Tuesday, March 16, 2010

Buying an Island in Thailand

Thai Real Estate - Ownership of a Thai Island

Ownership Structure

Option 1: Freehold as a Thai National
Option 2: Freehold via a Thai limited company with minimal Thai shareholders
Option 3: Leasehold. The maximum lease that can be registered at the local land offices is 30 years so a contract has to be drawn up with automatic renewals every 30 years.
Option 4: If a large development is going to take place with a large investment then a BOI can be applied for from the government (Board of Overseas Investment). This is headed up by the prime minister to encourage overseas investment. It is quite common in the tourist sector.

Land titles – all titles are transferable

Chanote: This title is fully buildable and measured exactly via GPS
Nor Sor 3 Gor: As above but measured with a tape measure rather than GPS
Nor Sor 3: An old title as above measured roughly
Sor Kor 1: Farmland that is owned by an individual
Por Bor Tor 5: Farmland that is owned by the government with the right to use if taxes are paid against the land.
Government land or green zone: It is common to find a percentage of this on most islands and it works well as it keeps a lot of the island natural. You can build non prmanent wooden walkways and salas through this land.

Land Measurements

1 rai = 1,600 sqm
1 nang = 400 sqm (4 to a rai)
1 talang wah = 4 sqm (400 to a rai)

Building Regulations

Within 10 metres of the front of the land no permanent structure can be built
Between 10 metres and 50 metres all buildings must be a maximum of 75sqm in size and 6 metres high.
From 50 metres back all buildings must be a maximum of 2,000sqm in size and no more than 12 metres in height.

The same applies to all Thailand Real Estate with the exception of licensed condominium developments where foreigners have the option to own a freehold in their own name.

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