Property Ownership Law

PROPERTY OWNERSHIP LAW   

(Laws Governing thr Acquisition of Immovable Property by Aliens in Thailand)

Definition of "Aliens " and "Alien Juristic Persons"

Our apologies for the strange language syntax. This has been translated directly from Thai and left this way in an effort to preserve the spirit of the information

Definitions:

  • "Aliens" According to the Nationality Act B.E. 2508 of 1965, the term, "Aliens" is defined as natural persons who have no Thai nationality or have lost or relinquished Thai nationality.
  • "Alien Juristic Persons" According to Section 97 and 98 of the Land Code, the term, "Alien Juristic Persons" under Section 97 of the Land Code is defined as follows:
    1. Limited companies with more than forty nine percent of their registered capital being held by aliens or with more than half of their shareholders being aliens and, in the case of bearer shares (shares whose name of holders are not specified and which can be transferable only by means of delivery of shares' certificates) issued by any limited company to bearers, such shares shall be deemed to be held by aliens.
    2. Limited Partnerships or registered ordinary partnerships with capital contribution by aliens being valued at more than forty nice percent of their total capital or with more than half of their partners being aliens.
    3. Associations, including cooperatives, in which more than half of the members are aliens or which operate especially or substantially in the interest of aliens;
    4. Foundations whose objects are especially or substantially in the interest of aliens.

Section 98 of the Land Code also deals with alien juristic persons and provides as follows: In the case where a juristic person under Section 97 becomes the owner of the capital, a shareholder, or a partner, as the case may be, in another juristic person, this latter juristic person shall also be deemed an alien.

Forms of registered alien juristic persons

  1. Juristic persons registered under Thai laws.
  2. Juristic persons registered under foreign laws.
  3. Juristic persons as defined by the National Executive Council Announcement No.281 (NEC 281) dated 24 November B.E. 2515 of 1972 including.
    • Juristic persons without Thai nationality;
    • Juristic persons with half or more than half of the capital belonging to aliens;
    • Juristic persons with half or more than half of their shareholders, partners or members being aliens, regardless of the amount of the capital invested by aliens;
    • Limited partnerships or registered ordinary partnerships, the managing partner or manager of which is an alien.

Laws governing the acquisition of immovable property By Aliens and Alien Juristic Persons

Aliens wishing to acquire immovable property in Thailand must comply with all laws applicable to transactions and types of property concerned. In general, laws governing the acquisition of immovable property by aliens as well as alien juristic persons can be divided into 5 categories as follows:

  1. Acquisition of land by aliens;
  2. Acquisition of land by alien juristic persons;
  3. Acquisition of condominium unit ownership by aliens;
  4. Acquisition of condominium unit ownership by alien juristic persons;
  5. Lease of immovable property by aliens and alien juristic persons.