Can a foreigner lease or buy land in Ko Phangan for building a rental property?

Feb 23, 2024
8 months ago
Jacqui *********
ORIGINAL POSTER
I’m looking at leasing or buying land in Ko Phangan with an existing bungalow, with the view to build 2 more and rent out.

Some questions :-

1) I understood I can lease and form a company but I have now read that Thai gov changed the law in October 2022 and I can own the land?

2) are there surveyors that can check the existing structure

3) any recommendations for an English speaking lawyer in Ko Phangan

4) any builder recommendations?

All other thoughts appreciated! I do property rental in the UK so I’m not a newbie but of course it’s very different here!

Thanks 🙏
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TLDR : Answer Summary
The conversation discusses the complexities of land ownership and leasing in Thailand, particularly for foreigners interested in investing in Ko Phangan. Respondents clarify that, as of October 2022, foreigners cannot outright own land but can lease it typically for 30 years, with potential for renewals. It is suggested to set up a company for business purposes, but this comes with complications regarding ownership control, as Thai law requires at least 51% Thai ownership in such companies. Numerous participants recommend consulting local legal experts for thorough guidance and share experiences and warnings about the risks involved in property investments in Thailand.
Alison *****************
Depending on your age, whats the difference 30 year lease is the best idea
Christopher *************
Talk to lawyer
@Kittiya ********
Arch *********
Be aware Thailand is very corrupt,personally I wouldn't build or buy anything there.Rent bcoz circumstances change in life & it's much easier to walk away 🤔
Steve **********
@Arch ********
In Thailand, and don't misunderstand, I love it here, it's been 21 years now.

Be prepared to walk away from anything and still be whole.
Michael ***********
My wife of 34 years is Thai and I cannot own land.
Steve **********
Nongnuch ********
@Michael **********
but she can. Isn't that enough?
Michael ***********
Tobben ********
Use your brain man !
John *********
Leave the landlording to Thais. Be a parasite in your own country.
Jacqui *********
ORIGINAL POSTER
@John ********
why? That’s like saying leave the UK to only British resident landlords..or any other country for that matter.
John *********
@Jacqui ********
"Strong words" bother you? Have you seen the amount of homeless and struggling in the UK because of parasitic landlords pushing rents to the limit to enrich the non-productive in society such as yourself.
Jacqui *********
ORIGINAL POSTER
@John ********
you are rude and very wrong. I’m not prepared to engage with this any longer
John *********
@Jacqui ********
Don't care whether you engage or not. You know my point of view.
Jacqui *********
ORIGINAL POSTER
@John ********
actually I’m a provider of emergency accomodation to Coventry City Council.
John *********
@Jacqui ********
Really? So you can understand why I despise the landlord class.
Jacqui *********
ORIGINAL POSTER
@John ********
what do you mean by ‘parasite in my own country’ ? Strong word choice
Nika ********
Are you in thailand and on KPG now? Best to talk to people who have already done this on KPG and who have connections here..also to know you're landlord/seller/ leaser person ally. Definitely a good lawyer from.surat thani province.
Nika ********
@Jacqui ********
recommending lawyers in bangkok who deal.with Surat province or a lawyer in this area will have connections on the island. Different everywhere. For example my lawyer in bangkok deals with Chumphon province because her family is from there..she has police, immigration and connections with the local government offices
Jacqui *********
ORIGINAL POSTER
@Nika *******
I’m not planning to go to that region- would Bangkok be ok? And what’s your experiences or advice based on? Thanks 🙏
Jacqui *********
ORIGINAL POSTER
@Nika *******
any particular reason why Surat Thani province?
Jacqui *********
ORIGINAL POSTER
@Nika *******
yes I am. And I’m trying to talk to people who have done it here.

Thanks for lawyer tip
Leo ******
I have 7 words for you...

Don't!

Don't!

Don't!

Don't!

Don't!

Don't!

