Harwell Legal International

26/09/2025

5 Steps to Buying Property in Thailand: A Legal Guide for Foreign Investors

Buying property in Thailand — particularly in Phuket — is a dream for many foreigners who want a holiday home, a retirement retreat, or a solid investment. However, the process is not the same as in Europe or the U.S. Thai law places restrictions on foreign ownership, and without proper guidance, buyers can face costly mistakes.

At Harwell Legal International, we help clients navigate this process smoothly and securely. Here are the five essential steps to buying property in Thailand.

Step 1: Choose the Right Ownership Structure
Foreigners cannot directly own land in Thailand, but there are several legal options:
- Freehold Condominium Ownership: Foreigners can own up to 49% of the total sellable area of a condominium project. This is the most straightforward and secure option.
- Leasehold Property: Usually structured as a 30-year lease with optional renewal clauses. This provides long-term use but not absolute ownership.
- Thai Company Ownership: In certain cases, foreigners establish a Thai company to acquire property. This requires strict compliance with the Foreign Business Act to avoid nominee arrangements, which are illegal.

👉 The best structure depends on your investment goal, whether for residence, rental income, or resale value.

Step 2: Conduct Legal Due Diligence
Before signing or paying anything, a proper due diligence review is critical. This process includes:
- Verifying the title deed at the Land Department
- Checking whether the property is free of mortgages or encumbrances
- Confirming the developer has the correct licenses and permits
- Reviewing infrastructure and zoning compliance

👉 Many disputes in Phuket arise because buyers skip this step — later discovering that the land has restrictions, the developer lacks permits, or the property carries hidden debts.

Step 3: Draft and Review the Contract
Most developers provide standard contracts, but these often heavily favor the seller. Key points that need careful review include:
- Payment schedules and penalties
- Transfer dates and delivery conditions
- Lease renewal clauses (for leasehold)
- Rights to resell or sublease

👉 A professionally reviewed contract ensures your rights are protected and obligations are clear.

Step 4: Handle Financial Transactions Properly
Transferring money to Thailand for property purchases must be done carefully. Consider the following:
- For condos, funds must be remitted from abroad and recorded with a Foreign Exchange Transaction Form (FET form), which is essential for registering ownership.
- Payments should be made in line with the contract and supported by receipts.
- Using an escrow account is highly recommended to safeguard funds until transfer.

👉 A safe financial process ensures compliance and protects you against fraud.

Step 5: Register at the Land Office
The final step is to legally register your ownership or lease rights at the Land Department. Documents required include:
- The signed contract
- FET form and payment proof
- Company documents (if purchasing via company)
- Payment of government taxes and registration fees

👉 Only after registration do you become the legal owner or lessee of the property.

Harwell Legal’s Guidance
Buying property in Thailand is a rewarding experience if done correctly. But the law is complex, and small mistakes can create big risks. At Harwell Legal International, we act as your trusted partner through every step — from ownership planning and due diligence to contract review and Land Office registration.

📞 If you’re considering investing in Phuket or elsewhere in Thailand, contact our team today to secure your property with confidence.

Disclaimer
This article is provided for general educational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on the information contained herein without seeking appropriate professional legal advice specific to their circumstances. Harwell Legal International disclaims any liability for actions taken in reliance on this article.

10/08/2025

List of Businesses in Phuket Eligible for Foreign Business License (FBL) under List Three of the Annex to the Foreign Business Act B.E. 2542 (1999)

In considering the approval for foreigners to engage in businesses listed under List Three of the Foreign Business Act B.E. 2542 (1999), the relevant authorities shall primarily assess the benefits that such businesses will bring to Thailand. Particular emphasis shall be placed on the extent to which the business creates employment opportunities for Thai nationals in an appropriate number and contributes to the transfer of knowledge or technology that Thai nationals are generally not yet able to undertake by themselves.

In cases where the nature of the business is one that Thai nationals can already engage in widely, and there are no factors demonstrating a clear contribution to the promotion or enhancement of the national economy, there is generally no sufficient justification for granting permission for a foreigner to operate such a business. As a result, approval for a Foreign Business License under the law is typically not granted.

