On June 23, 2023, the Office of the Board of Investment of Thailand ("BOI") issued Announcement No. Por. 10/2566, which outlines the criteria and conditions for granting land ownership rights to foreign entities that have been promoted and intend to establish an office and residential premises for their promoted business. This announcement introduces supplementary criteria and conditions, in addition to those stated in the previous announcement by the Board of Investment of Thailand No. 6/2565.
The following are the significant conditions specified in the Announcement that warrant attention:
- The foreign entity must maintain a paid-up registered capital of at least 50 million baht throughout the period in which they are permitted to own land for establishing office and residential premises for their promoted business.
- The land used for executives' or experts' residences must not exceed 100 square meters per family, and each plot must not exceed one rai (approximately 1,600 square meters). The land ownership for this purpose shall not exceed one rai per 50 million baht of paid-up registered capital, with a total limit of 10 rai.
- The land designated for factory workers' residences must not exceed one rai per 300 people. The land ownership for this purpose shall not exceed one rai per 50 million baht of paid-up capital, with a total limit of 20 rai.
- If the residence is located separately from the establishment, the owned land intended for residential purposes must be located within a 50-kilometer radius from the promoted establishment along the main public road.
- In the event of a breach of the conditions stated in the Announcement, BOI will initiate the revocation of the rights and benefits of land ownership. The land must be disposed of within one year from the date of notification from BOI.
