Leasing a condominium in Thailand.

The Condominium Act prohibits foreigners from owning more than 49% of all units in a condominium in Thailand. It does not specify, however, that Thai nationals must occupy the remaining 51% of the units. In practice, those condominium units can be let to foreigners on a leasehold.


Thai law describes lease as a tenancy contract with a fixed term not exceeding 30 years. It is not governed by the Condominium Act anymore, but rather falls under the management of Civil and Commercial Code.

There are a couple of important distinctions about lease and leasehold. Firstly, it doesn’t entitle lessee to obtain a title deed of the property. Secondly, it is not considered to be an asset, which means it cannot be freely sold or transferred to anyone else. Moreover, lease is terminated upon death of the lessee and is not subject to inheritance.

As such, lease is a standalone form of utilising someone else’s property for a defined period of time. Unlike freehold, leasehold comes with limited rights and is inferior to ownership. Nevertheless, leasehold is still a perfectly valid legal solution for anyone who would like to temporarily stay in a property on defined terms.

Anyone interested in leasing out a condominium need to keep the following in mind:

  • Voting rights

    Leasehold purchaser does not generally inherit any voting rights (unless specified otherwise) – those remain in the possession of the owner.
  • Selling and assigning a leasehold condominium

    The primary right of a leasehold buyer of a condominium is a personal right of possession of the unit for a specified period of time. Lessees are not allowed to sell or lease the unit to anyone else during the lease term and doing so is unlawful (unless agreed otherwise). This right is exclusive to the owner (or a developer).
  • Inheritance of a leasehold condominium

    Only freehold owner of the condominium has the right to pass the unit in inheritance. Lease, as a contract right, is terminated upon death of the lessee and the property returns back to the owner.
  • Duration of the lease

    Maximum duration of the lease is 30 years.
  • Expenses for common maintenance

    The responsibility to contribute to the condominium juristic person for management or maintenance fees is usually passed onto the lessee in the leasehold agreement. The lessee will then have to cover all maintenance-related fees without any entitlement for a future refund.
  • Additional fees

    In addition to covering the building management fees, owners also pass onto their lessees another fee – property tax from letting a property (12.5%).
Did you find this article useful?

Share it with your friends or colleagues.

About Acclime.

As a leading provider of corporate services, we specialise in covering everything startups and established companies need to successfully start and operate their new business in Thailand. By seamlessly navigating our clients through the complexities of Thai bureaucracy, we allow them to fully focus on their business and operate it with peace of mind.

Questions? Speak to our experts.

We are available Monday – Friday 9am to 6pm (UTC+7).
© Acclime 2020 | Privacy policy