TOWARDS A NEW 50-YEAR LEASE AGREEMENT IN THAILAND!!

At present, the only legal lease in Thailand is a 30-year contract, which is then renewed every 30 years, usually subject to a small administrative fee; this works very well with reputable companies that are keen to maintain their excellent reputation. However, in order to offer even greater security to those investing in this wonderful country, the authorities are constantly going the extra mile!

50 years!!!!

That is how long new residential land leases could last.

Good news for those wishing to settle in the Land of Smiles for the long term, and according to Finance Minister Apisak Tantivorawong, a measure that is expected to trigger “applications from all over the world.”

The long-term lease that guarantees you the use of the land is currently for a renewable period of 30 years.
It is likely that this new 50-year lease will be renewable at least once, bringing the total duration to 100 years.

This reform is currently under review by the government, but the Finance Minister is in favour of it, particularly as, at the end of the lease, “the land will remain in the hands of the Thai owner,” he adds.

But a 50-year lease may be a first step towards a possible liberalisation of property laws. Supporters of a total reform see this as a sign. Indeed, the property developers’ lobby has said it is “satisfied” with this idea.

In favour of direct access to property for foreigners, Atip Bhijanonda, president of the Developers’ Association, ventures a comparison:

“Thais are strange. When they send their children to study abroad, they buy them houses and think that’s normal,” he says. “But when foreigners come to invest and live here, we don’t allow them to own their own homes. That’s selfish thinking.”

With this proposed amendment to the law, Thailand will finally be able to catch up a little with its neighbours regarding home ownership for foreigners.

Perhaps a first step towards a more comprehensive relaxation of the law to finally allow foreigners to buy property?

Watch this space!