List of Businesses

1. Construction (List Three Item 11)
Construction contracting businesses, such as those involving high-value projects, advanced technology, or operating under the EPC (Engineering, Procurement, and Construction) model, are included. However, general construction works may be deemed inappropriate for operation by foreigners if they lack specialized characteristics or specific expertise.

2. Sale of Food and Beverages (List Three, Item 19)
Food and beverage businesses, such as restaurants and cafés, may be granted an exception for foreign ownership in certain cases particularly if there is a minimum investment of 100 million baht and the business does not involve the sale of alcoholic beverages in the manner of an “entertainment venue.” However, these types of businesses are generally not approved for foreign ownership when the establishment is small and the foreign shareholding exceeds 49%, as they are considered activities that Thai nationals can readily operate. In such cases, there is typically no sufficient justification to allow foreign competition in the local market.

3. Hotel Business (List Three, Item 17)
In order to obtain permission for a foreign national to operate a hotel business, the applicant must clearly demonstrate the necessity for foreign involvement. This may include having specialized expertise in the hotel industry, proven experience in managing international-standard hotels, or operating under a globally recognized hotel brand. In addition, the applicant must show how the business will benefit the Thai economy such as through the creation of substantial employment opportunities for Thai nationals, the utilization of domestic materials and labor, the promotion of the tourism industry, or contributing to the overall enhancement of the country’s competitiveness. However, depending on the nature of the business and the hotel’s location, other relevant government agencies may also be involved in the consideration of the license application.
Remark: An exception is made for hotel management services, whereby the foreign entity is engaged solely in managing a hotel owned by another party. Such business activities may be undertaken by foreign nationals.

4. Tour Business (List Three, Item 18)
A tour business for which foreign nationals may apply for a Foreign Business License (FBL) should be one with specialized expertise or experience, such as having experience in organizing international tours, possessing a network of foreign tour companies, or offering niche market services like luxury tours, wellness tours, or cultural tours. The business must demonstrate its contribution to promoting Thai tourism, creating employment opportunities for Thai nationals, and utilizing domestic services such as Thai hotels, restaurants, and transportation. The nature of the business must be limited to “tour services” and not involve controlling tourist areas or activities related to national security. In addition to obtaining the FBL, the operator is required to obtain a tour business license from the Department of Tourism (Type T.T.1 or T.T.2) under Thai law before commencing operations.

5. Car Rental Business
In the case of car rental, the business should incorporate advanced fleet management technologies from its internationally recognized parent company. This includes systems such as Fleet Management, safety systems, and GPS tracking to effectively control, monitor, and manage rental vehicles. These technologies enhance operational efficiency and elevate service standards in Thailand beyond those of ordinary car rental services. Additionally, the business should contribute to developing Thai employees’ skills and knowledge in technology, as well as expanding employment opportunities within Thailand.

03/07/2025

📢 Doing Business in Thailand? Know the Rules!

🇹🇭 Under the Foreign Business Act B.E. 2542 (1999), certain industries are restricted for foreign investors — known as List Three businesses.

These are sectors where Thai nationals are not yet ready to compete, and foreign participation requires a Foreign Business License (FBL) — granted case-by-case based on:

✅ Job creation for Thai citizens
✅ Transfer of knowledge or technology
✅ Economic benefit to Thailand

❌ Licenses are rarely approved if the business offers no added value or is already dominated by Thai operators.

🛑 Examples of List Three Restricted Businesses:
• Legal, accounting, architectural, and engineering services
• Agriculture and aquaculture
• Retail and wholesale (with capital limits)
• Tourism, food & beverage, hotel operations
• Advertising and construction

📋 Full list available upon request.

⚖️ Thinking of entering the Thai market? Let Harwell Legal International guide you through FBL eligibility and compliance.

📩 DM us or visit https://harwell-legal.com to schedule a consultation.

