You are here: Home / Work & Money / Everything You Should Know About Buying Land in Thailand: Plus 12 Steps to Avoid Getting Ripped Off

Everything You Should Know About Buying Land in Thailand: Plus 12 Steps to Avoid Getting Ripped Off

As a foreigner, whenever you talk about buying land in Thailand, some smart Alec pops up and says, “You can’t own land in Thailand, so ner”!

While this is sort of true, the law doesn’t restrict foreigners from owning land in all instances, which we’ll discuss in a moment.

Aside from that, however, I assume that you are reading this post on that basis that your partner is buying land and you want to know the ins and outs so that she/he doesn’t get ripped off or make a mistake.

Or, perhaps, as a married couple, you are considering buying land in your partner's name to build a house for your retirement.

Whatever the case, it’s important to know what you’re getting yourself into. And believe me, there’s a lot to know – so grab a coffee for this one.

Why Should I Take Advice From You About Buying Land in Thailand?

Good question.

Well, I’ve played witness to my wife’s family buying and selling a number of pieces of land, and been the token “farang” at the local government office when my wife has been doing the paperwork on numerous occasions.

Because it’s my duty to provide information on Thailand here on TTL, when I’m in these situations, I make sure I stick my nose in and learn what there is to know.

My Thai isn’t too bad either, which means, unfortunately for me, that I understand a lot of the gossip between family and neighbours regarding land disputes: who paid what for what and why they had to sell. Yawn…

So, Can Foreigners Own Land in Thailand or Not?

Foreigners can’t own land in Thailand.

However, a Thai registered company can own the land, and a foreigner can open a company if they meet the requirements. It's a pretty complicated setup, though, and you will need a competent lawyer to make sure the contract is water tight.

+ Full details on company setups here

In addition, a foreigner married to a Thai national CAN own land in Thailand.

What?! So all those Thai Visa members are wrong?

Well, yes and no. Check out the legal restrictions below:

  • As the non-Thai spouse, you need to state that you have no rights over the land; effectively waiving your rights to claim the property.
  • The property, though purchased by you, cannot be in your name but will have to be in the name of the Thai spouse.
  • The married couple may be asked to sign declarations at the Land Department stating that the funds used are the separate property of the Thai spouse.
  • Problems may still arise during a divorce case. Proving that the land is marital property will be difficult.

So you can own it, but you have no rights to it when married or in the case of a divorce.

It’s a strange piece of legislation, which, by the way, was created so as to avoid discrimination against the non-Thai spouse. It didn’t really achieve its goal.

Leasing

One option you have is leasing. Land can be leased to you on a 30-year rolling basis.

For example, your wife could buy a piece of land and lease it to you for 30 years.

You can build a house on this land and live in it, but you’ll never own the land the house is built on. And, when the lease is up, you could be evicted.

+ Full details on leasing land here

So unless you buy land through your Thai company, when your partner says, “Let’s buy this piece of land”, it really means ,“Let’s buy this piece of land for me”.

Now that’s clear, let’s move on.

Understanding Land Deeds & Making Sure the Sale is Above Board

Before you (your partner) rush into buying a piece of land, the first question you must ask is what type deed the land has. In short, anything other than a Chanote should be avoided.

Moreover, find out who has the Chanote and make sure it is in the seller’s full ownership and not registered against any loan, usufruct or mortgage, or being held by a loan shark against a gambling debt.

This might sound like scaremongering, but considering the average Thai household debt stands at 248,000 Baht, and the prevalence of black market loans and gambling, you’ll find that this is more common than you think.

There are four types of land ownership/possession in Thailand:

1. Freehold Title Deed (Chanote Or Nor Sor 4)

This type of title grants the holder of this document full rights over the land, to deal with or to use it to the exclusion of others.

Thus, if you're planning to buy land in Thailand, this type of title deed is the best and most useful title deed to hold.

2. Nor Sor 3 Gor

A land ‘awaiting' a full title deed is granted the document Nor Sor 3 Kor, as follows:

  • The land is measured by the Land Department; therefore it has exact boundaries.
  • This type of land may be sold, transferred, or mortgaged in the same manner as land with a freehold title deed (Chanote), as long as it is ready to be a full title deed.
  • In order to change the title to a Chanote, the owner of the land may file a petition to the Land Department to file a request to change it to a full title deed (Chanote), and the Land Department may do so if there is no opposition made against the petition.

3. Nor Sor 3

The difference between this type of land title deed and the Nor Sor 3 Gor is that land with a Nor Sor 3 title has never been measured by the Land Department; hence the land has no exact boundaries.

The Nor Sor 3 title may later be switched to a Nor Sor 3 Gor, and can subsequently be transformed to a freehold title deed (Chanote) in the future.

4. Possessory Right

This type of title deed is least recommended. A land with a possessory right has never been substantiated by the Land Department and is only recognized by tax payments at the Local Administrative Office.

Reference Source: Siam Legal

krabi-house-thailand

A lot of dwellings in Thailand are built on land that has no deed and belongs to the state. This land can be taken taken back and developed at any time.

How Much Should I (My Partner) Pay Per Rai of Land?

How long is a piece of string?

That’s an annoying answer, I know. But land in Thailand sells for whatever someone is prepared to pay for it.

Generally, sellers start out asking way over the odds.

The hope is that someone is really desperate to buy, like a foreigner’s wife who wants him to build a huge house to make all the neighbours jealous.

One key thing to remember is that average Thais generally don’t have access to cash. Most are in debt up to their eyeballs.

Even the teachers and government workers who are able to borrow money from the bank to build a big home and buy a nice car would have to negotiate a further loan to buy more land.

So in most instances land doesn’t sell immediately, at least not average farmland, which I’ll expand on in a minute.

The more desperate a person is to sell the quicker the price will drop.

The land sharks know this.

