We’ve mostly talked about buying residential real estate previously, covering foreign ownership regulations, taxes, and more. In this article, we take it to another level and review how it works when buying hotels and resorts.
Buying a hotel is generally more complex as the properties are treated as businesses. As such, different regulations apply. The transaction values tend to be higher as well.
In this article, you’ll learn how it works when buying a hotel or a resort in Thailand and the regulations that apply.
- Can foreigners buy hotels in Thailand?
- Foreign Ownership Regulations of Hotels in Thailand
- How do I get a hotel license in Thailand?
- Hotel Classifications in Thailand
- Documents & Information when Buying Hotels in Thailand
- The Best Cities to Buy Hotels in Thailand
Can foreigners buy hotels in Thailand?
Foreign individuals cannot invest in hotels as we are only allowed to own strata-title units, which are predominantly in condominium projects.
Even if we can buy residential physical structures like villas, we are not allowed to own the land on which these are built on.
Therefore, foreign corporations set up a Joint Venture (JV) with a local partner or a Thai Limited Company (LLC) to invest in hotels.
This generally requires that you apply for a Foreign Business License (FBL) if foreigners own more than 49% of the shares.
Worth mentioning is also that the Board of Investment (BOI) sometimes exempt foreigners from applying for an FBL if you invest in special projects in certain areas.
Foreign Ownership Regulations of Hotels in Thailand
It’s important that you learn about local ownership regulations and find a credible partner before you engage in the commercial real estate market. Continue reading Investing in Thailand Hotels & Resorts: A Complete Guide