In an unprecedented and much anticipated move that is set to shake the foundations of Thai real estate as we know it, the cabinet has now improved the interior ministry’s proposal that allows foreigners to purchase land for the very first time. 

Although we may well not know the full implications of this move in practice, the move will, in principle, allow land ownership of up to one rai (1600 square meters) of land for residential purposes for specific groups of foreigners if they invest at least 40 million Thai baht for a period of at least three years. 

The specific groups outlined by the ministry include: 

• Wealthy global citizens
• Wealthy pensioners 
• People who wish to work from Thailand 
• Highly skilled professionals or specialists. 

A new dawn for Thailand?

The move is set to stir up some controversy within the established Thai land-holding community, marking an end to the enduring legal framework limiting foreign land ownership to condominiums or people married to Thais. 

The government is setting its sights on attracting more than a million wealthy foreigners eager to invest in Thailand’s diverse property market within the next 5 years. 

Government estimates suggest that this scheme will help inject a much needed 1 trillion Thai Baht into an economy still recovering from a challenging few years in the wake of the Covid-19 pandemic and global travel restrictions. 

There are however, like always, a few conditions in place to consider. Foreign nationals that qualify for this scheme are required to invest their 40 million Thai Baht in real estate or infrastructure funds, investment trusts, securities or enterprises promoted by the board of investment. 

Foreigners who withdraw their investment before the 3 years will lose their right to the scheme. 

So is Thailand really set to open up land ownership to foreigners?

For the time being it certainly appears to be shaping up that way. However, until the first brick is laid on the first foregin owned project, it remains a mystery how exactly this brave new world will look like.