Buying Property in Thailand in 2025

As Thailand’s real estate market continues to grow, so too does foreign interest. If you are interested in investing in real estate in Thailand, it’s essential that you learn and understand the laws on how to buy property in the country, as they are different for foreigners than Thai nationals.

The low cost of living, high property investment returns, and many other factors have drawn expats and retirees from all around the world to Thailand, increasing the demand for vacation homes, rental properties, and permanent residences. Here’s what foreigners should know about buying property in Thailand and how to break into this property investment hotspot.

Buying a Condo in Thailand in 2025

Foreigners can legally own condominium units in Thailand by purchasing a unit with freehold status outright. However, foreigners may only own up to 49% of the total usable space in a condo development, while the remaining 51% must be owned by Thai nationals. Despite this, foreigners can control the remaining 51% through a leasehold arrangement. 

It is important to note that the foreign ownership limit does not mean that you cannot purchase units in multiple buildings, so long as each building remains within the foreign ownership cap. 

Benefits of Buying a Condo in Thailand

Buying condos is the preferred method of acquiring real estate for foreigners in Thailand because of the many advantages it has over buying other kinds of property. The benefits of buying condos for foreign buyers include:

• Full Ownership Rights: You can legally own a condo unit under your name, providing clear ownership rights.
• Investment Potential: You may rent your condos out to tourists or long-term residents, earning a steady income in one of Thailand’s many high-demand areas.
• Low Maintenance Costs: Thanks to the high number of developments in the country, there are many affordable condo management services in Thailand that handle maintenance and upkeep.
• Flexibility: You can use your condo as a vacation home and also generate rental income when it’s unoccupied.

Buying Land as a Foreigner in Thailand in 2025

Thai law prohibits foreigners from directly owning land. However, alternatives exist that provide similar control, though full ownership remains restricted. However, buying land in Thailand is not the only way to acquire controlling rights over a plot of land long-term.

The preferred approach for a foreigner to control land in Thailand is through signing into a leasehold, a long-term property lease. A leasehold is the most secure way to exercise de facto control over a property long-term and it also grants you access to a wider range of real estate options to pick from such as villas, houses, townhouses, and bare land you can build on. 

A leasehold usually comes with a 30-year lease agreement with the landlord or developer, with the agreement granting you full rights and control over the property for the said 30 years. The Land Department also recognizes the 30-year lease agreement as a secured right, which means that your lease agreement is protected by the government from landlords or building owners attempting to disrupt or terminate your rightful use of the property.  

Another appeal of the 30-year lease agreement is that it can be renewed twice, allowing for a total lease term of up to 90 years. Even so, it must be emphasized that, unlike the initial 30-year lease which is a guaranteed right ensured by the Thai government, the two renewal lease terms must be mutually accepted by both parties. If you are looking to renew your initial 30-year lease agreement, it is advised to retain the services of a property lawyer in Thailand to ensure that your lease agreement rights remain the same.

It is important to note that any structure built by a tenant on leased land is considered separate from the land itself. So it is possible to own a house, but not the land it is built on. 

The Benefits of Leasing Land in Thailand

Entering into a leasehold in Thailand comes with several advantages, such as:

• More Real Estate Options: There are many more property types to choose from when entering a leasehold.
• More Control Over Property: You will have complete control over maintenance activities and, if agreed upon with the lessor, the freedom to modify the property.
• Higher Return on Investment: There is a higher potential for a favorable return on investment (ROI) and lease agreement extension opportunities in the future.
• Transferrable Rights: If agreed upon with the owner, your leasehold rights can be transferred and even inherited by your heirs.

Buying Land in Thailand Through a Company

Foreigners can also buy land in Thailand through a company they own. There are two types of companies that allow foreigners to buy land, but they each come with distinct requirements:

1. A Thai Limited Company, where you will need to be a minority shareholder. This means that you own 49% of the shares, while the remaining 51% is owned by Thai nationals, allowing you to obtain a controlling share if not a majority share.
2. A foreign-owned company promoted by the Thailand Board of Investment (BOI), where you can be the majority shareholder.

Nearing the end of last year, the BOI altered its criteria for “foreign juristic persons with investment promotion.” The new rules increased the area of land such legal entities can purchase outright for office premises and residences.

