Lease Agreements

Because foreigners generally cannot own land outright in Thailand, long-term registered leases are the most common legal structure used to secure a foreigner’s rights over land or a landed villa. A well-drafted lease gives you exclusive, long-term use of the property even though the underlying land title stays in the landowner’s name.

The 30-Year Registered Lease

Thai law allows land leases of up to 30 years to be registered at the Land Office, which is what gives a lease real legal force against third parties and future owners of the land. Leases are commonly structured with the option of one or more further 30-year renewal periods written into the contract. It is important to understand that, under current Thai law, these renewal options are contractual promises between the parties rather than something automatically guaranteed and enforceable against a new landowner, so the strength of a renewal clause depends heavily on how it is drafted and who you are leasing from.

What a Good Lease Should Cover

• Registration of the lease itself at the local Land Office, not just a private signed contract.
• Clear terms on renewal, rent (if any), and what happens to any buildings the tenant constructs on the land.
• Provisions covering transfer, inheritance of the leasehold interest, and what happens if the landowner sells the land.
• Confirmation of who is responsible for taxes, fees, and maintenance during the lease term.

Leasehold vs Freehold

Leasehold arrangements are widely used across Phuket and the rest of Thailand and, with the right structure, can provide long-term security and peace of mind. They are nonetheless a different legal position from freehold ownership, and the value, financing, and resale of a leasehold property should be evaluated with that difference in mind.

Every lease is different, and the protections above depend entirely on how the contract is drafted and registered. Please have any lease agreement reviewed by our team and an independent Thai lawyer before signing.