxes modestly increase the holding and acquisition costs for higher-end properties, but they remain well below Singapore’s levels and more comparable to Malaysia’s.
What Could Change Next? (Proposed Reforms in Discussion)
Several proposed reforms are currently under review, though none have passed into law yet:
Increasing the foreign ownership cap on condos from 49% to as much as 75% per building. This change would significantly expand the legal supply of freehold units for foreigners.
Extending lease terms from 30 years to 50 or even 99 years, which would make long-term leases more attractive and comparable to leasehold systems in places like the UK or Singapore.
Relaxing land ownership restrictions for long-term visa holders, especially under the Long-Term Resident (LTR) visa scheme, though no formal change has been tabled yet.
Streamlining approvals for foreigners with significant capital to own residential land under more transparent criteria.
If enacted, these reforms would mark a major shift in Thailand’s real estate market, positioning it as more open and competitive against destinations like Malaysia, the Philippines, and Vietnam. For now, though, investors should proceed based on current legal frameworks, not expectations.
Final Thoughts for 2025 Buyers
Foreigners can still buy condos freely, lease land for long durations, and use structures like superficies to control properties. But full land ownership remains restricted, and using Thai nominee companies is increasingly risky.
If you're investing for personal use, retirement, or rental yield, the Thai property market continues to offer strong lifestyle value, especially in places like Phuket, Chiang Mai, and Hua Hin. But always engage with experienced local legal counsel, and structure your purchase for both compliance and exit flexibility.