ชาวต่างชาติอยากซื้ออสังหาฯในไทย ทำอย่างไร?

Summary of Two Real Estate Measures Facilitating Foreign Home Ownership in Thailand

Thailand has introduced economic and investment stimulus measures aimed at attracting high-potential foreign nationals to the country. The key measures are as follows.

1. Introduction of the Long-Term Resident Visa (LTR Visa)

Thailand allows certain categories of foreign nationals to reside in the Kingdom under special arrangements as part of measures to stimulate the economy and attract high-potential individuals.

The Long-Term Resident Visa (LTR Visa) is designed to allow qualified foreign nationals to stay in Thailand on a long-term basis. The main features include:

1. A new Long-Term Resident Visa category with a validity period of up to 10 years.

Four target groups of eligible foreign nationals:

• Wealthy global citizens
• Wealthy pensioners
• Work-from-Thailand professionals
• Highly skilled professionals

1. Eligible foreign nationals and their dependents are subject to a one-time visa fee of THB 50,000, reduced from the previous THB 100,000 rate. Eligible applicants may also apply for a work permit in accordance with Thai laws governing foreign employment.

Measures Allowing Four Groups of High-Potential Foreigners to Acquire Land in Thailand

Thailand's economic and investment stimulus policy aims to attract high-potential foreign nationals in order to generate income, stimulate investment, and create additional employment opportunities within the country.

The four main target groups are:

1. Wealthy global citizens
2. Wealthy pensioners
3. Work-from-Thailand professionals
4. Highly skilled professionals

Key conditions concerning the acquisition of residential land by qualifying foreign nationals include:

1. The permitted land area must not exceed 1 rai under Section 96 bis of the Land Code, and the land must be used as the foreign national's own residence.
2. The land must be located within Bangkok, Pattaya City, a municipal area, or an area designated for residential purposes under town-planning laws.

The foreign national must invest at least THB 40 million in eligible businesses or investment activities and maintain the investment for at least three years.

Eligible forms of investment may include Thai government bonds, property funds, infrastructure funds, or real estate investment trusts established under the applicable laws governing trusts for capital-market transactions.

1. If the investor withdraws the investment before the required investment period has expired, the competent authority must be notified in writing within 60 days from the date of withdrawal.
2. The measure was proposed with an implementation period of five years.

How Could Measures Allowing Foreigners to Buy Homes in Thailand Affect the Economy?

The Office of the National Economic and Social Development Council (NESDC) projected that, over a five-year implementation period from fiscal years 2022-2026, the measures could potentially:

1. Increase the number of foreign residents in Thailand by 1 million people.
2. Generate approximately THB 1 trillion in additional spending within the Thai economy.
3. Generate approximately THB 800 billion in domestic investment and increase tax revenue by approximately THB 270 billion.
4. Help Thailand attract skilled and knowledgeable professionals needed by industries targeted by the government, in line with the National Strategy 2018-2037, particularly in future industries and services, infrastructure, logistics, and digital development.

Foreign Condominium Transfer Situation

According to a report by the Real Estate Information Center (REIC), during the first six months of 2023, foreign buyers received ownership transfers for a total of 7,338 condominium units in Thailand, with a combined value of THB 35.211 billion.

Chinese Buyers Accounted for the Highest Number of Condominium Transfers

The five nationalities with the highest number of condominium ownership transfers were:

1. China — 3,448 units, accounting for 47% of all units transferred to foreigners, with a total value of THB 16.992 billion, or 48.3% of the total value.
2. Russia — 702 units, accounting for 9.6%, with a total value of THB 2.556 billion, or 7.3% of the total value.
3. United States — 293 units, accounting for 4%, with a total value of THB 1.289 billion, or 3.7% of the total value.
4. France — 269 units, accounting for 3.7%, with a total value of THB 1.127 billion, or 3.2% of the total value.
5. United Kingdom — 260 units, accounting for 3.5%, with a total value of THB 1.287 billion, or 3.7% of the total value.

Myanmar nationals recorded the highest average condominium transfer value per unit at approximately THB 7 million, while Indian buyers purchased the largest average unit size at approximately 89.8 square meters.

Allowing Foreigners to Buy Homes in Thailand Could Help Stimulate the Economy

The Real Estate Information Center has previously commented that allowing foreign nationals to purchase houses with land, or land for the construction of their own residences, could serve as one of Thailand's economic and investment stimulus measures.

The policy was intended to attract high-potential foreign nationals with strong purchasing power to live in Thailand on a long-term basis. This could create new demand in the property market while also increasing domestic spending on goods and services.

Thailand already allows foreign nationals to own condominium units, subject to legal restrictions.

Before the COVID-19 pandemic, foreign buyers received ownership transfers of more than 10,000 condominium units per year, with a combined annual value exceeding THB 50 billion. This represented approximately 5% of the total value of residential property transfers nationwide.

If foreign nationals were permitted to purchase houses together with land under expanded conditions, it was estimated that residential property transfers could increase by as many as 50,000 units, representing approximately THB 100 billion in additional transaction value.

This could potentially increase the foreign share of Thailand's residential property transfer value from approximately 5% to as much as 15%.

Concerns Regarding Allowing Foreign Nationals to Buy Homes in Thailand

However, any policy allowing foreign nationals to purchase houses and residential land should clearly define how long the measure would remain in effect. Such a policy may not necessarily need to be permanent.

The government should also clearly define the minimum property price level that would be eligible for foreign ownership. This could help prevent foreign demand from competing directly with Thai buyers in the mass housing market.

For example, the government could consider restricting foreign purchases of houses and land priced below THB 10-15 million, depending on the location.

A minimum ownership period could also be established to discourage short-term speculation. For example, foreign owners could be required to hold the property for at least three to five years before resale.

Such restrictions could help reduce speculative activity, limit excessive increases in land and housing prices, and lower the risk of a property-market bubble.

In addition, specific taxes or fees could be imposed on foreign landowners at rates different from those applicable to Thai nationals.

Clear rules should also be established governing the resale of houses and land by foreign owners after the required holding period has expired.