Inheriting Property in Thailand: Rules for Foreign Heirs

Inheriting property in Thailand works very differently for foreigners depending on whether the asset is land, a house on leased land or a condominium unit. In short, a foreign heir can often keep a condo within the 49 percent foreign quota, but inherited land usually has to be sold within a deadline set by the Land Department, normally no longer than one year. Planning ahead with a Thai will and the right ownership structure avoids most of the painful surprises.

This guide explains the rules for inheriting property in Thailand that Phuket owners and their families most often ask about. It is general information, not legal advice, so confirm your own case with a licensed Thai lawyer.

Can a foreigner inherit land in Thailand?

A foreigner can be named as an heir, but holding the land is another matter. Under Section 93 of the Land Code, a foreign statutory heir may only keep inherited land with permission from the Minister of Interior, and only within small limits such as one rai for a family residence. That permission is discretionary and lawyers describe it as very rarely granted. A foreigner who receives land under a will, rather than as a statutory heir, is not covered by Section 93 at all.

When there is no permission, Section 94 applies. The Director-General of the Department of Lands sets a period for the heir to dispose of the land, which cannot be shorter than 180 days or longer than one year. If the land is not sold in time, the department has the power to sell it. Our guide to the Chanote title in Phuket explains how land titles are recorded, which matters when an estate is being transferred.

What happens to an inherited condo?

Condominium units are the main route to freehold ownership for foreigners, and the rules are friendlier. Under the Condominium Act, foreign ownership in a building is capped at 49 percent of the total unit area, which we cover in detail in the Phuket condo foreign quota. The outcome for an heir depends on two questions:

• Does the heir qualify under Section 19? The most common basis is bringing in foreign currency for the purchase. Thai law firms report a Department of Lands interpretation that an heir of a foreign owner who held the unit under this route steps into the deceased owner's qualification.
• Is the foreign quota already full? A qualifying heir whose unit would push the building over the quota must sell the excess within one year.
• If the heir does not qualify at all, the Condominium Act requires written notice to the Land Office within 60 days and disposal of the unit within one year.

How do land, condos and leases compare?

Asset	Can a foreign heir keep it?	Key deadline or rule
Land (Chanote)	Usually no	Dispose within 180 days to one year
Condo within quota	Usually yes, if qualified	Excess over quota sold within one year
Condo, unqualified heir	No	Notify in 60 days, sell within one year
Registered lease	Depends on the contract	Check the heirs and transfer clause
Lifetime usufruct	No	Ends when the holder dies

Do leases and usufructs pass to heirs?

Many foreign buyers in Phuket hold villas through a registered lease. Whether the remaining term passes to heirs depends heavily on the wording of the contract, and lawyers regularly flag this as a point to check before signing. See our explainers on the 99 year lease in Thailand and freehold vs leasehold in Phuket for how these structures work.

A usufruct granted for the holder's lifetime ends at death and cannot be passed on. That is why it is often used to protect a foreign spouse during their lifetime rather than to pass value to children. Our guide to usufruct in Thailand covers the details. Holding land through a Thai company with nominee shareholders is not a safe workaround, as the recent nominee probe into Rawai companies shows.

Do you need a Thai will?

Thai law recognises wills made in Thailand, and many advisers suggest a separate Thai will that covers only Thai assets. Without a will, the estate passes to statutory heirs under the Civil and Commercial Code, and the family usually needs a Thai court to appoint an estate administrator before the Land Office will register any transfer. That process means translated and certified documents such as the death certificate, which can take months if papers come from abroad. A clear Thai will that names an executor can make inheriting property in Thailand far quicker for the people you leave behind.

What taxes and fees apply?

• Inheritance tax: charged only on the part of what each heir receives from one deceased person above 100 million baht, at 5 percent for parents and descendants and 10 percent for other heirs. A surviving spouse is exempt.
• Land Office transfer fee: 0.5 percent of the assessed value for inheritance between parents and children or between spouses, according to the Department of Lands fee schedule. Other heirs pay the standard rate, and you can compare this with normal sale costs in Phuket property transfer fees.
• Your home country: your own country may also tax the estate, so check both sides.

How can Phuket owners plan for inheriting property in Thailand?

• Keep the original title deed or condo title and your foreign exchange transaction forms in a safe place known to your family.
• Make a Thai will for Thai assets and make sure it does not conflict with your will at home.
• For land, consider whether a Thai spouse or Thai child should be the heir, since a foreign heir will usually have to sell.
• Read your lease for heir and transfer clauses, and register any changes at the Land Office.

FAQ

Can my children inherit my Phuket condo?

Usually yes, if they qualify as foreign owners and the unit fits within the foreign quota. Otherwise they must notify the Land Office and sell within one year.

How long does inheriting property in Thailand take?

Without a will, appointing an estate administrator through a Thai court can take several months before the Land Office transfer.

Can a foreign spouse inherit a house built on Thai land?

The land itself usually has to be sold within the Land Department deadline. Ownership of the building and any lease or usufruct depends on how it was registered.

Is there inheritance tax on a normal Phuket condo?

Only if one heir receives more than 100 million baht from the same person, so most single condos fall below the threshold.

Photo: CEphoto, Uwe Aranas, CC BY-SA 4.0, via Wikimedia Commons.