Buying Commercial Property in Chiang Mai as a Foreigner in 2026
In our experience, buyers of hotels and commercial buildings in Chiang Mai do best when they treat it as two purchases: the property on a lease, and the licensed business that runs on top of it.
Picture a guesthouse you love: tidy rooms, a quiet courtyard, a seller who says the paperwork is all in order. My first question is always the same. Can I see the licence, and does the room count match the rooms being let?
A foreigner cannot own land in Chiang Mai, but can lease it for up to 30 years and own the building. Running a hotel also needs a valid hotel licence and, for foreign-controlled companies, a Foreign Business Licence. The 2004 Hotel Act still applies today.
What can a foreigner own when buying commercial property in Chiang Mai?
A foreigner can own a building but not the land beneath it, so most routes rest on a registered lease of up to 30 years or on a genuinely Thai-controlled company.
| Option | What you hold | Key check |
|---|---|---|
| Land | A foreigner cannot own land in Thailand | Do not accept any structure that puts the land in a Thai name for you |
| Building on leased land | The building, with the land on a lease of up to 30 years (Civil and Commercial Code, section 540) | Register the lease at the Land Office. A renewal is a fresh agreement, not a right |
| Thai company, genuinely Thai-controlled | The company holds the asset | Thai shareholders must invest their own money. Nominee holding is illegal |
| Company with foreign shareholders | Treated as foreign when foreigners hold half or more of the shares | Hotel operation needs a Foreign Business Licence |
A pre-agreed renewal beyond the first 30 years is not enforceable, following a March 2025 Supreme Court ruling. Our villa guide explains the lease, our foreign ownership guide covers what you can hold, and our nominee company guide explains why borrowed shareholders are a risk.
Do you need a hotel licence to run a hotel in Chiang Mai?
Yes, once the property is above 8 rooms or 30 guests. The licence belongs to the business and the building, so check it before you check the price.
| Item | Position | Status |
|---|---|---|
| Licence exemption | Up to 8 rooms and no more than 30 guests is not a hotel | LawIn force since 29 Oct 2023. Tilleke and Gibbins |
| Licence types | Types 1 to 4, set by size and facilities such as a restaurant or conference room | LawTilleke and Gibbins |
| Building permit | In building-control areas the building needs a permit and certificate for hotel use | LawTilleke and Gibbins |
| New Accommodation Establishments Act | Would repeal the Hotel Act and cover homestays, hostels and similar stays | ProposalAnnounced 29 Sep 2026, proposed for cabinet approval in principle. Not law |
The Hotel Act applies until a new law is published in the Government Gazette. This is a different question from renting a condo by the day, which our short-term rental guide covers.
Can a foreigner run a hotel in Chiang Mai?
Yes, with the right licence and permissions. Hotel operation is a restricted business under the Foreign Business Act, and a foreign-controlled company needs a Foreign Business Licence before it starts.
The Foreign Business Licence is a government approval, and the committee has 60 days to decide once the Ministry of Commerce accepts a complete application. Hotel management is treated separately from hotel operation. Working in Thailand also needs a Non-Immigrant B visa and a work permit. Using Thai nominee shareholders to avoid the licence is illegal, and our nominee guide sets out the penalties.
What should you check before buying a hotel or shophouse in Chiang Mai?
Check the licence, the building certificate and the lease before the price. Most surprises in our experience come from paperwork that does not match what is actually happening in the building.
| Check | Why it matters |
|---|---|
| Title deed | Search at the Land Office for the owner, attachments and restrictions |
| Unregistered leases | Leases under 3 years are not registered, so ask the seller to disclose them |
| Zoning | A building that does not fit the zone may be barred from renovation or ordered down |
| Building permit and certificate | The building must be certified for the use you are buying |
| Hotel licence | It states the type and number of rooms. Match it to the rooms in use |
| Other licences | Food, alcohol or entertainment may each need their own |
| Contracts | Maintenance, staff and booking contracts can pass to the new owner |
Our buying guide sets out the purchase steps in order, and our property tax guide covers the fees.
What is the Chiang Mai hotel market doing?
Demand is seasonal. The high season carries most of the year, so one occupancy figure from a seller usually reflects the best months.
| Measure | What was reported | Source |
|---|---|---|
| High season | January to February and October to December, about 4 to 5 months | The Nation, 9 May 2025 |
| April 2025 occupancy | Down 15 to 20 percent citywide on April 2024 | The Nation, 9 May 2025 |
| Full-year 2025 occupancy | 68.4 percent in Chiang Mai, described as stable on 2024National figure 71.4 percent, down from 72.8 percent | Reported by The Hotel Blueprint, 13 May 2026 |
We do not quote yields or purchase price ranges for hotels. We could not source them reliably, and a seller’s accounts for the busiest months are not a guide to a full year. Ask for twelve months of figures, and have them checked.
Will the second airport lift commercial values in Chiang Mai?
It is too early to say. The second airport is a proposal at planning stage, and we found no confirmed construction approval or opening date.
A March 2026 analysis places the proposed site between San Kamphaeng and Ban Thi in Lamphun, with approvals and design running to 2029. The existing airport handled 9.5 million passengers in 2025 against a design capacity of 8 million, and its expansion is expected to start construction in 2027. We do not give land price figures for the airport corridor, because we could not verify them. Our eastern frontier guide looks at the area.
Goen notes: “When a buyer asks me about a hotel, I ask for the licence before the price. The licence tells me what the building is allowed to be, and that is what you are really buying.”
Before you discuss price, ask the seller for the hotel licence, the building permit and certificate, and a list of every room actually let. Check that the licence room count matches the rooms in use. Then ask your lawyer to confirm who holds each licence and whether it can transfer to a new owner.
People Also Ask
Can a foreigner buy a hotel in Chiang Mai?
A foreigner cannot own the land, but can own the building on a lease registered for up to 30 years, or buy through a company. A company with foreign majority needs a Foreign Business Licence to operate a hotel, and nominee shareholders are illegal.
Do I need a hotel licence in Thailand?
Yes, unless the property has no more than 8 rooms and 30 guests. Above that it is a hotel under the Hotel Act and needs a licence. A draft law to replace the Hotel Act is a proposal and is not yet law.
Can a foreigner manage a hotel in Chiang Mai?
Working in Thailand needs a Non-Immigrant B visa and a work permit. Hotel management sits outside the Foreign Business Act hotel operation category, but confirm your role with a licensed Thai lawyer before you plan around it.
Is the second Chiang Mai airport approved?
We found no confirmed construction approval. The proposed site is between San Kamphaeng and Ban Thi in Lamphun, and a March 2026 analysis described the project as still at planning stage.
Looking at a hotel or commercial building?
We can check the licence, the lease and the ownership structure with you before you commit, so the business you are buying is the business you think it is.
Contact Goen at Chiangmai Properties on WhatsApp at +66 64 338 9597 or browse our commercial listings.
We are real estate professionals sharing local market observations based on our experience in Chiang Mai. This is not legal or financial advice. Consult the Thai Land Office, a licensed attorney, or a financial advisor for title deed, tax, and investment suitability.
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