How to Buy and Own Land in Thailand: Leasehold, Investment Vehicles, and Upcountry Opportunities
Introduction: Land Ownership in Thailand — What’s Possible and What’s Not
Thailand’s tropical climate, fertile plains, strategic ASEAN location, and investor-friendly tax regime have long attracted international interest — not just in condos and villas, but increasingly in land.
However, owning land in Thailand is different from other global real estate markets. Foreigners are not permitted to directly own freehold land in their name, which leads many to ask:
Can I buy land through a Thai company?
- Is leasehold a viable long-term option?
- Are there legal ways to control farmland, orchards, or commercial plots?
- How do Thai laws affect inheritance, resale, and development?
- This article provides clear answers. Whether you're considering buying farmland in Chiang Rai, an industrial plot in Rayong, or a beachfront commercial site on Koh Samui, we break down:
Leasehold vs freehold
- Thai company structures
- Legal pathways for foreign ownership or control
- Upcountry opportunities: why farmland is attracting savvy investors
- Commercial ownership strategies
- Risk factors and how to mitigate them
- Why consulting experts is crucial at every step
- Chapter 1: What Foreigners Can and Can’t Do — The Legal Framework
Can Foreigners Own Land in Thailand?
In short: No, not directly. Thai law under the Land Code Act prohibits foreigners from owning land in their personal name. However, there are legal workarounds that allow foreign investors to control, lease, or benefit from land assets through other means.
Four Common Ownership Structures:
Leasehold Agreements
- Thai Majority Company (Limited Company)
- BOI-Approved Investment Structures
- Thai Nominee (not recommended or legal)
- Chapter 2: Leasehold Land — Secure Long-Term Control Without Ownership
How Leasehold Works
A leasehold allows a foreigner to lease land or property for up to 30 years, with the possibility of renewing for two additional terms (up to 90 years total in theory). Leases are registered with the Land Department, giving the lessee enforceable rights.
What You Can Do on Leasehold Land
Build a home or develop the land
- Rent out the land or buildings
- Sell the lease (with consent)
- Include the lease in a will or estate
- Ideal Use Cases
Building a retirement home on upcountry land
- Setting up a resort or eco-lodge
- Farming or agriculture operations
- Leasing commercial plots near highways or industrial zones
- Leasehold Risks and Limitations
Thai law doesn’t guarantee renewals
- Mortgages are hard to obtain
- Improvements (like buildings) belong to the landowner after lease ends
- Resale value may be lower than freehold properties
- Chapter 3: Owning Through a Thai Company — Freehold With Structure
Thai Limited Company with Majority Thai Ownership
A common strategy involves setting up a Thai Limited Company where the foreigner is a minority shareholder (49%) and Thais own 51% or more. If structured legally and with a genuine business purpose, the company can buy land in Thailand.
Legal and Practical Considerations
The company must be genuinely operational
- All shareholders must be verifiable (not nominee fronts)
- Annual audits and taxes are required
- A board of directors agreement can provide operational control
- The company, not the foreigner, owns the land
- Ideal Use Cases
Buying commercial land for warehouses, restaurants, or retail
- Developing farmland into a working agribusiness
- Holding land as a long-term investment
- Limitations
Setup and maintenance costs (legal, tax, accounting)
- Must pay corporate taxes if generating income
- Harder to exit or dissolve the company cleanly
- Chapter 4: Buying Farmland Upcountry — A Growing Trend
Why Farmland?
Low prices per rai (1 rai = 1,600 m²)
- Rising food demand and interest in agri-tech
- Long-term capital appreciation
- Beautiful settings for eco-lodges, coffee farms, or vineyards
- Example: Farmland in Chiang Mai, Nan, Loei, and Ubon Ratchathani can cost as little as ฿150,000–฿400,000 per rai.
Can Foreigners Legally Use Farmland?
Yes, via:
Leasehold (30 years)
- Thai company ownership with a legitimate business
- Partnership with a Thai spouse (with proper legal protections)
- Foreigners cannot own agricultural land directly but can own buildings on leased land.
