Legal Framework and What Foreign Buyers Should Know about Leasehold

Foreigners are generally not allowed to own land directly in Thailand, according to Thai property law. Because of this restriction, leasehold has become one of the most widely used and legally accepted structures for foreign real estate investment.

A standard leasehold agreement in Thailand is limited to a maximum term of 30 years, as defined under the Thai Civil and Commercial Code. These leases can be registered at the Land Department, which gives them legal enforceability against third parties.

While renewal clauses (for an additional 30 years) are commonly included in contracts, it is important to understand that renewal is not automatically guaranteed under Thai law — it depends on contractual structure and future legal conditions.

Key facts foreign buyers should know:

• Lease terms can legally run up to 30 years

• Registration at the Land Office is essential for protection

• Renewal clauses are contractual, not statutory rights

• Structures can include additional protections (e.g., company backing or step-in rights)

Leasehold is not a workaround — it is a recognized and widely used legal mechanism in Thailand’s property market, especially in resort destinations like Koh Samui.