Thailand’s 99-Year Leasehold Proposal Explained: What It Means for Foreign Property Investors in 2025
Thailand’s government is exploring a 99-year leasehold scheme aimed at boosting long-term foreign investment. Here’s what’s proposed, how it differs from the current 30-year rule, and what it could mean for overseas buyers.
A Potential Shift in Thai Property Law
Thailand has long been one of Southeast Asia’s most attractive property markets, with strong rental yields, growing tourism, and increasing global visibility. Yet for many foreign investors, one recurring limitation has remained: the 30-year cap on leasehold land ownership.
In 2025, the Thai government signalled its intent to reform this framework, proposing a 99-year leasehold scheme designed to attract sustainable, long-term investment into residential and commercial property. If enacted, it could mark one of the most significant updates to Thai property law in decades.
The Current Law: 30-Year Limit and Supreme Court Ruling
Under Thailand’s Civil and Commercial Code, the maximum enforceable lease term is 30 years. While some developers have historically marketed “30 + 30 + 30” lease extensions, these multi-stage renewal clauses have always existed in a grey area.
That ambiguity was clarified in early 2025, when the Thai Supreme Court ruled that pre-agreed renewal options beyond 30 years are not legally binding, effectively closing the door on long-term lease structures previously used by foreign investors and developers.
As a result, the government began exploring a formal legislative alternative, a 99-year scheme that would provide long-term security without changing Thailand’s ownership laws.
What’s Being Proposed
According to official briefings and local media reports, the proposed 99-year leasehold framework would:
Apply to non-agricultural land, including residential, commercial, and industrial plots.
Allow leases of up to 99 years, with clear registration rights.
Permit lessees to mortgage, transfer, or inherit the lease during its term.
Maintain that land ultimately reverts to the state at the end of the 99 years.
Potentially apply to both Thai and foreign investors under a regulated structure.
The government aims to finalise the bill in 2025, with the new framework possibly taking effect in 2026 if approved by Parliament.
Why It Matters for Investors
If passed, the 99-year leasehold would dramatically increase long-term confidence in Thailand’s property market. For international buyers, particularly those focused on lifestyle and legacy investments — it could offer a clearer middle ground between foreign freehold and shorter leasehold models.
The impact would be especially strong in key destinations such as Phuket and Bangkok, where international demand for premium real estate continues to rise.
In Phuket, where leasehold villas and branded residences are common among foreign buyers due to land ownership restrictions, a 99-year framework could unlock greater stability for long-term investors seeking passive rental income.
In Bangkok, it could make high-end condominiums and mixed-use projects even more appealing to overseas buyers priced out of freehold quotas.
For a closer look at how different property types perform under Thailand’s leasehold framework, read Phuket Villas vs Condos in 2025: Which Investment Really Makes Sense.
Legal and Political Challenges
Despite the potential benefits, the proposal remains controversial. Critics argue that ultra-long leases could dilute land sovereignty or benefit large developers disproportionately. Implementing such a reform would also require amending multiple existing laws, including the Land Code, State Property Act, and Civil and Commercial Code.
There is also uncertainty around how leases would be registered, renewed, and taxed, and whether foreign lessees would enjoy the same protections as Thai nationals.
Until these details are clarified, the proposal remains an ambitious policy, not yet a guarantee.
What Foreign Buyers Should Know Now
For now, nothing has changed: the 30-year maximum still applies, and the Supreme Court has confirmed that “automatic renewals” are unenforceable.
Foreign buyers should be cautious of any projects advertising 90 or 99-year terms until the law is officially enacted. Reputable agencies market only developments that are fully compliant with existing Thai regulations, whether foreign freehold condominiums or legally structured leaseholdproperties.
To understand how leasehold ownership works in practice, see our related guide: How Villa Leasehold Works in Thailand: What Every Investor Should Know in 2025.
When Could the Law Take Effect?
Government sources indicate that the final draft may be submitted to Parliament in late 2025, with potential approval and implementation from 2026 onwards. If passed, the 99-year leasehold could help Thailand compete with markets like Malaysia and Vietnam, which already offer longer-term tenure to foreign investors.
However, the timeline remains uncertain, and details may change as the bill progresses through consultation.
Summary: Opportunity, But Patience Required
The proposed 99-year leasehold could reshape Thailand’s real estate landscape, extending confidence, liquidity, and investment potential across Phuket, Bangkok, and beyond. But until the law is enacted, foreign buyers should proceed within the framework of the current 30-year limit.
Alestria continues to monitor these developments closely and will provide verified updates as the legal process unfolds.
Quick Facts: Thailand Leasehold at a Glance
Maximum current term: 30 years (renewal optional, not guaranteed)
Inheritance: possible if structured correctly
Foreign freehold: up to 49% of condo units in a development
Proposed reform: 99-year leasehold for non-agricultural land
Status (Oct 2025): in draft stage, not yet law
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FAQs: Thailand’s 99-Year Leasehold Proposal
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No. As of late-2025 it’s still a proposal. The current maximum registered lease term remains 30 years.
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To attract longer-term foreign and institutional investment while keeping land ownership rules intact.
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If enacted, it would provide a much longer tenure and may clarify rights to transfer, mortgage and inherit during the term. Today, the enforceable maximum is 30 years.
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Pre-agreed renewals designed to guarantee multiple periods were ruled unenforceable. Do not rely on automatic extensions being honoured.
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No. It would still be leasehold. Foreign land ownership rules do not change.
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Details aren’t final. Early signals point to non-agricultural land and designated zones/projects. We’ll know the exact scope when the law is published.
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Valid, registered leases remain as they are. Any conversion or extension path would depend on the final legislation and implementing rules.
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No. The 49% foreign freehold quota for condominiums is separate and unchanged. A 99-year scheme would mainly impact leasehold options (e.g., villas, some branded residences).
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Read: How Villa Leasehold Works in Thailand: What Every Investor Should Know in 2025 — https://alestriaproperty.com/blog/how-villa-leasehold-works-in-thailand-what-every-investor-should-know-in-2025
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See: Phuket Villas vs Condos in 2025: Which Investment Really Makes Sense — https://alestriaproperty.com/blog/phuket-villas-vs-condos-in-2025-which-investment-really-makes-sense
