Thailand Land Lease Law

Thailand contracts

Purchasing land under Thailand real estate law can involve a number of legal complexities and obstacles that means it is not a suitable option for all foreigners. Accordingly many foreigners in Thailand prefer to acquire land through a lease. A foreigner can obtain a 100% interest of a land lease in Thailand. Unlike direct land ownership, Thailand law expressly allows foreigners to obtain long-term land leases.

Leasehold is an attractive means for a foreigner to acquire land in Thailand in order to build a home on a plot of land. The foreigner in essence leases the land or house from the Thai national who is named as owner of the land.

 In accordance with section 538 of the Thailand Civil and Commercial Code, any land leased for more than three years must be registered at the Land Department in order for it to be legally enforceable. The registration fee for registering a lease is 1.1% of the rental value.

 In Thailand land lease law, the maximum length of a residential lease registration is 30 years but the lease can be extended for an additional 30 year period with an agreement between the land owner and lessee. However, a Thailand landowner is at liberty to refuse to sign any registration for the lease extension beyond the 30 year expiration.

All extensions over 3 years of the lease would need to be registered at the Land Department. For each new registration, taxes will be levied.

Land for industrial or commercial purposes may be leased for up to 50 years in Thailand by a foreign company under certain circumstances, with the possibility of extending the lease thereafter.