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A Law Firm in Thailand

Leasing Land In Thailand

With the current prohibitive rules on the freehold ownership of land for foreign buyers in Thailand, a long-term lease may be the most feasible, if not the only practically realistic alternative. We have covered the most frequently asked questions below. Should we not have covered the question or you do not understand a legal concept please do not hesitate to contact us online or in person.

What are the main conditions regarding the long-term leasing of land?

•    Land may be leased for a period of up to 30 years
•    A lease may also be made for the duration of the life of the lessor or the lessee
•    A lease cannot be succeeded by a lessee’s heir or appointee
•    Foreigners may enjoy broad rights over the land during the term of the lease
•    Irrespective of the rights granted, the tenant acquires no ownership of the land
•    Foreigners may  own buildings and physical structures on the land**
•    All leases for a period of over 3 years must be registered with the local Land Office

Note that the lease will be enforceable only for the initial period of 3 years. After registration, details of the lease appear on the land title

** subject to the terms of the lease and providing certain other conditions are met

How can rights under a lease be divested?

•    If the lease permits, rights to the land may be assigned to a third party
•    The lease term expires
•    By mutual agreement between the lessor and the lessee

Is it possible to lease land for more than 30 years?

Under provisions of the 1999 Act on Lease of Immovable Properties for Commercial and Industrial Purpose it is possible for a lease to exceed the usual 30 year term, but the leased premises must be used for commercial or industrial purposes, as prescribed by the relevant Ministerial Regulation. Note: the maximum term may not exceed 50 years.

Can provision be made in an agreement to renew the lease upon the end of the term?

Provision may be made in the original lease providing for renewal at the end of the first term (a maximum of 30 years) for a further period of up to 30 years. However any such provision may not necessarily be legally enforceable. Note: the total maximum period, including renewals, may not exceed 90 years.