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Legal FAQs

What are the Land Ownership Laws with respect to foreign individuals?

Thai law states that foreigners cannot own land, they can own buildings only. If a foreigner wishes to acquire land he has 2 tried and tested options:

1. Set up a Thai limited company including Thai shareholders and purchase the land through the company. The foreign director(s) cannot own more than 49% of the shares. However, the foreign director(s) hold all the power because the company is structured so that the Thai shareholders (nominees) enter into legal power of attorney with the foreign director(s). The foreign director(s) is the only officer who can commit or bind the company in any contractual dealings. The directors shares are also preference shares and hold 10 times the voting rights of the nominal shares, giving the directors 90% of the voting power. The company owns the freehold of the land and the investor(s) is free to build on the land, sell or lease property and transfer their rights to next of kin.
2. An alternative to setting up a Thai limited company is for the foreigner to purchase a 30 year lease for the land. Options to renew the lease for 2 further periods of 30 years can be built into the contract. The contract can also include a fixed option to purchase the freehold once foreign ownership laws are revised.

What is the difference between the various land titles in Thailand ?

There are two types of land titles in Thailand over which registerable right of ownership can exist. These are Chanott and Nor Sor Sam Kor. They are the only types of land title that a careful foreign investor should consider.

Chanott (Chanott ti din)

Chanott titles are issued by the Thai Land Department and are accurately surveyed and plotted in relation to the national survey grid. They are also marked by unique numbered posts set in the ground. The ownership of the land title can be transferred within a matter of hours. This is the best type of land title for a foreign investor.

Nor Sor Sam Kor

These titles, though still measured relatively accurately, are less accurately measured than Chanott titles. Transfer of ownership can take longer than the case of Chanott.

Nor Sor Sam

The predecessor to Nor Sor Sam Kor was Nor Sor Sam. The boundaries of Nor Sor Sam titles are only recorded with relation to neighboring plots and survey errors of up to 20% are not unusual. Unlike Nor Sor Sam Kor, Nor Sor Sam titles also require 30 days public notice before any change of land ownership can occur. There are many types of land title less recognised than Nor Sor Sam such as Sor Kor Nung. These are basically and form of squatters or settlers claim. You cannot even apply for or obtain approval to build on such land.

Is it easy to form a Thai limited company ?

Yes. You need the proper legal assistance and to pay a small fee. We can provide the all the assistance you need including finding Thai shareholders etc.

How many shareholders do you need for a Thai limited company ?

The minimum requirement is 7 shareholders. So if you only have 1 foreign shareholder you need 6 Thai shareholders.

What are the visa options for long term stay in Thailand ?

There are 3 types of visa that allow long term stay:

1. Tourist Visa - issued by a Thai embassy abroad. These are valid for 60-90 days depending on the country of issue. You can simply leave the country when the visa expires and come straight back in another 60 or 90 days. Many quasi resident visitors to Thailand use this approach to stay for years. This approach is fine as long as you are solvent and not engaging in business in Thailand.
2. Non Immigrant Visa - issued by a Thai embassy abroad. These are for a maximum of 1 year but you have to leave the country every 3 months. There are 3 basic ways to qualify for a non immigrant visa:
   1. You are employed (or own a company) with at least 2 million baht capital value.
   2. You have a Thai family.
   3. You are retired and can prove adequate financial means to support yourself. We give you legal assistance to obtain a non immigrant visa.
3. Resident Visa - Hard to get and rarely issued. To qualify you need to read and write Thai along with strong local financial status and influential Thai references.

What are the different land measurements in Thailand ?

Land prices are normally quoted in baht per Rai but sometimes baht per Talang Wah for smaller plots:

1 Rai = 1600 sqm ie 40M * 40M
1 Acre = 2.53 Rai
1 Hectare = 6.25 Rai
Talang Wah = 1 sq Wah = 4 sqm
1 Rai = 400 Talang Wah = 400 sq Wah
1 Ngan = 100 sq Wah

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