The Fundamental Prohibition
Thailand maintains one of the strictest land ownership regimes in Southeast Asia for foreigners. Unlike some neighboring countries that have loosened restrictions to attract foreign investment, Thailand has consistently upheld its prohibition on alien land ownership for over a century.
The prohibition is not a regulation, administrative guideline, or policy preference. It is a fundamental provision of the Land Code (B.E. 2497 / 1954), Thailand's primary legislation governing land rights. This means it can only be changed by an act of the National Assembly - not by ministerial decree or administrative action.
Land Code Section 86 - Full Text (Official Translation)
"Subject to Section 84, an alien who acquires land as a statutory heir may own such land, but the total area of land owned by such alien including the land already owned, if any, in that sub-district (tambon) must not exceed the limit provided in Section 87."
"If an alien acquires land in excess of the limit in paragraph two, he shall dispose of the land in excess of the limit within the period prescribed in Section 94. If he fails to comply therewith, the Director-General shall have power to dispose of the land as provided in Section 94."
Paragraph 1: Foreigners cannot acquire land unless there is a specific treaty
between Thailand and their home country that grants this right. Currently, no such active
treaties exist for land ownership purposes.
Paragraph 2: The only exception is inheritance. If a foreigner inherits land
from a Thai relative (as a "statutory heir"), they may own that land - but only up to the
limits specified in Section 87 for residential purposes.
Paragraph 3: If a foreigner ends up with more land than allowed (through
inheritance), they must sell the excess within the timeframe set by Section 94, or the
government will sell it for them.
Historical Context: Why Thailand Prohibits Foreign Land Ownership
Thailand's restriction on foreign land ownership has deep historical roots tied to the country's unique position as the only Southeast Asian nation never colonized by a Western power.
The Colonial Era Concern (1850s-1940s)
During the height of European colonialism in Southeast Asia, Thai monarchs observed neighboring countries losing sovereignty partly through foreign economic control of land and resources. The British controlled Burma and Malaya; the French controlled Indochina (Vietnam, Laos, Cambodia). Thailand's rulers strategically maintained land in Thai hands to preserve economic independence.
Post-WWII Consolidation (1954)
The current Land Code was enacted in 1954 (B.E. 2497), codifying restrictions that had developed over decades. The legislative intent was clear: ensure that Thailand's agricultural and residential land remains under Thai control and ownership.
Modern Economic Pressures
Despite periodic proposals to allow foreign land ownership to boost foreign investment - particularly in tourism and retirement sectors - successive Thai governments have maintained the prohibition. The concern remains that allowing foreign ownership would price Thai citizens out of their own land market, particularly in desirable coastal and urban areas.
The Treaty Exception: Does It Help Any Foreigners?
Section 86 mentions "the provisions of a treaty giving the right to own immovable properties." This refers to historical treaties, primarily with Western powers, that existed during the colonial era. However, these treaties have effectively become dormant for practical purposes.
Current Treaty Status
While certain historical treaties technically remain on the books, the Land Department does not currently process foreign land ownership applications based on treaty rights. U.S. citizens sometimes inquire about the Treaty of Amity (1966), but this treaty applies to business operations under the Foreign Business Act - not to land ownership under the Land Code. The Treaty of Amity does not grant Americans the right to own land.
What About Thai Companies with Foreign Shareholders?
A common misconception - and illegal workaround - involves foreigners forming Thai limited companies with Thai "nominee" shareholders to purchase land. This structure is explicitly illegal under multiple Thai laws:
Criminal Penalties for Nominee Structures
Land Code Section 111: Acquiring land as an agent for an alien is punishable by
up to 2 years imprisonment and/or fines up to 20,000 THB.
Land Code Section 113: Thai persons who allow their name to be used for aliens
to acquire land face the same penalties.
Foreign Business Act Section 36: Nominees helping foreigners circumvent FBA
restrictions face up to 3 years imprisonment and fines up to 1,000,000 THB.
2024-2025 Enforcement: Thai authorities have conducted major crackdowns in
Phuket, Pattaya, Koh Samui, and other areas, with 23 convictions in a single September 2024
case, 231 arrests in the May 2024 "Operation Nominee Sweep," and ongoing prosecution of
over 860 cases with estimated damages exceeding 15 billion THB.
