In recent years, Thailand has become one of the most attractive real estate destinations for foreign nationals, ranging from condominiums in Bangkok to holiday villas in major tourist cities to long-term residential homes. However, once foreign buyers reach the stage of structuring land ownership, one recurring question always arises
Can foreign nationals legally own land in Thailand?
The answers found in practice vary widely. Some sources claim that foreigners can never own land under any circumstances, while others insist that certain conditions allow legal ownership.
These conflicting answers often arise not from misunderstanding but from different interpretations of statutory provisions and variations in administrative practice among government authorities.
For foreign investors, understanding only the broad “allowed” vs. “not allowed” is no longer sufficient. Instead, what truly matters is understanding:
- The core legal prohibitions on land ownership for foreigners
- The legal exceptions where ownership is allowed
- The exact legal procedures required to utilize those exceptions safely
This article aims to explain the key legal framework governing foreign land ownership in Thailand, focusing on the three major sections of the Land Code that every foreign investor must clearly understand: Section 86, Section 93, and Section 96 bis, along with practical implications and the essential role of a real estate lawyer from W Lawyer in protecting investor rights.
Key Land Code Provisions Governing Foreign Ownership in Thailand
1) Land Code B.E. 2497 (1954), Section 86
Section 86 provides: “A foreigner shall have no rights over land unless otherwise provided by specific law.”
This is the fundamental principle governing foreign ownership in Thailand. It exists to:
- Prevent excessive transfer of Thai land ownership to foreigners
- Protect Thailand’s limited land resources
- Establish a starting point that foreign land ownership is prohibited unless an explicit legal exception applies
Legal Effects
- A foreigner cannot purchase and hold a land title under their own name.
- Using a nominee (a Thai person holding land on behalf of a foreigner) violates the law and may result in the revocation of registration.
- Foreign nationals must rely on specific legal mechanisms such as
- Leasehold
- Usufruct
- Superficies
- Section 96 bis (investment route)
Section 86 is the core legal prohibition that shapes all interpretations of other sections and explains why foreigners require alternative ownership structures. This is why foreign investors often consult a real estate lawyer from W Lawyer to navigate compliant pathways.
2) Land Code B.E. 2497 (1954), Section 93
Section 93 provides: “A foreigner who acquires land by lawful inheritance may be permitted to own such land, subject to public interest and area limitations prescribed by law.”
Purpose of Section 93
- Protect the rights of foreign heirs connected to Thai family members
- Allow foreign nationals to inherit land under family circumstances (not investment)
- Grant authorities discretion to evaluate each case individually
Legal Effects
- Foreign heirs are not automatically granted ownership.
- They must apply for permission from the government.
- Officials may approve or deny the request.
- If permission is denied, the land must be disposed of within the prescribed period.
Section 93 is a family-based exception, not an investment channel. Foreigners in this situation often seek help from a real estate lawyer to prepare inheritance documentation and comply with state procedures.
3) Land Code B.E. 2497 (1954), Section 93
Section 96 bis provides: A foreigner who invests in Thailand in the form and amount prescribed may be permitted to own land for residential purposes, within the area limit set by law.
Purpose of Section 96 bis
- Promote foreign investment
- Allow high-value investors a legal path to own residential land
- Ensure transparency through capital verification and strict documentation
Legal Effects
- Minimum investment of 40 million THB in approved sectors
- Funds must originate from abroad (with documentary proof)
- Application to state authorities is mandatory
- Approval is discretionary
- If approved, the foreigner may hold the land title under their own name
This is the only direct ownership route for an individual foreigner but comes with heavy conditions and extensive documentation. Most applicants require a real estate lawyer experienced in government procedures, such as the team at W Lawyer.
