Thai politics and property: 23 coups in 82 years, and what actually changed for owners

Over the past 82 years Thailand has had 23 successful military coups and 7 failed ones. Foreigners' right to own flats did not change through any of them, and the law is not retroactive. A change of government affects other things: the length of the visa-free stay and how strictly foreigners' companies are inspected.

How is Thailand governed?

Thailand is a constitutional monarchy with a parliamentary democracy. The king is head of state, the prime minister leads the government, and parliament has two chambers.

Elections are held every 4 years. Voters choose not the prime minister but 500 members of parliament, who then appoint the head of government.

That is why the winning party does not always get the premiership: a coalition decides it. There are four main forces: reformers, economic pragmatists, conservatives and the military.

How frequent are coups?

There have been 23 successful and 7 failed coups in 82 years. The most recent was in 2014 and passed peacefully; afterwards a military-linked government stayed in office for 9 years.

A practitioner with 12 years in the Thai market, who was selling property in Phuket that year, recalled at our closed session for brokers that nothing changed in the resorts. The demonstrations took place in central Bangkok.

The country has fought no major war since the Second World War. Border incidents with Cambodia and tension in the south do occur, but they do not touch the resorts.

What changes for a foreigner when the government changes?

The policy line. Under a business-minded government the visa-free stay was extended from 30 to 60 days and companies were inspected less often. Under the conservatives it went back to 30 days and inspections began.

• companies set up in order to hold land are inspected;
• villas registered to such companies are inspected;
• offenders are given 180 days to sell, and in some cases people have been detained.

Why were villas held through companies the ones hit?

Because the arrangement broke the law from the outset. A company is lawful if 51% belongs to a genuine Thai partner rather than a nominee.

The registered capital of a company with a foreign shareholder is 2 million baht, about AED 200,000. Half of it must actually be paid in by the Thai shareholder.

Shell companies with no turnover and no accounts did not meet those requirements. A working business that owns property raises no questions. More in our piece on nominee structures.

Can a new law cancel an old contract?

No. Law in Thailand is not retroactive: a contract signed in 2006 lives by the rules of 2006, even if the law changed in 2008.

A freehold flat registered by the rules stays in its owner's hands under any government. The one at risk is the buyer who went around the law.

Frequently asked questions

How many military coups has Thailand had?

23 successful and 7 failed over the past 82 years. The most recent was in 2014.

Is property taken from foreigners when power changes hands?

Freehold flats, no. Inspections concern land and villas registered to companies with nominee Thai shareholders.

How much capital does a company with a foreign shareholder need?

2 million baht, about AED 200,000. The Thai partner must hold 51% and pays in half of the capital personally.