Understanding the 90 Year Lease in Thailand and Increased Foreign Ownership: Thailand’s Property Reform Proposals
Thailand’s real estate market has always attracted foreign interest—whether it’s retirees looking for a warm place to settle, expats working remotely, or investors banking on future growth. Now, things are getting even more interesting.
The Thai government is pushing forward with a set of proposed property law changes that could reshape the landscape for foreigners. Two of the biggest talking points are:
- A new lease structure that could allow foreigners to control property for up to 90 years
- An increase in the foreign ownership limit for condominiums from 49% to 75%
If approved, these reforms could make Thailand one of the most attractive places in Asia for long-term property investment.
What’s Actually Changing?
| Reform | Why It Matters |
|---|---|
| 75% Foreign Ownership in Condos | Increases buying power for foreigners and improves resale potential in key areas like Pattaya and Bangkok. |
| 90-Year Lease Structure | Offers greater peace of mind with a long-term lease model (30+30+30), even though only the first term is legally enforceable. |
| Stricter Oversight of Developers | Reduces risks for buyers by tightening controls on off-plan projects and ensuring timely completion. |
| Cooling-Off Periods | Adds buyer protection against rushed decisions and high-pressure sales tactics. |
| Faster, Cheaper Registrations | Streamlines the legal process of buying or leasing property, making the experience smoother and less expensive. |
The Truth About the 90-Year Lease
You’ll hear the term “90-year lease” thrown around a lot, but here’s the reality: under Thai law, leases are still capped at 30 years. The “90 years” refers to a 30-year lease plus two possible 30-year renewal terms.
Important Notes:
- Renewals are not legally guaranteed, even if included in the contract.
- Leases longer than 3 years must be registered with the Land Office.
- The lease must be written in Thai and noted on the land title deed.
- You can’t pre-pay for future lease terms—land offices won’t accept this.
Still, with the right legal advice, a 30+30+30 lease can work well for long-term living or investing in Thailand.
Can Foreigners Lease Property in Thailand?
Yes. Foreigners can lease land, houses, and condos for residential use. The law treats foreign and Thai nationals equally when it comes to lease rights.
Some buyers choose to build homes on leased land using a right of superficies, meaning they own the building while leasing the land underneath.
Legal Framework: What Law Applies?
Property ownership in Thailand is governed by the Civil and Commercial Code, particularly:
- Sections 537–571: Lease agreements
- Sections 572–584: Sale and purchase contracts
- Sections 585–600: Tenant and landlord responsibilities
Other laws include the Land Office Act, Commercial Code, and Condominium Act.
Because the system is complex, get a qualified lawyer to help with any lease or purchase.
Raising the Condo Ownership Cap to 75%
This proposal could significantly change the game for foreigners wanting to own a condo in places like Pattaya.
- Gives buyers access to more inventory
- Improves resale options and market liquidity
- Increases potential for capital growth in foreign-friendly zones
Check out these areas:
Tax and Legal Considerations
- Land & House Tax: 12.5% annually if the property is leased and not used as a primary residence.
- Commercial Leasing: Foreigners leasing for business purposes fall under stricter guidelines under Thai law.
- House on Leased Land: Allowed under a superficies agreement—own the house, lease the land.
Benefits of These Reforms
- More secure leasehold options
- Better resale conditions with increased foreign ownership limits
- Boost to foreign investment and property demand in areas like Pattaya
What to Watch Out For
- Affordability concerns among locals if foreign demand drives up prices
- Uncertainty around when (and how) the reforms will be implemented
- The need for strong enforcement and regulation to prevent loopholes
Final Thoughts
Whether you’re an investor, retiree, or just looking for a second home, these proposed changes could open up new opportunities—especially in places like Pattaya where the foreign market plays a big role.
Want to see what your property might be worth today? Or thinking of buying while these changes are still on the horizon?
Written by Shane Ruddle
Alan Bolton Property Consultants