Co-Ownership Thailand

Co-ownership means that several people jointly own a property in Thailand. Each person holds a clearly defined share (e.g., 50/50 or 25/25/25/25).

It is important to distinguish between:

• Co-ownership of condominiums and apartments:
Here, foreigners can be registered directly as co-owners in the Chanote (land title) or in the condo register, as long as the 49% foreign ownership quota for the building is not exceeded.

• Co-ownership of houses/land:
Foreigners are generally not allowed to own land directly. In this case, Thai companies, leasing agreements, or “structuring” are often used, which are planned in a legally sound manner

Yes, but with restrictions:

• Condominium (apartment):
Foreigners can become co-owners if:

it is a registered condominium and
the foreign ownership quota of 49% of the living space in the building is not exceeded.

House + land:
The house can often be held separately as a “structure” (e.g., rights of use), but the land itself cannot be held directly by foreigners.

This is where the following come into play:

Long-term lease agreements (30 years + renewal options)
Thai companies (with strict compliance with Thai laws). Professional legal advice is mandatory here.

Yes, but with restrictions:

• Condominium (apartment):
Foreigners can become co-owners if:

it is a registered condominium and
the foreign ownership quota of 49% of the living space in the building is not exceeded.

House + land:
The house can often be held separately as a “structure” (e.g., rights of use), but the land itself cannot be held directly by foreigners.

This is where the following come into play:

Long-term lease agreements (30 years + renewal options)
Thai companies (with strict compliance with Thai laws). Professional legal advice is mandatory here.

Typical advantages of co-ownership are:

Lower initial costs: Acquisition costs and ongoing expenses are shared among several owners.
Better location/higher quality: Together, you can afford a higher-quality property in a prime location.
Risk sharing: Market risks, maintenance costs, and loss of rent are spread across several shoulders.
Flexible use: Clear usage plans (e.g., division of vacation periods) enable a structured model for vacation properties.

The most significant risks include:

Conflicts between co-owners: Disagreements about use, sale, renovations, or rental.
Legal structural errors: Sloppy contracts, circumventing structures, or missing entries may not be enforceable in serious cases.
Dependence on a co-owner: If a co-owner becomes insolvent, divorced, or deceased, things can get complicated.
Changes to the legal framework: Changes in the law can complicate certain arrangements or render them ineffective.

A clean, legally reviewed structure (contracts, articles of association, exit rules) minimizes these risks.

The Condominium Act applies to registered condominiums. Typical elements:

Each owner receives a percentage share of the entire building (common property) and an exclusive unit (e.g., a specific apartment).
All co-owners are listed by name in the Chanote or condo register.
There is a legal entity (condo management) that manages the building and collects fees.
Co-ownership can be represented by:

joint registration of several persons or registration of a company in which several persons hold shares.

1. Due diligence:

Verification of land title (Chanote)
Verification of foreign ownership quota for condos
Verification of existing mortgages, encumbrances, obligations

2. Choice of structure:

Direct purchase of condo
Corporate structure
Leasing or usage models for land/house

3. Purchase and co-ownership agreements:

Purchase agreement with seller
Separate co-owner/shareholder agreement between the co-owners

4. Administration & management:

Establishment of accounts, contact persons, accounting
Conclusion of insurance and service contracts

Co-ownership:

You own a legal share of the property (or company).
You participate in the appreciation in value and in any subsequent sale. Usually a long-term investment.

Timeshare:
You acquire a right of use for certain weeks/time slots, but usually no ownership share.
Little or no influence on resale value. Often limited flexibility and higher ongoing fees.

For long-term asset planning, co-ownership is generally more attractive than traditional timesharing.

Yes, many people use co-ownership as:

Vacation property + rental property: Own use for a few weeks a year, otherwise short-term or long-term rental.
Pure return investment: property is rented out entirely by professional management.

Important points:
Location analysis and demand: tourist hotspots vs. long-term tenants.
Legal admissibility of short-term rentals (hotel laws, local regulations).
Transparent rules for the distribution of income and costs among all co-owners.