Thailand’s Upcoming Legislation to Allow More Foreign Condo Purchases, Extend Land Leases: Key Insights

Home » Thailand’s Upcoming Legislation to Allow More Foreign Condo Purchases, Extend Land Leases: Key Insights

The Ministry of Land Acquisition released a directive to the Ministry of Land last week that could allow foreigners to purchase up to 75% of condominiums, with land rights extended to 99 years. This significant change is intended to boost foreign investment and stimulate Thailand’s real estate market.

Following directives from the Ministry’s former chairman, Mr. Bhumitham, to expedite the review of real estate laws around foreign ownership, a decision was made to propose changes to the regulations. The proposed revisions would increase the foreign ownership limit for condominiums from 49% to 75%. Furthermore, the law on land lease rights is proposed to extend lease terms up to 99 years. This extended lease period aims to eliminate the necessity for many nominee companies, which are currently under investigation by the DBD, and to offer rights exceeding the current maximum lease term of 30 years.

Government sources revealed that the Cabinet Secretariat has communicated with the Minister of Home Affairs, stressing the importance of these economic stimulus measures in the real estate sector. The Cabinet Resolution from April 9, 2024, underscored the need to support Thailand’s transformation into a world-class industrial hub.

At the latest Cabinet meeting on June 18, 2024, Deputy Prime Minister and Acting Prime Minister, Mr. Phumdum Vechayachai, proposed additional measures to boost the economy and attract major investors to Thailand. These measures include reviewing asset rights under the Land Act and making significant changes to laws regarding foreign ownership of condominiums.

These new ownership laws are seen as crucial to supporting the Government’s stimulus initiatives, with the Ministry of Home Affairs tasked with speeding up the legislative process while ensuring it adheres to existing legal provisions. The goal is to present these proposals to the Cabinet in August for approval and implementation.

Thailand’s current economic challenges are strengthening the government’s resolve to boost economic growth through real estate incentives. The recent developments signal a new era for foreign investment in Thailand’s property market, opening opportunities for more investors and increasing Thailand’s appeal to expatriates.

Stay tuned for further updates as the Thai Cabinet continues to advance these initiatives.

Silk Legal can provide a range of services for several practice areas. This article is for information only, and while we have tried to keep our updates as accurate as possible, there may be changes to legislation or other factors that can affect your decisions. Please feel free to contact us for a free consultation at [email protected].

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