Don't!
Jacqui *********
ORIGINAL POSTER
@Leo *****
Why

Why

Why

Oh what the hell I cba to type more! 😂
David **********
Ooh you have a LOT to learn before even thinking about that plan of yours.
Jacqui *********
ORIGINAL POSTER
@David *********
see that you are the only person who has a commented with a laughing face emoji . Care to share? Because I thought that this forum was about advice and help? Thailand Visa Advice - And Everything Else
Jacqui *********
ORIGINAL POSTER
@David *********
agreed. So are you an expert? If so do you want to share your knowledge or just adopt a sarcastic tone?
James ******
Container Home Plans
Jacqui *********
ORIGINAL POSTER
@James *****
thank you
Robert *********
Own in the country you can own in legally .use those funds to live here

If you must ...

Spend at least ,I mean at least a year researching it .

FB does not count
Steve **********
@Robert ********
no, but fb occassionally has a knowledgeable person responding however.

You have phone and internet, research Thai law as needed.
Declan **********
Unless you're a Thai citizen you can't own land in thailand. Best you can do is lease
Mark ***********
Best to do a 30 year lease. I believe you can own that.
Steve **********
@Mark **********
yes ,you own lease if registered with. Land / Deed Dept.

I don't believe any lease beyond 3 year is valid if not registered .
Steve **********
NON- THAI CAN'T OWN LAND....

farang should stop listening to rumors. 99+% false
Dave *********
I was told by a lawyer a few days ago I cannot own any land nor can I have a commercial lease or rental in my own name
Tony ********
@Dave ********
rubbish. You can own land via a company and/or lease the land (30 years max duration by statutory law) in your own name.
Dave *********
@Tony *******
the company is 51% Thai

If it’s commercial land you cannot own in your own name rubbish you say this came out of a Thai lawyers mouth a few days ago during a meeting

Also if you have a lease make sure it has a clause to pass the lease over if you die
Lawrence *******
@Dave ********
Thanks for the info on the 30 year lease regarding having a clause in the lease where the lease can be passed on to a designated individual if one dies before the lease expires.

That was really helpful as I am about to sign a land lease. Cheers !
Tony ********
@Dave ********
I have lots of experience with Thai lawyers over 20 years, do you think they are infallible? You can rent land in your own name...what you can't do is business (sole trader/partnership) in your own name here, that must be done via a company. You have mixed the issues.
Dave *********
@Tony *******
yes but Thais own 51% of the company so have control
Tony ********
The appointed signing director/s have control.
Jacqui *********
ORIGINAL POSTER
@Dave ********
no it has to be in a company name but you are essentially the company …
Dave *********
@Jacqui ********
I ask a top lawyer Thai today if say a company had a 15 year lease is it legal in Thai law to get an option for a 30 year lease at the end of the 15 they said not a problem only if want to have a 30 year to start with a 30 year extension
Tijana ****************
Choose lawyer that is not from the island, that is very important.
Jacqui *********
ORIGINAL POSTER
Tijana ****************
@Jacqui ********
because if there is some interest to trick you keep in mind that everyone knows each other.

We almost got tricked with road regulations.

Do due diligence, buy only if road is regulated and not promised that it will be solved later by seller, buy only chanote deed and if it is cheep be careful.

Another solution for having land, is if you have super close Thai friend you trust, then you can buy land on name of Thai citizen and rent it from that person (you can rent 30+30+30 years).
Jacqui *********
ORIGINAL POSTER
@Tijana ***************
that’s interesting as I thought maximum term was 30 years

The road is interesting as I’d need to make a small access road to get building materials there and the landowner said I wouldn’t need permission’s as that was the first question I asked.

What is a chancote deed ?

I’m in talks directly with the land owner who is a very visible business owner so I don’t think he’d want his or his family reputation ruined by tricking me
Tony ********
@Jacqui ********
have the road access registered as a servitude or even made a public road, or walk away.
Jacqui *********
ORIGINAL POSTER
@Tony *******
thank you this is one of the most helpful out of the many other comments
Andy **********
@Jacqui ********
the Thais don't seem to look down on each other, for scamming farangs, so don't think he won't to save his reputation, a chanote is the Thai "land title deed" a usufruct agreement is probably best to lease the land, I think with a 30 year lease, papers can be drawn up for 30+30 but I've been told, it's only guaranteed for the first 30 years the second can be cancelled.
Tijana ****************
@Jacqui ********
from all that you dont know, please do a good research on your own and do get a good lawyer or you will be just one more naive farang who was tricked…

Knowing deed types, building regulations on the island, buying and renting regulations is crucial. All that, no one can explain in the comment, it is extremely important you know before anything.

