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Land Lease in Thailand

Land Lease in Thailand

Do you need some advice on land leases in Thailand?

Information for an foreign investor for dealing with land leases in Thailand is available from our law firm which is experienced in this area particularly if related to the registration procedures of land leases, maximum lease term allowed and lease extensions, pros and cons of land leases in Thailand.

If you or your firm need to do business in Thailand we would be pleased to assist you in every situation. We have helped many foreigners secure land leases with well-drafted agreements, and provided valuable advice for leasing land in Thailand.

 

The questions that we receive for foreign investors include the following;

  1. Can a foreigner obtain 100% interest for a land lease in Thailand?
  2. Do you have to register the land lease at the Land Department?
  3. What is the maximum lease term available?
  4. Why is land leasing favoured by foreigners who wish to own property in Thailand?
  5. What are the advantages of having a land lease over purchasing land with a company?
  6. What are some of the drawbacks of land leases?

 

We give some general answers below but as each case is different we urge you to seek proper professional advice from a reputable law firm in Thailand;

  1. Can a foreigner obtain 100% interest for a land lease in Thailand?

    Yes. A foreigner can obtain 100% interest for a land lease in Thailand. Unlike direct land ownership, the law allows foreigners to obtain long-term land leases.
  2. Do I have to register the land lease at the Land Department?

    Leases up to three years need not be registered but registration at the Land Department is mandatory for leases that are three years or more.
  3. What is the maximum lease term available?

    The maximum lease term available is 30 years, with an option to renew for an additional 30 years. Each lease renewal that is agreed upon with the landowner must be registered at the local land office. For each new registration, taxes will be levied. Land for industrial or commercial purposes may be leased for up to 50 years by a foreign company under certain circumstances, with the possibility of extending the lease there after.
  4. Why is land leasing favoured by foreigners who wish to own property in Thailand?

    The law in Thailand does not allow foreigners to own land and houses.There are numerous obstacles faced by foreigners who wish to buy land or purchase property in Thailand. To avoid these obstacles, many foreigners choose to acquire land on a 30-year leasehold with an option for extension. This is the simplest and most straightforward way for foreigners to acquire property in Thailand. In addition, a lease stays valid even in the event that the property or the land is sold.
  5. What are the advantages of having a land lease over purchasing land with a company?

    A foreigner’s lease rights are formally recognised by Thai law. The land lease in Thailand is executed and registered only once, after which very little legal maintenance is required. In comparison, a limited company has several shareholders who may have interests that are different from yours, and this could translate into potential risks for you and your objectives. Also, a company requires regulatory compliances such as yearly balance sheets to be filed with the Tax Department.
  6. What are some of the drawbacks of land leases?

    Even a well-constructed land lease and a separate option agreement to extend the lease between the landowner and the lessee cannot guarantee the timely renewal of the lease. A landowner may refuse to sign any registration for the lease extension beyond the 30-year expiration. Although the lessee can sue the landowner for breach of contract, the legal process entailed may be costly and time-consuming. Other drawbacks include the difficulty in obtaining a mortgage for a lease (as opposed to direct ownership); a lower resale value; and potential lawsuits from the landowner for lease violations.

If you need more details about the, Our Thai and Foreign lawyers are experienced and able to provide you with the assistance required to deal with the legalities.

 

 

WHY SHOULD YOU FIND A TRUSTED LAWYER TO ASSIST YOU IN PURCHASING PROPERTY IN THAILAND?

Thailand Property Lawyer

A good lawyer will take time to work out how to make your property purchase as easy as possible. We, M & S Law Office 20006, have looked at the way we do business from a different perspective: YOURS. That's why we believe that the level of service you will receive from us will be very high.

We, M & S Law Office 20006, try to minimize paperwork by making maximum use of modern technology. This means we have more time to tackle the legal and technical issues we have been trained to handle, and to answer outstanding enquiries. Of course, this leads to greater efficiency meaning that we can provide a competitive service.

Let us help you by calling us at (+66)2 693-2036 or send email to contact@mslaw2006.com or send us enquiry.

 

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