For many foreign investors and expats, owning land or a villa in Thailand is a dream come true. However, Thailand’s property laws restrict foreigners from directly owning land. While buying a freehold condominium is an option, those interested in owning villas or land must explore alternative legal routes.
One of the most common methods is setting up a Thai company to own the property. This approach, while legal, comes with complexities and risks. In this guide, we’ll break down how it works, the benefits, and key factors to consider before taking this route.
Can Foreigners Own Land in Thailand?
Under Thai property laws, foreigners cannot directly own land in their name. However, there are legal alternatives:
- Leasehold agreements: Foreigners can lease land for 30 years, with an option to renew.
- Setting up a Thai company: A company with majority Thai ownership can legally own land.
- BOI-approved investments: In rare cases, foreigners can own land through the Board of Investment (BOI) programs.
For those seeking a more permanent solution than leasing, forming a Thai company is a popular strategy.
How Does a Thai Company Own Land?
To legally acquire land or villas, a Thai limited company must be set up with:
- At least three shareholders
- 51% ownership by Thai nationals
- Foreigners holding up to 49% of shares
While foreigners remain minority shareholders, they often structure the company using preference shares, granting them greater control over company operations. However, for the company to be legally valid, it must engage in business activities beyond just holding land—such as property rental or management.
Steps to Set Up a Thai Company for Property Ownership
- Consult a Thai Property Lawyer – Legal expertise ensures compliance with Thai laws.
- Choose Reliable Thai Shareholders – Since they hold the majority stake, trust is crucial.
- Register the Company – File with the Department of Business Development.
- Ensure Business Activity – Operate a small side business to meet legal requirements.
- Purchase Property via the Company – The land will be registered under the company’s name.
Pros and Cons of Owning Land via a Thai Company
✅ Advantages
- Long-Term Ownership – Unlike leasehold, ownership via a company has no expiry.
- Property Control – Foreigners can retain operational control with preference shares.
- Investment Potential – Owning land through a company can open business opportunities.
❌ Risks & Considerations
- Legal Complexity – Thai authorities scrutinize companies set up solely for land ownership.
- Majority Thai Ownership – Foreigners rely on Thai shareholders, which carries risks.
- Ongoing Compliance Costs – Maintaining a company requires annual fees and tax filings.
Is Setting Up a Thai Company the Best Option for You?
If you’re a long-term investor willing to maintain a business in Thailand, forming a Thai company may be a viable route for owning land or villas. However, if you prefer a simpler, lower-risk option, a 30-year leasehold or freehold condo might be better.
🔹 Want to explore other property ownership options in Thailand?
Check out our full guide on Owning Property in Thailand.
Final Thoughts
Owning land or a villa in Thailand via a Thai company is a potential solution but requires careful legal structuring. Always work with trusted legal advisors and reliable shareholders to protect your investment.
For more insights on Thailand real estate laws, read our in-depth guide on leasehold vs. freehold options.
Happy Investing! ✌️