By land sharks, I mean the few rich, local families who wait for poor folk to gamble and drink away their nest egg and get so desperate that they have to sell the one piece of land supporting their existence.

That being said, there are many stubborn sellers, who won't budge on a price that is way out of touch with similar plots sold in recent times. Some sellers will hold out for years until they get the price they want, or stop being stubborn.

You will quickly find that the economy of selling land in Thailand makes little sense at times.

Why Rural Land is an Attractive Investment

Buying up rural land has become a common trend amongst the middle classes of Bangkok. This is causing land in many rural provinces to shoot up.

Scared by the rumours that much of Bangkok will be under water in 50-75 years, they are sharking for land near the big cities of Isaan:  the likes of Korat, Khon Kaen and Udon Thani (because it's generally cheaper than the rural south).

They know this land will sky rocket in price in years to come, with these local economies already thriving and many industries choosing to locate to these areas for cheaper labour and in anticipation of improved transport links.

In short, as a foreigner, if you're present when your partner is negotiating on land, don’t act overly interested, and certainly don’t feel pressured to show your wealth (face) in any way.

Make your enquiry, state what you are prepared to pay and walk away. You can always leave your phone number in case they want to sell at the price you want to pay.

Don't buy in too fast or you'll pay top whack. However…

But What About Land That is a Rare Bargain?

In this instance, ignore what I just wrote.

What you pay and how quickly depends on the type of land. Some land needs to be bought quickly for the asking price.

For example, 10 years ago a perfect square rai of land became available in my wife’s road for 150k. It sold on the day for the asking price. It was a race to see who could get to the bank first and secure the deal.

It was perfect land to build a house on, already filled in with soil and fenced off, in a well developed road with access to electricity and water, off the main road and opposite a Tesco.

The owner needed the cash badly to pay a debt. This land is worth 400k+ now, easily.

In a situation like that, one shouldn’t hesitate. Trying to knock an opportunity like that down to 100k, or even 140k, is a waste of time.

The competition for the buy is high and the opportunity is an absolute steal. Don’t wait through stubbornness.

Moreover, land is worth what it's worth to you. If the price is within budget, the location is right, the size adequate, and the availability of similar land is low, then go for it.

You will always get other foreigners saying that you paid too much. That's life.

Okay, But You Still Haven’t Told Me What I (We) Should Pay

Since first writing this article the price of land has gone through the roof. But the fact still remains that there are so many variables that it makes it complicated to say what one should pay.

For instance, beachfront land in Koh Samui is going to be worth a hell of a lot more than farmland in an Isaan village 50km from the nearest Big C.

One key variable you need to understand is the difference between house-building land and rice-farming land.

Farmland tends not to have proper road access, a piped water supply or electricity.

House-building land should have all these things.

Farmland can also be prone to flooding. House-building land should not!

But let’s take that village, far away from the town centre, as an example.

Farmland there might go for anywhere between 100-150k per rai. In a moo baan, near a main road, close to the town centre and shops, etc., farmland might go for 200-300k per rai +.

House-building land in the said village might go for between 300-500k per rai.

In a well-developed village, with proper roads, near the main road, close to the town centre, close to Big C/Tesco, etc., a rai might go from anywhere between 700k-2MB+

If it’s on the main road with commercial potential (for a shop or other business), you could easily be looking at 3MB+. Of course, this all depends on the area of the country, the province and its proximity to an airport and transport links.

These are rough estimates, though. It really depends on the location and the market conditions.

Also bear in mind that the prices you see on property websites are way over inflated. A lot of land isn't advertised online and is sold locally on handshake deals.

Transfer Fees, Taxes & Inflated Prices

While no one wants to pay over the odds for a piece of land, no one wants others to know that they bought the land cheaply, either. This is because it devalues their purchase and potential resale price.

This is why the price of land in Thailand is always grossly distorted by gossip.

People spread rumours about how much someone paid, or how much someone is asking, which artificially inflates the local economy and often causes people to pay over the odds.

But rumour matters not when it comes to the land transfer fee.

Oh yes! You need to consider this extra little sting in your pocket when buying land.

Selling/buying land in Thailand is subject to a transfer fee and, if applicable, a specific business tax.

If you are involved in a private buy, you will probably share the 2% transfer tax with the seller.

Now, before you consider declaring a lower price than you bought the land for in order to pay less tax;  this little trick won’t work.

The land office has a land price index to work from. This index lists the true price of land for each area, and regardless of the amount you declare, you will still pay the required fee on the indexed price.

The transfer fee actually helps you determine how much a piece of land is worth; because you pay the fee relative to the true value of the land.

So let’s say you pay 100k for a piece of land which is only worth 50k, you’ll soon find this out when the officer looks up the land value and charges you the appropriate fee.

So in theory, to find out how much a piece of land is really worth before putting in an offer, one could just go to the local government office and ask!

Strangely, no one ever does this.

Of course, some officers might be reluctant to give the information to a foreigner, but if your partner goes to the office or gives them a ring to ask what the average piece of land is going for in a certain area, they can give an answer.

At the very least this gives you an idea of whether the land you are interested in is overpriced, and also a ballpark figure of what you should be paying.

That said, the seller probably won’t care what figure you have in mind, because, as I said at the beginning of this post, land goes for whatever a buyer is prepared to pay.

You can also find out what a recently purchased piece of land is worth by asking the buyer how much tax they paid, though this a fairly personal question and perhaps overstepping the mark.

One thing is for sure, you (your partner) will know what your land is worth when the land officer tells you how much transfer tax you have to pay. At this point you might need a sick bag.

Here’s a breakdown of land transfer fees/taxes in Thailand:

Transfer Fee:

This is the percentage fee of the appraised value of the property being transferred.

The transfer fees in Thailand for property is 2% of the property value.  The Transfer duty on the property is either shared between the buyer and the seller which is common or it is paid by the buyer.

