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Laws Forbidding Foreign Land Ownership in Thailand Remain

On Monday, the government clarified that the basic principle that foreigners cannot own land in Thailand would remain unchanged, meaning that non-natives can hold less than 50% of a condo or other buildings.

Deputy Government Spokesperson Ms. Traisuree Traisoranakul said the Cabinet’s decision to offer incentives to foreign investors to reside or stay long-term in the country has led to widespread confusion and concern regarding land ownership by foreign nationals.

Recently, Thai authorities announced that they expected to implement an economic stimulus and investment promotion package to attract over a million qualified people during the next five years.

The plan includes some incentives to draw investors from other nations to spend in Thailand and revive its battered economy.

Such benefits reportedly were a 10-year Thai visa for approved special visitors together with their spouses and children, the same income tax rates as Thai citizens, tax exemption for income earned abroad, and right to property and land ownership.

But the plan and the privileges for investors need to be clarified, Ms. Traisuree stated, adding that restrictions on land ownership by foreign residents in the kingdom would remain in effect.

Under current laws, foreigners can own only 49% of a condo building or 49% of all room space in the building. The other 51% must belong to Thai citizens, she explained.

However, foreigners can rent lands in Thailand as long as they comply with the Thai investment law for investing in the Eastern Economic Corridor (EEC) mega-project and other special laws, she went on.

Confusion over land ownership by foreigners emerged last week when Government Spokesperson Thanakorn Wangboonkongchana said the laws and regulations would be revised to draw foreigners.

Besides visa and tax exemptions, foreigners could set Thailand as their workplace, whether they work for local or foreign employers.

With such incentives, the Thai government expects to draw four groups, including retirees, high-income people, experts in different fields, and those who want to use the kingdom as their work base.