Foreign Property Ownership Rules 2025 — Thailand Property Update

Key Clarifications

The Department of Lands has released updated guidance on foreign property ownership rules, addressing common confusion about percentage calculations and compliance requirements.

Condominium Foreign Quota

Current Rules Confirmed:

49% foreign ownership maximum per building
Calculation Method: Based on total floor area, not unit count
Penthouse Exception: Large units don't circumvent the 49% rule
Transfer Requirements: Must verify quota availability before purchase

New Clarifications:

Common Areas: Not included in foreign quota calculations
Parking Spaces: Count toward foreign percentage if deeded separately
Storage Units: Treated same as residential units for quota purposes

Company Ownership Structure

Confirmed Legal Framework:

Nominee Structures: Remain prohibited under Alien Business Act
Thai Majority: Must be genuine 51% Thai ownership with real investment
Due Diligence: Enhanced scrutiny on beneficial ownership documentation

2025 Enforcement Updates:

Audit Requirements: Random compliance checks increased
Penalty Structure: Fines updated for modern property values
Registration Process: Additional documentation required for company purchases

Regional Variations

Bangkok & Metropolitan Areas

High Demand Buildings: Often at or near 49% foreign quota
New Developments: Builders increasingly marketing to Thai buyers first
Price Impact: Premium charged for foreign quota units

Tourist Areas (Phuket, Pattaya, Koh Samui)

Available Quota: Generally more foreign units available
Developer Incentives: Some offer quota guarantees
Resale Considerations: Foreign quota affects resale value

Northern Regions (Chiang Mai, Chiang Rai)

Lower Demand: Foreign quota rarely an issue
Price Advantage: More favorable pricing for foreign buyers
Growing Market: Increasing interest from retirees

Practical Implications

For Buyers

Quota Verification: Always confirm foreign quota availability
Legal Review: Use qualified property lawyers
Finance Planning: Understand foreign buyer financing limitations
Exit Strategy: Consider resale implications when buying

For Owners

Compliance Monitoring: Ensure ongoing legal compliance
Document Management: Maintain all ownership documentation
Transfer Rights: Understand inheritance and transfer rules
Tax Obligations: Stay current with property tax requirements

Coming Changes

Under Consideration:

Quota Adjustment: Possible increase to 60% in designated zones
Digital Registration: Online foreign ownership tracking system
Tax Incentives: Special rates for long-term foreign residents

Timeline: Public consultation expected Q4 2025

Professional Guidance

Property transactions in Thailand require careful legal navigation. Consider professional assistance for:

Due diligence on foreign quota compliance
Contract review and negotiation
Ownership structure planning
Tax optimization strategies

Contact our property services team for comprehensive support throughout your property acquisition process.