Thailand Plans to Extend Foreign Leaseholds to 99 Years

The Thai government is drafting a bill to extend the maximum leasehold term for foreign nationals from 30 to 99 years, according to The Nation. The proposal aims to attract investment, develop infrastructure, and support skilled migration.

The reform was initially launched during Prime Minister Srettha Thavisin's tenure and has gained momentum under the control of the ruling Pheu Thai Party. The bill is considered a legislative priority and could pass within months. Amendments to the existing Leasehold Asset Act are currently under public consultation before being submitted to Parliament.

Former PM Thaksin Shinawatra stated that the goal is to remove legal obstacles hindering private investment amid tight public budgets. The law will create a framework for private-sector participation in infrastructure and energy projects previously limited to state involvement. This could reduce the average cost of electricity to 3 baht ($0.09) per kWh.

Beyond supporting construction, hotels, and commercial development, the reform is designed to enable initiatives like the Land Bridge, financial hubs, and new urban districts. Long-term leaseholds would appeal to major and small investors alike, including operators of hotels, office complexes, and schools. For example, if an international school discontinues operations, a foreign investor could legally acquire a long-term lease and continue using the property.

The bill also supports the "Housing for Thais" program, aiming to make central urban areas affordable for citizens earning around 20,000 baht/month ($613). Previously, investors avoided such initiatives due to the short 30-year lease term, which made ROI difficult.

Authorities emphasize that the reform targets long-term capital without ceding state control over assets. After 99 years, lease rights expire, and properties—land, buildings, infrastructure—automatically revert to the government. Assets must be transferred to the Treasury Department to qualify; otherwise, the standard 30-year term applies. These conditions aim to prevent a “national sell-off” and ensure transparency.

The reform is expected to reduce the use of proxy buyers, currently a workaround for foreign ownership restrictions. With 99-year leases available, such practices would decline, increasing legal clarity and reducing fraud. The bill will also unify legal regimes from BOI incentives to the Eastern Economic Corridor (EEC) regulations.

According to JLL Thailand, real estate transactions in 2024 totaled approximately THB 38 billion (~$1.1 billion), with investors focusing on hospitality, logistics, office space, and data centers. Analysts expect this activity to continue in 2025.

The business community largely supports the plan. Patarachai Tawiwong of Colliers Thailand said the extended lease terms would boost investor confidence and Thailand’s global competitiveness. Prasert Taedullayasatit, president of the Condominium Association, called it a long-term sustainable growth strategy and a way to reduce proxy structures in property deals.

However, concerns remain among opposition parties and some market participants. The Move Forward Party and hotel industry representatives fear the reform could push local buyers out of coastal and tourist areas. Critics also warn of price inflation and increased foreign capital influence, potentially harming local communities.