Many foreigners want to buy land in Thailand to build a home or invest in real estate. However, Thai law strictly prohibits foreigners from directly owning land. Because of this, many look for alternative ways to acquire land, but some methods are illegal or risky. In this guide, we will explain common misconceptions, legal challenges, and safe options for foreigners who want to secure property in Thailand.
Is Setting Up a Thai Company to Buy Land Legal?
Some foreigners believe they can set up a Thai company where they own 49%, and Thai nationals own 51%, allowing them to buy land. While this might seem like a simple solution, it is actually illegal if the Thai shareholders are only nominees and do not have a real financial stake in the company.
To legally form a Thai company for land ownership:
- The company must be a real business, not just a way to buy land.
- Thai shareholders must have genuine financial involvement in the company.
- The company must follow Thai foreign business laws and tax regulations.
If the government finds out that a company was created only to hold land, it can seize the property and force the foreigner to sell it. This has already happened in Thailand, where authorities investigated a village and found that foreigners were illegally using company structures to buy homes. As a result, they were ordered to sell their properties within a year.
Legal Ways for Foreigners to Secure Land Use
Even though foreigners cannot own land, there are legal ways to secure long-term land use in Thailand.
1. Marrying a Thai Citizen & Registering a Usufruct
If a foreigner is married to a Thai national, the Thai spouse can buy land in their name. The foreigner can then register a “Usufruct”, which gives them the right to use the land for life.
- Pros: The foreigner can legally live on and use the land.
- Cons: The land still belongs to the Thai spouse, and the foreigner cannot sell it.
2. Owning a House Without Owning the Land (Superficies)
A foreigner can own a house in Thailand by registering a Superficies, which allows them to own a building on leased land.
- Pros: The house legally belongs to the foreigner.
- Cons: If the landowner sells, the foreigner only keeps the house, not the land.
3. Leasehold Agreements (30-Year Leases)
A 30-year lease is a legal way for foreigners to use land in Thailand. Some people claim to have 99-year leases, but Thai law only recognizes leases for up to 30 years at a time.
- Pros: A legally binding contract that can be renewed.
- Cons: A lease does not automatically transfer to heirs unless stated in the contract.
Conclusion: What Is the Best Option for Foreign Buyers?
While foreigners cannot directly own land in Thailand, there are legal ways to secure long-term property rights. The safest options include usufructs, superficies, and leasehold agreements.
To avoid legal trouble:
✔️ Do not use fake company structures—they are illegal.
✔️ Consider a usufruct if you are married to a Thai citizen.
✔️ Use superficies if you want to own a house but not the land.
✔️ A 30-year lease is the easiest and safest legal option.
If you are thinking about buying property in Thailand, always consult a lawyer to make sure your transaction is legal and secure.
Aphiwat Bualoi Law Office 
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