Haris & Associates Phuket Thailand Legal Blog

Leasing is a popular option amongst expatriates who need to get real estate in Thailand. it is legal, and should be a great alternative to acquiring a property for yourself. this is specially true because the option of acquiring real estate property in Thailand for foreigners entails a whole lot of requirements, and plenty of processes.

With a lease, however, you can without difficulty get real estate property without going via the legal hurdles involved with shopping homes, whether or not residential or business, in Thailand as a foreigner. question now is – what can you do as a lessee of a real estate property?

construct something on top Of It
if you’re leasing land, then you definitely have all rights as a lessee to build a property on top of it. this is because, as dictated by using Thai law, foreigners can very own property however not the land that it stands on. this is why foreigners

are able to legally acquire condominiums inside the country. Theoretically, they don’t own the land on which the condo stands upon; they only declare possession on the unit.

consequently, on a protracted-time period rent, you can build a commercial property, as an instance, and positioned the space in it up for lease with different foreigners. This manner, you could earn cash for yourself and use part of your profits to take care of the lease phrases. This requires a large amount of fees, but, and is handiest encouraged for businessmen.

put Up it For Sub-Leasing
Sub-leasing is granting people rentals on the property, or elements of it. in contrast to renting, leasing is a protracted-term arrangement so you are assured income a considerable amount of time. when you have a huge land that you’ve leased for 30 years, you could ease the monetary burden on your self by means of having others rent a part of the property from you.

is this legal? yes! but, you have to negotiate for a sub-leasing clause on your leasing settlement with the original owner. as long as there is a clause for your settlement for that, subleasing and earning money from the property for your self is perfectly legal.

Sub-leasing is likewise feasible for condominiums. when you have received a apartment unit, however you don’t spend tons time in Thailand as you’re constantly on a business trip, you could additionally have a person else use the assets on a protracted-time period rent for you.

What You cannot Do With a lease
inside the eyes of the law, a lessee has rights same to that of the owner. for this reason, at the same time as a foreigner, you are without a doubt the “de facto” owner of the property which you’re leasing. however, your rights have limitations, of course. while you may use the assets that you hire to generate earnings for yourself, you don’t have the right to sell off the property. only the real owner can do that.

in case you’re considering starting up a enterprise in Thailand and you would love to acquire business property, consider getting a long-term lease as an alternative. It’s legal and secure, so long as you’ve got a legal advisor with you to assist inside the negotiations and making sure the contract is honest to both facets.