BOI: New Regulations Governing Land Ownership for Foreign Juristic Persons
On 9 December 2024, the Board of Investment (BOI) enacted Notification No. 16/2567, establishing new criteria for granting permission to promote foreign juristic persons to own land for office and residential purposes. This notification supersedes the previous Notification No. 6/2565, which had been in effect since 2022.
The Investment Promotion Act B.E. 2520 (1977) grants special privileges to BOI-promoted businesses, allowing foreign entities to own land beyond the limitations imposed by general land laws. This amendment aims to facilitate business operations while enhancing clarity and flexibility in the regulatory framework.
Key Provisions of the Amendment
- Eligibility
- Foreign juristic persons with a minimum paid-up registered capital of 50 million baht are eligible to own land.
- Land Ownership Limits
- Office Use: Up to 5 rai.
- Residential Use: Up to 20 rai for constructing accommodation specifically for operational-level employees in a building form.
- Land designated for office and residential use may be located within or outside the same area as the business premises.
- Special Considerations
- The BOI may grant exceptions on a case-by-case basis if special reasons or necessities arise.
- Land Disposal
- Foreign juristic persons must dispose of or transfer the land within one year after ceasing to qualify for investment promotion.
- Further Regulations
- The BOI Office has the authority to issue additional criteria such as the type of business, distance from the business site, and residential unit specifications.
Key Amendments from the Previous Notification
- Repeal of Provisions for Executive and Expert Accommodation
- Clause 1.2 of the previous notification, which allowed land ownership for accommodation of executives and experts, has been repealed.
- Restriction on Residential Use
- Land ownership for residential purposes is now limited to the construction of accommodation exclusively for operational-level employees, replacing the broader term “workers”.
- Supplementary Regulations
- Additional criteria will be issued to provide further clarity on business types, land specifications, and proximity to business operations, ensuring compliance with operational and environmental requirements.
Conclusion
This announcement takes effect immediately. Supplementary regulations may be further issued, so promoted enterprises are encouraged to stay informed of any subsequent notices to ensure compliance with the regulations.
Author: Panisa Suwanmatajarn, Managing Partner.
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