Updated Policy that are essential for Real Estate Agents in Thailand

As of 2025, there are several updated real estate policies in Thailand that are essential for real estate agents to be aware of:

1. Increased Foreign Ownership Cap

• Policy Update: The foreign ownership cap in condominiums has been increased from 49% to 75%. This change is intended to boost foreign investment and address the property oversupply, especially in popular areas outside of Bangkok like Phuket, Pattaya, and Samui.

2. Extended Lease Periods

• Policy Update: Lease agreements for land have been extended significantly, from the previous maximum of 30 years (50 years for certain commercial uses) to up to 99 years. This change provides more security for foreign investors looking to engage in long-term property investments, such as building villas on leased land.

3. Reduced Property Transfer Fees

• Policy Update: Effective from April 22, 2025, property transfer and mortgage registration fees have been reduced to 0.01% of the property value. This reduction is aimed at making property transactions more financially accessible.

4. Property Tax Updates

• Policy Update: New property tax regulations include adjustments to property transfer fees and taxes applicable to capital gains and land ownership costs. Understanding these changes is crucial for agents advising clients on financial and tax implications of property investments.

Implications for Real Estate Agents:

• Enhanced Investment Opportunities: With increased foreign ownership and extended lease periods, agents have more opportunities to attract international buyers and investors.
• Legal Advisement: Agents should remain informed about the legislative changes and be prepared to advise clients accurately, particularly concerning new ownership and lease duration options.
• Market Dynamics: Adjustments in tax and fee structures will impact property valuations and transaction dynamics, requiring agents to adjust their market strategies accordingly.

These policies provide real estate agents with new avenues to facilitate real estate transactions and attract foreign investment in Thailand’s property market.

What Challenges and Considerations Face the New Amendments?

While the proposed reforms offer a lot of advantages, the government must perform a balancing action between the interests of both Thai nationals and international investors.
The introduction of these proposed reforms is expected to have significant implications on the Thai real estate market, both in the short and long term and there are a few potential issues arising as a result of this.
The increased foreign ownership quota and extended lease periods will likely result in a significant increase of international investment in the Thai property market. This increased level of foreign capital can drive up demand, particularly in the condominium sector, potentially leading to a reduction in the existing oversupply.

However, while an increased foreign participation can stimulate market activity, there are concerns about the potential for price distortions.
After the announcement of the amendments, many Thai people shared their concerns about the potential for foreign buyers to outcompete Thai nationals and price them out of the property market, particularly in popular areas such as Bangkok, Phuket and Chiang Mai.

Another potential issue was the fact that by increasing the foreign ownership cap to 75%, this would mean that foreigners would hold the majority share in the ownership of the condo development. To ensure a balanced approach, the proposed amendments include provisions to safeguard the interests of Thai nationals. While the foreign ownership limit will be raised, Thai control over condominium management and decision-making processes will be maintained. Foreigners acquiring units beyond the 49% threshold will not be granted additional voting rights, preserving the decision-making ability of Thai owners.