Leases, Usufructs & Superficies in Thailand

How to buy land/property (Koh Chang specific)

How to lease land/property ( Koh Chang specific)

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Land ownership by foreigners in Thailand

Due to the imposition of more restrictions regarding foreigners setting up companies, more and more people are going with the right of habitation, superficies and usufruct.

It often has been misunderstood this is only for 30 years but every land dept official has stated it can be for life of the foreign right holder, as long as it is not a company involved. In regards to the usufruct, it does not expire upon the death of the usufructuary, if it has been leased to a third person( then only in this case a 30 year lease applies with the third party lease.

One additional comment, it should be no problem except several hours at the Land dept if their is a man and wife around to get the right of habitation, superficies and usufruct registered for less than 100 Baht. If it is a farang getting the right of habitation, superficies and usufruct registered with no relation to the land owner, their should be a benefit. This is similar to key money in the contract. You get taxed at 1.5% not 1.25% as a standard 30 year lease.

Example of a Married Man to a Thai and Right of Habitation:

A husband married to a Thai Lady is granted a right of habitation on the land and house. No tax is collected for the right except 100 Baht or less. He can have that right till he dies. The agreement is for his life and is registered on the title deed. He also gets issue a "yellow Book" which is a House Registration Certificate (Thor.Ror.13), which is given to foreigners. His wife should have a will leaving the land and house to him.( if the house is not in his name) The right of habitation is used when the house and land purchase was combined. The husband cannot operate a business at this location. By the way, the husband has no rights to the ownership of the land unless she dies, as he signed a declaration that it was a gift and he is not expecting anything back, it is her money now to buy the land.

Example of a Single Male and Usufruct:

A foreigner is not married. He talks to a seller of a plot of land. He gets a usufruct instead of buying the land and pays 5 million Baht for that right to use and enjoy the property as well as management of the property. The government fees are 75,000 Baht. The agreement is for his life and is registered on the title deed. He also gets issue a "yellow Book" which is a House Registration Certificate (Thor.Ror.13), which is given to foreigners. With the usufruct, he can sell or transfer the right. If the house burns down, the usufruct ends until it is restored. This is why insurance is important to be paid to the benefit of the owner. A inventory should be taken and registered with the usufruct. If he has transfer the usufruct to a third party, it does not end on his death but when the 30 year term expires for the third party.

Example of a Foreign Couple and Superficies:

A foreign couple want to retire in Thailand. They find a plot of land and want to build a house and register a superficies for both of their natural lives. They are given the right to own, upon or under the land, buildings, structures or plantations. The right was granted for 2 million Baht and the tax due was 30,000 Baht. This right can be transferred and transmissible by way of inheritance. If the farang husband dies, the wife can still live on the property and can even leave in her will. A 30 year term than applies to the person who inherits the right. Both husband and wife are registered on the title deed. They also get issue a "yellow Book" which is a House Registration Certificate (Thor.Ror.13), which is given to foreigners. This agreement is common when it is a plot of land and the house has to be built.

Example of a Single Foreign Lady and a Thirty Year Lease:

She would like to stay in Thailand and finds some beach front property. She obtains a 30 year lease plus a option of 30 years. The real rights are only the 30 years to have the use or benefit of the property and no guarantee she will ever get the additional 30 years. The land lease ends when she dies. The government has a charged tax of 1.25% on the 30 years lease. (rent must be charged)