Business Tax:

The business tax payable over the property is 3.3% of either the sale price of the property or the appraised price of the property. In Western terms it is either the sale price or the municipal value of the property which ever is the higher of the two.

Speak to your attorney about who will pay the business tax on the transaction. Note that this tax consists of 3% Business Tax + a Municipal Tax of 10% assessed on the amount of the specific business tax (total tax 3.3%)

Stamp Duty:

The stamp duty in Thailand for the transaction is 0,5% of the sale price of the property. The seller in the transaction normally pays for the Stamp Duty in Thailand.

Note that if Specific Business Tax then the Stamp Duty is not payable. It is one or the other which gets paid.

Withholding Tax:

This tax will vary according to who the seller is being either a person or a company. If the seller is a company then the withholding tax is fixed at 1% over the registered sale value or appraised value (whichever is higher). If, however, the seller is a private person, withholding tax is calculated at a progressive rate based on the appraised value of the property.

farmland-thailand

Be careful buying farmland. Some agricultural land cannot be built upon. If it can, it may be expensive to convert and may not have access to the public water system or electricity.

12 Questions You Must Ask Before Buying Land in Thailand

Okay, I’ve waffled on and there’s a lot to digest, but I hope it’s all of use to you.

In this last section, I’ll summarise what I’ve covered in a list of questions that you should ask before you/your partner consider purchasing land:

  1. Has the land got a Chanote (land deed). Read over the Chanote info section above if you missed it and don’t buy land unless it has a Chanote.
  2. Is this land “owed” to someone else? People lose land deeds in card games every day in Thailand. Don’t get yourself into a pickle by buying land that has already been virtually seized in a card game by some mafia-type bloke. This is a sure way to lose your money and attract the wrong company.
  3. How long has the land been for sale? More than a few months? It’s probably overpriced. Negotiate hard.
  4. How desperate is the owner to sell? Is he/she a gambler or drinker? In debt to a loan shark? Cash is king here. You will land a good deal. I’m not advocating taking advantage of people, but hey, I didn’t create this money system.
  5. Is the land near a main road?
  6. Is there access to electricity?
  7. Is there access to water?
  8. Is the land next to a river? If so, the land may flood in the rainy season. Check with neighbours and official sources. Rivers and lakes attract a lot of mosquitos, too. Bear that in mind.
  9. Is it rice-farming land adjacent to other land of the same? If so, consider that even if you convert this to build a house on, other famers might not be too chuffed about it and may oppose your decision and cause you problems. Discuss with the poo-yai-baan first.
  10. Is the land filled in with soil? So many people make this mistake. If the land needs soil because it’s in a dip and not levelled to the road, the cost of this could equal, and in some cases be double, what you pay for the land. Try to buy land that needs minimal soil filling.
  11. Are you being played on the price? Like an auction, interest drives up the price. If your partner is being told that so-and-so down the road is going to buy it if you don’t, be proactive and find out whether this is gaming or real interest. Get your partner to ask the said party if they are really interested. The way to handle this is to make out that you are being courteous and don’t want to step on their toes. Essentially, you are saying that you won’t buy it if they had first dibs. In most cases you’ll find the interest was nothing more than hearsay. Once this has been determined, you will find yourself in a much better bargaining position.
  12. Who is paying the fees? As previously mentioned, transfer tax is usually split between buyer and seller, but some, seeing your “farang face” alongside your partner, might try to off load this onto you/your partner. Always push for the seller to pick up the fees, and never swallow these in your own pocket.

In Summary

Personally, I have no desire to buy land in Thailand. I do love growing veg, so the idea of having a small fruit and veg farm is a fantasy of mine.

That said, the heat here puts me off that idea, along with the fact that sitting on a beach will be a more appealing lifestyle when I'm 70.

My wife has a few pieces of land and, if she wants more, she's welcome to the headache. I’m more than happy to sit in the car park with the air con on typing a new post for this blog while she sweats it out in the land office queue.

Honestly, it always seems like such a long, stressful process. They still do most of the admin using pen and paper and huge log books. It’s like an insurance company operation from the 1970s.

But that's me. I know there are plenty of foreigners who love seeking out plots and funding land purchases for their partners.

My advice is this: If you want to help your partner buy land (financially), consider it a gift, not an investment of any kind.

You might get to live on the land, in a house you built, but you can never own it, despite that strange marriage rule that says you can, sort of, but not really. More on that here.

Go slowly, don’t rush in. Follow the advice set out above and don’t let anyone force your hand.

Anyway, I’ll end on this note: I once heard someone say that the key to happiness in Thailand is to rent everything and own nothing. There’s certainly a lot of good to be said for keeping things simple, that’s for sure.

As always, leave your experiences, questions and insults for me in the comments section below.

——

More Tips for Life Planning

Need help with a pension, a Will or other financial planning?

+ Connect with my trusted personal IFA using this form

Got Medical Insurance?

+ You should have. Get a quote on international cover here.

Need to send money to Thailand?

+ Go here to find out the cheapest way. Everyone is using this

The Thai Bites Newsletter
Receive my monthly roundup of posts with tips on living and traveling in Thailand.

