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.