Business laws in Thailand reserve certain rights only for Thai nationals. Therefore, foreign investors face certain restrictions when doing business in Thailand.

02/07/2025

🌿 Thailand’s New Cannabis Law – What You Need to Know (2025 Update)

As of June 24, 2025, Thailand has tightened its cannabis regulations.

📌 Only the cannabis flower (inflorescence) is now classified as a controlled herb. Other parts of the plant remain legal.

🚫 New Restrictions Include:

No smoking in public venues
No sales via vending machines, online platforms, or in places like temples, parks, dormitories, or amusement parks
No cannabis-related advertising of any kind
📋 Commercial Use = License Required
If you plan to sell, export, or process cannabis flowers, you must get a license under Section 46 of the Herbal Act. This includes:
✔️ Reporting source & use
✔️ GACP-certified flower only
✔️ Tracking inventory and exports

💊 Medical Use Still Allowed
Prescriptions from doctors, dentists, or traditional Thai/Chinese practitioners are valid for 30 days and are not considered commercial.

⚠️ Already Licensed?
You may continue operating, but must comply with the new rules. Review your sales channels and adjust as needed.

📍 Apply for a license at:
Thai FDA (Bangkok) or your Provincial Health Office.
📅 License is valid for 5 years.

Thailand is moving toward a regulated, health-focused cannabis industry. If you're in the business, stay compliant — or risk losing your license.

If you would like to contact one of our solicitors for the guidance,
You can do so by calling +66(0)76530597
or email us at [email protected]

02/07/2025

“Protected Lease.”

It is commonly understood that purchasers of real estate in Thailand may acquire property through two primary forms of tenure:

1. Freehold Ownership – In this form of ownership, there are generally no legal concerns, as full title to the property vests in the purchaser. The purchaser holds exclusive rights to possess, use, transfer, assign, and protect the property from any interference.
2. Leasehold Tenure (Long-Term Lease) – Under Thai law, lease agreements may be executed for a maximum term of 30 years. In practice, purchasers are often offered a 30-year lease term accompanied by a promise to renew the lease twice, each for an additional 30 years, resulting in a total of 90 years.

However, the Supreme Court of Thailand recently issued Judgment No. 4655/2566, which held that a promise to renew a lease for two further terms of 30 years each is void, as such a promise is contrary to mandatory provisions of law.

This judgment has raised concerns as to what will happen upon the expiration of the initial 30-year lease term, particularly regarding the legal enforceability of any promised renewals.

To mitigate such concerns, it is advisable that, in addition to entering into a 30-year lease agreement, the leasehold purchaser also acquires shares in the developer or seller’s company. This shareholding enables the lessee to participate in the management and decision-making processes of the project, including the control of common property and the facilitation of lease renewals for additional 30-year periods upon the expiration of the initial term.

This structure is commonly referred to as a “Protected Lease.”

If you would like to contact one of our solicitors,
you can do so by calling +66(0)76530597
or email us at [email protected]

08/11/2024

Business laws in Thailand reserve certain rights only for Thai nationals. Therefore, foreign investors face certain restrictions when doing business in Thailand.

25/04/2024

𝐃𝐨 𝐢𝐭 𝐲𝐨𝐮𝐫𝐬𝐞𝐥𝐟 𝐨𝐫 𝐡𝐢𝐫𝐞 𝐚 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐥𝐚𝐰𝐲𝐞𝐫; 𝐰𝐡𝐢𝐜𝐡 𝐨𝐧𝐞 𝐢𝐬 𝐦𝐨𝐫𝐞 𝐰𝐨𝐫𝐭𝐡 𝐢𝐭?
Many people wonder, when purchasing or selling a house or villa in Thailand, if they should do it themselves or hire a property lawyer. This is the most common question clients ask.
Purchasing or selling a property on your own is possible, but you will have to go through a lot of paperwork and risk having an unexpected issue that may cost more if the processes or necessary paperwork are not completed correctly.
If you are willing to take the risk, doing it yourself is a good idea and worthwhile, but if you cannot, hiring a property lawyer is your best option.
𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐭𝐡𝐞 𝐚𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞𝐬 𝐨𝐟 𝐡𝐢𝐫𝐢𝐧𝐠 𝐚 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐥𝐚𝐰𝐲𝐞𝐫?

