Glossary, ownership

Thai quota in Thai property

The Thai quota is the 51% or more of a condominium's unit floor area that must remain in the hands of Thai nationals or Thai companies. A foreigner cannot take freehold title to a unit if the transfer would reduce that share.

It is the mirror image of the 49% foreign quota. Developers commonly split their price lists into foreign quota and Thai quota units, and offer the Thai quota units to overseas buyers as leasehold: a registered lease of up to 30 years, with the developer or an affiliate keeping the freehold.

Compare the two carefully. A leasehold unit is often priced lower, but the buyer holds an asset with a fixed life, has no vote in the condominium's juristic person unless the lease provides for one, and relies on contractual promises for any renewal. Resale demand for leasehold units is narrower.

The label is not permanent. Because the quota is a building-wide ratio tested at each transfer, a Thai-owned unit can be sold freehold to a foreigner whenever the building has room under 49%. The reverse also holds: a unit described as foreign quota is only that if the juristic person's letter confirms it on the day.

Never have a Thai individual or company hold a unit for you. See the condominium foreign quota and freehold vs leasehold.

General guidance, not legal or tax advice. Take independent legal advice before you commit to a purchase.

Terms related to thai quota

Foreign quota: The foreign quota is the share of a condominium that foreigners may own freehold: no more than 49% of the total floor area of all units in the building, under section 19 bis of the Condominium Act.
Leasehold: Leasehold is the right to occupy and use property for a fixed term under a lease. In Thailand the longest term that can be registered is 30 years, and a lease of more than three years is enforceable beyond three years only if registered at the land office.
Nominee shareholder: A nominee shareholder is a Thai national who holds shares in a company on behalf of a foreigner so that the company appears to be Thai-owned. Using nominees so that a company can hold land is illegal under the Land Code and the Foreign Business Act.