ASEAN Country Comparison: Foreign Land Ownership Rules
Thailand's restrictions are among the strictest in the region, though not unique. Here is how other ASEAN countries handle foreign land ownership:
| Country | Freehold Land | Condominium | Notes |
|---|---|---|---|
| Thailand | No (general rule) | Yes (49% quota) | Section 96 bis allows 1 rai with 40M THB investment |
| Vietnam | No | Limited | 50-year leasehold for apartments; land cannot be owned |
| Indonesia | No | Limited | Hak Pakai (right to use) up to 80 years; no freehold |
| Philippines | No | Yes (40% quota) | Former Filipino citizens may own up to 1,000 sqm residential |
| Malaysia | Limited | Yes | Minimum price thresholds; state approval required |
| Cambodia | No | Yes (70% quota, 2nd floor+) | 99-year leasehold available; strata title for condos |
| Singapore | Limited | Yes | Restricted property requires approval; condos generally open |
Legal Alternatives for Foreigners
While freehold land ownership is prohibited, Thai law provides several legitimate structures for foreigners to secure long-term property rights:
1. Registered Leasehold (30 Years Maximum)
Under Civil and Commercial Code Sections 538 and 540, foreigners can register a lease for up to 30 years at the Land Office. When properly registered, the lease is enforceable against future owners of the land. This is the most common structure for foreign property control.
Read our complete guide to 30-Year Leasehold Structures →
2. Superficies (Building Ownership on Leased Land)
Civil and Commercial Code Sections 1410-1416 allow foreigners to own buildings or structures on land they do not own. Combined with a registered lease of the underlying land, this provides robust protection for the building investment.
3. Condominium Ownership (49% Foreign Quota)
The Condominium Act allows foreigners to own condominium units freehold, but the total foreign ownership in any single condominium project cannot exceed 49% of the total sellable area. This is the only true freehold property ownership available to most foreigners.
4. Section 96 bis Investment Exception
Foreigners who invest at least 40 million THB in qualifying Thai assets can apply for permission to purchase up to 1 rai (1,600 square meters) of residential land. This requires ministerial approval and is rarely granted.
Read our complete guide to the Section 96 bis Exception →
5. Usufruct Rights
A usufruct grants the right to use property and collect its fruits (income) for a period or for life. While the foreigner does not own the land, they have protected rights to occupy and benefit from it.
Quick Reference Card: Foreign Land Ownership in Thailand
Frequently Misunderstood Points
"I'm married to a Thai citizen - can I own land?"
No. Marriage to a Thai citizen does not grant a foreigner the right to own land. When a Thai spouse purchases land using marital funds, the foreigner must sign a declaration confirming they have no claim to the land. The land is registered solely in the Thai spouse's name.
"Can I own land through a Thai company?"
A Thai company with majority Thai shareholders can own land. However, if the Thai shareholders are "nominees" who do not genuinely own and control their shares, and the structure is designed to allow a foreigner to control land, this is illegal. The 2024-2025 enforcement actions have specifically targeted these structures with criminal prosecutions.
"What about long-term residence permits?"
Permanent residency, Thai Elite membership, LTR (Long-Term Resident) visas, and other immigration statuses do not grant land ownership rights. Land ownership is governed by the Land Code, not immigration law. These are separate legal frameworks.
"Can I inherit land from my Thai spouse?"
Section 86 paragraph 2 allows a foreigner who is a "statutory heir" to inherit land, but only within strict limits. The foreigner must dispose of any land exceeding the permitted area within one year. Most inheritance situations result in the foreigner having to sell the land.
Related Guides
Section 96 bis: The 40M THB Exception
How to qualify for the investment-based land ownership exception
30-Year Leasehold Structures
The standard legal structure for foreign property control
Nominee Structure Risks
Why nominee arrangements are illegal and prosecuted
Enforcement Tracker
2024-2025 nominee crackdown updates
Thai Legal Hub
Complete guide to Thai law for foreigners