Thailand Bans 90-Year Property Leases – What Expats Must Know
March 3, 2025 - Reading time: 6 minutes
Updated: March 3, 2025
The rules of property investment in Thailand have just changed. In a landmark ruling (Case No. 4655/2566), Thailand’s Supreme Court has struck down pre-agreed automatic lease renewals, throwing long-term property security for foreigners into question.
Image: Stock photo
For decades, foreign investors have relied on leasehold contracts that promised multiple 30-year extensions, effectively granting them near-permanent rights to land. This new decision puts an end to that assumption, reinforcing the legal limit of 30 years per lease with no guaranteed extensions. The ruling means:
- Pre-arranged lease renewals are void. Any clause promising an automatic renewal is legally meaningless.
- New negotiations are required after 30 years. A landowner can refuse to extend a lease once it expires.
- Foreign investors lose a key selling point. Many leasehold properties were marketed with supposed long-term security—this ruling exposes the risks.
Why This Ruling Matters for Foreigners
Foreign ownership of land in Thailand is strictly prohibited. As a result, many expats and investors rely on alternative structures, such as:
- Leasehold agreements: Now weakened by this ruling, as they can no longer promise extensions.
- Thai company ownership: Legally risky, especially if the company is a nominee structure.
- Buying in a Thai spouse’s name: This comes with risks, especially in the event of separation.
- Purchasing via a Thai child: Possible, but requires proper legal safeguards.
Crackdown on Foreign-Owned Thai Companies
To make matters worse for foreigners seeking property security, the Bangkok Post reports that authorities are ramping up investigations into Thai companies that are secretly controlled by foreigners.
Many expats have used a nominee shareholder structure—where Thai individuals hold shares on paper but have no real involvement in the business—to bypass ownership restrictions. The government has made it clear that:
- Nominee companies are illegal, and those caught using them risk asset seizure.
- Investigations are intensifying, targeting foreigners who control land through companies.
- Real businesses with active Thai partners are still legal, but paperwork is being scrutinised.
What Foreign Investors Should Do Now
The combination of the Supreme Court ruling and the government’s crackdown on nominee companies means that foreigners looking to secure property in Thailand need to be more strategic than ever. Options include:
- Review existing lease agreements: If your contract promises an automatic renewal, consult a lawyer to understand your actual legal position.
- Reassess Thai company structures: If you own land via a Thai company, ensure it complies with legal requirements to avoid investigations.
- Consider alternative investment models: Condominiums remain the only form of property that foreigners can own outright in Thailand.
- Stay informed: With legal changes happening quickly, keeping up-to-date is crucial.
How Bangkok Investigators Can Help
At Bangkok Investigators, we specialise in performing asset trace investigations, verifying company legitimacy, performing background checks on key individuals, and conducting due diligence. If you need to investigate a person or company in Thailand, we can provide in-depth intelligence.
However, we are not a law firm and do not provide legal advice. We always recommend consulting multiple independent lawyers before making property investments.
In Closing
The Supreme Court’s decision marks a turning point for foreign property investment in Thailand. The era of guaranteed 90-year leases is over, and legal loopholes are closing fast. Investors who adapt to these changes, seek professional advice, and avoid risky legal structures will be best positioned for the future.
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