Last Updated on

Comments Sort by : newest | oldest

  2. Tim Mullin says

    Excellent website and good, specific, digestible advice, thank you, TTL :)
    I get the can't-own-land thing, but what about a new home, just completed by a local developer? Is the 'land' issue reduced simply to trusting your fiancee with the 30 year leasehold, while the Farang owns the bricks'n'mortar...?
    Or do we not even get to own that, either?
    Your sage words would be greatly appreciated, thank you!
    Reply

    • TheThailandLife says

      Thank you Tim, and welcome. In the case of a villa or house on a development the developer sells the property with a lease. The law permits a 30-year lease term to foreign nationals but you will often see a 90-year lease advertised because the contract can be structured in such a way that allows for an extension of the lease after 30 years (30+30+30). The contract should also allow the lease to be upgraded in the event of a change in law.There are freehold properties available, which are usually part of luxury "branded" developments. They circumvent the law and have the properties within the resort registered as condominium units and therefore a percentage of the units can be foreign owned, as freehold. You can also own a freehold (standard) condominium.
      Reply

      • Tim Mullin says

        Ahh.... I see - thanks Peter!
        So the property would be in my name, but on a leasehold basis?
        thus ensuring that I don't ever technically 'own' it but to all intents and purposes have the rights to it (as long as I'm alive or for the life of the lease)?
        Khop khun khap - and also thanks for your excellent advice on UK visa for Thai GF and the marriage process!
        Tim.
        Reply

          • Russell Payne says

            Hello Thailand Life.
            I am in the UK and would like to hire you.
            Son is married tp Thai lady and lives in Thailand with land and business owned by his wife (oviously).
            Relationship has fallen apart and now very interested in this idea of leasing the land from her for 30 years.
            You are obviously th guy with the necessary knowledge and we would be keen to hire you.
            Hope youmight be available
            Reply

            • TheThailandLife says

              Hi Russell, no need to hire me, I'm happy to share advice here free of charge. You can always buy me a coffee here if you find it helpful.Can I ask: 1. Why would your son want to lease the land? Is this because he has built a house on the existing land, or wants to build a house so that he can stay there? 2. Does he need to stay there, for business purposes, or kids, perhaps?If your son plans to build a dwelling on the land, he will need to make sure that this is permitted in the deeds. Some land is designated for farming only.I don't know how amicable the break up is, or how emotionally mature his wife is, but things could become hostile if your son were to live on this land and have a new love interest move in. I don't know the ins and outs here, but I'd think very carefully about this move and whether your son will really benefit long term.If you do proceed down this route you will need a lawyer to draw up the lease contract.
              Reply

        • Hugh says

          Hi Tim,
          I've just read your posting and saw your comments to Pete ref. your g.f and trying for a U.K marriage visa.
          I've just successfully got my Thai g.f & our 2 son's to U.K last New Years eve.
          It was a long drawn out process, in some parts due to the both governments and the response to Covid etc.
          I had to use a solicitor in the end but the visa application was a success.
          If you want to contact me and discuss my / your spouse visa application "trip" please do.
          There's more to it than just applying. Proof of English speaking, your income, T.B certificate, etc
          Regards,
          Hugh.
          Reply

          • Tim Mullin says

            Thanks Hugh - that's excellent and very decent of you. I have looked at a couple of solicitors and have prepared a long letter of bona fides, for the application. i'm comfortable with providing proof of income, freedom-to-marry, etc.
            How would I contact you directly, without giving your email out on an open space like this?
            Thanks again - and to Peter for providing this forum!
            Tim.
            Reply

            • Hugh says

              Hi Tim,
              i'm glad I can possibly be of help.

              I think we'd need to go via Peter to exchange personal details etc and not display those details here.

              He's an arsenal fan so I don't know if he'd be O.K about that.

              The solicitor I used charged £1500 just to submit the application. Then the application fee is another £1560+ (pass or fail).

              The solicitor has moved to another company of Immigration solicitors so I don't know what she charges now, but I have her new details.

              Your Income is £18,600+ for G.F Any British Kids are free of fees.

              During / After the 6 months of the spouse visa, you then need to apply for another visa, the "right to remain" visa, valid for 2 & 1/2 years.
              That's another solicitor fee, another visa fee + NHS fee of £1200.

              Sending extra documents with no real relevance won't add a jot to being more successful. Probably have the reverse effect tbh.
              They just want to know the real side of your story like who's going to pay for it when it all goes t*ts up.

              My G.F was able to get all the extra stuff, i.e T.B cert & English exam from Bona Fide U.K acceptable outlets across Bangkok.

              I don't know if Chang Mai / Rai can offer the same.

              Try to sweet talk Peter into passing you my e.mail address if you need to know anything more. Not a problem for me.

              FaceBook perhaps?

              Hugh
              Reply

  3. Davide says

    Hello, thank you for the article. I’m about to purchase some agricultural land with my girlfriend. It’s good price and we are going to use it for an Agroforestry project with other people (foreigners, just collaborating from overseas universities) What could I do to protect the investment? Would be good a prenutial contract for having back the purchase money in case of divorce? Would it be better a IOU form? Thank you for your time.
    Best Regards.
    Reply

    • TheThailandLife says

      If the land is being purchased in your GF's name with your money, then it would be a very hard to get any money back if you split up. Not impossible though, as a fairly recent case suggests: https://scandasia.com/danish-man-wins-lawsuit-against-thai-wife-for-not-sharing-assets/That said, this case relates to a house and a car, both of which a foreign national can legally own. Land cannot be legally owned, unless it is purchased through a company, which is a hassle.You could have the land purchased in your GF's name and she could then lease it to you for 30 years. This is easy enough to do.I'd keep a really good money trail of all transfers and documents.
      Reply

  4. Nigel says

    I have the option to transfer the access road into my Thai wife name for 10000 baht as we're planning on buying a chunk of land that uses this road. It's also used by another 6 properties. Would this be wise or not, as servitude is already granted by the company that owns it.
    Reply

    • TheThailandLife says

      So you would be transferring it from the company to your wife, and the company would no longer own it?Seems strange. Surely the other 6 properties would still need access in perpetuity. If your wife owned the road, she could limit or ban their access. I would assume there would still be a stipulation that she has to allow these properties to have access. If this is the case, what is the point of buying the access? since you and the other 6 properties will have access in perpetuity anyway.Correct me if I'm wrong, but based on the limited detail it might be a case of: the company can't be bothered to service the road anymore, so they sell the responsibility to your wife and then she becomes responsible for all the repairs for no other benefit than it being in her name. The other properties still have access.Whatever you decide to do, have a lawyer look over the contract and get an English translation done so you know exactly what she is signing.
      Reply

