THAILAND TO EXTEND DURATION OF FOREIGN LAND LEASES AND CONDO OWNERSHIP
The Thai administration has instructed the Ministry of Interior to amend laws to extend foreign land leases to 99 years and increase foreign condominium ownership to 75%. Prime Minister Srettha Thavisin stated that this policy aims to stimulate the economy, rather than favour foreigners or major investors.
Key Points:
- Extended Land Leases: Currently, the law permits 30-year leases for foreigners. The proposed extension to 99 years is seen as a more equitable approach, aligning with international practices offering extended leases up to 150 years. Prime Minister Srettha emphasized that this extension is a lease, not a sale, making it appropriate for Thailand.
- Increased Condominium Ownership: The proposed increase in foreign condominium ownership from 49% to 75% ensures that voting rights remain capped at 49%, keeping Thai ownership dominant at 51%. This adjustment allows foreign owners to reside but not vote, thus maintaining Thai control over condominium management.
Economic Stimulus Strategy:
The Ministry of Finance initiated this proposal as part of an economic stimulus strategy. The administration believes that these changes will attract more foreign investment and stimulate the Thai real estate market, benefiting the overall economy.
Prime Minister’s Assurance:
Prime Minister Srettha expressed confidence in the proposal, suggesting that the policy change is a positive signal that Thailand is open to revising its laws to better align with global practices.
Note on Current Status:
It’s important to note that this law is not yet confirmed. However, the discussion indicates a promising shift in policy, reflecting Thailand’s openness to change.
For more information, refer to the official announcement by Prime Minister Srettha Thavisin.
This proposed law change, if enacted, could significantly impact the real estate market in Phuket and other regions, making it a critical development to watch for property investors and real estate professionals.
Stay updated with the latest developments on this topic and other real estate news in Thailand by following our website.
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