These companies that are promoted by the BOI and meet the eligibility requirements can buy more land than previously possible:

• Up to 5 rai of land for office premises
• Up to 20 rai for residential use for operational workers

For insight into what these measurements mean, you can visit Siam Legal’s page on converting rai to other units of measurement. However, if you want to learn more about BOI-promoted companies and the eligibility requirements to buy more land, you can visit Siam Legal’s page on New BOI Thailand Rules.

How to Buy Property in Thailand

There’s always the risk of falling victim to fraudulent sellers and dishonest landlords, especially if you are buying in a foreign country with unfamiliar rules. That’s why it is recommended that you follow this step-by-step process to safeguard your investments and ensure your purchase is smooth and secure:

• Research and Consultation: Before making any decisions, research the kind of property you want to buy, properties in the price range you’re willing to spend, and the location you want to buy in Thailand.
  
• Find a Real Estate Agent: Work with a trustworthy local real estate agent who has extensive knowledge of the area and can help you make informed decisions, as well as guide you through the purchasing process.
  
• Conduct Due Diligence: Due diligence is a must in property purchases. It includes a title search of the property to verify ownership history and confirm no outstanding debts or legal issues, as well as reviewing the sale agreement to ensure fairness and legality.
  
• Price Negotiation: Price negotiations are common in Thailand, but they require cultural awareness and an understanding of market conditions. A skilled real estate agent or property lawyer can help you reach a fair price.
  
• Contract Signing And Deposit Payment: It’s common to sign a reservation agreement to secure the property and pay the non-refundable reservation fee, which usually amounts to 5-10% of the purchase price.
  
• Finalize the Sale: When all terms are agreed upon, you’ll enter a formal Sale and Purchase Agreement. This includes contract signing, payment of the final balance, and ownership transfer at the Land Department. With the assistance of your property lawyer, this process will go much more smoothly.

Thailand Property Trends to Watch for in 2025

Thailand’s real estate market is constantly evolving. Because of this, it is important to follow up on the latest trends to help you make decisions that will yield better results for your investments in the long run. Here are some of 2025’s most noticeable real estate trends in Thailand:

• Urban Condo Developments: With the growing focus to cater to expats, retirees, and digital nomads seeking flexible living arrangements, developers are prioritizing designs that include smart home technology, eco-friendly systems, and amenities such as rooftop gardens, co-working spaces, and gyms. Aside from this, mixed-use developments, which combine residential, commercial, and recreational spaces, are also on the rise. Watch out for high demand and high rental returns for these spaces.
  
• Resort Properties Gaining Popularity: With Thailand’s tourism industry steadily recovering after COVID-19, vacation homes with beachfront access and private pools have become attractive rental investments. Many of these properties also come with management services, which make passive income generation easier for investors.
  
• More Affordable Options in Secondary Cities: Emerging “secondary” cities like Chiang Rai and Hua Hin provide lower living costs and a quieter lifestyle compared to Bangkok, which appeals to retirees and professionals. Developers in these areas tend to focus on mid-range projects that balance affordability with quality and infrastructure improvements such as new highways and rail links have further enhanced the accessibility of these regions. It’s easier than ever to enjoy comfortable modern living outside of the capital.
  
• The Rise of Generation Rent: Younger generations are shifting toward renting rather than buying. This is due to high living costs, limited savings, and the overall rise of property prices and mortgage interest rates, among many other reasons. Student loans, credit card debt, and the financial burden of homeownership have also made renting a more attractive option for this demographic. Investment properties targeting this demographic will rise in popularity and price, leading to higher returns.

Professional Assistance For Property Buyers in Thailand

If you’re looking to buy property in Thailand, get in touch with Siam Legal International. With over 20 years of experience, our team of bilingual property lawyers has both the knowledge and expertise to guide you in making informed decisions that protect your investments, as well as ensure that the transaction is smooth and free of legal issues and fraud.

We will be by your side through the entire property-buying process, from thoroughly investigating the history of your selected property to reviewing every detail of your contract to helping you finalize the purchase at the Land Department so you can avoid issues with the government and fraudulent sellers.

To ensure an easy and secure entry into Thailand’s real estate market, do not hesitate to contact Siam Legal to book a consultation!

Category: Property