    • TheThailandLife says

      Who owns the land? If your son's ex-wife owns the land then she can stipulate in a will that it is passed to her daughter. As I understand it, if she were to pass away, her daughter is a statutory heir and would be in line to inherit the land. If she has other children it will be split between them.The land can be put in her daughter's name; however, up to the age of 20, in order to sell it the court must oversee the sale to ensure the child is not cheated in any way. Does your son's daughter have a Thai passport? It might be a good idea to get one to ensure she is recognised as a Thai citizen as well as a UK citizen.Please see this post: https://www.thethailandlife.com/inheritance-law-in-thailand-tax-heirs-wills
      Reply

  7. Kev says

    A lot of information and very easy to read. I have a question regarding your due diligence. You mentioned making sure there is no loan shark waiting in the wings that was given the land for a gambling debt or similar situation. Since I’m sure that’s not exactly above board how do you check to make sure there’s no back alley loan shark waiting in the wings?
    Reply

    • TheThailandLife says

      i was referring to the deed. Who has the deed? Sometimes people get in debt and give the land deed to the bank to borrow money against the land, or to a loan shark to secure a loan. When they can't pay the loan back they need to sell the land quickly to pay off the loan. But will the sale cover the entire loan? If not, the bank or loan shark isn't going to give up the deed. Just avoid getting into any situation like this.Make sure the seller has the deed. Make sure the deed covers what you want the land for (does it allow building on the land? Is it only agricultural land? Is it full ownership rights?) There are many types of deed in Thailand. Make sure the seller is able to go to the land office with your partner and process the purchase officially.And always remember that if you are funding the purchase for a partner consider the money gone, forever. Only give what you can afford to lose. You will have zero rights over this land.
      Reply

    • May says

      My Scottish partner bought land in Thailand before he married his Thai wife she robbed him dry had a baby after telling him she couldn’t have children ! Got him to take her and there son to Scotland!! Then left him within a year and had another baby to her new boyfriend!!! Where does he stand with the land he bought in Thailand?
      Reply

        • Holly says

          My boyfriend is Thai, I'm from the UK. We are considering buying land and building a house. He thinks he will be able to get a mortgage. Best case scenario he can get an adiquite amount and we can split the mortgage each month. The payments would be similar to what we pay in rent, so no big deal. However, I think the mortgage he would get would be about half of what is required. I have savings which would cover costs outright but it would be my life savings which is a major risk if nothing would be in my name. Is there a way we can make it legally half and half? Like if I buy the land through a company in cash and he uses the mortgage for the building costs?
          Reply

          • TheThailandLife says

            Hey Holly,My opinion is that you should not use your life savings to do this.Do you mean a loan or a mortgage? Generally a mortgage is on an existing property, not one that you intend to build. What banks generally offer in this case is a construction loan for the build, often interest only, which then converts to a mortgage once construction is finished.That aside, even if you were able to acquire the land, you BF would still own the house, which would mean that if you broke up, you'd have to go court to find a solution to having him move out of the house so you could sell the land. Or you'd have to lease him the land so he could stay in the house.In this situation, you would most likely be at an impasse, and one that would potentially take years through the courts if he made it difficult for you. You'd have to A. either buy the house off him, or B. have him removed from your land, in which case he would have the right to destroy the house or at least dismantle it and salvage what he could (because he owns it). It's a bad arrangement.In any case, setting up a Thai company to do this isn't straightforward and would require ongoing admin and accounting. And the company doesn't legitimately exist for anything other than buying land, which is problematic in itself.Although you can't own land in Thailand (except through the company route), you can own a house. A foreigner can secure a lease from a landowner to achieve this. But you're in a situation where you aren't buying in cash.Be very careful. You will most likely end up putting money into this and never seeing it again. Is your current rental situation that bad? Could your BF not save a few more years before getting a house to save you putting your life savings on the line?
            Reply

  8. Phill says

    Hi,
    Thanks for your informative article.
    Just wondering if you have any advice or knowledge on this ....
    My thai partners parents have a rural farm and to my knowledge they do not have proper title.... as do many of the families in rural villages in Thailand.
    Since the military government got in they live in fear of loosing there land where they grow there rice etc etc for a living.
    From my information the land purchases in these areas are all done via the head in the village... probably with kick backs no doubt.
    There seems to be never ending village meetings about the land use and what they should.... so one day the government may grant them proper title on there land.
    Just recently my partner said she sent some money to her parents ( as she always does and we live 100kms from there) but this time it was for them to buy a few hundred mango and coconut trees to plant on the land.
    Obviously I asked why.... response was that her parents were told by the ranger there that if they planted trees they would be seen on the satellite images of the area and that might help them in the future to gain title to the land.
    Other villages are now doing the same.
    I of course couldn’t see how this was going to make a difference and what right has some ranger got to further put fear into these people as it seems to be an on going thing.
    I am not sure what the future holds for these poor farms to obtain proper titles as the news of such has dried up....if the Thais cant get proper answers what chance has a farlang got.
    Your thoughts
    Reply

    • TheThailandLife says

      Have you clarified that they have absolutely no document for the land at all? Maybe some form of notification that gives the right to farm the land?

      If your girlfriend's parents have been issued a tax number and have made tax payments from earnings earned from farming this land then they may be entitled to a possessory right deed. Even though these rights do not entitle them to full ownership of the land it does give them formal notification that they are in possession of the land for a particular purpose.

      The problem is that there are hundreds of thousands of people in Thailand in the same position and buy and large people just live out their lives without any hassle or doing anything about it. This is because in times past families simply occupied bits of lands and the community decided on the boundaries. But as Thailand has developed and rural areas have become thriving towns, families come up against local development plans - usually to build roads through certain areas of land - which ultimately displaces people.

