Thailand’s New BOI Regulations: Expanded Land Ownership for Foreign Companies

BOI Opens More Land Opportunities for Foreign Businesses

The Thai Board of Investment (BOI) recently announced updated regulations regarding land ownership for foreign companies. These new rules, outlined in Notification No. 16/2567 (Criteria for Granting Permission to Foreign Juristic Person Receiving Investment Promotion to Own Land for Establishment of Offices and Residences), came into effect on December 9, 2024. 

Previous Land Ownership Limits

Prior to these amendments, foreign companies could acquire land in Thailand, but the permissible use and size of the land were limited under Thai law. Specifically, foreign entities were allowed to own the following land areas: 

• Up to 5 Rai (8,000 sqm) for office spaces or production facilities. 

• Up to 1 Rai (1,600 sqm) for executives’ residences. 

• Up to 2 Rai (3,200 sqm) for employees’ residences. 

Revised BOI Land Ownership Rules

Under the revised rules, foreign companies receiving BOI promotion are now permitted to own: 

• Up to 5 Rai (8,000 sqm) for office spaces. 

• Up to 20 Rai (32,000 sqm) for employee residences.

Key Conditions for Land Ownership

However, to qualify for this expanded land ownership, foreign companies must meet certain conditions: 

1. Capital Requirement: Companies must have paid-up capital exceeding 50 million Thai Baht (approximately EUR 1,4 Million). 

2. BOI Promotion Status: Land ownership is contingent upon maintaining BOI promotion status. If this status is lost, the company must sell or transfer the land within one year. Loss of status could occur due to non-compliance with BOI regulations or cessation of promoted business activities. 

3. Land Location: Land used for residential and office purposes cannot be located on the same plot as the company’s primary business operations. However, exceptions may be granted with special approval. 

Land Use and Location Restrictions

The regulations also set forth specific requirements for worker accommodations. Housing for employees must be exclusively for workers of the BOI-promoted project, with the number of rooms corresponding to the actual workforce size. These accommodations must be located within 10 kilometers of the business premises and accessible via main public roads, unless an exemption is granted by the BOI. 

Facility and Compliance Requiremen

Companies are allowed to include shared facilities within worker accommodations, such as parking lots, kitchens, and first aid rooms, provided these facilities are proportionate to the workforce’s needs. However, the use of acquired land is subject to strict conditions. The land must be used only for purposes approved by the BOI, and activities on the land must not violate local ethics, traditions, or community standards. Violations of these conditions can lead to the revocation of land ownership rights, in which case the company must sell or transfer the land within one year. 

Regulatory Oversight and Investment Impact

The BOI retains the authority to issue further announcements to refine or add additional criteria to these regulations. Businesses planning to utilize these new land ownership opportunities should closely monitor such developments to ensure compliance. 

These regulatory changes signify a significant step toward facilitating foreign investment in Thailand. By expanding the permissible land size for residential purposes, the BOI aims to attract more foreign companies to establish operations in the country.  

For expert guidance on BOI land ownership in Thailand, our experienced team is ready to assist you. Contact us for tailored legal support to ensure compliance and maximize your investment opportunities.