Foreigners Leasing Land in Thailand for 99 Years: A Proposal in Progress
The possibility of allowing foreigners to lease land in Thailand for up to 99 years has been brought back into discussion, with the land transitioning from private ownership to state property. According to Finance Permanent Secretary Lavaron Sangsnit, this idea may require amendments to the State Property Act, along with other related laws.
Mr. Lavaron highlighted that implementing such a plan would demand a comprehensive study, and public input would be essential to comply with the constitutional requirements for new legislation. The proposal was previously suggested by former premier Thaksin Shinawatra, who advocated allowing foreigners to hold long-term leases on Thai land for nearly a century.
Details of the Proposal
The concept allows foreign lessees to maintain rights to the land for up to 99 years, after which the property would revert to the state's Treasury Department. However, the plan sets strict conditions: foreigners would be restricted from purchasing land for agricultural purposes to avoid competing with Thai nationals. They would also be prohibited from developing affordable housing projects for low-income buyers without a down payment.
Although this proposal has gained attention, no significant progress has been made at the policy level. Mr. Lavaron emphasized that for this plan to move forward, several key laws need revision, including Treasury Department regulations that currently cap land leases at 30 years.
"Extending the lease to 99 years would require legal amendments," Mr. Lavaron explained. "We also need to review laws concerning the transfer of state property, especially when it involves land moving from private to state ownership under specific leasing conditions for foreigners."
Legal Framework and Challenges
Under current regulations, the ministerial regulation on the utilisation of state property, issued in 2021 under the State Property Act of 2019, dictates that leasing state property cannot exceed 30 years. Leases that do exceed this period are limited to commercial or industrial purposes, and require the approval of the finance minister.
For leases involving investments exceeding 500 million baht from private entities, rental rates or compensation must be set by the State Property Committee to ensure that fair market value is achieved.
The proposal is not without controversy. A source within the Finance Ministry, who chose to remain anonymous, revealed that previous attempts to extend leases for foreigners faced strong opposition, with critics likening it to "selling the country" to foreign interests. However, proponents argue that long-term leases, while maintaining Thai ownership of the land, address many of these concerns.
The Road Ahead
For this plan to become a reality, several laws—such as the Civil and Commercial Code—must be amended to enable foreign lease agreements for up to 99 years. These changes would define restrictions on land use, aiming to protect local interests while attracting foreign investment.
While there is no concrete timeline for implementation, the proposal has sparked widespread discussion, with both supporters and critics weighing in on the potential impact on Thailand’s real estate market.
For more detailed insights into the proposed land lease extensions, read the full article at Bangkok Post .
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