Thai authorities have issued a warning to foreign condominium owners against renting out their units for short-term stays without proper licensing, citing potential violations of the Hotel Act B.E. 2547 (2004) and the Foreign Business Act B.E. 2542 (1999).
While foreigners can own condominiums under the Condominium Act B.E. 2522 (1979), their leasing rights are not unrestricted. The primary concern is unauthorized short-term rentals, which may be classified as hotel businesses requiring a hotel license unless exempted.
Under Section 4 of the Hotel Act B.E. 2547, a hotel is defined as an establishment providing temporary accommodation for travelers or other individuals in exchange for compensation. Any entity falling under this definition must generally obtain a hotel license to operate legally.
To clarify the law’s scope, the Ministerial Regulation B.E. 2551 (2008) provides exceptions. According to Clause 1, properties with no more than four rooms and accommodating no more than twenty guests—operated as a supplementary business with prior notification to local authorities—are not classified as hotels. This provision primarily supports homestays in rural areas, enabling small-scale, non-commercial property owners to participate in tourism.
Foreign condominium owners violating these regulations risk fines and legal action as part of Thailand’s broader crackdown on illegal rental operations. To ensure compliance, investors are advised to focus on long-term leases (exceeding 30 days) or obtain the necessary licenses for short-term rentals.
With stricter enforcement looming, foreign property owners must carefully structure their rental strategies to avoid legal repercussions.
Foreign Investors and the Thai Condominium Rental Market _Bangkok Global Law