Thailand is set to overhaul its leasehold law, extending terms from 30 to 99 years to boost the economy and attract global investment. This significant change aims to provide greater security for foreign investors and long-term residents, making Thailand a more appealing destination for business and real estate ventures.
Key takeaways
- Thailand plans to extend leasehold terms from 30 to 99 years to attract foreign investment and skilled professionals.
- The government aims to fast-track the legislation for parliamentary approval and enactment by 2025.
- The bill includes safeguards to protect national sovereignty while unlocking large-scale infrastructure and green energy projects.
The proposed amendments, currently under public consultation, represent one of the boldest shifts in Thailand’s land and investment policy in decades.
Officials say the move will help stimulate foreign investment, boost infrastructure projects, and draw high-net-worth individuals and global talent to settle in the kingdom.
The initiative, long discussed under the former administration of Prime Minister Srettha Thavisin, has gained momentum under the current government led by Prime Minister Paetongtarn Shinawatra.
A recent Cabinet reshuffle placing the Interior Ministry under the control of the Pheu Thai Party has accelerated the bill’s progress, with the ministry now championing the legislation alongside oversight from the Finance Ministry.
Legislative Clock Ticking Toward 2025
Deputy Transport Minister Manaporn Charoensri, who also serves as an advisor to the government whip, confirmed that the government aims to pass the amended act through Parliament and enact it by 2025. Insiders at Government House suggest the bill could reach the legislature within months, with an aggressive timeline already mapped out:
- Submission to the House Speaker: 14 days
- First Reading: 1–3 days
- Committee Review: 30–60 days
- Second & Third Readings: 2 days
- Senate Review: Up to 60 days
- Royal Assent & Gazette Publication: Within 50 days post-approval
Chusak Sirinil, Minister Attached to the Prime Minister’s Office and the administration’s chief legal strategist, stated that while the bill has not yet been tabled in Cabinet, it remains a legislative priority.
Unlocking a New Investment Ecosystem
Former Prime Minister Thaksin Shinawatra, speaking at a recent lecture titled “Unlocking Thailand’s Future”, strongly endorsed the 99-year leasehold policy. He framed it as a cornerstone for building a new economic ecosystem, particularly in the face of global economic headwinds and domestic budget constraints.
Key infrastructure projects are expected to benefit, including flood prevention land reclamation, solar farms on agricultural land, and large-scale green energy installations. One proposal outlines the use of 140,000 rai (55,000+ acres) of land to generate 40,000 megawatts of solar power, potentially slashing energy costs and making Thailand more competitive as a base for data centres and digital industries.
Reassurance: National Sovereignty Remains Intact
While critics have raised concerns about foreign influence in Thai land ownership, officials insist that the new legislation is structured to prevent asset transfer to foreign nationals.
All properties leased under the extended term would revert to the state after the 99-year period, reinforcing national sovereignty.
The bill also aims to eliminate grey areas in current property ownership schemes involving foreign nominees and to harmonise asset regulations under existing laws such as the EEC Act, BOI incentives, and the Industrial Estate Authority Act.
Strategic Gains: Capital, Clarity, and Talent
According to government sources, the economic benefits of the bill are threefold:
- Capital Inflow: Unlocking long-term lease options is expected to drive significant foreign investment into real estate, hospitality, and infrastructure, while aligning with national priorities like the Land Bridge logistics corridor and future entertainment zones.
- Legal Transparency: By discouraging nominee structures and consolidating leasehold frameworks, the law aims to increase investor confidence and reduce loopholes exploited in past decades.
- Global Talent Magnet: With long-term housing security, Thailand hopes to attract highly skilled professionals in tech, healthcare, finance, and renewable energy, feeding into its broader goal of becoming a global talent hub.
As Thailand braces for economic transformation, the 99-year lease proposal stands out as a pivotal policy pivot, one that could redefine land use, investment strategy, and global perceptions of the Thai property market. By aligning its leasehold terms with international standards, the country hopes to strengthen its position as a competitive hub in Southeast Asia. The extended lease period is expected to encourage large-scale infrastructure projects, tourism developments, and residential investments, ultimately driving economic growth and fostering stronger global partnerships.