𝟏.⁠ ⁠𝐓𝐚𝐤𝐞 𝐜𝐚𝐫𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐩𝐚𝐩𝐞𝐫𝐰𝐨𝐫𝐤.

Purchasing or selling a property always includes a lot of paperwork and agreements to read. This is the first challenge that each buyer or seller encounters. Hiring a property lawyer can help you complete your paperwork more quickly and accurately. It may also assist you in reviewing the agreements before purchasing or selling a property, with the goal of avoiding any future issues.

𝟐.⁠ ⁠𝐍𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐨𝐧.

Ten hundred, or thousand, agreements were drafted in legally binding language, making it so complicated and difficult to understand. A property lawyer has an important job: to review agreements and negotiate on your behalf to ensure that the client receives the greatest and most equitable benefit possible.

𝟑.⁠ ⁠𝐏𝐞𝐚𝐜𝐞 𝐨𝐟 𝐦𝐢𝐧𝐝 𝐚𝐧𝐝 𝐞𝐬𝐜𝐚𝐩𝐞 𝐟𝐫𝐨𝐦 𝐟𝐮𝐭𝐮𝐫𝐞 𝐜𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬.

When you have a property lawyer, the paperwork and process move more smoothly. When an unexpected issue arises, your lawyer, who was with you from the beginning, understands everything and can resolve the issue faster than hiring a lawyer when the issue first appears.
Expertise and caution are needed when purchasing or selling property to avoid future complications. Clients frequently deal with their own because they believe the lawyer's costs are too high. But what if you run into complications when dealing without a lawyer? The cost may be more than engaging a skilled lawyer from the start.
𝐂𝐎𝐍𝐓𝐀𝐂𝐓 𝐔𝐒
💬 Direct Message
📞 +66(0)76-530-597
✉️ [email protected]

10/04/2024

Follow us for more tips and information about legal.
𝐂𝐎𝐍𝐓𝐀𝐂𝐓 𝐔𝐒
💬 Direct Message
📞 +66(0)76-530-597
✉️ [email protected]

27/03/2024

𝐂𝐎𝐔𝐑𝐓𝐒 𝐎𝐅 𝐉𝐔𝐒𝐓𝐈𝐂𝐄 𝐒𝐘𝐒𝐓𝐄𝐌 𝐈𝐍 𝐓𝐇𝐀𝐈𝐋𝐀𝐍𝐃

The Courts of Justice in Thailand are classified into three levels.

𝟏. 𝐂𝐎𝐔𝐑𝐓 𝐎𝐅 𝐅𝐈𝐑𝐒𝐓 𝐈𝐍𝐒𝐓𝐀𝐍𝐂𝐄

Courts of First Instance are classified into three types: general courts, juvenile and family courts, and specialized courts.

The general courts are ordinary courts that have the authority to try and decide criminal and civil cases.

𝟐. 𝐂𝐎𝐔𝐑𝐓 𝐎𝐅 𝐀𝐏𝐏𝐄𝐀𝐋

The Court of Appeal handles an appeal against a judgment or order of Civil Courts and Criminal Courts. Meanwhile, the Regional Courts of Appeal handle an appeal against a judgment or order of the other Courts of First Instance located within.

𝟑. 𝐒𝐔𝐏𝐑𝐄𝐌𝐄 𝐂𝐎𝐔𝐑𝐓 (𝐃𝐈𝐊𝐀 𝐂𝐎𝐔𝐑𝐓)

The Supreme Court is the court of final appeal in all civil and criminal cases in the whole Kingdom.
𝐂𝐎𝐍𝐓𝐀𝐂𝐓 𝐔𝐒

💬 Direct Message
📞 +66(0)76-530-597
✉️ [email protected]