Comparison Table between section 86 93 and 96 bis
| Comparison Issues | Section 86 | Section 93 | Section 96 bis |
| Legal Status | Main prohibition | Exception | Special exception |
| Core Principle | Foreigners cannot own land unless a law permits it | Foreign heirs may own inherited land with permission | High-value investors may own land for residence |
| Right Granted | No ownership rights | Ownership of inherited land | Ownership with investment conditions |
| Method of Acquisition | Not permitted | Inheritance (legal heir) | Purchase/ownership via foreign investment |
| Permission Required? | Not applicable | Yes | Yes (with investment plan) |
| Key Conditions | General prohibition | Must be a legal heir; area limits; state discretion | 40M THB minimum investment; foreign funds; residential use only |
| Level of Restriction | Highest | High | Very high (strict financial checks) |
| Typical Users | All foreigners | Foreign heirs / mixed families | High-net-worth foreign investors |
| Practical Approval Difficulty | No approval possible | Medium–high | Very high |
| Legal Risks | Nominee use is illegal | Failure to prove inheritance may cause denial | Unverifiable funds lead to rejection |
| Best For | Defining the prohibition boundary | Legitimate inheritance cases | Foreigners wanting direct ownership |
At the same time, for foreign nationals who do not fall under Section 93 or Section 96 bis, Thai law still provides access to alternative forms of property rights, such as condominium ownership and specific legally permitted structures for holding land-related rights.
Foreign Quota Ownership Rights and Service by W Law International (Thailand)
Under Thai law, although foreigners cannot directly own land, the law allows foreigners to legally own condominium units under the Condominium Act B.E. 2522, subject to the key condition regarding the proportion of foreign ownership within a project, known as the Foreign Quota. This structure provides the following ownership benefits:
- The only method through which foreigners can hold 100% direct ownership
- The clearest and most transparent legal structure compared to other types of immovable property
- The ability to freely buy, sell, transfer ownership, pass to heirs, or conduct transactions
- No legal interpretation risks concerning land ownership applicable to other types of property
- Suitable for both long-term residence and investment
However, foreign condominium ownership involves detailed and complex requirements. To address this, W Law International (Thailand) has designed a specialized service
1. Due Diligence
Comprehensive verification covering ownership rights, confirmation of the rightful seller, checks for seizure or transfer restrictions, verification of the foreign quota, outstanding common area fees, bankruptcy status of the seller, and any record of being declared bankrupt or undergoing business rehabilitation in the Legal Execution Department database.
2. Sale and Purchase Process
Acting as the client’s representative in drafting and reviewing the Sale and Purchase Agreement (SPA), ensuring the contract protects the client’s interests and complies fully with applicable laws.
3. Transfer of Ownership
Managing the entire registration process for transferring ownership from seller to buyer, including advising on proper and secure methods of payment.
Land Rights Options Foreigners May Consider as Alternatives to Land Ownership
The three legal restrictions mentioned earlier limit foreigners from holding land ownership. Therefore, foreigners should consider alternative types of rights that allow lawful and secure use of land in Thailand, including
1. Leasehold (Long-term Lease)
- Maximum lease term of 30 years
- Renewal permitted by agreement (subject to careful legal interpretation)
- The land may be used for residence or business as specified in the lease
2. Usufruct (Right to Use and Enjoy the Property)
- The grantee has the right to use the land and enjoy its benefits
- Valid for the lifetime of the usufructuary
- Suitable for foreigners residing with Thai family members
- Cannot be inherited
3. Superficies (Right to Own Buildings on Another’s Land)
- The holder may own the building or structure on the land
- The land remains owned by the Thai landowner
- The right may be transferred or inherited
Suitable for foreigners who build a house on land owned by their Thai spouse or who purchase a structure without owning the underlying land.
4. Establishing a Thai-Majority Company
- A company in which foreigners hold no more than 49% may own land
- The structure must not constitute a “nominee” arrangement or unlawfully circumvent foreign ownership restrictions
- The company must operate a genuine business and meet all legal corporate requirements
This approach must be structured with extreme caution due to the risk of being interpreted as an evasion of foreign ownership laws.
