Thailand is not selling the country out by letting foreigners buy land

The Thai government has defended its plan to allow foreigners to buy land after an opposition party claimed it was "selling out" the country.

Foreign land ownership in Thailand is subject to strict conditions and the plan will be beneficial to the country's economy, a government spokesman said yesterday (October 30).

The government recently voted to allow four groups of foreign investors to purchase up to one rai of land (1,600 m²) and/or property in the kingdom.

See: Foreigners will soon be able to buy land and houses in Thailand

The plan has sparked opposition from the Pheu Thai Party, which claims that "selling" the country to foreigners will make Thai real estate more expensive and inaccessible to Thai citizens.

Yesterday, government spokesman Tipanan Sirichana defended the foreign land ownership plan.

Land in Thailand will not be taken over by foreigners because only four types of foreign investors can buy land up to one rai.

If they meet all the requirements and already hold a long-term resident (LTR) visa in Thailand, four groups of foreigners will be able to buy land:

1. High-net-worth foreigners who own at least $1 million in assets, have a personal income of at least $80,000 per year for the past two years, and invest at least $500,000 in Thailand.
2. Foreign retirees over the age of 50 who receive a pension and have a personal income of at least $80,000 per year OR an income of at least $40,000 and an investment in Thailand of at least $250,000.
3. Working foreigners with an annual income of no less than $80,000 for two years OR with an annual income of at least $40,000 and a master's degree or intellectual property OR who have received Series A funding of at least $1 million OR who have worked at a publicly traded company OR at a company that has generated at least USD 150 million in revenue in the last three years AND who have at least five years of work experience.
4. Foreign nationals with special skills who have earned an annual income of at least $80,000 for at least two years, have an employment contract in one of the targeted specialty industries AND have at least five years of relevant experience.

Foreigners in all four groups must have a health insurance policy covering medical expenses in Thailand of at least $50,000 to be eligible for foreign land ownership.

If a foreigner withdraws his investment, the land he purchased must be sold.

Additionally, foreigners can only purchase land in Bangkok , Pattaya or other "specified residential areas".

This measure is not new, the spokesperson said.

It was set up after the 1997 "Tom Yam Kung" financial crisis to attract foreigners.

But the new legislation is stricter, limiting foreign investors to four target groups, the spokesman said.

The measure will be effective for five years from its publication in the Royal Gazette.

Therefore, given that only certain foreigners can buy land, under strict conditions and at a high price, the spokesperson denied claims that the new foreign land ownership legislation will lead to an increase in property prices or leave no land/property for Thais.

See also:

Thailand to allow wealthy foreigners to own land, but not everyone is happy about the plan

Source: The Thaiger