Foreigners are not allowed to own land in Thailand. According to section 86 Land Code Act foreigners may acquire land in Thailand only by virtue of the provision of a treaty providing him with the right to own immovable property. Since 1970 Thailand has no longer any treaty with any country allowing any foreigner to acquire land pursuant to section 86.
Thai real estate law does not allow outright ownership of land (real property) by foreign nationals. Thai nationals and Thai owned corporations are permitted to own land under Thai land laws. Foreign nationals and corporations are allowed to own apartment units in a condominium.
When a Thai national married to a foreigner requests ownership registration of land in Thailand the Land Department must insure that the land becomes a personal (non-marital) asset of the Thai spouse only. The reason is because foreigners are not allowed to own land in Thailand, not even as a jointly owned marital property. The Land Department will ask from the foreign and Thai spouse a joint declaration that the money expended on the land (or land and house) belongs to the Thai spouse's personal assets (Sin Suan Tua), and therefore (under Thai laws governing property of husband and wife) will remain a personal (non-marital) asset of the Thai spouse (pursuant to {tip section 1472::'As regards to Sin Suan Tua (personal property), if it has been exchanged to other property, other property has been bought or money has been acquired from selling it, such other property or money acquired shall be Sin Suan Tua. Where the Sin Suan Tua has been totally or partly destroyed but replaced by other property or the money, such other property shall be Sin Suan Tua (personal)'}section 1472{/tip} Civil and Commercial Code).
Land titles for private use can be issued by the Land Department or other government departments in Thailand. The title allows certain private use and grants certain rights to use, possess, own or transfer rights to a specified area of land in Thailand. Only the Chanote or Nor Sor 4 Jor is a true ownership land title deed in Thailand.
Hire of immovable property (land, house, condominium) for residential purpose by foreigners is governed by civil and commercial Code sections 537 to 571 (law text copied below) and further specified by the Thailand Supreme Court. Foreigners are under Thai law allowed to lease real estate property for up to 30 years and the law is applied in the same manner if the lessee is a foreign or Thai national.
Read more: Legal aspects of lease and tenancy laws in Thailand
As foreigners are not permitted to own land in Thailand the standard contract under which real estate is 'sold' to foreigners is a lease. Residential leasehold housing and apartment projects in the tourist areas often include service and maintenance agreements as an integral part of the lease. Services delivered and the annual price increases are often determined by the developer and as these contracts are an ongoing financial burden it is important to undertand the importance of these contracts before accepting the lease.
Marriage in Thailand is governed by the Civil and Commercial Code book 5, sections 1435 to 1535. A marriage (section 1457) can take place only if the man and woman (who are at least 18 years old) agree to take each other as husband and wife, and such agreement must be declared publicly before the Registrar in order to have it recorded by the Registrar. Marriage in Thailand is created and completed on formal registration and inclusion in the government's marriage register.
Buying a condo unit in a building registered under the Condominium Act is not the same as 'buying' a unit in a building having no condominium license under condominium laws nor a condominium registration with the Thailand Land Department. On the outside the buildings could look the same but a true licensed condominium offers actual legal ownership, the other offers possession of the units under a contract structure (not true ownership).
Under Thai marriage and family law, personal property everything owned (and owed) before the marriage remains each spouse’s personal property during marriage (see Section 1471 of the Civil and Commercial Code; สินส่วนตัว vs. สินสมรส). A prenuptial agreement (สัญญาก่อนสมรส) commonly lists each party’s personal assets and may grant sole management over specified marital assets to one spouse during the marriage, helping reduce disputes and protect pre-marital wealth.
There are no general property taxes (capital tax on property imposed by the government) in Thailand, but real properties put to commercial use and not used for residential purposes by the owner are under the Building and Land Tax Act B.E. 2475 required to pay a property tax at a rate of 12,5 % of the annual rental value or the annual assessed rental value (if no rent is paid or the declared rent is considered too low). The annual assessed rental value is based on a calculation method over the appraised value of the property (land, house, apartment). If anyone leases a property at a rent lower than a reasonable rent, the amount could be adjusted and lessor could be taxed on what the rent should have been.
The taxes and fees imposed and collected by the land office (land department) upon transfer of ownership of a real property (condominium apartment, land, house, land and house) in Thailand are: transfer fee, specific business tax (if applicable), stamp duty (if applicable), income withholding tax.
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