General Information for Customers

New housing developments in Thailand typically maintain consistent standards across a project:

• the houses and their grounds sit within an enclosed, fenced perimeter;
• essential amenities such as parking, security staff, a barrier-controlled entrance and 24-hour video surveillance are provided;
• apartments are usually handed over fully finished and furnished, ready to move into;
• shared facilities — which may include a swimming pool, a children’s area, a fitness room, a library, a home cinema and a games room — are generally included without an additional charge;
• each development has a management company responsible for the common areas.

That management company may also handle renting out your property and transferring the income to your bank account while you are not in Thailand. The services offered, and the fees charged for them, vary between developments and are set out in each project's own documents.

Property Ownership in Thailand

Thailand offers two primary ownership structures for residential property: freehold and leasehold.

Freehold

Under a freehold arrangement, buyers receive full ownership of the property and have rights to sell, rent, donate or pass it on as inheritance.

• Foreign nationals may own up to 49% of the living space in a condominium building — the "foreign quota". The remaining 51% is reserved for Thai citizens or Thai-registered entities, and is generally referred to as the Thai quota.
• Company registration structures can, in some circumstances, allow foreigners to access Thai-quota units. Whether that is available, and whether it is appropriate, depends on the individual project and on the law and practice in force at the time.
• Taxes, duties, registration fees and transfer costs vary by transaction and are shared between the parties according to the sale agreement; the applicable rates should be confirmed with the Land Office or a qualified adviser for the specific transaction.

Leasehold

A leasehold arrangement involves a long-term lease. The initial registered lease term may be up to 30 years. Any renewal or extension beyond the initial term is a separate arrangement made at a later date, subject to Thai law and to a valid agreement and registration at that time — it is not guaranteed.

• Leasehold properties remain transferable, inheritable and rentable for the remainder of the lease term.
• Market values for leasehold properties typically run somewhat lower than comparable freehold properties.
• Taxes, duties, registration fees and transfer costs for leasehold transactions vary by transaction; the applicable rates should be confirmed with the Land Office or a qualified adviser at the time.

Registration of Villas in a Company

Villas and townhouses that include land frequently employ dual-contract structures, which separate ownership of the building — capable of being held freehold — from the rights to the land. Thai law does not currently permit foreign nationals to purchase land outright, so land rights are typically held on a leasehold basis or through a Thai company.

• A Thai company used in connection with land-related rights must be lawfully constituted, with genuine shareholders holding real shares in the company; nominee-shareholder arrangements, where shares are held on paper on behalf of a foreign party without genuine participation, are unlawful under Thai law.
• How such a company is structured, and what rights and authority each shareholder actually holds, is a matter of Thai company law; buyers should not assume any particular level of control or signing authority without independent legal advice.
• The buyer holds the shareholding in the company, and the company holds the land-related rights, with the building held separately.
• Ownership documentation for land in Thailand typically includes a Chanot title deed, and a house registration book (the "Bluebook") identifying the structural ownership details.

The legal, tax and practical implications of these structures are complex and subject to change. Always obtain independent advice from a qualified Thai lawyer and, where relevant, a tax adviser before proceeding.