Sap Ing Sith Thailand
SAP ING SITH
Sap Ing Sith: A New Opportunity for Foreign Nationals to Use Land in Thailand
Thailand is a popular destination for foreign nationals who want to live, work, or retire in a tropical paradise. However, buying land in Thailand can be challenging for foreigners, as the Thai Land Code prohibits them from owning land, except for a few exemptions. Therefore, many foreigners resort to legal structures such as leasehold, usufruct, or ownership of the property by a Thai company, which have their own limitations and risks.
DOES THIS OFFER A NEW OPTION
Fortunately, there is a new option for foreigners who want to use land in Thailand without owning it: The Sap Ing Sith is a new type of transferable right to use immovable property that was introduced by the Sap-Ing-Sith Act, which came into effect on October 27th, 2019. The Act aims to encourage foreigners to invest in property in Thailand and boost the economy and the property market.
WHAT IS A SAP ING SITH
It is a right to use an immovable property that can be established on land with a valid Chanote (land title deed), buildings constructed on land with a Chanote, or condominium units as defined in the Condominium Act. It can be registered for a period of up to 30 years and can be renewed for another 30 years. It must be made in writing and registered with the relevant land office, which will issue a Sap-Ing-Sith certificate.
DIFFERENCES FROM A LEASE
It is different from a regular leasehold right in several ways. For instance, It can be transferred to a third party without the owner’s consent, can be used as security for a mortgage (not registered), and is inheritable under statutory inheritance law. The holder can also make alterations or additions to the property without the owner’s consent, as long as they do not affect the structure or value of the property.
RESPONSIBILITIES
The holder has the duty to return the property in an “as is” condition at the end of the period unless otherwise agreed and is liable for the property like an owner. The holder also has to pay an annual fee of 0.1% of the appraised value of the property to the land office.
SAP ING SITH BENEFITS FOR FOREIGN NATIONALSHow can foreigners benefit from this right? It can offer several benefits for foreigners who want to use land in Thailand without owning it. For example: It can provide more security and flexibility than a leasehold right, as it can be transferred, mortgaged, and inherited without restrictions. It can allow foreigners to use land for commercial or industrial purposes, which may not be possible under a leasehold right. It can enable foreigners to enjoy the benefits of property ownership without having to set up a Thai company or rely on a Thai partner. It can reduce the legal risks and costs associated with other legal structures such as leasehold, usufruct, or ownership by a Thai company. CONCLUSIONThe right is a new and promising option for foreigners who want to use land in Thailand without owning it. It can offer more security and flexibility than a leasehold right and reduce the legal risks and costs associated with other legal structures. However, before entering into a Sap-Ing-Sith agreement, foreigners should consult with a qualified lawyer who can advise them on the legal implications and procedures involved. Isaan Lawyers would be pleased to discuss this and other land protection options with our clients. Contact us today for consultations and advice. [email protected] Visit our website at www.isaanlawyers.com Call us at 084 471 5775 Lawyers covering all areas of Thailand. |
