When purchasing a condominium unit in the Thai quota or a house, foreigners may obtain the right to use the property through a long-term leasehold for a period of up to 30 years. This is a common and lawful way to use property that cannot be directly owned freehold by a foreigner.
Key features of a leasehold agreement.
Registration of the agreement.
Registration of the lease agreement with the Land Department of Thailand is mandatory.
Taxes and fees.
The tax rate is 1.1% of the total lease value for the entire term of the agreement.
Chanote.
The original title deed (chanote) remains with the lessor, while the lessee keeps a copy.
Lease renewal.
The possibility of extending the lease for a further term of 30 + 30 years may be agreed by the parties upon expiry of the initial period.
Inheritance of lease rights.
The right to transfer lease rights by inheritance applies only if such condition is expressly included in the agreement registered with the Land Department.
Change of lessor.
If the lessor changes, the new owner may refuse to extend the lease agreement or to allow transfer of lease rights to heirs.
Important.
Before signing the agreement, have it translated into a language you understand, review all terms carefully, and обязательно consult a lawyer in order to avoid risks and misunderstandings.
Alexandra Agapitova.
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