The government has defended a law letting four categories of foreigners seek authorization to purchase up to 1 rai of land, provided they invest at least 40 million baht for at least three years.
According to government spokesperson Anucha Buraphachaisri, the law is only an update to the ministerial rule that has existed since 2002.
According to him, if the change is approved, it will apply to four categories of foreigners who hold Long-Term Resident (LTR) visas under a recently implemented program to promote foreign investment.
He stated that the targets are high-net-worth individuals, wealthy retirees, work-from-Thailand professionals, and highly qualified professionals or experts.
During its weekly meeting on Tuesday, the cabinet approved the idea, and the Council of State is now considering the law, the government’s legal arm, he added.
In practice, these potential foreign investors must first meet the minimum investment requirement of 40 million baht before they can apply for permission to purchase up to 1 rai (1,600 m2) of land for residential purposes in Bangkok, Pattaya City, and other municipalities and zones designated as residential areas under the planning laws of the target city, he said.
They may invest in government-issued bonds, real estate or infrastructure funds, or investment trusts. After publication in the Royal Gazette, the program will last five years.
He stated that such land ownership may always be withdrawn if the landowner violated the relevant ministerial regulation.
According to statistics from the Department of Lands, just eight foreigners have been granted authorization to buy property in Thailand since the ministerial rule was enacted in 2002.
The Pheu Thai Party opposes enabling qualifying foreigners to acquire property, arguing that it would not benefit the Thai economy or people.
The legislation will negatively impact many Thais who do not yet own houses or property, and future generations may not be able to acquire land due to rising prices, the opposition alliance stated yesterday.
The 2002 administration, led by the Thai Rak Thai Party, an earlier iteration of the Pheu Thai Party, approved the restriction on foreign property ownership because it had to comply with the International Monetary Fund’s loan repayment obligations in the aftermath of the 1997 financial crisis.
However, according to the parties, the planned plan of the existing administration was a result of its inability to solve economic issues.
Hasan Suwatanapongched, secretary-general of the northeastern federation of industries, demanded an immediate amendment of the measure, arguing that it may allow dishonest foreigners to create grey firms.
Suphan Mongkolsuthee, former chairman of the Federation of Thai Industries (FTI) and current vice-leader of the Thai Sang Thai Party, has stated that he supports this proposal, but with the needed investment adjusted to reflect the land’s worth.
Instantaneously, up to 400 billion baht will be made if 10,000 such foreigners purchase land in Thailand, he claimed.
Former Palang Pracharath member of parliament Pareena Kraikupt, who is banned for life for utilizing a 665-rai forest reserve as a chicken farm, stated yesterday on Facebook that Thais do not want foreigners to possess property.
She stated that land should be protected for Thais so they would not have to pay rent to foreigners.
