Understanding Land Laws and Foreign Ownership in Thailand

# Understanding Land Laws and Foreign Ownership in Thailand

A common question among international buyers is: *Can foreigners own land in Thailand?* Under Section 86 of the Thai Land Code, foreigners are generally restricted from holding absolute freehold ownership of land. However, there are several highly secure, legally recognized legal structures to hold land assets safely.

## 1. Registered 30-Year Leaseholds (สิทธิการเช่า)

A highly straightforward and legally protected structure is the registered long-term lease.

* **Duration:** Up to 30 years, with contractual options to renew for further 30-year terms.

* **Legal Requirement:** Any lease exceeding 3 years **must** be registered on the back of the Chanote title deed at the local Land Office. Unregistered agreements are only legally enforceable for 3 years.

* **Protection:** Once registered, the lease remains fully active even if the landlord sells the land or passes away.

## 2. Usufruct Contracts (สิทธิเก็บกิน)

A Usufruct is a real-right registered under Section 1417 of the Thai Civil and Commercial Code. It grants the holder (the Usufructuary) the lifelong right to manage, occupy, and use the land, including renting it out and keeping any rental income.

* **Benefit:** It provides incredible lifetime security for expat spouses or retirees. It cannot be revoked by the land owner until the holder passes away.

## 3. Thai Limited Company Structures

Many international corporate investors establish a Thai Limited Company to hold land for business, industrial, or project development activities.

* **Structure:** The company must be at least 51% owned by Thai shareholders, with the foreign investor holding up to 49% as a director with exclusive voting and signing powers.

* **Compliance:** The company must be structured as an active, compliant operating business with regular tax filings, audited financial statements, and legitimate commercial objectives.