What is Sap Ing Sith? In 2019, Thailand passed a new law called the Sap Ing Sith Act, which allows foreigners to own rights to use land in Thailand for up to 30 years. This is a significant change from the previous law, which only allowed foreigners to lease land for a maximum of 30 years.
Sap Ing Sith rights are similar to land ownership rights in many ways. For example, Sap Ing Sith holders can mortgage their property, build on it, and transfer it to others. However, there are some key differences between Sap Ing Sith rights and land ownership rights. The Sap Ing Sith rights are for a maximum of 30 years. They must be registered on title deed and a fee of 20,000 baht will be asked by the land department.
Despite these limitations, Sap Ing Sith rights offer a number of advantages for foreigners. For example, Sap Ing Sith rights could be more interesting than usufruct rignts, and they offer more flexibility than a lease. It depends on your age, your short and long term goals and how much do you invest.
If you are a foreigner and want to buy property in Thailand, think about Sap Ing Sith. However, it is important to consult with an attorney to understand the risks and benefits of this type of investment.
Benefits and disadvantages of Sap Ing Sith in Thailand.
Here are some of the key benefits of Sap Ing Sith rights:
- Ownwership: You do own the land/building but only for a period of time. You can transfer the balance of your rights to anyone without the consent of the owner.
- Flexible: Sap Ing Sith rights offer more flexibility than a lease. You can register a mortgage on these rights but the banks might not be too familiar with that as Thai banks rarely give a mortgage to a foreigner and this is a new concept under Thai law.
- Long-term: Registration is for a maximum of 30 years. (We believe you can have an option to renew).
Here are some of the risks of Sap Ing Sith rights:
- Term: There is a term of 30 years maximum with an option to renew.
The government can revoke Sap Ing Sith rights if the holder violates the terms of the agreement.
It is important to weigh the benefits and risks before making any decision about a property. Would it be better for you to make a usufruct, a lease, superficies agreements, or setting up a Thai limited company? It all depends on your age, what are your goals on short and long terms, if you are married to a Thai person or have a Thai partner, how much are you investing and many others. Do not hesitate to make an appointment online for us for more information.
Links :
- Here an excellent link about Sap Ing Sith in Thai: http://web.krisdika.go.th/pdfPage.jsp?type=act&actCode=13787
