99-Year Leasehold in Thailand: No Reform Yet, How Investors Should Count ROI

Updated 10.10.2026: no 99-year lease bill has been passed, and none has been submitted to parliament. The existing rule still applies: the maximum registered term of a property lease is 30 years (Section 540 of the Thai Civil and Commercial Code). An earlier version of this article presented the reform as a done deal. That was incorrect, and the disputed statements below have been corrected. For what the law does and does not say, see Thailand's 49% Foreign Ownership Quota: Why Buyers Pay 140,000 Baht Instead of 700.

Thirty years. That is the maximum term of a property lease in Thailand, and it has not changed in 2026. Extending it to 99 years has been discussed as a proposal, but it has not become law. For an investor the conclusion is simple: calculate returns under the rules in force today, and treat any future reform, if it ever happens, as a bonus rather than part of the numbers.

Quick Answer

• There is no 99-year lease law: no bill has been passed or submitted to parliament
• The maximum lease term is 30 years; a contract for a longer term is cut back to 30 years
• A "30+30+30" structure is an initial lease plus a promise to renew, and the law does not guarantee the renewal
• A lease longer than 3 years must be registered with the Land Department; otherwise it is only enforceable in court for the first 3 years
• Registering a lease costs 1% of the total rent for the whole term plus 0.1% stamp duty
• Ownership with no end date (freehold) is available to a foreigner only for a condominium unit within the 49% foreign quota of the building

What would change if the reform were passed

The calculation below is a hypothesis, not a forecast. With a 30-year term, the value of the leasehold right is used up at roughly 3.3% a year (1/30). If the term were extended to 99 years, that share would fall to about 1% a year (1/99), and a leasehold would come closer to ownership economically. But while there is no bill, there is no timetable, no transitional rules and no answer as to whether new rules would cover existing contracts. This scenario should not be built into your numbers today.

How to calculate leasehold ROI under current rules

• Divide by the real term. Spread the cost of the lease over the remaining registered term (no more than 30 years), not over the 90 years of a marketing formula.
• Do not count the renewal as guaranteed. A new owner of the land is bound only by the real lease rights: the term and the rent. The renewal option does not automatically pass to them.
• Check the clause on heirs. A lease is a personal right: by default it ends on the death of the tenant unless the contract expressly says otherwise.
• Factor in the restrictions. You cannot sell, sublet or pledge the lease without the owner's consent.
• Rental income depends on many factors: location, the management company, the season and the condition of the property. A promise of guaranteed returns is a red flag for us and for you.

Key Facts

• Land: a foreigner cannot own land but can own a building and a unit in a registered condominium.
• Villas: the land is leased (up to 30 years), and the building can be owned by the foreigner separately; the right to the building lasts no longer than the right to the land.
• A change of owner does not end the lease (Section 569), but renewal and purchase options do not automatically pass to the new owner.
• Buyer protection: freehold sale contracts in licensed projects fall under contract standards and consumer protection; lease contracts do not and are drafted by the developer.
• Quota: when a building's foreign quota is used up, sellers often offer a lease instead of ownership. Check the type of right in the document.
• Nominee structures: holding land through a nominee Thai owner is illegal, and both parties are liable.

More detail: 30-year land lease and buying a leasehold condominium.

FAQ

Has Thailand passed a 99-year lease law?

No. As of 10.10.2026 no bill has been passed or submitted to parliament. The maximum registered lease term is 30 years.

Can I register a 99-year lease now?

No. A contract for a longer term is cut back to 30 years. A "30+30+30" structure remains, legally, a promise to renew rather than a right to 90 years.

How would ROI change if the reform were passed?

The annual use-up of the lease value would fall from roughly 3.3% to about 1%. But this is a hypothesis: until there is a law, it stays out of the calculation.

Can a lease be passed on to heirs?

Not by default: the lease ends on the death of the tenant. It can pass to heirs only if the contract expressly provides for it.

Does a lease have to be registered?

Yes, if the term is longer than 3 years. Registration is done at the Land Department; without it the contract is only enforceable in court for the first 3 years.

What fees are paid to register a lease?

A 1% fee on the total rent for the whole term plus 0.1% stamp duty. Key money is included in the base.

Should I wait for the reform before buying?

Waiting without a date makes little sense. Plan the deal under the 2026 rules. If you need ownership with no end date, look at a freehold condominium unit within the foreign quota.

A leasehold decision rests on what the law and the contract say today: a 30-year registered term, the renewal terms and the clause on heirs. Everything else is talk about the future that has not yet become a right.

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