Leasehold in Thailand: renting a property for 30 years as a foreigner

In Thailand, the law prohibits foreigners from owning land in their own name. To get around this restriction, many expats and investors are turning to a legal and widespread alternative: leasehold, i.e. the long-term rental of real estate, often for a period of 30 years.

In this article, we explore the basics of leaseholding in Thailand, its advantages, limitations, and precautions to take.

What is a leasehold?

A leasehold is a long-term lease contract, usually for a period of 30 years, registered with the Land Office (Thai land registry office). It allows a foreigner to rent a plot of land or a house, with an exclusive right of use for the duration of the lease.

Some leases may include renewal clauses for an additional 30 or 60 years, although this is not legally guaranteed.

Why use a leasehold?

The leasehold is particularly used by foreigners who wish to:

• Acquire a house (on land they cannot own),

• Enjoy a second home,

• Living year-round in Thailand without trying to become a homeowner.

The key elements of a leasehold contract

1. Duration of the contract

The legal maximum duration is 30 years for foreigners. Any promise of additional renewal (e.g. 30 + 30 years) must be explicitly written in the contract, but is not legally binding under Thai law. It is therefore crucial not to rely solely on an oral or unregistered clause.

2. Registration of the lease

In order to be legally recognised and enforceable against third parties, the lease must be registered with the Land Office. This process formalizes the transaction and protects the tenant.

Registration gives rise to a registration fee (often around 1% of the total rent for the period).

3. Transfer or inheritance of the lease

The leasehold can be transferred or inherited, if this is mentioned in the contract. However, this remains at the discretion of the owner and the Land Office. It is essential to include clear clauses on this point.

Advantages of leasehold

✅ Ease of access

The leasehold allows foreigners to enjoy a house or a plot of land without the need to go through complex arrangements (such as a company).

✅ Reduced costs

The initial investment is often lower than for a freehold acquisition, and maintenance costs can be shared according to the terms of the contract.

✅ Exclusive right of use

You can use, renovate or rent the property (by agreement) for the duration of the lease.

Disadvantages and risks

❌ No real ownership

You are not the owner of the property, but a tenant. At the end of the lease, the rights revert to the owner, unless expressly renewed.

❌ Non-guaranteed renewal clause

Even if the contract provides for automatic renewal, the law does not require it. The landlord can refuse to renew the lease.

❌ Legal risks

If you don’t have a registration or specific clauses, you risk litigation or financial loss in the event of resale or death.

Precautions to take

• Always register the lease with the Land Office.

• Check that the owner has a Chanote title on the land.

• Have the contract drafted or proofread by an independent local lawyer.

• Include clauses on: renewal, inheritance, renovations, possible subletting.

• Never pay large funds without signing a clear and secure contract.

Conclusion: Leasehold in Thailand for foreigners

Leasehold is a legal and relatively safe option for foreigners who want to settle or invest in Thailand without having to hold a land title. By following the rules, registering the lease correctly, and surrounding yourself with competent professionals, you can fully enjoy your property in Thailand for many years to come.

In a future article, we will explore when buying through a Thai company can be a viable alternative.

Do you want me to move on to article 3: buying through a limited liability company ?

Excellent! Here is article 3, ready to be integrated into your WordPress editor, with title, slug, meta description, and a clear structure.

🎯 Title of the article :
Buying real estate in Thailand through a limited liability company (SRL)

🔗 Slug :
buy-property-thailand-company

📝 Meta description :
Can you buy real estate in Thailand through a company? Here are the rules, advantages and limitations of this method for foreigners.

Buying real estate in Thailand through a limited liability company (SRL)

In Thailand, foreigners cannot legally own land in their own name. However, some choose to use a limited liability company (LLC) under Thai law as a means of acquiring real estate. This method is legal if it meets certain conditions, but it requires rigorous management and involves risks if it is poorly supervised.

In this article, we explain the basics of this strategy, how it works and the precautions to take before you start.

Why go through a company to buy a property?

Buying via a BV theoretically allows the company – of which you can be one of the shareholders – to buy a plot of land or a house in full ownership, which is normally forbidden to a foreign individual.

This solution is generally used in the context of:

• an investment project,

• a commercial activity related to real estate (e.g. hotel, short-term rental),

• or as part of a personal residence structured as a business.

How does a Thai LLC work?

1. Company Structure

A limited liability company in Thailand must have at least three shareholders, at least 51% of whom must be Thai. This means that the foreigner can only own up to 49% of the capital, unless there is a special exemption (e.g. BOI programme).

The BV is a separate legal entity. They can buy, sell or rent a property in their own name.

2. Registration and operation

The company must be registered with the Department of Business Development (DBD). It must have up-to-date accounts, a registered office, and meet local tax obligations.

The real estate purchase is carried out in the name of the company, which becomes the full owner of it.

Advantages of this method

✅ Direct ownership of the property

The company owns the land and the house. This offers more leeway compared to a leasehold, especially for custom-built constructions.

✅ Possible commercial use

This method is consistent for commercial projects: rental, hotel management, coworking, etc.

✅ Better long-term control

As a director or de facto majority shareholder (through internal agreements), you can retain operational control of the property.

Risks and limitations

❌ Legally fragile structure

The Thai authorities actively monitor the so-called “nominee” SRLs (where Thais are nominees with no real role). This can lead to the dissolution of the company and the confiscation of the property.

❌ Mandatory administrative management

You have to keep accounts, make tax returns, convene general meetings, etc. This is not a “passive” solution.

❌ Not 100% legal control

Even with management or voting agreements, you legally only have 49% of the shares. It is therefore crucial to have a solid, transparent structure and trusted partners.

Essential precautions

• Use a Thai business lawyer.

• Do not use fictitious nominees (high risk).

• Draw up clear shareholders’ agreements, with management power or right of pre-emption in the event of a sale.

• Provide for a secure exit in the event of a shareholder dispute.

• Comply with all the company’s accounting and tax obligations .

Conclusion: Buying in Thailand via a Company (SRL)

Buying a property via a private limited liability company (SRL) can be an interesting solution for a structured and long-term project. But this method is not suitable for all profiles, and must be handled with care. If well thought out and supervised, it can provide a route to property that complies with Thai law. Conversely, poor structuring can have serious consequences.