Thailand Land Code Section 96 bis: The 40M THB Investment Exception

Understanding Section 96 bis

While Thailand's Land Code Section 86 prohibits foreigners from owning land, Section 96 bis creates a narrow exception for foreigners who make substantial qualifying investments in Thailand. This provision, added to the Land Code in 1999, was designed to attract high-net-worth individuals while maintaining tight controls on foreign land ownership.

It is crucial to understand that this exception is rarely used and rarely approved. The requirements are stringent, the approval process is discretionary, and the permitted use is strictly limited to residential purposes. Most foreigners seeking property in Thailand use leasehold structures instead, as covered in our 30-Year Leasehold Guide.

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Land Code Section 96 bis - Full Text (Official Translation)

"An alien who brings into the Kingdom foreign currency not less than forty million Baht or its equivalent to invest in prescribed categories of business that are beneficial to Thailand's economy and society may apply for permission to acquire land for residential purpose, which shall not exceed one rai."

"The permission under paragraph one shall be granted by the Minister with approval of the Cabinet."

"The categories of business, period of investment, conditions, and procedures for applying under paragraph one shall be prescribed in the Ministerial Regulation."

Plain English Explanation

A foreigner who brings at least 40 million THB (~USD 1.1 million) into Thailand and invests it in government-approved business categories may apply to purchase up to 1 rai (1,600 square meters) of land for residential purposes. The Minister of Interior must approve each application, with Cabinet endorsement. This is not an automatic right - it is a discretionary privilege.

Qualifying Investment Categories

The Ministerial Regulation under Section 96 bis specifies which types of investments qualify. The investment must be in one or more of the following categories and must be maintained for at least 5 years after receiving land ownership approval:

Approved Investment Categories

Thai Government Bonds - Bonds issued by the Thai government or state enterprises guaranteed by the Ministry of Finance

BOI-Promoted Companies - Investment in companies that have received promotion from the Board of Investment (BOI)

SET-Listed Equities - Investment in companies listed on the Stock Exchange of Thailand (SET)

Real Estate Investment Trusts - Investment in registered Thai REITs

Capital of Thai Companies - Investment in the paid-up capital of private Thai limited companies engaged in beneficial activities

Investment Must Be Maintained

The qualifying investment must be maintained for at least 5 years after land ownership is granted. If the foreigner disposes of the investment or fails to maintain the minimum threshold during this period, the Land Department may require the land to be sold within 180 days to 1 year. The investment is not a one-time payment for land - it is an ongoing commitment to investing in the Thai economy.

Step-by-Step Application Process

Applying for land ownership under Section 96 bis is a multi-stage process involving multiple government agencies. Expect significant documentation requirements and a lengthy timeline.

Bring Qualifying Funds into Thailand

Transfer at least 40 million THB (or equivalent in foreign currency) through a licensed Thai bank. Obtain a Foreign Exchange Transaction Form (FETF) as proof of the international transfer. The funds must be converted to Thai Baht.

Make Qualifying Investments

Invest the 40 million THB in one or more of the approved categories (government bonds, BOI companies, SET stocks, etc.). Obtain documentation proving the investments including certificates, confirmations, and account statements.

Prepare Application Documents

Compile required documents including: passport copies, FETF, investment certificates, land survey documents (Chanote) for the target property, proof the land is within permitted residential zones, and a statement of intended residential use.

Submit to Provincial Land Office

File the application at the Provincial Land Office where the target property is located. The Land Office will conduct initial review and forward qualifying applications to Bangkok.

Department of Lands Review

The central Department of Lands reviews the application for completeness and compliance with requirements. They may request additional documentation or clarification.

Ministerial Review and Cabinet Approval

If the Department recommends approval, the application goes to the Minister of Interior, who then seeks Cabinet endorsement. This is a discretionary decision - meeting the requirements does not guarantee approval.

Land Transfer Registration

Upon approval, the foreigner can complete the land purchase and register ownership at the Land Office. Standard transfer fees and taxes apply (approximately 6-7% of appraised value).

Success Rates and Expectations

Section 96 bis applications are uncommon, and public statistics on approval rates are limited. Based on available information and legal practitioner reports, the following observations apply:

Low

Application Volume

12-24

Months Timeline

Years Investment Lock

Discretionary

Approval Decision

Most Thai legal practitioners advise clients that Section 96 bis is theoretically available but practically difficult. The combination of the high investment threshold, discretionary approval process, residential-only limitation, and 5-year lock-up period makes it unattractive compared to leasehold alternatives for most foreigners.

Expected Timeline

1-2 months

Fund transfer and investment placement

2-3 months

Document preparation and legal review

3-6 months

Provincial Land Office and DOL review

6-12 months

Ministerial and Cabinet consideration

1-2 months

Land purchase and registration (if approved)

Restrictions on the Land

Even if approval is granted, the land ownership comes with significant restrictions:

Residential Use Only: The land must be used for the foreigner's personal residence. Commercial use, development for sale, or rental operations are not permitted.
Maximum 1 Rai: A foreigner cannot accumulate more than 1 rai total under this provision, even if they make multiple 40M THB investments.
Location Restrictions: The land must be in a zone designated for residential use. Agricultural land, forest reserves, and certain other categories are excluded.
Disposal Requirement: If the foreigner no longer meets the requirements (e.g., sells the investments, loses permanent residence status), they may be required to dispose of the land within a specified period.

Comparison with Other Options

Given the difficulty and restrictions of Section 96 bis, most foreigners choose alternative structures. Here is a comparison:

Factor	Section 96 bis	30-Year Leasehold	Condo Ownership
Ownership Type	Freehold	Leasehold	Freehold
Capital Requirement	40M THB + land cost	Lease cost only	Unit cost only
Approval Process	Ministerial + Cabinet	Land Office registration	49% quota check
Timeline	12-24 months	1-2 weeks	1-2 weeks
Duration	Permanent (if conditions met)	30 years maximum	Permanent
Use Restrictions	Residential only	Per lease terms	Per condo rules

Common Questions

Can I use Section 96 bis for a holiday home?

Technically, the land must be for your "residence." There is no explicit requirement that it be your primary residence, but using the provision for an occasional-use property may raise questions about whether you are meeting the spirit of the law. Consult a Thai attorney about your specific situation.

What happens if my investments decline in value?

The requirement is to invest 40 million THB; there is no explicit requirement that the value remain at 40 million THB after market fluctuations. However, if you dispose of the investments (sell them), you would fail to meet the requirement. Seek legal advice on portfolio management during the 5-year holding period.

Can my spouse or children inherit the land?

Inheritance follows Section 86 of the Land Code. If your heir is a foreigner who is a "statutory heir," they may inherit the land but must comply with the limits in Section 87 and may need to dispose of excess land. A Thai spouse could potentially inherit under normal Thai inheritance rules.