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How to Lease Land in Thailand: A Foreigner’s Guide to the Law

A lease agreement in Thailand enables a foreigner to maintain a long term interest in the country through land. Lease permitting, a house can be constructed on the land and registered in the foreigner's name.

A lease arrangement is suited to a number of situations, including:

  1. Someone who wants to retire in Thailand and construct a house of their choosing on land in a specific area.
  2. A person who wants to buy land for their Thai partner but wants some control over the land during their remaining years (in this case the Thai spouse would buy the land and lease it to the foreign spouse).
  3. A couple who want to live near Thai family and decide to lease land from a member of family.

I've discussed land and property ownership previously, and within that briefly covered the lease arrangement. However, it's a subject worthy of its own post – since it begs many questions. So let's look at this in greater detail, without any of the legal jargon you'll find elsewhere.

lease-land-thailand

Why Get a Land Lease in Thailand?

Direct property ownership outside of a condo or housing development purpose built for ownership isn't permitted for foreigners.

Having a lease, typically of 30 years, means you can build a home on the land and live there for the term. Please note that the lease agreement must stipulate that a home can be built on the land.

Moreover, before entering a lease agreement, you must ensure that the land has a deed that permits a dwelling. Some land is reserved for agriculture. See here.

Can a Lease Be Renewed?

30 years is the maximum term. However, a clause can be inserted in the contract that provides the option for a renewal. The renewal must be made before the lease term expires.

Does a Lease Renew Automatically?

No. Even if the option to renew is stated in the contract the lease does not renew automatically.

The renewal clause is considered an option or contract obligation, not a legal right. Therefore both parties have to actively seek to renew the lease and, even then, the final decision is up to the land registrar.

What's the Point of a Lease if You Never Own The Land?

It's a fair point, and it depends on your age and financial situation.

Leasing land will enable you to build a home in the style of your choosing, and fairly cheaply too. You can build a nice house in Thailand for 3 million Baht, and for some that's very affordable. Renting the land will be cheaper than buying it outright,

Moreover, most of those who retire to Thailand do so when over 50 years old, so a 30-year lease with an option to renew works out quite nicely. If you live out your days in the house for 20-30 years, then you've had good use out of it.

What Happens to My Lease if I Die?

It reverts to the lessor, unless you include family members in the contract as co-lessees.  That way your family members can carry on the full term of the lease period, should they want to.

What if the Lessor Dies?

The lease will remain valid if the lessor dies, or if the land is sold.

How do I Lease Land in Thailand?

It's pretty straight forward to lease land. You make an agreement with the lessor, ironing out any specific arrangements such as rental costs, building permissions, term, etc., and then go to a lawyer to have the contract drawn up.

If the lease term is to be more than 3 years, then you will need to register it at the Land Office. The lease will then be fixed to the land deed and held at the Land Office.

You will need to apply for a permit to build a house on the land. The property will be registered in your name, as the owner.

Can I Sublet or Transfer My Land Under a Lease?

Subletting to a third party, or transferring ownership of the lease, is not permitted unless stipulated in the lease contract.

Are There Any Fees Involved?

Yes. The Land Office will charge 1% of the rental value of the lease to register the lease.

If you plan to use the land for commercial purposes, then property tax will be due at of 12.5 % of the annual rental value, or the annual assessed rental value, whichever is higher.

Can I Get a Visa Based On Leasing Land?

No. Having a lease or owning a home doesn't guarantee you any sort of visa. You would still need to apply for a retirement visa, a visa extension based on marriage, an Elite visa or other.

—–

Got a specific question I haven't covered here? Leave it down below.

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  1. Rob says

    If you sign a 5 year Lease on a House in Thailand and the Lease contains a 'Right to Renew' clause for 5 more years, when registering such a Lease, will the Land Office only tax the first 5 years or will they assess taxes for 10 years even though the 'Right to Renew' clause cannot and may not be exercised until 5 years later?
    And, if they only demand taxes for the first 5 years, does the 'Right to Renew' clause survive as a legally binding part of the Lease Contract in the eyes of the Land Office. And if it does survive and say the owner has passed away, what does the renter have to do in order to exercise their Right to Renew the Lease for another 5 years?
    Can one just go to the Land Office before the Lease expires and Register the Lease Renewal?... Or...???
    Reply

    • TheThailandLife says

      Hey Rob, I'm quite sure the tax assessment is for just the first 5 years, not the optional renewal. In the event of death of the owner, to ensure the right to renew, the contract would need to stipulate the conditions. I wouldn't assume or take anyone's word for it, because in the event of death the house would pass to the heirs and they may contest the contract.
      Reply

  3. jeffrey mellman says

    A friend will buy undeveloped property in Thailand. To make the purchase and get it in her name:

    1. What kind of visa does she need?

    2. How much time is needed remaining on her Visa?

    3. Does she need a local bank account?

    4. Anything else?
    Reply

    • TheThailandLife says

      Hi Jeffrey,I assume this is part of development where the homes are available for foreign nationals to purchase.1. You don't need a specific visa.2. N/A3. She will likely need a bank account to transfer the money into in order to pay her deposit. If she is not on a long-stay visa she may need proof of the pending purchase to open the account. There may be an option to wire the money to the developer, but I wouldn't do that. The best way is to use a lawyer and have the money in escrow to facilitate an exchange of money for the signed contract/deeds.4. She should engage a lawyer to look over the contract, deeds and do other due diligence.Be careful off buying off plan. There are many instances where projects are never finished and the developer files for bankruptcy. Often the developers don't have the funds to finish the project so they sell off plan to raise funds along the way.How far along is the development?
      Reply

