Thailand Cabinet Approves Bill Allowing Foreigners to Buy Land and Houses

People sit in front of the Bangkok skyline on the observation deck of the King Power Mahanakhon skyscraper on Oct. 25, 2021. (Jack Taylor/AFP via Getty Images)

Thailand’s cabinet on Tuesday approved a bill allowing foreigners to buy up to one rai—the Thai equivalent of 0.4 acre—of land and houses if they invest 40 million baht ($1.1 million) in the country over three years.

The Interior Ministry put forward the proposal, which is aimed at wealthy expats, retirees, and digital nomads who want to reside in Thailand, as well as highly skilled professionals, Bangkok Post reported.

To qualify for the program, applicants must make investments in the country in the form of bonds issued by the Thai government, real estate or infrastructure funds, real estate investment trusts, legal entities, or enterprises promoted by the Board of Investment.

Government spokesperson Anucha Burapachaisri said that Thai authorities could revoke the land ownership rights if the applicants decided to withdraw their investment before the designated period.

Anucha said lands designated for foreign ownership would include those in Bangkok, the Pattaya area, municipalities in provinces nationwide, and places designated as residential zones under the Town and Country Planning Act.

The program will open after being published in the Royal Gazette and will be reviewed in five years, he said.

“The proposed scheme aligns with the government’s economic and investment stimulus plan to attract wealthy foreigners and professionals to Thailand,” Anucha added.

The scheme is expected to boost Thailand’s economy by 1 trillion baht ($26.5 billion) and investment by 800 billion baht ($21.2 billion), with an estimated revenue of 270 billion baht ($7.2 billion).

Locals Fear Influx of Chinese Investors

However, locals worry that the program could result in foreigners taking up more land in Thailand.

Tanit Sorat, vice chairman of the Employers’ Confederation of Thai Trade and Industry, said the scheme could trigger a surge in land prices and make it difficult for locals to buy land.

“Thailand may be headed for trouble involving land speculation, meaning locals may be unable to afford to purchase land because of higher prices,” Tanit told Bangkok Post.

“We are worried about Chinese investors. They already bought and own plots of land in Cambodia and Laos,” he added.

Laos issued a decree last week stating that foreigners could get honorary citizenship by donating $500,000 to the country’s socioeconomic development and investing $1 million in foreign investment, The Laotian Times reported.

Those with honorary citizenship will be exempt from visa requirements and can reside in Laos permanently. They will be able to buy land on state-owned property for a certain duration and lease both public and privately-owned land, according to the decree.