The property ownership laws of Thailand are somewhat nationalistic, whereby foreign individuals can legitimately secure property only in certain ways. The main issue is real estate, but similar laws cover other items. If you are not legally established in Thailand and following procedures, then you will take risks.

Foreigners can buy some things outright. Other things must be leased or bought properly. The most common methods of properly securing property are:

Be the largest shareholder of a domestic company, and have the company own the property (see details below, as you will own less than 50%, usually 39%); or

Sign a 30-year (or less) lease with a domestic company or Thai individual, with an automatic option to renew for another 30 years. This is called the 2x30 ("two times 30") way.

Many people follow these proper procedures and don't have problems.

There are other ways that people have gotten property, but these are often questionable, unnecessary in view of proper ways, and sometimes cause problems. Businesspeople and lawyers often assert their own tactics in a very self-confident manner, but second opinions should be sought before you commit a large sum of your savings. It has amazed me at how many people have not sought independent and professional second and third opinions. Some of these have had serious problems later.

In any country where you can't read the language, be it another European country or Asia, you have little choice but to rely on one or more lawyers. Respected authorities such as the Asia Wall Street Journal can usually, but not always, be relied upon, as journalists are sometimes incorrect and improperly influenced (as witnessed by letters to the editor which are actually published). The more respected sources you research, the better.

(Of course, even in people's own country, people often don't read the law in their own language, instead relying on one or more business agents and/or lawyers, but that's different because you are an established citizen of your own country and are familiar with the conventional practices of your family and fellow citizens. The first thing you must do here is get to know your rights in Thailand and the proper laws and conventions here.)

It's notable that I'm not the only foreigner who has received different opinions from different Thai law offices, and indeed sometimes from different lawyers within the same law office. Thus, I've listened to a LOT of opinions, and challenged some lawyers' opinions when they differed from others. Apparently, I'm a lot more careful in what I say and do than some lawyers and many businesspeople! Nonetheless, over time, I have found out what the most informed and careful professionals do, case after case, independent from each other, and based on laws cited from the multiple respected authorities, to secure property properly.

In this article, I cover only the ways that my research has found proper, and not the questionable ways. I must emphasize that there are many improper ways which have worked for other people in Thailand, and continue to work, but which I would advise you not to follow. Just because it's worked for someone else so far doesn't mean it would stand up in court if challenged. Many ways appear to exist simply only as long as they are not being prosecuted.

There are guys who have lost property to wives and associates, fallen victim to outright scams, and experienced extortion for rectifying vulnerable arrangements. In every case, it was clearly avoidable from the start, if they had only researched independent additional opinions and followed standard procedures.

The proper ways are simple and straightforward. You should avoid both convoluted ways and shady shortcuts.

Foreign Ownership of Real Estate

Due to the 1997 economic crisis, caused by a real estate glut in Bangkok's office,