Hat Yai and the South attract many foreigners — both investors and long-term residents (expats) — interested in buying property. The first thing everyone must understand before paying any money is: “How much can a foreigner actually buy in Thailand?” Thai law treats a condominium unit and land under two clearly different standards.
Condos — you can buy, within a 49% cap
A foreigner may own a condominium unit under the Condominium Act B.E. 2522, with one key condition under Section 19 bis: total foreign ownership across the building must not exceed 49% of the total unit area in that building. Before deciding to buy, you must therefore check with the condominium juristic person whether the foreign quota is still available, and the buyer must remit foreign currency to pay for the unit as required under Section 19.
Land — foreigners generally cannot own it
Unlike condos, a foreigner’s right to own land is tightly restricted under the Land Code. As a rule, a foreigner cannot hold title to land, except the special case under Section 96 bis, which allows someone who invests at least 40 million baht in the country to hold up to 1 rai of land for residence — and only with permission from the Minister of Interior. In practice, very few people meet this condition.
Supreme Court Judgment No. 2744/2562 also established that if a foreigner acquires land without permission, they must dispose of it within the time fixed by the Director-General of the Land Department (not less than 180 days but not more than 1 year) — it cannot simply be held indefinitely.
The legal alternative — a long-term lease of up to 30 years
For a foreigner who wants rights over land or a house, the safest route is a long-term lease. Civil and Commercial Code Section 540 allows a registered lease of immovable property for up to 30 years (anything agreed beyond that is reduced to 30 years by law), and the parties may agree to renew it on expiry. A carefully structured lease helps protect the lessee’s investment.
Beware — nominee holding is the biggest risk
A method many foreigners are encouraged to use is having a Thai person (such as a spouse) or a “Thai company” set up to hold the land on their behalf. Where this is done to evade the legal prohibition, it is a nominee arrangement — an unlawful act carrying serious civil and criminal risk, including being forced to dispose of the land. Foreign property investment should therefore be structured correctly from the outset, and you should always verify the title deed, any encumbrances, and the foreign quota in full before paying any money.
