According to the Bangkok Post, the Thai government’s proposal to extend land lease periods for foreigners to 99 years is currently under review, with key legal amendments needed before any significant progress can be made. On June 18, 2024, the Ministry of Interior, which oversees the Department of Lands, was authorised to study the feasibility of this change. The proposed amendment would involve extending lease periods from 30 years to 99 years by modifying Section 4 of the Rights over Leasehold Asset Act. This initiative aims to make Thailand’s real estate market more attractive to foreign investors by offering greater security and stability.
However, as Finance Permanent Secretary Lavaron Sangsnit pointed out, implementing such a scheme requires amendments to several laws, including the State Property Act and the Civil and Commercial Code. Thai landowners who wish to lease their land to foreigners would first need to transfer the title deed to the Treasury Department, converting private ownership to state property during the lease period. While foreign parties would make full payment for the lease, they would not own the land outright.
It should be noted that the propositions would have exclusions in certain sectors, such as prohibiting foreigners from leasing land for agricultural purposes or developing low-income housing without requiring a down payment. Public input will also be required, in accordance with the constitution, before the plan can move forward.
At present, no official progress has been made at the policy level, and the proposal has understandably faced some opposition. Critics have likened the idea of long-term leases to selling Thai land to foreigners, historically, a contentious issue. However, proponents argue that the approach maintains Thai ownership and addresses past concerns about foreign control.
For now, Thailand’s maximum lease period remains capped at 30 years, with renewals allowed for commercial and industrial purposes only. Extending leases to 99 years is seen as a potential game-changer for the Thai real estate market, but significant legal adjustments are still required before it becomes a reality. It remains uncertain whether these proposals will eventually become law. Historically, despite the anticipation and discussions around similar legislative changes aimed at easing property acquisition for foreigners, such proposals have consistently been rejected.
