Leasing Land In Thailand

[Richard Hall]

Is it generally possible for a foreigner (German nationality) to lease land on a (possible renewable) 30 year contract base to build a house? Nope, I'm not considering this for myself but just helping out a country fellowman.

Just on the foreigner's own name and let's say being here on a Non-Immigrant O (either retiry or family support)? No fake company and not buying an elite card?

In the affirmative, guess this would be the ONLY sensible and logicial option much better than those scam or sheepish artist constructions like running an inactive company, writing up a loan contract with a Thai national and/or putting heaps of faith into a never-ending love relationship. Latter option nothing but just too soft ground to put a building on.

Does anyone got the answer? A qualified short "Yes" or "No" is preferred.

Thanks to anyone being able to provide the scoop on this

Richard

[Sumitr Man]

Richard

Yes.

See Section 540 of the Civil and Commercial Code of Thailand. [under: Title IV: Hire of Property: Chapter I: General Provisions]

SM

[bkk barney]

linky dont work sumitri.

30 yrs no probs but the thais dont like it cos it has to be reported and they have to pay tax on the income from the leased land

[Sumitr Man]

BKK Barney - you're right. Section 538 of the CCC - any lease over 3 years has to be registered at the relevant local Land Dept. - otherwise the lease is not enforceable. In doing that, the letter opens themselves up to certain income tax problems with the lease payments. But, there are ways around it. Ever wondered why the rental on your furniture in Thailand costs more than you monthly rental payments - and your furniture payments are payable whether you rent the place with furniture or without?

No you know...

BTW - I know the above example may not apply to land payments per se, but there are similar ways around it.

[Richard Hall]

Thanks guys,

for your feedback that indeed put me on the right track.

Barney: I think, reluctance by the Thai lessor could be overcome if the contracted amount is just lucrative enough. On the other hand I am not even sure whether tax needs actually to be paid if both parties are not juristic but natural persons.

In my case for example, I have split renting contracts because I use some parts of my rented premises for business and others for private dwelling purposes. Well, for the one signed under my companies name tax in the amount of 2% has to be paid (borne by myself because the landlady does not want to cover this) while there is no taxing on the private section.

Thanks once again,

Richard