Foreign Land Ownership Thailand: 7 Key Steps to Qualify for the ฿40M Exception

The Little-Known Exception to Foreign Land Ownership Thailand Restrictions

It is a common misunderstanding that foreigners are per se restricted from owning land in Thailand. One of the most interesting exceptions to the foreign land ownership restrictions has been enacted for foreigners who bring at least Thai Baht 40 million (or equivalent) into Thailand for certain prescribed investments. Such a foreigner may apply for freehold ownership of up to 1,600 square meters of land under the rules, procedures, and conditions prescribed by Section 96(bis) of the Land Code (as amended by the Land Code Amendment Act No. 8 (1999)) and the 2002 Ministerial Regulation issued under the Act.

To apply, a foreigner must submit an application (the “Foreigner 4 Form,” available at any local Land Office) together with the following documents:

1. A copy of the applicant’s passport;
2. Evidence of the Prescribed Investment of not less than Thai Baht 40 million, in any of the following formats:
   • (a) a letter of investment confirmation from a seller of Thai Government bonds, Bank of Thailand bonds, State Enterprise bonds, or bonds for which the Ministry of Finance secures the capital or interest; and/or
   • (b) a letter from the Asset Management Company confirming investment in a prescribed mutual fund under relevant securities and stock exchange law, together with evidence of such investment; and/or
   • (c) evidence of investment in the share capital of a juristic person granted investment promotion under the relevant investment promotion law; and/or
   • (d) evidence of engaging in an activity entitled to investment promotion under the relevant investment promotion law;
3. Evidence of bringing foreign currency into Thailand, or of withdrawing funds from a foreign currency account or non-resident Thai baht account for the investment (note: evidence under any one or a combination of (2)(a)–(d) and/or (3) is acceptable, provided the total amount invested is Thai Baht 40 million or more);
4. A letter confirming that the land the foreigner wishes to own (the “Land”) is located within a prescribed “residential area,” issued by the relevant town and country planning authority;
5. A letter from the Ministry of Defense or relevant agency confirming the Land is not located in a military safety zone; and
6. A map showing the location of the Land.

The application documents must be submitted at the Relevant Land Office with jurisdiction over the Land. The decision to grant permission is then made by the authorities delegated such responsibility by the Minister of Interior.

Any ownership grant is subject to the following conditions:

1. The grantee must maintain the Prescribed Investment for a continuous period of not less than five years from the date of registration of ownership of the Land (the “Investment Period”), submitting evidence of this to the Relevant Land Office once a year for five consecutive years;
2. The grantee must use the Land for residential purposes, in a manner not contrary to the public interest or local customs;
3. The grantee must notify the Relevant Land Office within sixty days of beginning residential use of the Land;
4. The grantee must facilitate the Relevant Land Office’s supervision of the Land’s use to confirm compliance with the prescribed conditions;
5. If the grantee withdraws the Prescribed Investment before the end of the Investment Period, the grantee must notify the Relevant Land Office within sixty days;
6. If the grantee fails to comply with conditions (1)–(5), the Director-General of the Department of Lands has the power to order the grantee to dispose of the Land within a period of not less than 180 days and not more than one year — failing which, the Director-General may dispose of the Land directly; and
7. The grantee must use the Land for residential purposes within two years of the date of registration of ownership. If the grantee fails to do so, the Director-General has the power to dispose of the Land.

Navigating foreign land ownership Thailand rules under this exception requires careful, ongoing compliance — from maintaining the ฿40 million investment for five years to meeting strict residential-use deadlines — making early legal guidance essential before applying.