Investing in a plot of land, making payments in cryptocurrency, building several villas, managing the construction process independently, and subsequently renting the villas out on a daily basis — at first glance, all these elements can be combined into a single investment project.
However, a closer look reveals several legal questions. Let’s examine the main ones.
1. Investing in a Plot of Land
For a foreigner, one of the options for long-term use of land is a leasehold — a long-term lease for a period of up to 30 years.
This raises the question: how can you secure the right to enter into a new lease agreement after the initial 30-year term expires?
There is no legal instrument that can guarantee that the landowner will be obligated to enter into a new lease agreement with you in 30 years.
However, there are other legal mechanisms that can help protect an investor’s investment. For example, the agreement may include provisions requiring the landowner to compensate the investor for part of the investment if they refuse to enter into a new lease agreement.
It is also worth mentioning Sap Ing Sith as a possible alternative to leasehold. The practical application of this instrument remains uncertain, and there has been no significant development in this area over the past year.
2. Payment in Cryptocurrency
If the investment is funded with cryptocurrency, the question arises as to how the funds can be legally transferred to pay for the leasehold.
One option is to sell the cryptocurrency, transfer the funds to a bank account outside Thailand, and then transfer the money to Thailand in accordance with the terms of the leasehold agreement.
Another option is to transfer the cryptocurrency to a licensed Thai cryptocurrency exchange, withdraw the funds to your own bank account in Thailand, and then transfer the money to the landlord.
The second option may be significantly more complicated from a practical perspective.
3. Construction Permit
In theory, a foreigner may obtain a construction permit in their own name after establishing the relevant rights to the land.
In practice, it may be necessary to initially obtain the permit in the name of a Thai construction company and subsequently change the details to the foreign investor.
The procedure depends on the specific project and the requirements of the local administration, so this issue should be clarified in advance with the relevant authority.
4. Can a Foreigner Manage the Construction Independently?
A foreigner may independently supervise construction work and control the construction process only if they have the appropriate work permit and provided that such activities fall within the scope of the business activities of the company for which they work.
For example, this could be a contracting company or a company providing construction supervision services.
Simply being present at a construction site and actually managing workers without the appropriate work authorization is not permitted. A tourist visa does not grant the right to perform such activities.
5. Can the Villas Be Rented Out on a Daily Basis?
This is where the original investment plan faces its most significant restriction.
Daily rental of residential property in Thailand is subject to hotel-related legislation. To legally operate a short-term accommodation business, an appropriate hotel license may be required.
For a small project consisting of several villas, obtaining such a license is generally not a realistic option.
Therefore, when preparing a business plan, you should not automatically include income from daily rentals unless the possibility of legally operating in the chosen format has been confirmed in advance.
How Can an Investment Project Be Made Legal?
When the initial plan combines investment in land, the use of cryptocurrency, the construction of several villas, independent construction management, and daily rentals, several legal and practical restrictions arise simultaneously.
Therefore, before starting the project, the initial plan should be adjusted to take into account the requirements governing land ownership and use, construction, foreign employment, movement of funds, and the subsequent rental of the property.
The optimal approach is to develop an individual project structure and have it reviewed in advance by a lawyer and an auditor.
Author: Alexandra Agapitova.
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