Criteria for Allowing Foreigners to Own Land in the Country
Thailand’s Land Department has recently updated its regulations regarding land ownership for foreigners, providing clearer guidelines on inheritance, acquisition, and transfer of land. These changes aim to balance the interests of foreign investors with the country's economic and societal goals. The new criteria specify the conditions under which foreigners can inherit land, including usage limits and compliance requirements. Additionally, foreigners can acquire land through significant investments that benefit Thailand's economy. This update also reinforces penalties for illegal landholding practices, ensuring adherence to legal standards and promoting transparent land transactions.
Inheritance of Land by Foreigners
- Eligibility: Foreigners who are legal heirs of foreign landholders can inherit land.
- Compliance: The inheritance must comply with existing land-holding laws for foreigners.
- Limits:
- Industrial Use: Up to 1 rai (0.160 hectares).
- Agricultural Use: Up to 10 rai (1.60 hectares).
- Usage: The use of inherited land must align with the permissions granted to the previous owner.
Acquisition of Land by Foreigners
- Investment Requirement: Foreigners can buy 1 rai of land for residential purposes if they invest at least 40 million baht in Thailand.
- Investment Criteria: Investments must benefit Thailand's economy and society, or be in businesses promoted by the Board of Investment.
- Investment Duration: Investments must be maintained for at least three years.
- Location Restrictions: Land must be in Bangkok, Pattaya, or any other municipality.
Land Transfer
- Legal Framework: Foreigners can receive land transfers under specific laws, such as the Investment Promotion Act of 1977.
Penalties for Illegal Land Holding
- Nominee Schemes:
- Thais acting as nominees for foreigners face up to three years in jail, a fine of up to 6,000 baht, or both.
- Unlawful Acquisition:
- Foreigners acquiring land unlawfully face up to two years in jail and/or a daily fine of up to 20,000 baht.
Key Points
- Foreigners can inherit land within specific usage limits.
- Acquiring land requires substantial investment and compliance with economic benefit criteria.
- Strict penalties are imposed for illegal landholding practices.
This summary encapsulates the key aspects of Thailand's regulations on land inheritance and acquisition for foreigners, ensuring compliance with legal standards and promoting beneficial investments.
Source: Thailand's Land Department.
