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Leases

in Thailand

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The preferred method of acquiring land for building a home is by leasehold.  The foreigner safely acquires the right to use the land and registers the right with a 30-year lease at the Land Department.  A lease contract is carefully drafted to guarantee the initial 30-year lease with two renewal periods of 30 years each.  In Thailand, the maximum time period for a lease registration of residential property is 30 years, hence, the need for two renewal periods in a contract to provide for a 90-year lease.  

The lease contract is usually drafted in the Thai language, however we do provide English versions if needed. Leases for more than 3 years are able to be registered at the Land Office, which will then further protect your interest in the house, as it becomes an encumbrance. The title deed will then contain your name and particulars as to the lease. The lease contract is then attached to the title deed and maintained at the Land Department. The foreigner can construct a house on the land.  The construction permit is applied for in the name of the foreigner and subsequently the foreigner will own the structure in his/her own name.  Most importantly, leases are valid even upon the demise of the lessor, or in the even that the land is sold. However, leases are only transferrable to third parties in the event that the grantor of the lease permits it.

The registration fee for registering such a lease is 1.1% of the rental value. It is recommended to include family members such as young adults as co-lessees in the contract.  In the uneventful demise of the parents, the children can carry on the full term of the lease period.