      It's a double-edged sword really, because the most sensible thing to do is to seek legal advice to determine the exact legal status of the land. A lawyer would also be able to advise you on the steps required to make a legal application for some form of ownership, which is certainly possible. However, this requires money. Most Thais who are in this position are usually un ueducated and somewhat fearful and anxious of dealing with a lawyer and the bureaucracy that lay ahead.

      On the other side, going down this route may open a box that is better left shut, because you will essentially be notifying the land office that you are living on land that you don't legally have a right to. But then you also live with the fear that one day you may simply be kicked off the land anyway.

      What can happen is that a fairly wealthy person in a particular village will end up doing a deal with local government and the land office to buy a large piece of land in the village and obtain an official deed, which ultimately displaces a number of neighbours who don't have a right to be on the land.

      The fact that her parents are growing trees or vegetables on the land would only make a difference if they are paying tax on the money they are earning from the sale of that food - because this would enable them to get the aforementioned possessory right. I quote: A land with a possessory right has never been substantiated by the Land Department, and is only recognized by tax payments at the Local Administrative Office.

      The problem is that many people never register for tax, and wouldn't want to. But I would argue that this is the sensible thing to do because it legitimizes your use of the land and gives you some claim on the land, albeit a weak one. It might also prove to be a stepping stone to some form of deed in the future.

      Without truly knowing what the status of land is in this particular village I can't really speculate further.
      Reply

  9. Jack Diver says

    Great article. My Thai gf wants to buy a piece of land in Udon Thani. She

    says it only costs 60,000 baht and of course she wants me to give her the

    money. We live in Kamala Beach, but she is from Udon Thani.

    I am very skeptical about the price, and I know nothing about this land.

    Your thoughts, thank you.
    Reply

    • TheThailandLife says

      There are so many questions:1. Who is the seller, why are they selling? 2. What deeds does it have? This will determine what can and can't be done with the land. 3. Any debt charges on the land? 4. Is it filled in with soil? If not, to do this will cost more than the land itself 5. Location: near a paved road, shops? 6. How problematic will it be to plumb in water and electricity if you wanted to build on the land? 7. How big is the land and ho does the price compare to other land being sold in the area?To be fair, 60k is not much at all so I'd imagine it is either a very small piece of land or in an undesirable location.At the end of the day, if you give her the money you have given the money away. It will only benefit you if you get to live on the land or farm it for some free veggies and fruits. Even if you build a house on the land, the land is hers.Only ever lend/offer/pay what you can afford to lose. This is a good motto to live by in Thailand in my opinion.
      Reply

    • AndyPat says

      research research research Jack. It will pay dividends. Don't jump in at the first opportunity, often something better comes up. Talk to everybody you can about the local property market, and find out what's on offer. As Peter has said, we farang cannot own land, so kiss the money/land good by and consider it a present. Not that it is such a bad thing, from where I come from in Australia we are rich by comparison to the thais, and why not gift a little bit of our wealth or earning capacity? Good luck mate! PS if u smell a rat..keep walking..
      Reply

  10. Brian says

    Thanks for the interesting piece. My Thai wife and I have just started looking for a small plot of land to build a home. Thought that Prachuap Khiri Khan would be a reasonable place, not too far from Bangkok. Absolutely shocked at asking prices around Pran Buri. Farmland 10-15km from the sea and civilization with zero amenities asking for THB 2-3 million per Rai (6k-7k per sq wah). One broker showed us a site 5km down a dirt road 10km away from Pran Buri train station for THB5m per rai. I started laughing thinking he was joking, turns out he wasn’t. This is madness!!
    Reply

  13. Christopher Woodward says

    Avoid. Thai women and buying land with them and building a house at all costs. Ive known my friend for 12 years and 2 years ago we done just that so I could retire there. I trusted her implicitly now she dump me and left me with nothing after putting all my retirement funds into the house.
    Reply

    • TheThailandLife says

      Sorry to hear of your situation. This is the reason I created this post. The simple rule of thumb is that foreigners can't own land in Thailand. So when a friend, GF/BG asks you to invest in land to build a house on or as an investment, you have no rights to that land. You are essentially giving that person the money to buy land for themselves. If they decide to let you live on that land or in that house it's up to them. Of course, you can purchase land through a business, but this isn't a viable route for most. Or you can do a 30-year lease agreement with your friend/partner.
      Reply

  14. Pilinka Wiseman says

    I have been offered the opportunity to go in halves on a small piece of land with a Thai friend. There is no address for it, but she said if we build on it it we can get the address and then will be able to hook up electricity. Does this sound suspect?
    It is small; 20 meters by 22 deep, by 5 meters, so a triangle. In Phuket, and the price is good. But I am concerned about "getting an address" to be able to hook up electricity.
    At this point, with a Thai friend it is pretty much a gamble more than anything else!
    Thoughts?
    Reply

    • TheThailandLife says

      The first question is does it have a freehold title deed (chanote)?The second is what do the deeds say about building on the land? Some land can't be built on and only farmed. There may be other restrictions.You should never buy land in the hope that you can build on it or connect electricity, as these things may be restricted. Moreover, what would the cost be of connecting the electricity? Additionally, you may buy the land, build on it and do as you please without a soul saying anything. Then, a year or two down the road a man from the land office turns up and orders you to knock the building down. Worse still, gives you a letter explaining that the local council is building a road through your land, and you have no rights to it so you won't be compensated.Does the land require soil? This can be costly; often more than the price of the land.Is there a debt on the land?Before even thinking of handing over a Baht, pay a local lawyer to investigate the status of the land and provide a report in English for you.
      Reply

