As Thailand’s real estate market continues to grow, an increasing number of foreigners are exploring investment opportunities throughout the country. If you’re an Australian interested in buying property in Thailand, it’s important to understand the different legal requirements for foreigners compared to Thai nationals.
Foreign Ownership Laws in Thailand
Thai law does not allow foreigners, including Australians, to own land in their name. However, under specific circumstances, foreigners can still acquire land ownership rights and buy other forms of real estate.
Condominium Units in Thailand
Australians can buy condominiums in Thailand outright with freehold status, but the law in Thailand limits foreign ownership of a condominium building to 49%. Although you cannot own an entire building, you are allowed to buy multiple individual condominium units across Thailand, provided that you follow the regulations.
Land in Thailand Through a Company
If you own or partially own a company, you may be eligible to buy land in Thailand in the company’s name, and even use some of it for residential purposes in some cases. However, the company must be of a specific type:
- Thai Limited Company: You must be a minority shareholder and own 49% of the shares in a Thai Limited Company, while the remaining 51% is owned by Thai nationals.
- BOI-Promoted Foreign-Owned Company: You must be a majority shareholder of a BOI-promoted foreign-owned company.
- Thai-Australian Free Trade Agreement (TAFTA) Business: The TAFTA enables Australians to own majority or even full ownership of businesses in certain sectors if they are approved for the right certificates.
Joint Ownership of Property with a Thai Spouse
If you are an Australian married to a Thai national, you can buy property in Thailand through joint ownership, including condominiums, houses, and other types of buildings. While joint ownership of land is possible, you cannot acquire full ownership rights through a divorce settlement or a will.
If a divorce occurs and you can demonstrate that the property was purchased with your personal funds, the court may classify it as marital property. If so, the land will be sold, and the proceeds from the sale will be divided equally between you and your spouse.
Title Deeds and Contracts
Title deed fraud is a common real estate scam in Thailand that often targets foreigners, particularly those buying property in tourist areas like Bangkok. This type of fraud, involving unauthorized transfers of ownership, can result in significant financial loss.
To protect yourself from title deed fraud, it’s advised that you have a property lawyer verify the authenticity of the title deed to confirm that the property is legally suitable for purchase.
Thailand issues various types of title deeds, with each granting different levels of ownership rights. Below are three of the most common types:
- Chanote (Nor Sor 4 Jor): This is also known as freehold ownership and is the most secure type of land title deed, as it grants full legal ownership of the property.
- Nor Sor 3 Gor: This title deed is officially recognized and includes mapped boundaries. It can be upgraded to a Chanote by submitting a formal request to the Land Department.
- Nor Sor 3: This title deed is weaker than the Nor Sor 3 Gor and has no mapped boundaries. It can be upgraded to Nor Sor 3 Gor and eventually to a Chanote through an application at the local land office.
How to Buy Property in Thailand
When buying property in a foreign country, there’s always a risk of encountering dishonest landlords or fraudulent sellers if you are unfamiliar with the regulations, and Thailand has seen an uptick in scams of all kinds in 2025, including real estate scams. Because of this, it is recommended that you follow the step-by-step process outlined below to ensure a smooth and secure transaction:
- Find a Real Estate Agent: Partner with a reliable, bilingual real estate agent with in-depth knowledge of your desired area so you can make well-informed decisions about which properties to purchase.
- Conduct Due Diligence: Due diligence involves verifying the property’s title deed to confirm ownership history and checking for any outstanding debts or legal issues, as well as reviewing the sale agreement for fairness and legality. Again, a bilingual property lawyer is essential for this process.
- Price Negotiation: Negotiating the price is a common part of property transactions in Thailand, but it requires cultural awareness and knowledge of current market trends. Your property lawyer can assist you in reaching a fair price.
- Contract Signing and Deposit Payment: To secure the property, buyers typically need to sign a reservation agreement and pay a non-refundable reservation fee, which generally ranges from 5% to 10% of the total purchase price.
- Finalize the Sale: Once all terms have been agreed upon, you will proceed with the formal Sale and Purchase Agreement. This stage involves signing the contract, paying the remaining balance, and transferring ownership at the Land Department. If you have retained a property lawyer, bring them along to help ensure that the process is handled efficiently and correctly.
Professional Assistance For Australian Property Buyers in Thailand
If you’re looking to enter the real estate market in Thailand, get in touch with Siam Legal International. With over 20 years of experience, our team of bilingual property lawyers is well-equipped with the skills and knowledge to help you make informed decisions to safeguard your investments, as well as ensure a smooth transaction free from legal complications and fraud.
We will guide you through the entire property-buying process, from conducting a thorough background check on your selected property to carefully reviewing every detail of your contract to finalizing the purchase at the Land Department. With Siam Legal, you can avoid issues with the government and fraudulent sellers.
For an easy and secure entry into Thailand’s real estate market, do not hesitate to contact Siam Legal to book a consultation!
