Doing Business in Thailand

In several of my previous posts I have commented on the too short lease period duration in Thailand by comparison to other Asian countries but I had to date to provide to my readers any basis for comparison which I have done now with a table comparing the lease duration period in 13 Asian countries including Thailand.

The first thing to know in terms of lease duration is that depending upon the country the duration of a long-term lease may be anything up to 999 years. In Asia all of the 13 countries surveyed (please see next table) allow foreigners to lease immovable properties.

While the right of foreign buyers to lease is granted everywhere there are huge variations as to the extent of the rights granted to them or as to the conditions attached to the right to lease.

Overall the average lease duration period in the 13 countries surveyed is approximatively 50 years. Cambodia, Malaysia and Singapore offer the longest lease periods with 99 years each.  The shortest lease period is to be found in Myanmar where immovable property may only be leased for 1 year when leasing from the private sector (up to 30 when leasing from the government with the MIC approval). Thailand scores number 10 out of 13 in term of residential lease duration (based on a single lease period approach).

Note: that for the purpose of the classification below countries that compare equal receive the same ranking number, and then a gap is left in the ranking numbers. Also Malaysia ranks 3 because while it has a 99 years lease option said option require prior approval

An increase of the duration of the residential lease to 60 years or even 99 years would be a welcome improvement by comparison to the actual situation

Note: This post is an excerpt of Rene Philippe Dubout: “How to Safely Buy Real Estate In Thailand” second edition to be published in November 2009 (the first edition was published under the name “How to Safely Purchase Real Estate Offshore: The Case of Thailand”.

About the Author:

The author Rene-Philippe DUBOUT is a lawyer since 1990 when he was admitted to Geneva bar (Switzerland). He practiced as a litigator there for 10 years until he moved to Thailand in 1999. In 2002 he founded with a group of Thai lawyers Rene Philippe & Partners Ltd a local law firm that specialized in Cross Borders Investments and Real Estate. He has been lecturing in several Thai Universities and a speaker to numerous conferences and seminars. He is the author of a must read book:”How to Purchase Real Estate Offshore Safely: The Case of Thailand”.

http//:www.renephilippe.com

© Copyrights 2009 – Rene Philippe Dubout – This article may be reprinted if information about the author, the websites, and the URLs remain intact

Originally posted 2009-10-02 03:14:08.

Related posts:

1. Buying Property: Comparing Foreign Land Ownership in Asia
2. Buying a Property: Leasehold is a 30 years period enough?
3. Thailand Property: Difference between condos and apartments
4. Buying Property: Two issues to consider before buying a land
5. Buying Property: Comparing Construction Costs in Bangkok
6. Buying Property: Is it the right time to buy?
7. Buying a Property: The first time developers
8. Thailand Property: Nominees under watch