  15. Steve Fawcett says

    Hello,
    Where do lawyers come in to buying land and /or property or do they not ? And.....
    As with most farangs buying anything they haggle or make an offer, is this the same? with land/property
    I'm looking to move here this year selling up in UK, been having a quick look at some land/property a land office visit seems a good tip
    Thx
    Reply

    • TheThailandLife says

      Lawyers don't generally come into person-to-person land sale because most people don't want the extra expense of a lawyer. Also, in Thailand the exchange of land is done at the local district office, where the selling party signs over the land to the buyer and the deed is updated to reflect the sale. The relevant land taxes are also paid depending on the sale amount. So it's all official and above board anyway. Despite this, any foreigner looking to buy property should certainly engage a lawyer to check the history, the deeds and the official status to ensure everything is above board. Foreigners generally can't buy land anyway, unless it is through a company. Personally I'd hold onto your UK assets and rent in Thailand. It's a whole lot cheaper and it ensures you still have a home to return to back home, should things go awry - which they do for some.
      Reply

    • TheThailandLife says

      Do you mean that in your company your wife is the 51% majority shareholder?I'm not 100% sure but I think your wife's shares would need to be transferred to a new shareholder. This is how it works in reverse, if you were to pass on, as stated below:Should a foreign director in a Thai limited die the shares (and thus the assets) and control in the company will not automatically transfer to the heirs. Officially, in a normal company, a general meeting of shareholders must be called and a shareholder decision is needed to appoint a new director. The shares (and the most important position of managing director of the company) of the deceased must be transferred at the Ministry of Commerce, however, without the managing authorized director able to sign on behalf of the company this is less simple. It may be recommended to have more than one director in the company and/ or someone authorized to sign on behalf of the company.
      Reply

  17. David Tucker says

    Hi Peter, noticed there's a fellow Canuck who apparently lives in Nam Som that wanted to connect via email. (Bruce).

    Not sure of the protocol, but I am fine with you providing him my email.

    Happy New Year.
    Reply

  18. Vince says

    Purchased land 19 years ago for my wife, have chanote but unsure what number. It clearly states LAND ONLY no buildings included
    A house and large garage were on the land.Strange to me.
    If we sell how do we recover value of initial buildings plus an addition we had installed. My wife says we can only sell at the land value about 5lie
    Comment please
    Reply

    • TheThailandLife says

      People often build on land that isn't allowed to be built on. Depending on where it is and whether it is tolerated by locals the authorities will turn a blind eye, especially for a little palm greasing. But yes, the buildings won't be worth money because no one would pay for a house that could be ordered to be torn down at any moment.
      Reply

  19. Angelo Schneider says

    Thank you for the land post. I actually was looking for the legal thai term for the 30 year lease. I tried to explain to my fiancé but she simply does not grasp that I can not own land :D does not know about the lease/deeds in the land registry.Thank you!
    Reply

  20. Col says

    Thank you for this information, brilliant. Maybe within the next 12 months I shall be looking at a purchase but I want to ensure the best I can I won’t be going down the river without a paddle.
    The information I’ve read has been Fantastic and thank you for that.
    Reply

  21. Captain says

    Hi I am wondering about the Moo Baan option...can you own the house but not the land in one of these or do you just lease the house? I thought I read a long time ago that you actually don't own the land in the Moo Baan so can own the house - is that correct?
    Reply

    • TheThailandLife says

      As I point out in the post, this depends on a multitude of factors: Does it have road access? Water and electricity access? Is it near a main road? Shops? Can the land be used to build property on? Has it been filled in with soil or does it need soiling (factor this in as it can be quite expensive)?Look at the going price for similar land in the area. But still, at the end of the day, the land is worth someone is prepared to pay. There are general guidelines but it's a lot more "wild west" than the UK.
      Reply

  23. David says

    Interesting article. Next time I am back, will check on the land values in our area. Have 7 rai about 10km along road 2021 (turn left on rd. linking Udon to Nong Khai). Main road was widened about a year ago with direct access to our land; have electricity and water. Land is chanote. Fish pond, couple of rice plots, fruit trees and two structures.

    Thai man next to us (quite wealthy and family friend) owns 55 rai.
    Reply

    • Bruce says

      Hello David, I’m Canadian, and have a Thai wife further down the road from you in Nan Som, would be interested in sharing experiences with you. I’m in Thailand now in January, if you’re interested contact me thru email [email removed due to site policy. Contact can be arrange through the admin. Requests to be made via the contact form].
      Reply

  24. David says

    Thanks for the information on land purchase. I am an active investor, and interested in real estate both in the States and in Thailand. From my experience your information is spot on. I am an american with a Thai wife and we have purchased a few pieces of land and flipped a couple of houses in Prachuap Khiri Khan. All of it has worked out very well but we do our due diligence, love real estate, and are constantly learning .
    As with any venture in life it is two steps forward and one step back but when the right deal appears I am quick to pull the trigger. Our #1 rule is to make sure we don't over pay (we think) and look to pay at least 25% less than the value. There lies the true conundrum in Thailand, determining value. Most of the land in our area is owned by wealthy people from Bangkok and the trick for us is uncovering who the owners are, and recognizing an excellent deal when it presents itself.
    The Thai's get a bad rap at times but my wife has transformed herself from a village farm girl to an excellent investing partner and very shrewd negotiator.
    My advice is the same as yours, go slow get some advice, look at a LOT of properties and pull the trigger fast when the right one appears but that's the same advice I would give anyone looking to purchase a real estate anywhere. Good Post Great Blog
    Reply

