Proposal Needed for Legal Revisions to Foreign Land Leases

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A proposal to allow foreigners to lease land in Thailand for up to 99 years may require significant legal amendments, according to Finance Permanent Secretary Lavaron Sangsnit. This proposal involves transferring privately-owned land to state property managed by the Treasury Department.

 

Mr Lavaron highlighted the necessity of a comprehensive study, potentially leading to the amendment of related laws. Under the constitution, public consultations would also be required for any new legislation.

 

The concept, initially proposed by former premier Thaksin Shinawatra, suggests that Thai landowners could lease their land to foreigners for up to 99 years by first transferring the title deed to the Treasury Department. During the lease period, the Thai landowner would receive full payment but relinquish ownership, with the land becoming state property.

 

Foreign lessees would gain the right to lease land for a maximum of 99 years, after which the property would revert to state ownership. To address specific concerns, conditions would prohibit foreigners from leasing land for agricultural use or developing low-cost housing for low-income individuals without requiring a down payment.

 

However, no official policy level action has been undertaken on this proposal. Implementing such a scheme would require revising multiple laws, including Treasury Department regulations that currently cap leases at 30 years.

"Extending the lease to 99 years would require legal amendments," said Mr Lavaron. "Additionally, laws concerning the transfer of state property would need to be reviewed to determine whether land can be transferred from private ownership, with specific leasing conditions for foreigners. Amendments to the Civil and Commercial Code would also be necessary, along with defining types of land use restrictions."

 

According to the 2021 ministerial regulation under the State Property Act of 2019, leasing state property is generally limited to 30 years, unless for commercial or industrial purposes approved by the finance minister. For utilisation of state property involving more than 500 million baht from private entities, rental rates must match or exceed rates approved by the State Property Committee, reported Bangkok Post.

 

A Finance Ministry source, who wished to remain anonymous, noted that similar proposals had faced opposition in the past, with critics arguing it could lead to effectively "selling the country" to foreigners. However, allowing long-term leases while maintaining Thai ownership might address these concerns.

 

-- 2024-09-30

 

 

 

The proposal remains at a conceptual stage, requiring further legislative and public scrutiny before any implementation can proceed.

[JoePai]

Why do they make things so complicated !

[Tropicalevo]

54 minutes ago, JoePai said:

Why do they make things so complicated !

 

Because it stops progress.

The dinosaurs are terrified of change.

Progress and change might mean their extinction.

[Tarteso]

Don’t trust  a word from this People. Imagine a new Crack Down, with new Military Coup. New rule and new  change.
 

I wouldn’t buy a land in Thailand.

[Russell17au]

This shows how desperate this government that is lead by Thaksin's daughter is to rip the Thai people off. As I explained to my Thai wife that if she signs a 99 year lease with me on her farmland then she must sign the deed for that farmland over to the Thai Treasury Dept (Thai Government) which means the she no longer owns that farmland, it is now owned by the Thai Government who did not pay 1 Baht for the farmland. They stole it

[Gottfrid]

I fail to understand why any land would need to be transferred to the Treasury Department, if not as @Russell17au post above. The only thing needed for a lease to be legal, would be a registration at Department of Land & Transportation (DLT). Besides that, they just need to stipulate which ways or purpose of use to lease the land are forbidden.

[KhaoNiaw]

And who knows whose hands the deeds will end up in after they've been signed over to the state. There are already enough stories about dodgy dealings with land title. It will surely become a prime method for land grab.  

[brianthainess]

I don't understand why if I pay for a 99yr lease it should then be claimed by the State, I know I'm getting old but .....

[itsari]

I believe that Thailand has to do what ever it can to discourage foreign ownership to avoid the ridiculous prices that are paid for property in the west .

The idea of leasing land for 99 years and at the end of the lease the ownership goes to the government will mean that not too many would want to get involved.

[brianthainess]

Thais should be banned from owning properties overseas, along with any other country that won't let 'falang own property' it pushes the price of property up for those countries citizens.

[animatic]

Sounds like a state land grab to me.

you can buy your land but if you want to lease it to the people who have cash to pay, then you give your land to the State.
 

You may get your lease money. But will it cover cost of purchase and it’s new value in 99 years?

 

As the land increases in value over 99 years, the state takes it and any builldings improvements on your land done by lessee.

 

State land grab triggered by jingoism