Buying
Freehold or Leasehold: which to choose
Freehold, Leasehold and the newer Sap Ing Sith right: three words that decide what you actually own. We explain the difference in plain terms, and why an advert saying "90-year lease" does not always mean what it seems.
In short
- Freehold: ownership with no time limit. Available to foreigners in Foreign Quota condo units.
- Leasehold: a registered lease of up to 30 years, the main structure for villas and land.
- "30+30+30" does not guarantee 90 years: the Supreme Court has ruled automatic renewal void.
Freehold: full ownership
Freehold means the property belongs to you with no time limit: you can sell it, rent it out and pass it on by inheritance. For foreigners, Freehold is available above all in condo units within the Foreign Quota. We explain how this works in the article on the Foreign Quota.
Leasehold: a long-term lease
Leasehold is a registered right to lease. Under the Thai Civil and Commercial Code, a property lease cannot exceed 30 years, and a lease longer than 3 years must be registered at the Land Office, otherwise it is only enforceable for 3 years.
Leasehold is most often used for villas and land, because foreigners, with limited legal exceptions, cannot own land in Thailand. The foreigner receives a registered right to lease the land, while the right to the house itself is documented separately.
What "30+30+30" means
Adverts often say "90-year lease". In reality, only the first 30 years can be registered upfront. The further periods are a promise by the seller to renew the lease, written into the contract.
And that promise has proved weaker than was thought. In Thai Supreme Court ruling No. 4655/2566 (2023), clauses for automatic renewal of a lease for another 30 years were held void: the court saw them as a way around the 30-year limit. Neither registration, nor prepayment for all terms, nor contracts signed in advance helped. Since this ruling, the "30+30+30" structure cannot be treated as a guarantee of 90 years.
| Today | In 30 years | |
|---|---|---|
| First term | Registered at the Land Office | Expires |
| Renewal | A promise in the contract | A new term must be registered |
Sap Ing Sith: a newer right of up to 30 years
Since 2020 Thailand has had a separate Sap Ing Sith Act (B.E. 2562). It is a registered property right over land, a house with land or a condo unit for up to 30 years. The key difference from an ordinary lease: during the term it can be transferred to another person, left by inheritance and used as collateral in cases provided for by law.
The three forms compared
| Freehold | Leasehold | Sap Ing Sith | |
|---|---|---|---|
| Term | No limit | Up to 30 years | Up to 30 years |
| Land Office registration | Yes | Yes, if over 3 years | Yes |
| Land ownership | No, a share of the building's common property | No | No |
| Sale to another person | Yes | Depends on the contract | Provided for by law |
| Inheritance | Yes | Depends on the contract | Provided for by law |
| Where it is used | Foreign Quota condo units | Villas, land, Thai Quota | Condos, houses, land |
How a foreigner can buy a villa
With a villa, the right to the house and the right to the land must be considered separately. Before buying, find out: - who owns the land and what right to it you receive; - for what term and how it is registered; - how the house itself is documented; - what happens on resale and inheritance.
FAQ
What is the difference between freehold and leasehold?
Freehold is ownership with no time limit; Leasehold is a registered lease for up to 30 years.
Can a leasehold be extended after 30 years?
A new agreement can be made, but automatic renewal is not guaranteed: in ruling No. 4655/2566, the Thai Supreme Court held such clauses void.
Can a foreigner buy a villa with land?
A foreigner cannot own land directly, apart from rare legal exceptions. A registered land lease or Sap Ing Sith of up to 30 years is usually used.
Sources
- Civil and Commercial Code, sections 538 and 540: lease term and registration (Tilleke & Gibbins)
- Addleshaw Goddard: Supreme Court ruling 4655/2566 on automatic lease renewals
- Sap Ing Sith Act B.E. 2562 (2019), Office of the Council of State
- Land Code: land ownership by foreigners
- Avalon guide: Leasehold and Sap Ing Sith (in Russian)
This article is for general information and is not legal or tax advice. Laws, fees and project terms change: before a deal we check the current conditions for the specific property.
