Leasing property in Thailand normally comes in 2 forms. The first being informal where people normally agree to the monthly rental and provide 1 months deposit or 3 months rental deposit and this runs on a month to month bases. Others are long term agreements and these normally need to be registered against the property.
Foreigners in Thailand are allowed to lease immovable property such as leasing a house or villa and this lease if it is over 10 years needs to be registered on the Title Deed as the lease owner at the Land Office in Thailand. Any long term property in lease Thailand must be registered with the Land Department. If you are not buying property as a foreigner then you can obtain a 100% interest in a property lease in Thailand. The maximum lease term available in Thailand unlike Hong Kong is 30 years. This normally comes with an option to renew for an additional 30 years or to buy the property after the lease agreement. Each lease renewal just as before must be registered at the Land Department against the Title Deed and for each new lease registration government taxes will be levied. Under certain circumstances (see the BOI rules), land or property for industrial or commercial purposes may be leased for up to 50 years by a foreigner.
There are a number of obstacles in Thailand facing foreigners and expats who wish to buy land or even purchase real estate in Thailand and therefore most expats in Thailand choose to lease property being that most rent a condo on a 30 year leasehold with an option for extension or purchase. Remember that a lease stays valid when land or property is sold. If you are moving to Phuket then speak to our property attorneys in Phuket for more information and the property and real estate options available to you in Thailand. Call us today toll-free or walk into our offices in Phuket or anywhere in Thailand.