The proposal to permit foreigners to lease land in Thailand for up to 99 years, with the land transitioning from private ownership to state property, may necessitate revisions to the state property law, according to Finance Permanent Secretary Lavaron Sangsnit.
Mr. Lavaron emphasized that a comprehensive study is required to implement such a scheme, which may involve amendments to related legislation. Public consultation would also be necessary in accordance with constitutional requirements for any new laws.
This idea was recently put forward by former Prime Minister Thaksin Shinawatra, suggesting that foreigners should be allowed long-term land leases of up to 99 years.
Under this arrangement, Thai landowners who wish to lease their land to foreigners would first need to transfer the title deed to the Treasury Department for oversight.
During the lease period, the Thai landowner would receive full payment from the foreign lessee but would relinquish ownership, thereby converting the property to state ownership under the department. After the 99-year lease period, the land would revert to the Treasury Department as state property.
Specific conditions would prevent foreigners from acquiring land for agricultural use that competes with Thai interests or from developing affordable housing projects for low-income individuals without requiring a down payment, according to Mr. Lavaron.
He noted that no progress has been made on this concept at the policy level so far.
To advance this plan, several laws would need to be modified, including Treasury Department regulations that currently limit leases to a maximum of 30 years, according to Mr. Lavaron.
“Extending the lease term to 99 years would necessitate legal amendments,” he stated, adding that existing laws related to state property transfers would also need to be reviewed to clarify whether private land can be converted into state property under specific conditions for foreign leasing. Amendments to the Civil and Commercial Code would be required, along with a clarification of applicable land use restrictions.
According to a ministerial regulation established in 2021 under the State Property Act of 2019, leasing contracts for state property cannot exceed 30 years, unless for commercial or industrial purposes, in which case leases longer than 30 years must receive approval from the Finance Minister.
Additionally, any determination of rental rates or other compensation must remain below the rates set by the director-general, as stipulated in the regulation.
For engagements involving state property valued at over 500 million baht from private entities, the rental rates or alternate compensation must not be less than those approved by the State Property Committee.
A source from the Finance Ministry, who wished to remain anonymous, indicated that the proposal to allow foreigners to lease land for up to 99 years has faced criticism in the past, with opponents claiming it was tantamount to selling the country to foreigners. Nonetheless, the notion of long-term leases while retaining Thai ownership addresses those prior concerns, according to the source.