  4. Per says

    Hi and thank you for your information. Maybe you or someone now the answer on this questions:
    If I do a lease from my girlfriend, can the lease be payed in once and can it be low like 1000 Bath for 30 years?
    Can she buy only the land (and lease it to me) and I the house from the seller or in how many step do you do this?
    What will the lawyer cost be to fix this?
    Regards
    Per
    Reply

    • TheThailandLife says

      I'm not certain about this but quite sure the lease amount has to be relative to local lease prices. This is because the Land Office will charge 1% of the rental value of the lease to register the lease, and if your GF deliberately sets the lease value very low it would be seen as a way to avoid paying what should be due. I assume the payment plan would be something you agree contractually. The thing is, since it is your GF, she could just give you the money back :). It's a good idea to consult a local lawyer. You can schedule a 20-minute meeting with a local lawyer for advice for less than 1,000 Baht, I'm sure.
      Reply

  5. Sabrina Laharnar says

    Hi everyone! Hoping I can get some clarity on my upcoming trip to Thailand in February.. I will be looking for land or property to lease upon my return to use as an airbnb/accommodation as well as home for myself. It is my understanding that I can do this under a multiple entry tourist visa? Does anyone have experience with this, your help is greatly appreciated if you have any to offer 😊 thank you in advance!!
    Reply

    • TheThailandLife says

      You can look for land or property to lease but I'm not sure if you can sign a contract while on a tourist visa. I would have thought you'd need to be on an O visa of some kind. A quick email to a Thai lawyer such as Siam Legal would clear this up for you. In terms of then renting the property as an AirBnb; this would depend on the terms of the contract. I would have thought this would be considered a form of sub-letting.
      Reply

  6. Ahmed says

    Hi Peter,

    Thanks for the useful info. How much cheaper would a 30 year land lease be vs. buying it outright?

    Present value calculations suggest it should be 30% to 35% cheaper vs. the market selling price, assuming full rental payment is made in full at the start of the lease.

    Any idea if that is generally the case in Thailand?

    Cheers,
    Ahmed
    Reply

    • TheThailandLife says

      I've not done any comparative math, but it completely depends on the rental prices in that area, and on the conditions of the contract. If you can lock in a rental fee for a certain number of years then you should beat the market, as land prices, rental and sale, tend to rise. That said, it depends on whether you are earning Baht or a foreign currency, because the latter is subject to exchange rate fluctuation.
      Reply

  7. Jason says

    Hello,

    Im looking at some apartments for sale and some have mentioned the lease expires in 5 years time.

    Can i still buy the apartment with hopes that the lease will be renewed?

    If it is renewable, how much will it cost?

    Thanks in Advance!
    Reply

  8. D. Mackay says

    Hi,
    I lease the land from my Thai wife, a 15 year lease and 11 years are remaining. We built a house on the land.
    Now she wants a divorce and wants to sell everything and my lawyer is telling me that if the divorce court makes a judgement then the lease has no value and gives me no protection.
    This is unbelievable to me.
    Reply

    • TheThailandLife says

      It's true, it can go either way in a situation like this. It would be different if she wasn't your wife and just your landlord. In this case the judge will have to make a decision that resolves the issue. His/her dilemma is that you both live in the house, I assume? She owns the house but the land is leased to you. If he/she upholds the lease she becomes homeless. You could argue the same, but then the judge would probably consider your financial position and say you could afford to rent something of the equivalent, or at least adequate to live in. If your original lease contract is solid it may be upheld. The problem you may have is that if your lease is upheld, your wife may make life awkward for you. She would be your landlord and would likely accuse you of being in breach of your lease contract for whatever reason she comes up with (depending on how bitter she is about the whole thing).You do have a good case though; because you have a contract. Don't get too disheartened yet. I think a good lawyer would challenge this quite successfully, or at least drag it out for so long that it frustrates the opposition into letting it go. What are your wife's grounds for divorce? I think this will be a key factor in the decision.
      Reply

      • D. Mackay says

        Good morning,
        Thank for your informative reply, I really appreciate it.
        Here are some clarifications for you:
        My wife does not live with me in the house.
        She left me (I think deserted me is more correct) 4 years ago and has never lived in the house. The house wasn't finished 4 years ago. I moved into the house about 3 years ago.
        The wife would not be homeless. She has a new foreign man and she wants to marry him so she would qualify for his 2 pensions after he dies.
        I don't know my wife's grounds for divorce other than we have been separated in excess of 3 years.
        I don't think this is applicable because she deserted me.
        Of note, I have not done anything wrong.
        I need a Pitbull attorney, do you know of one?
        Reply

        • TheThailandLife says

          Sorry to hear of your unfortunate situation, and thank you for the clarification. I think you have the upper hand here and I'd be surprised if a judge didn't uphold the lease. You have the grounds for divorce, not her, because she deserted you. She is also committing adultery, as I assume she is in an intimate relationship with this man. I guess it all depends on your situation and how you feel. If you stay in the house, and indeed the area, will it be a negative experience? Are you surrounded by friends and nice people or your hostile wife and disgruntled family members? Are you financially stable enough to take the hit, cut your losses and move on to new pastures? Or do you really like living there?Let me speak to a couple of people and see if I can get a good recommendation for a lawyer in this area of law. I will post back.
          Reply

  9. Paul says

    I want to buy some land for my wife and I would like a 30 yr lease .what procedure is involved . How would you work out the rent paying 1 % to land office if no tent will be paid as we will be living there as a family in the future ?
    Kind regards
    Reply

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