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April 19, 2011

New Ministry of Interior Policy to Prevent Purchase of Land for the Benefit of Foreigners

Thailand: Legal Developments, Tilleke & Gibbins Client Newsletter

Thailand, with its rich culture and beautiful sites, presents a very attractive destination to foreigners from many countries—for visit, travel, or even retirement purposes. Some of these foreigners wish to own property in Thailand, either as an investment or as personal residence. Thai laws are quite explicit concerning foreign ownership of property, stating that a foreign individual, a foreign entity, or a Thai company with more than 49% of its shares held by foreigners cannot own land in Thailand, except for particular investment purposes under certain laws such as the Investment Promotion Act, Industrial Estate Authority of Thailand Act, and property fund regulations. These exceptions providing benefits to foreign direct investment in Thailand were intended mainly to promote the country’s economy. To enjoy the benefits of these exceptions, foreign investors must meet multiple requirements set out by the relevant legislation and undergo strict scrutiny from authorities.

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Tilleke & Gibbins has contributed the Cambodia, Laos, Myanmar, Thailand, and Vietnam chapters to Infrastructure and Construction in Southeast Asia, a comparative guide developed by Drew Network Asia (DNA). The publication brings together insights from leading ASEAN law firms to address common legal and practical issues faced by participants in the construction and engineering sector across the region. Covering nine major Southeast Asian jurisdictions, the guide provides concise answers to frequently encountered questions relating to infrastructure and construction projects. Topics addressed include the regulatory environment, procurement practices, project structuring, risk allocation, contracting terms, dispute resolution mechanisms, and the enforcement of arbitral awards. Each jurisdictional chapter follows a consistent question-and-answer format, enabling readers to compare legal approaches and market practices across countries. This structure highlights both areas of convergence and key differences between jurisdictions, supporting more informed decision-making in cross-border projects and investments. While the guide offers a practical regional overview, it also underscores that legal frameworks and market practices vary significantly between jurisdictions and may be shaped by local principles and industry norms. Readers seeking jurisdiction-specific advice are encouraged to contact the practitioners listed at the end of each chapter. The full guide is available for download through the button below or directly from the DNA website.
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