Ownership of land by foreigners in Thailand
- Foreigners are not allowed to own land in Thailand (according to the Land Code Act).
- There are constructions to arrange rights of use or ownership in other ways.
Fideicommis / Fiduciary Property (similar concept)
In Thailand, there is no system of “fiduciary ownership” (as in some European countries) that separates legal and beneficial ownership.
What there is:
- Usufruct (Sidhi-kep-kin)
- Gives a lifelong right of use of a piece of land or house.
- Be registered in the country registry.
- You can use the land and collect revenues, but you are not the owner.
- In the event of death, the right ends automatically.
- Lease (huurcontract)
- Maximum 30 years (with the possibility of renewal, but it must be re-registered at Land Office with the owner).
- Often used by foreigners for land.
- Not a life sentence, unless always extended.
- Less expensive than buying the land.
- Superficies (Right Over the Ground)
- Right to own a building on someone else’s land.
- Can be enrolled for a certain term or for life.
- Interesting if you build a house on land that formally belongs to a Thai.
- Thai Company construction
- Foreigner can have land bought through a Thai Limited Company (where Thai shareholders have a majority).
- This is under strict control and is often judged by the authorities as a “nominee construction” and can be legally risky. But with a Thai spouse or trusted Thai citizens a solid way to own the land.
Conclusion
A lifelong fiduciary ownership of land (as in the EU) does not exist in Thailand. The most lifelong, secure option for foreigners is usually a Usufruct or a Superficies, both registered in the Land Office for a period of 30 years and to be extended for twice a 30 year period again (agree that upfront in the sales and purchase agreement as the Land Department only register it for the first 30 years).
Above In A Concise Scheme:
| Attribute | Usufruct (Right to Eat) | Lease | Superficies (Right Over the Ground) |
| What is it? | Right to use land/object for life | Rental contract for a fixed period | Right to own a building on someone else’s land |
| Maturity | Lifetime (ends upon the user’s death) | Max. 30 years (renewable, but renewal not guaranteed) | Possible for a fixed period or for life |
| Registration | Yes, in the Land Office on the Chanote (ground title) | Yes, registration with the Land Office required >3 years | Yes, registration with the Land Office |
| Transmissible? | No, ends at death | Limited; can be passed on as part of a contract | Yes, transferable during term (if agreed) |
| Use/yield | Full use + right to income (e.g. rental) | Use as provided in contract | Only the building (not the land) is your property |
| Cost | One-time registration fee, low | Registration fee ± 1.1% of total rental value | Registration fee (low) |
| Risks | Always ends at death, heirs receive nothing | Subject to renewal; landlord can refuse | Land will always remain the property of the Thai owner |
| Suitable for | Foreigners who want to live/use for life without property | Foreigners seeking security for 30 years (rent) | Foreigners who build a house on land of partner/family |
Summary
- Usufruct → best option for lifetime use without ownership.
- Lease → practically for security of up to 30 years, and twice extended with another 30 years.
- Superficies → useful if you build a house yourself on someone else’s land.
Practical example: Foreigner & Thai partner
Situation sketch:
- Jan (Dutch) and Som (Thai partner) buy land together in Hua Hin.
- Legally, Jan **is not allowed to be the owner of the land** → the land is in the name of Som.
- John invests his own money to build a house on that land.
- He wants to be sure that he can live in the house for life and not suddenly end up on the street in the event of a quarrel or death of Som.
Possible Solutions:
a. Usufruct
- Jan has a **Usufruct** registered in the **Land Office** on the Chanote.
- This gives him **lifelong right of use** of the land and the house.
- He can even rent out the house and keep the proceeds.
Disadvantage: upon Jan’s death, this right ends automatically, his heirs have no claim.
b. Superficies
- At the Land Office, John can register a **Superficies right**.
- That means: **land belongs to Som, but the house legally belongs to Jan**.
- If Som ever sells the land, John remains **owner of the house** and has the right to move it or ask for compensation.
Please note that this only applies to the house, not to the land.
c. Lease (huurcontract)
- John can register a **30-year lease** with the Land Office.
- Gives him security for that period.
- Often a clause is included in contracts that it can be renewed, but that must **be approved and registered**.
It remains dependent on the cooperation of the Thai owner (Som or her heirs).
Smart Combinations
Many foreigners combine:
**Superficies** (owner of the house) with
**Usufruct of Lease** (lifetime use of the land).
This gives Jan both certainty that he is the owner of the house and that he can use the land for life.