Common Farm Investment Models
Organic vegetable farms
- Coffee plantations (northern hills)
- Durian orchards (Chanthaburi, Trat)
- Hemp or medicinal herb farms (subject to licenses)
- Irrigated rice paddies or rotational crops
- Chapter 5: Commercial Land Ownership — Warehouses, Hotels & More
Strategic Commercial Plots
Commercial land investments are increasingly popular, especially near:
Industrial zones (e.g. Chonburi, Rayong)
- Logistics hubs (Lat Krabang, Pathum Thani)
- Tourist zones (Phuket, Koh Samui, Chiang Mai)
- Border provinces with strong trade activity
- Investment Vehicle Options
BOI-Approved Companies – Can allow foreign land ownership in specific cases
- REITs (Real Estate Investment Trusts) – Passive ownership model for income-producing land
- Joint Ventures – The Thai entity holds the title, profits shared via contract
- Lease Agreements – With long-term control and profit-share terms
- Chapter 6: Inheritance, Tax, and Resale Considerations
Inheritance Rules
Foreigners cannot inherit Thai land directly, but can:
Inherit leasehold rights
- Inherit shares in a Thai company that owns land
- Make sure to:
Include leases in your will
- Assign rights in shareholder agreements
- Update land control terms with your lawyer
- Taxes on Land Ownership
Transfer fee: 2%
- Stamp duty: 0.5% or business tax: 3.3% (if sold within 5 years)
- Annual land and building tax: based on use and valuation
- Resale Strategy
Land can be harder to liquidate than condos, but good farmland or commercial plots can double in value in 10+ years, especially with improvements or local zoning changes.
Chapter 7: Real-World Investor Profiles
Case Study 1: Farmland Retreat
A German couple leased 20 rai near Pai to build a small permaculture retreat. They run eco-tours and farm-to-table events with local partners.
Case Study 2: Commercial Logistics
A Singaporean investor co-founded a Thai company with a local partner and bought 5 rai near U-Tapao Airport. They built a warehouse and leased it to e-commerce firms.
Case Study 3: Peaceful Retirement
A British retiree leased 1 rai near Chiang Rai and built a private bungalow for under ฿1.5M. A simple 30-year lease with a clear renewal clause was registered with the land office.
Chapter 8: Risks and How to Protect Yourself
Common Pitfalls
Fake or unclear land titles
- Nominee shareholders used illegally
- Unregistered verbal lease agreements
- Family land with unresolved inheritance claims
- Unlicensed or inexperienced agents
- How to Protect Yourself
Only buy land with a Chanote title (Nor Sor 4 Jor)
- Register all leases with the Land Department
- Use bilingual lawyers with land law experience
- Ensure all contracts are reviewed and translated
- Perform due diligence on Thai shareholders and landowners
- Conclusion: You Don’t Need to "Own" Land to Control It in Thailand
Thailand may not allow foreign freehold land ownership, but that doesn't mean you can’t access and benefit from land.
Leaseholds, Thai companies, BOI investment channels, and joint ventures offer smart, legal ways to secure your land interest — whether for agriculture, lifestyle, or commercial development.
Upcountry farmland is particularly promising for its affordability, natural beauty, and potential for value-added uses like eco-tourism, organic farming, and export crops.
Ready to Take the Next Step?
Whether you're seeking farmland, resort land, or a strategic commercial plot, your first move should be to consult with professionals. A trusted agency or legal team can:
Perform title and land-use checks
- Structure lease or company ownership models
- Draft enforceable contracts
- Guide you through due diligence and registration
- Contact Prime Property Thailand or your investment advisory team to take the next step toward secure, strategic land acquisition in Thailand.
(C)2025 Prime Property Thailand. Speak to us today and put in place your own strategy to acquire quality land in Thailand which is likely to rise in value in the future. If you need an investment vehicle establising, we can point you in the right directon and referyou to an advisory parter.