Under Thai law, foreigners face clear restrictions regarding the ownership of land. The Land Code prohibits foreign nationals from directly holding land title unless a specific legal exemption applies. Yet in practice, many foreigners wish to reside in Thailand long-term, invest in villas or condominiums, or secure property for family use. This leads to a common question “If a foreigner cannot own land directly, what legal structures can provide secure and lawful property rights in Thailand?”
A real estate lawyer typically recommends three lawful alternatives under the Civil and Commercial Code
- Usufruct
- Superficies
- Leasehold
Each structure carries different rights, obligations, and levels of security. Understanding these distinctions is essential before entering a property transaction.
Property Rights in Real Estate Under the Thai Civil and Commercial Code by a property lawyer
1) Usufruct : A Right to Use and Benefit From the Property
Legal Basis: Civil and Commercial Code, Sections 1417–1428
A usufruct grants a foreigner the right to use a property and enjoy its benefits such as residing in it or renting it out, while the landowner retains ownership of the land.
Key Characteristics
- A “personal right” that cannot be transferred to another person
- Valid for the lifetime of the usufructuary (for individuals)
- Allows use and enjoyment of the property within the boundaries of the contract
- Terminates automatically upon the death of the right holder
Practical Considerations
Usufruct is commonly used in foreigner–Thai spouse cases. A real estate lawyer will carefully draft the agreement to clarify whether subleasing, modification of the property, or commercial use is permitted, issues that often cause disputes when unclear.
2) Superficies : Ownership of the Building, Not the Land
Legal Basis: Civil and Commercial Code, Sections 1410–1416
Superficies allows a foreigner to legally own a house or structure built on land owned by someone else. This is a popular option when a foreigner wishes to own a villa while the land remains in the name of a Thai spouse or Thai landowner.
Key Characteristics
- Foreigners can hold full ownership of the building
- The land and the building are legally separate assets
- Superficies may be granted for life or for a fixed period (up to 30 years per registration)
- Transfer of the building to heirs or buyers is possible unless restricted by contract
Practical Considerations
A real estate lawyer will ensure the structure is properly registered at the Land Office, verify building permits, and prepare documents that clearly separate the land and the building. This avoids disputes over ownership when the landowner changes or passes away.
3) Leasehold : The Most Widely Used Property Structure
Legal Basis: Civil and Commercial Code, Sections 537–571
Leasehold gives foreigners long-term use of land or buildings. Although widely used, leaseholds require careful legal drafting to ensure the foreigner’s rights are enforceable.
Key Characteristics
- Maximum 30 years per lease term
- Renewal clauses are possible but not guaranteed under Thai law unless re-registered
- Rights must be registered at the Land Office to be enforceable
- The lease remains valid even if the landowner changes (unless improperly drafted)
Practical Considerations
Poorly written leases are common, especially from developers. A real estate lawyer ensures clear rights regarding subleasing, improvements, inheritance, and termination—issues that often determine whether a lease remains secure long-term.
Comparing All Three Legal Structures
Foreign investors must select the type of property right that aligns with their real objective, whether long-term residence, ownership of a villa, or commercial investment. Each structure carries its own strengths, limitations, and long-term implications. A property lawyer or real estate lawyer typically evaluates these structures before recommending the safest option.
| Issue | Usufruct | Superficies | Leasehold |
| Type of Right | Right of use and enjoyment | Ownership of the building | Leasehold right |
| Security Level | Medium | High | Medium |
| Transferability | Not transferable | Transferable | Transferable (per contract) |
| Duration | Lifetime / 30 years | Lifetime / 30 years | 30 years |
| Best For | Long-term residents | Those who want ownership of the building | Long-term tenants |
| Inheritance | Not transferable | Transferable | Transferable (per contract) |
Common Disputes Found in Practice
In real estate matters, disputes related to these three types of rights occur frequently. A property lawyer often encounters situations such as
- Usufruct agreements that restrict the beneficiary more than necessary, preventing full use of the property
- Superficies rights that were not properly registered, leading to disputes over ownership of the building
- Leasehold renewals that cannot proceed because the landowner has changed and the renewal clause was not enforceable
These situations highlight the importance of proper documentation, legally sound contract drafting, and compliance with actual Land Office procedures in the relevant jurisdiction.
The Role of a Law Firm in Structuring Property Rights for Foreigners
Choosing between Usufruct, Superficies, or Leasehold is not merely a legal consideration; it is a strategic process that requires careful evaluation of the investor’s objectives, the security of the rights obtained, and practical risks. This is especially true for Usufruct, which provides significant benefits in terms of residential property rights.
W Law International (Thailand) therefore plays a crucial role in multiple stages of the process, including the following
1. Drafting and reviewing legally compliant agreements
We examine the contractual language to ensure it fully reflects the intended rights, eliminates ambiguity, and minimizes the risk of future disputes.
2. Reviewing documents and encumbrances on the title deed
We assess servitudes, mortgages, or other restrictions that may affect the validity or enforceability of the usufruct holder’s rights in the future.
3. Registering the rights at the Land Office
We coordinate with relevant authorities, prepare required documents, and verify correctness throughout the registration procedure—ensuring that the rights receive full legal protection upon registration.
4. Preparing bilingual documentation (Thai–English)
W Law International prepares all essential legal documents in both Thai and English to ensure clarity, prevent misunderstandings, and support lawful property ownership for foreign clients.
With a carefully executed and legally compliant usufruct registration service, clients can feel confident in the security of their property rights.
We facilitate and verify all essential elements to ensure that the lease agreement is properly structured and legally sound, including
- Assignment of lease rights
- Lease duration
- Succession and inheritance rights
Structured Planning of Property Rights With the W-Law International (Thailand) Property lawyer in Acquisition Package
Choosing the correct structure Usufruct, Superficies, or Leasehold may appear simple, but each structure is tied to deeper legal issues, encumbrances, Land Office procedures, and tax consequences. With the guidance of an experienced property lawyer, foreign buyers can reduce long-term risks and secure transparent, stable ownership rights.
W Law International (Thailand) has extensive experience assisting foreigners with property transactions, offering comprehensive legal services handled by expert property lawyers and real estate lawyers.
Whether you are:
- purchasing property
- structuring property rights
- setting up a company
- applying for visas
- preparing a Will or Living Will
- requiring general legal assistance in Thailand
W Law International (Thailand) provides reliable, correct legal guidance based on Thai law. With W Law’s Property Acquisition Package, every step from Due Diligence to contract review to transfer registration is managed by a specialized property lawyer to secure your investment from start to finish.
For inquiries or to begin the process, you may contact W Law International (Thailand) for a free initial consultation. If you wish to begin the process or have questions, you may contact W Law International (Thailand) for a free initial consultation.