Forget “owner said” tomorrow you might be able to get in your land only “by helicopter” (not literally) if someone decide that you can not cross that neighbors land where the small road is. Trust me on this.
Jacqui *********
ORIGINAL POSTER
@Tijana ***************
ok I’m hearing you and that’s why I’m posting on here in the first instance.

So I think I’ll find a lawyer and not from this isle.. I’ve already been writing lists re building regs/ structural surveyor / permissions.

Definitely won’t take owners word but will research to death as I really do want to achieve this
Tijana ****************
@Jacqui ********
Sounds good! Good luck :) 🍀🌸🏝️
Robert ********
Some people and their money are soon parted. not all ,but most
Jacqui *********
ORIGINAL POSTER
@Robert *******
thanks for the warning, I have had a good friend scammed over a bar. But not Thais Dutch I think who tried to sell a bar here.

There are many many people of all nationalities with properties here. So I’m careful, I’ve bought and sold many properties in the UK and the thought process isn’t dissimilar with running the figures, or indeed things like title deeds etc. I have a UK portfolio of HMO shared houses I let to young professionals.
Robert ********
@Jacqui ********
Best of luck. I too am an international investor... I'm sure you will do very well you sound very astute. And I'm sure you've already ascertained that this is a horse of different stripes
Gordon ********
Where is the land in question Koh P.

So get friendly with local officials for sentiment and then get a lawyer involved to cross the Tees. Almost anything is doable with local support.
Jacqui *********
ORIGINAL POSTER
@Gordon *******
exactly that - so am here for a while I was wondering if anyone had a good KPhangan lawyer that speaks English?
Gordon ********
@Jacqui ********
Sorry I’m in Udon but a BKK lawyer might be more straight forward than a locally connected one. Or they might have a local one that they deal with and can police for you.

Of course much depends on your disposable budget and local acceptance.

A nice smile is not to be underestimated.
Jacqui *********
ORIGINAL POSTER
@Gordon *******
absolutely!
Jacqui *********
ORIGINAL POSTER
So I’m interested to hear more from everyone as this thread is a mixed bag of advice warnings, positivity etc
Jacqui *********
ORIGINAL POSTER
Thank you for everyone comments- I’m aware that bad things can happen but I also know of many people who live here who are non Thai and own / lease property
Justin *********
@Jacqui ********
If that’s the case, why aren’t you asking them instead of random people on the internet 🤷🏻‍♂️
Jacqui *********
ORIGINAL POSTER
@Justin ****
thank you I’m now speaking to people who live here
Gordon ********
@Jacqui ********
Amen. Go for it
David ******
Lease the land, invest money into building on it, the owner then pays a bit of corruption money to a judge through corrupt lawyers and the lease gets cancelled and the owner takes your investment..... I have seen this happen multiple times... Even to Thais.
Tom *********
I'm not sure if this was published in the Royal Gazzette. If you have deep pockets you can buy 1 rai with many restrictions.

*******************************************************
Dennis *********
@Tom ********
this was shot down quite quickly. Some nonsense about not all thais currently own land so why let foreigners. Of course assuming that it's the big land owners who were against it. Also there was to be restrictions regarding the resale or inheritance in that any land would be required to be sold to a Thailand citizen even on inheritance. Doubt anything like this ever happens here.
Brandon ************
@Tom ********
it was never passed. Too much pushback against foreigners owning land.
Ann ************
@Brandon ***********
the Thai have brains

