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Foreign Ownership over the Land in Thailand

Ownership
Foreign nationals may not own land freehold in Thailand. They can, however, own indirectly through control of a Thai corporate entities e.g. in the form of a company or a limited partnership as long as Thai nationals hold the shares 51% or more. Also, they may register long term leasehold over the land consisting of an initial 30 - year term plus two further 30 year- for a total of 90 years.

Property Tax
Property tax (or tax relating to real estate transactions), so long as a property is being used for private residential purpose, do not apply. However, upon ownership transfer, there are costs.
These fall into four following potential categories:

• transfer fee 2%
• specific business tax 3.3% (If the land's owner transfers within 5 years)
• duty stamp 0.5%
• income tax ( to be withheld at source, the seller of real estate has an obligation
  to pay this tax with a progressive rate as stated by the Revenue Department).
  However, If a company or a limited partnership is transferor of the real estate, it has to pay a withholding tax 1 % of the selling price or estimated price of the Land Department, whichever higher.
  This payment is considered as a tax credit for the company's annual tax filling .

In practice costs above, except income tax, will be split in some degree between the
buyer and seller, depending on negotiation.

Land Titles
In Thailand there are three following major kinds of land titles.

1. Chanote is accurately surveyed, plotted in relation to a national survey grid and also marked by unique numbered marker posts set in the ground.

2. Nor Sor Sam Ko is a plot of land crossed- referenced to master survey of the area. This can be marked out but it is not exact until it has gone through the process to become Chanote.

3. Nor Sor Sam is a land plot measured in relation to neighboring plots so it may less accurate than the above two. Although Nor Sor Sam KO and Nor Sor Sam are in general less accurately survey
than Chanote titles, they have, however, all practical land title deeds that they may be sold, leased, used as mortgage collateral and so on.

Measurement of Land
Thailand uses the following three major land measurements:
1 Rai = 4 Ngan (or 1,600 square meter)
1 Ngan = l00 Wah (or 400 square meter)
1 Wah = 4 square meter
Note:
1 Acre = 2.5 Rai (approx.)
1 Hectare = 6.25 Rai (approx.)