Leasing Property in Thailand: A Guide for Foreigners

Leasing property in Thailand can be a viable option for foreigners. At Closer Law, we aim to provide a comprehensive overview of the legal aspects of leasehold in Thailand, helping you make informed decisions.

Lease Agreement Basics

Foreigners can lease land, houses, or condominium units for up to 30 years, governed by the Civil and Commercial Code sections 537-571.

The law applies equally to both foreign and Thai nationals.

Lease Term and Registration

A lease exceeding 3 years must be registered with the local land office to be legally enforceable. The maximum lease term is 30 years, and any longer term in the contract will be reduced to 30 years.
Pre-signed or pre-agreed lease renewals are not accepted and must be renewed upon expiration of the initial term, again not exceeding 30 years.

Legal Aspects

Written lease agreements are enforceable, while verbal agreements generally are not. Leases up to 3 years do not need to be registered. Leases over 3 years must be written in Thai and registered with the land department.

Registered leases cannot exceed 30 years, though renewals are possible but not guaranteed.

Lease Registration Process

The lease agreement will be noted on the title deed of the property owner and the original title deed held by the Land Office. Fees include a 1% registration fee plus a 0.1% stamp duty, based on the total rental throughout the lease term.

Foreign Leasehold Complications

Lease agreements must be drafted by experienced professionals to ensure enforceability. Common errors include failing to register leases over 3 years, poorly drafted agreements, and misunderstanding marital property laws, which can affect the validity of the lease.

Foreign Leasehold Complications

Foreigners can lease land and own the buildings on it through a right of superficies or separate sale of the building. This structure provides a long-term interest in the property while complying with the Land Code Act.

Housing and Land Tax

Thailand charges a 12.5% tax on the yearly rental value of property not used as the owner’s primary residence.

Conclusion

Leasing property in Thailand involves navigating complex legal requirements. Proper planning, due diligence, and legal assistance are crucial.

Contact Closer Law for expert advice and support in drafting and registering lease agreements.

So, why Choose Closer Law?

Getting around the complexities of Thai property laws can be challenging, but with the right legal guidance, foreigners can successfully lease or own buildings on leased land.

At Closer Law, we specialize in real estate law and are here to assist you every step of the way.

If you have any questions or need legal assistance regarding property ownership, leasing or renting property, our experienced team at Closer Law is here to help.

We provide:

Expert legal advice tailored to your specific situation
Assistance with documentation and fair practices
Representation in negotiations or, if necessary, in court

Together, we can safeguard your success and ensure your peace of mind.

Contact us today

📞 Call us: +66 (0) 61 645 8553