Australia let anyone in to buy land and now it’s completely f@ked
Jacqui *********
ORIGINAL POSTER
@Tom ********
thanks Tom it’s exactly 1 rai for sale
Daniel *****
If you have a Thai wife just do it in her name, what could possibly go wrong?
Steve **********
Des *********
@Daniel ****
she’ll take you the cleaners 🤣🤣👍
Jacqui *********
ORIGINAL POSTER
@Des ********
but do the cleaning 😂🤣
Jacqui *********
ORIGINAL POSTER
@Daniel ****
though I could do with a Thai wife.. 🤣 but then again the cost . Hmmm 🤔
Jacqui *********
ORIGINAL POSTER
@Daniel ****
I’m not bisexual 🤣
Tyler *******
You’ll want to go through BOI, but will require more capital than just setting up a business here. There are some perks being a BOI company than others and you should use a law firm like Siam Legal to help you.
Mark ********
Brendan ********
@Mark *******
Cheers buddy hope you are having a great day 🙏
Ticha *****************
Your thai company must have thai who own 51% shares

You can't own but your company will own.

But nowdays government will remove and punish companies that use thai people as nominee in company.

Thai government seems to think about money but when it comes to benefit of thai. They care of benefit of thai more than money you invest. That's why big countries like china can never invade thailand as how they did to other countries.
Steve **********
@Ticha ****************
many a farang used the designated Thai partners

Since you don't know them ,and your lawyer does.

Lawyer owns property !
Steve **********
@Ticha ****************
what countries did China Invade ?
Marc ********
Steve **********
@Marc *******
China assisted in Vietnams invasion of Cambodia in 78 during Nam war.

1 month later after deposing Khymer Rouge, they withdrew in 79.

Same as US invasion of Laos, Cambodia , just lasted long enough to kill, millions and still killing. US left 20,000,000 live land mines when they ran
Marc ********
@Steve *********
I didn't mean invade with war.

I mean they buy everything.
Steve **********
@Marc *******
buy everything, and invade are two vastly different things.

I take a date shopping, isn't the 'Irish invaded the Emporium'

Depending on the date...let me rethink that !
Dave ****************
@Ticha ****************
am I missing something?? What countries did China invade ...or colonised??
Marc ********
Ticha *****************
@Dave ***************
Economically, Laos and Sri Lanka, Pakistan
Dave ****************
@Ticha ****************
Economics ... is very different from "invade"..economic agreements are between two countries beneficial to both .
Ticha *****************
@Dave ***************
and so that? Continue...
Matthew *******
Get local legal advice

No disrespect to all on here but for something like this we are just bush lawyers
Steve *******
A. You can’t own land

B. You CAN set up a questionable company to own it but you will not control that company

C. That can all change at any time. For better. Or for worse.

D. Make sure it’s money you can walk away from because it could all vanish after an election, coup or a district or party head having a bad day
Tony ********
@Steve ******
the appointed signing director/s control the company.
Steve *******
@Tony *******
true but in the end, if they are not Thai citizens and any of the above happens or they try to get anywhere in the Thai court system against a Thai or Thai company they need to have boatloads of cash and a lot of high placed friends
Jon ******
@Steve ******
that's why there are many different types of lawyers, property, business, divorce and that's for most countries. I had a lawyer representing in said issue my estate lawyer but would not represent me in removal of a tenant sounds odd but just the reality of law.
Tony ********
@Steve ******
20 years working here in real estate and NEVER have I heard of any real estate being taken away from ordinary people.
Steve *******
@Tony *******
true. However all the remains the same. Coups and an opaque legal system mean any money you put into anything you must be prepared to walk away from.
Pertti *************
@Steve ******
b= minority shareholder can control company👍
Steve *******
@Pertti ************
maybe but with 49% and one be entirely subject to whatever some official things it’s safest to assume that while one may think they control it - in the long run they don’t have full control.
Jon ******
@Steve ******
my understanding is yes a foreigner can only own 49% of said company but in the paper work if you're the director of said company then you have control. Just make sure to use a lawyer that speaks your language so as to not sign what you don't understand.
Rene ******
Welcome to the bubble 🤣 there is an expo soon at siam healing center with builders etc. I'll post a picture when I see an ad
Jacqui *********
ORIGINAL POSTER
@Rene *****
thanks that was exactly the ad I saw put didn’t take a picture x
Rene ******
Ron *******
The law change in 2022 was for multi billion dollar foreign company's operating in the EEC corridor to build factories and employ hundreds of people.

