99-Year Land Use Rights

99-Year Land Use Rights

The possibility of extending the maximum property holding period from 30 to 99 years has been discussed for over a year, and initially, it seemed rather unlikely. However, at present, these plans appear increasingly realistic.

First, the discussion is not about extending lease agreements, but rather about extending Sap Ing Sith agreements (rights over leasehold assets) — a relatively new type of property right introduced in 2019.

The maximum lease term has long been established by the Civil and Commercial Code. In contrast, the maximum duration of Sap Ing Sith is regulated by a separate legal act — the Rights Over Leasehold Asset Act B.E. 2562. Amending this act is significantly easier than making changes to the Code.

Second, a timeline for reviewing and implementing the proposed changes has already been published. Current projections are quite optimistic — by the end of 2025.

Third, discussions are ongoing regarding which types of property may be granted to foreigners under Sap Ing Sith and which may not — for example, agricultural land.

It is important to note that the rights of a Sap Ing Sith holder will be significantly broader than those of a leaseholder.

Key differences (Leasehold vs Sap Ing Sith)

Use for commercial purposes:
Leasehold — generally limited (primarily subleasing)
Sap Ing Sith — allowed
Registration:
Leasehold — required only for terms exceeding 3 years
Sap Ing Sith — mandatory regardless of term
Modification of property:
Leasehold — requires owner’s consent
Sap Ing Sith — allowed without owner’s consent
Transfer of rights:
Leasehold — only with owner’s consent
Sap Ing Sith — freely transferable or saleable
Use as collateral:
Leasehold — cannot be used as collateral
Sap Ing Sith — can be pledged
Inheritance:
Leasehold — only if specified in the contract
Sap Ing Sith — fully inheritable

These differences make Sap Ing Sith a significantly more flexible and investor-friendly structure compared to traditional leasehold.

Practical questions that may arise if the changes are adopted:

Technical aspects of registering a villa under Sap Ing Sith with the Land Department — both for land plots with buildings and condominium units
Whether developers will be ready to structure transactions using Sap Ing Sith instead of traditional leasehold
The mechanism for transitioning from an existing 30-year leasehold to a 99-year Sap Ing Sith

We will continue to closely monitor developments and keep you informed of any updates, as well as practical solutions in this area.