  25. JOHN R LAWRENCE says

    Thank you very much for your very informative piece of literature on buying property in Thailand. I agree with everything you have mentioned. My wife is just about to go ahead and purchase some rice land for a build. The process can be very daunting for westerners, as we tend to go through all the finer details which as you said, alot of Thai's really don't go into as we do, but saying that, with the 30 year lease law allowing myself to live in the property until my death I am more than happy to go ahead with my wife's purchase. Sometimes in life I think you just have to make a decision and go for it. I don't want to spend my retirement in the UK, a country that has nothing to offer me anymore. In a way if the UK followed a few land laws of Thailand instead of every foreigner buying up all the property's the UK might be a better place to retire, but all it seems to offer the older generation is a lifetime of high costs in every way.
    Kind Regards
    John R Lawrence
    Reply

    • TheThailandLife says

      I don't blame you John, the UK has turned on its own people and treats the elderly with contempt. Its sickening, since these are (generally) people who have given huge service to the country through industry and taxes. Why not retire elsewhere and "go for it", as you say. Have an adventure. My one piece of advice would be to be shrewd with money. Thailand has a way of parting people with their money, and the last thing you'd want would be to end up in the UK in 10 years with nothing to show for your adventure. All the best!
      Reply

    • TheThailandLife says

      Only if you are renting it out, I think. The current law is as follows:Thailand currently has a house and land tax of 12.5% of assessed rental income or of assessed value, whichever is higher, with an exemption for owner-occupied houses. Local governments may also impose a development tax ranging from 0.25% to 0.5% of the assessed value of land. Owner-occupied houses are exempt from this tax as well.
      Reply

  27. Rinky says

    I notice you avoided the contentious questions and issues over usufruct - some see it as a neat solution to the land ownership conundrum; others see it as a can of worms waiting to be opened further down the line - but you could say that about the dual-nationality issue, where the de facto situation seems to hold sway over any technicalities that could, hypothetically cause problems for people further down the line (including foreigners who think they have acquired Thai citizenship, and have made legal statements of intent to give up their original foreign citizenship). Not directly related, but can have relevance. In all these things, as you suggest, plan your exit strategy first, and build a loss-cutting short-cut to peace of mind into your plans. There are pith-takers everywhere when it comes to property and legal rights, even in the more regulated and sophisticated "west", it's just maybe that people feel more certain of some rights or recourse than in a place like Thailand... Caveat Emptor and KISS, but don't avoid things just for the sake of problems that may never happen. Choose friends and partners wisely, and integrate yourself into a potential support network, because it's that that is your best insurance policy of all.
    Reply

  28. Hugh says

    Hi,
    My girlfriend has given birth to our son last week.
    Can I (as a Farang) legitimately buy land / property etc and put it all in my son's name?
    He was born in a Bangkok hospital.
    A bit like getting his inheritance early, but he just doesn't need to know that at the moment. And I'm not dead yet.
    Also, should there be a divorce (or untimely death) of the unmarried parents, it wouldn't matter would it?
    What's the Thai bureaucracy got to say about that? I know what the g.f thinks.
    Reply

    • TheThailandLife says

      Usually the mother would register the land in her name and then after a period of time transfer it to the child. However, the land office has the discretion to decide if they want to allow the land to be registered in the child's name.

      The thing is this: the child will have no real rights over the land until 20 years old. The land will essentially be in trust, but the mother would still have the authority to sell the land or use it as collateral to take out a loan. The only positive aspect is that your wife's family wouldn't have an inheritance claim against the land if your wife died.
      Reply

  29. Frank says

    Your info looks pretty accurate according to my experience. I have a couple questions, maybe you can give advice on? (sorry your contact form didn't appear on the contact page) I bought some undeveloped land there several years ago using the Thai company method. We have stayed up to date with annual statements etc so to my knowledge all is in order. Now I have someone interested in buying (a Thai National, maybe a developer). They have contacted me through the lady who does our annual statements. The prospective buyer keeps asking for copies of the chanote (Nor Sor 3 Gor) to check at the land office, presumably for clear title. Is it normal to do this before making an offer? Should I be concerned about showing them the chanote and attached Thai company papers?

    Many Thanks if you can advise or point me to someone who can.
    Reply

  30. Jorgen says

    Hi, great info thanks.
    We, my thai-wife and me (farang) live in Europe. Have found land we want to buy but can only pay 50% cash. Any way to loan the rest in Thailand?
    We will first build house on the land in 3-4 years when I stop working.
    Reply

    • TheThailandLife says

      Your wife would be able to get a loan if she had assets to secure the loan with, such as a house or business. But I wouldn't advise that. I think you would be better placed to save a bit more money, or find some cheaper land. I'm willing to bet you can probably negotiate 10-25% off the price anyway.
      Reply

  32. Tezza says

    Thankyou vmuch for your site. I got married last month! The Bangkok bit was easy but it took 4 days to to finally see the top boy at our Ampur to get it signed and sealed. Your site says v owning land... what are the requirements to open a Thai registered co? Keep shining kop kun mak mak Tezza
    Reply

    • TheThailandLife says

      Congrats on getting married!To open a company isn't very straight forward. To open a a limited company, at least 51% must be held by Thai nationals. The remaining shares can be held by you. However, it is still possible for you to maintain control of the company. As the director, you would be the only one authorized to sign anything on behalf of the company, and the individual shareholders are only liable to their percentage of shares. If the company is established only to hold property, you'll need 1M THB as capital. Though you don't need to have this amount of money to start, it is merely the limited liability of the company.
      Reply

  33. ajay says

    yes i would have to agree on most of the things you have mentioned here well said ,and i always laughed and have said to people along the way, the best business in thailand is no business..haha for me anyway, why buy or build, when rent is extremely cheap and hassel free, and at the end of the day you can simply walk away from it scot free...


    '
    Reply

  34. Tom says

    I'm on Koh Samui now looking for just a place to rent. You're goddamn right that the beachfront areas are more than other places. It's not like you're going to run across a piece of land or house on a gorgeous beach that's just hanging about because you were the first human to ever wander by.
    Reply

Leave a Reply

Your email address will not be published.

 

Send this to a friend