Despite current restrictions on foreign ownership of property in Thailand, buyers remain keen to invest, largely due to the country’s overall appeal as an exciting,
low cost tourist destination.
An exotic paradise
Rightly dubbed ‘The Land of Smiles’, Thailand exudes exotic charm: warm, welcoming people attract holidaymakers, second homebuyers, property investors and retirees alike who arrive in Thailand to enjoy its stunning sandy beaches, mountains, dense forests as well as its vibrant culture. These factors, combined with a very low cost of living, make it the destination of choice for many overseas property renters and buyers. The warm weather means that Thailand is a fantastic winter holiday destination, particularly between the months of November and February.
English is widely spoken in Thailand and an increasingly cosmopolitan population means that you will have no problem communicating in professional circles.

Current hotspots
It is undeniable that the Tsunami of 2004 caused devastation in parts of Thailand, with investment success in hitherto booming hotspots such as Phuket plummeting overnight. This situation is expected to be temporary; nevertheless, focus has now shifted to other, less developed areas such as Koh Samui, Hua Hin and Landa Island, where the damage was less extensive and subsequently tourist numbers have remained relatively strong. Last year land prices in and around Koh Samui rose by some 20%.
Additionally, price increases of up to 12% in luxury condominiums of Bangkok are commonplace and a keen demand for rental accommodation makes the capital city a strong buy-to-let option or a profitable medium to long term investment.

Insatiable demand
Thailand is the second largest economy of Southeast Asia. After 15 months of military rule, a distinct shortage of property in Bangkok is now prevalent due to the restrictions that were put on the amount of development that could take place in the real estate sector at the time.

Today, with a democratically elected government reassuringly back in power, apartments in the city of Bangkok, as well as holiday resort accommodation, are now in short supply, making property in Thailand an excellent prospect for timely investors.
The number of work permits issued in Thailand is increasing annually, indicating the numbers of expatriates is also expanding. Expatriate demand for rental residential accommodation in Bangkok will likely continue in line with the ongoing increased arrivals.
Overcoming restrictions
In Thailand, foreigners are still not permitted to own the land on which any property sits; furthermore, they are not allowed to purchase multiple properties, or buy a condominium in a building where there is already a foreign percentage ownership of 49%. Property in Thailand is widely regarded by international buyers as a highly worthwhile investment commodity and those willing to overcome ownership restrictions and invest now look set to benefit from a maturing market over the next five to ten years.

Two solutions to the current restrictions are: to establish a local Thai limited company and buy property assets through the company; or lease your property for 30 year renewable periods. Non-Thai residents normally set up a limited company, but the requirements are that a foreign shareholder cannot hold more than 49% of the Thai company, and it must possess a minimum of seven shareholders.