Plans to Attract Investors: 99-Year Lease and 75% Foreign Quota

Investors in Thailand are not only constrained by legal restrictions — they are also being actively encouraged. Even if through relatively straightforward measures.

What changes are being proposed?

Increasing the maximum lease term for real estate from 30 to 99 years
Raising the foreign ownership quota in condominiums from the current 49% to 75% of total residential area

At this stage, these are announced intentions, and the regulatory framework is still under development. However, if these changes come into force, several logical questions arise.

What could this lead to?

1. Restrictions on foreign participation in management

Even if 75% of the residential area is owned by foreigners, only 49% will have voting rights at condominium meetings.

How will it be determined which votes from the “extra” 26% are excluded?
In practice, foreigners would still form a majority — how will this be regulated?

2. Transition from leasehold to freehold

If a lease agreement includes an option to convert into freehold ownership when quota becomes available, how practical will this be if the quota is increased?

3. Extension of existing lease agreements

Many properties are already structured under 30 + 30 + 30 years lease arrangements.

Will it be possible to extend existing agreements directly to 99 years?
Or will termination of the current contract and execution of a new one be required?

Should you wait for the new rules?

The legislative approval process is not quick. If you already have a preliminary agreement or your transaction is at the final stage, delaying it in ожидании новых правил may carry risks.

However, if negotiations are still at an early stage, it may be worth discussing with the developer the possibility of registering a 99-year lease if and when such an option becomes available.

Conclusion

The proposed changes could significantly impact the real estate market and make Thailand more attractive to foreign investors. However, until the legal framework is finalized, any decisions should be made with caution and proper risk assessment.