You as an individual will never own land here.
Pertti *************
@Ron ******
takes only few years to apply citizenship so what you mean individual will never own land here?
Matt *******
You can own 49% of land, so effectively you can’t do it
Nongnuch ********
@Matt ******
wrong. You can own 49% of a company, that can "own" land. However the founding of a company for the sole purpose to own land, is illegal
Tony ********
@Nongnuch *******
don't worry if you don't get it dude ;)
Nongnuch ********
@Tony *******
it doesn't change a jota from the fact that this company is breaking the law. I recommend him to consult a lawyer on the legal aspects before he does something stupid. he would not be the first farang "business owner" getting arrested and blacklisted. I know one, who now lives in Vietnam
Tony ********
@Nongnuch *******
what's his name? So I can research. I've never heard of one if it's just regarding land ownership and nothing else.
Nongnuch ********
@Tony *******
he founded a company, to breed dogs. The Thai shareholder and him bought land in the Hua Hin area. Once everything was set up, he got sued for using a company to buy land for his intended business. He got arrested and blacklisted for life
Tony ********
Tony ********
@Nongnuch *******
hmmm but the op said they want to make bungalows for rent, so the sole purpose of the company is not to own land, its to make a business.
Matt *******
@Nongnuch *******
yes so you can’t do it.

You can own a Condo but not land, in your own name
Nongnuch ********
@Matt ******
Thai Logic
Matt *******
@Nongnuch *******
that’s Thailand

Same Same but different
Jo **********
you can’t own the land
Jacqui *********
ORIGINAL POSTER
@Jo *********
but not everything online is correct! So hence my questions here. I still think it’s most likely either lease the land for a pre designated time period or form a limited company which owns the land.
Jo **********
@Jacqui ********
you can lease but not own. These online adverts are trying to rip you off. You can own a condo but not the land
Jacqui *********
ORIGINAL POSTER
@Jo *********
what online adverts? I’ve never mentioned any . As I said you either lease or form a company and the company owns the land but you are company director.
Frank ******
@Jo *********
so long as Thais own 51% of the condo
Marc ********
@Frank *****
No thais need to own 51% of the building 49% of the condos can be owned by foreigners and in their name
Frank ******
@Marc *******
thanks for confirming what I said.
Marc ********
@Frank *****
You said thais need to own 51% of the condo. But you can own a condo 100%

But the quota of the whole building needs to be more thais than foreigner.

If there are 10 condos in the building 6 condos needs to be owned by Thais 4 can be owned by foreigners 100%
Frank ******
@Marc *******
Condo 51% Thai, individual unit 100% fa-rang.

Don't argue. You well know what I said/ment. I was probably involved in this before you were born.
Marc ********
@Frank *****
I didn't know what you ment.

You made it look like you can only buy a condo with a Thai and own 49% of it.

Very old man😅
Frank ******
@Marc *******
yep over 80
Jo **********
@Frank *****
then you really don’t own it
Jacqui *********
ORIGINAL POSTER
Michael ********
@Jacqui ********
thats not new been around for ages and authorities are clamping down on it thanks to the chinese
Jacqui *********
ORIGINAL POSTER
@Jo *********
I can form a limited company that owns the land ..

but I also read online that there was a law change in October 22 .
Maple *********
@Jacqui ********
I thought the law you has read it’s in process they not proved yet, even if they prove it will be allowed you can own the land some areas it’s not all around Thailand.
Jo **********
@Maple ********
no you can’t if someone could the China would be the whole of Thailand. That’s the reason
Craig *********
@Jo *********
just like in Canada
Marc ********
@Craig ********
In Canada foreigners can buy land as far as I know.

I wanted to buy some land there at one point.
Craig *********
@Marc *******
yes foreigner can buy and it ruined the country.
Maple *********
@Jo *********
the law in process, not proved it’s mean to now you can’t. What I say something wrong ?
John **********
@Jacqui ********
the limited company has to be majority thai ownership, but I'm pretty sure I read something recently about the thai government putting a stop to companies set up for no other purpose than to own land in this way unless you have a large investment in Thailand
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