1. Comprehensive Due Diligence
Verification of the legitimacy of the title deed, confirmation of the rightful seller, examination of registered encumbrances or restrictions, transfer prohibitions or seizure, as well as checks on the seller’s bankruptcy status or receivership records in the Legal Execution Department database.
2. Drafting and Reviewing the Sale and Purchase Agreement (SPA)
Preparing and reviewing the SPA and acting on behalf of the client to ensure compliance with Thai law while fully safeguarding the buyer’s interests.
3. Transfer Registration at the Land Office
Managing all documentation and registration procedures to ensure a smooth transfer of ownership from seller to buyer, along with advising on safe and legally compliant methods of payment.
4. Additional Due Diligence on Property Access
Verifying the property’s access rights and confirming the legal connection to a public road to prevent future disputes regarding access or land use.
Role of a Real Estate Lawyer at W Law International (Thailand)
Given the strict regulatory framework governing land ownership by foreigners, investing in Thai real estate involves far more than simply selecting a property. It requires a deep understanding of:
- Applicable laws
- Ownership structures
- Contractual obligations
- Government registration procedures
A professional real estate lawyer, W Law International (Thailand) ensures that every step complies with Thai law and protects the investor’s long-term rights.
1. Systematic Due Diligence
We conduct a comprehensive verification of:
- Original land title records
- Seller identity and ownership status
- Encumbrances (mortgages, servitudes, long-term leases)
- Legal restrictions (seizure orders, tax liabilities, transfer prohibitions)
- Condominium common fee records
- Seller bankruptcy or receivership status
- Land zoning issues, such as agricultural zones, forestry, military areas, or road access
This ensures that the property is legally clean and transferable.
2. Designing Property Rights Structures for Foreign Clients
Given the legal restrictions imposed on foreigners regarding land ownership in Thailand, the legal team at W Law International (Thailand) specializes in advising and structuring appropriate legal frameworks tailored to each individual case. These structures may include
- 30-year long-term Leasehold
- Right of Habitation
- Usufruct (Right to Use and Enjoy Property)
- Superficies, for cases where the client wishes to own the building but not the land
- Condominium ownership under the Foreign Quota
- Or the establishment of a legally compliant corporate entity for certain types of ownership structures
In addition, our Comprehensive Condominium Purchase Legal Service covers the full spectrum of due diligence, including verification of the title deed, confirmation of rightful ownership, identification of restrictions or prohibitions registered on the title, review of the sale and purchase agreement, and oversight of the ownership transfer structure.
Every component of our service is designed with one guiding principle: to ensure maximum legal protection for the foreign buyer while maintaining full compliance with the Thai Land Code and relevant regulations. This enables foreign clients to benefit from property ownership and usage in Thailand lawfully, securely, and with confidence.
3. Drafting and Reviewing the Sale and Purchase Agreement (SPA)
We ensure the SPA protects the buyer by reviewing:
- Payment terms
- Cancellation and refund rights
- Handover conditions
- Construction warranties
- Transfer-related expenses
- Risk-inducing clauses hidden in standard developer contracts
This ensures full understanding before signing.
4. Managing the Transfer and Registration Process
Our real estate lawyers coordinate:
- Bank payment certifications
- Common area clearance documents
- Seller’s title documents
- Foreign remittance evidence
- Required government approvals
This guarantees a smooth, lawful transfer at the Land Office.
Investing in Thai Real Estate Under a Clear Legal Framework With W Law International (Thailand)
Thailand’s Land Code balances the Protection of national land resources and the Acceptance of suitable levels of foreign investment
For foreign investors, understanding Sections 86, 93, and 96 bis is crucial for building a sustainable and legally compliant ownership structure.
Because applying these laws to real-life cases requires experience, many foreign investors choose W Law International (Thailand) to support them throughout the entire process from feasibility assessment and legal structuring to final registration.With the guidance of an expert real estate lawyer like W Law International (Thailand), foreign investors can reduce legal risks and establish secure, legally compliant ownership of real estate in Thailand.
