Leasehold and freehold in Thailand for foreign buyers
Freehold means you own the property. For a foreigner that is possible for a condominium unit, within the building's 49% foreign quota. Leasehold means you rent it under a registered lease, which Thai law limits to 30 years.
A lease can be renewed when it ends, for up to 30 years more, but only if the owner agrees then. A renewal promised in advance is not a safe basis for a purchase.
Freehold and leasehold side by side
| Freehold | Leasehold | |
|---|---|---|
| What you hold | Ownership, in your name on the title. | A right to use the property for a period. The owner stays the owner. |
| Open to a foreigner for | Condominium units within the foreign quota. | Condominium units, houses and land. |
| Length | No end date. | At most 30 years, or the lifetime of one of the parties. |
| Registration | The transfer is registered at the Land Office. | Registered at the Land Office if longer than three years. |
| Renewal | Not needed. | Possible at the end, for at most 30 years. Not automatic. |
| If the owner sells | Not applicable. | The lease continues with the new owner. |
| Government cost to register | Transfer fee and taxes: see taxes and fees. | About 1.1% of the rent for the whole term. |
Registration: what makes a lease hold
- Any lease of immovable property needs written evidence signed by the party liable.
- A lease for more than three years must be in writing and registered at the Land Office. Unregistered, it can be enforced for three years only.
- A registered lease survives a sale of the property.
- Whether a lease passes to the tenant's heirs depends on its wording, and court decisions on the point are not uniform. Have the lease say so expressly.
Renewal: what the law says, and what was decided
The Civil and Commercial Code allows a lease to be renewed when it expires, for no more than 30 years from the date of renewal (section 540). It does not give a right to a renewal.
Leases are often sold to foreign buyers as a first term plus further terms agreed and paid for at the start. In judgment 4655/2566 the Supreme Court dealt with exactly that: a first registered term, and two more promised on the same day with all the rent paid up front. The court held the promised terms void as an attempt to get around the limit. The tenant had to leave when the first term ended.
The conservative reading. Value a lease on its first registered term of at most 30 years. Treat anything beyond it as a possibility that depends on the owner at that time, not as something you have bought.
Other registered rights
Three other rights can be registered on a title. Each can be granted for a fixed period of at most 30 years, or for a lifetime.
| Right | What it gives | Limits |
|---|---|---|
| Usufruct | To possess, use and take the benefit of the property, and to manage it. | Ends when the holder dies, whatever the period agreed. |
| Superficies | To own buildings or structures on someone else's land. | Can be transferred and inherited unless the grant says otherwise. |
| Habitation | To live in a building without paying rent. | Limited to living in the building. |
A separate Act allows registered leases of up to 50 years for qualifying commercial or industrial uses in designated areas. It is not a lease for a home.
How these rights are used for houses and land: Can foreigners own land or a house in Thailand?
Questions
- How long can a lease be in Thailand?
- At most 30 years. If a contract sets a longer term, the law reduces it to 30 years. A lease can also be made for the lifetime of the owner or of the tenant.
- Is a lease with two renewals agreed in advance valid for the whole period?
- Do not count on it. The law allows a renewal when the lease ends, for no more than 30 years from the renewal. In judgment 4655/2566 the Supreme Court held that two further terms promised and paid for on the day the first lease was registered were void, and the tenant had to leave at the end of the first term.
- Does a lease have to be registered?
- A lease longer than three years must be in writing and registered at the Land Office. If it is not, it can be enforced for three years only.
- What happens to my lease if the owner sells the property?
- A lease of immovable property is not ended by the transfer of ownership. The new owner takes over the rights and duties of the previous owner towards the tenant.
- What does it cost to register a lease?
- About 1.1% of the rent for the whole term: a registration fee and stamp duty. Who pays it is agreed in the contract.
More guides
- Can foreigners buy property in Thailand?
- The 49% foreign quota for condominiums
- Can foreigners own land or a house in Thailand?
- How to buy property in Thailand, step by step
- Taxes and fees when buying and selling property in Thailand
- Thai title deeds explained: Chanote, Nor Sor 3 Gor and the others
- Visas and long stays for property owners in Thailand
- Transfer cost calculator
Sources
- Revenue Code, stamp duty schedule (items 1 and 28)
- Civil and Commercial Code, section 538 (written form and registration of leases)
- Civil and Commercial Code, section 540 (thirty-year limit on leases), with Supreme Court decisions
- Civil and Commercial Code, section 569 (a lease survives the sale of the property)
- Civil and Commercial Code, sections 1402 and 1403 (habitation)
- Civil and Commercial Code, sections 1410 to 1413 (superficies)
- Civil and Commercial Code, sections 1417 and 1418 (usufruct)
- Condominium Act B.E. 2522 (1979) as amended in 2008, sections 19 to 19/11 (English translation)
- Real Estate 2026: Thailand, law and practice
- Taxes on selling properties in Thailand (2014), with worked examples