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Why do foreigners choose the land leasing option to own property in Thailand? |
Land leasing is the most straightforward approach to acquire property in Thailand. Leasehold title grants the lessee ownership rights to property. Many foreigners feel more secure knowing that a legally registered land lease stays valid even if the underlying property or the land is sold.
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Why is land leasing preferred by some people in place of forming a company to acquire land? |
Land leases in Thailand require only a one-time registration with the Land Department. After the registration, a foreigner's lease rights are legally recognized by Thailand land lease law and minimal legal maintenance is needed after the land lease execution.
One disadvantage of using a limited company to acquire land is that land will be owned by the shareholders of the company. Conflict of interests between shareholders may arise and this could be an additional factor for a foreigner to consider. A company would also be required to adhere to regulatory compliances such as filing annual balance sheets with the Tax Department, having an official address, and may be subject to audits.
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Is registration at the Land Department mandatory? |
It is mandatory for leases that are three years or more to be registered at the Land Department. Land leases that are less than three years do not require registration.
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How long is the maximum lease term allowed in Thailand? |
The maximum lease term allowed in Thailand is 30 years. Thereafter, there are renewal options for two additional 30 years periods (90 Years). A new registration at the Land Department is mandatory for every lease renewal with the landowner's agreement. Such renewal leases are taxable.
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How do I stay in Thailand for longer period? |
Recently Thailand approved a project to promote long stays for those aged 50 or above. Part of that approval is granting long stay visas that would be good for one year.
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What kind of visa can I get to stay in Thailand? |
There are four basic types of visas available for visitors and residents to Thailand.
• Transit visa - valid for 14 days will be issued to those people arriving in Thailand without a visa. Technically you must have an onward flight ticket, but in practice this visa will be issued almost without question.
• Tourist visa - valid for 60 or 90 days (varies from country to country). Of note is that you may apply for more than one Tourist visa at a time and these multiple visas may be used up consecutively. Many quasi resident visitors to Phuket (who do not work - or want to avoid the red tape of a Non Immigrant visa) live for years on a tourist visa (and go shopping in Singapore or Penang every three months). So long as you are solvent and not engaging in any local business activity, there is nothing wrong with this approach.
• Non Immigrant visa - issued at an embassy outside Thailand and valid for a 90 day stay, this visa may be extended within Thailand for periods up to one year at a time. There are three basic grounds to obtain and renew a Non Immigrant visa. 1) that you are employed (and have a work permit) in Thailand. 2) That you have Thai family. 3) That you are retired and can prove adequate pension or other financial means to support yourself. Ownership (or long lease) of property has no bearing on the extension of a Non Immigrant visa.
• Resident visa - rarely issued and hard to obtain. These visas are issued on a very selective quota basis. Qualification requirements include reading and writing Thai, a fairly strong local financial status and some good (influential) Thai references.
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Payment Terms |
THB 100,000 (approx SEK 20,000 ) has to be paid upon signing booking agreement
Fifty percent (50%) of the total price has to be paid upon signing lease agreement, construction agreement and maintenance service agreement.
Fifty percent (50%) of the total price minus booking has to be paid upon completion of construction and registration of leasehold right at the land department.
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What estate Management will be provided and what will it cost? |
The Management will provide maintenance for communal areas and recreating facilities on the estate. This will include maintaining and cleaning the swimming pool, streetlights, security-guard service and garbage disposal among other things.
The cost is THB 3,200 (approx SEK 628) per villa (including VAT), payable
1 year in advance.
