Thailand’s Land Ownership: A Unique Exception for Foreigners
In Thailand, non-Thai individuals are legally prohibited from owning land.
This rule aims to ensure that Thailand maintains sovereignty over its land and natural resources while preventing excessive foreign ownership.
The primary goal is to safeguard locals from potential displacement due to the significant purchasing power of foreign entities.
These regulations are firmly established within the Thai legal framework.
The Exception: Inheritance by Foreigners
In the complex landscape of Thai property law, an interesting exception balances two key principles: the protection of Thai land and the importance of family ties.
When a foreigner inherits land from a Thai citizen, they are allowed to own it indefinitely, with certain conditions.
Conditions for Inherited Land Ownership
Residential Purposes
Other Purposes
Statutory Inheritance
Process of Ownership Transfer
Ownership of property requires registration at the local Thai land office.
Being named in a will does not automatically mean owning the land. An estate administrator must carry out the official ownership transfer registration.
Required Documents
When inheriting land, the foreigner must present various documents to the authorities.
Non-Thai documents must be translated and legalized. Generally, the following documents are required:
Application Process
The applicant must present the documents to the Land Office. In Bangkok, the Department of Land is responsible; in other provinces, it’s the Provincial Officer.
These officers have the authority to approve the application. If not approved, the case is forwarded to the Minister of the Interior for a decision.
Restrictions on Disposing Inherited Land
A foreigner who inherits land in Thailand is restricted regarding the sale or disposition of such land.
Selling inherited land requires permission from the Thai authorities, specifically the local Land Office.
However, if the sale is to a Thai national, permission is usually granted without issues.
Passing Inherited Land
If the land is passed on by inheritance to a Thai national, the process follows usual procedures. Passing the land to another non-Thai national by inheritance is possible, subject to the same rules.
Foreign heirs can transfer ownership of the land to their family members through statutory inheritance, including relatives from other countries who may not hold Thai citizenship.
Conclusion
Thailand’s land ownership laws present an interesting paradox: while foreigners are generally restricted from owning land, notable exceptions exist. This exception demonstrates Thailand’s effort to balance inheritance law with protecting its cultural and economic sovereignty.
Fabian Doppler
Fabian is a founding partner of FRANK Legal & Tax. He focuses his practice on corporate / commercial and real estate law, as well as litigation. He is admitted to the Bar of Stuttgart, Germany, where he actively practiced law before coming to Thailand in 2005.