In regular intervals, the Thai government and the media discuss
the question whether or not to increase the maximum land lease
period in Thailand from thirty to fifty years. A recent statement
of Finance Minister Surapong Suebwonglee, mentioning internal
discussions in the government about such increase, once again
attracted the interest of the public. However, until now such
discussions have not led to a formal legislative procedure
regarding a change of the law in this regard.
What does long term lease mean exactly, how is it used in
practice and are there any risks?
General characteristics
Leasehold is a frequent choice of property developers and
foreign buyers. It means renting property and is regarded as an
alternative to freehold ownership. Land can be leased on short or
long term contracts up to thirty years. Leases for industrial or
commercial purposes can be registered for a term of up to fifty
years. Property leases are governed by the Thai Civil
