Legal guide
Inheritance and Thai Property: The Foreign Owner Position
Quick answer
Thai property held by a foreigner passes on death under the law of the owner nationality, not automatically under Thai law, under the Thai Conflict of Laws Act as of Q3 2026. A freehold condominium in a foreign name is inherited through the Land Department. A company held villa passes by share inheritance. A leasehold passes for the remaining term only. A Thai will and a home country will covering the Thai asset are both needed, and they must not conflict.
Key facts
| Item | Value |
|---|---|
| Governing law of succession | The owner national law, under the Conflict of Laws Act |
| Freehold condominium inheritance | Direct transfer at the Land Department |
| Company held villa inheritance | Share inheritance under company law |
| Leasehold on death | Passes for the remaining term only |
| Thai will validity | Valid if made under Thai form requirements |
Which law governs the succession
The Thai Conflict of Laws on the Law of Succession provides that the succession of an immovable property in Thailand is governed by the national law of the deceased at death, not by Thai law, unless the deceased elected Thai law. In practice a Japanese, German, or UK owner has their Thai condominium succession governed by Japanese, German, or English and Welsh law respectively, applied through the Thai court if a Thai grant is needed. This is the single most important point and the one most often missed by foreign buyers, who assume a Thai will governs everything. It does not.
A freehold condominium in a foreign name
A freehold condominium registered in a foreign individual name is inherited by the heirs under the governing national law, and the transfer is registered at the Land Department on production of the foreign grant of probate or letters of administration, translated and certified, and the foreign quota check. The unit stays in the foreign name provided the building foreign quota is not exhausted at the date of the transfer. If the quota is exhausted, the unit falls into the Thai quota and must be sold to a Thai person or held on a lease. We do not recommend a company for that case. This is a real risk on older buildings and should be checked before assuming a clean inheritance path.
A company held villa
A villa held through a Thai majority owned company passes by inheritance of the shares, not by transfer of the land, which the Land Department is not involved in. The shares are personal property and pass under the owner national law, registered at the Department of Business Development. The shareholder agreement may give the remaining Thai shareholders a pre emption right, and a well drafted agreement addresses this. That path applies only to a villa already held in a company. We do not recommend setting one up so inheritance can work this way. It also requires the company to be in good standing at death, with filed accounts and a current shareholder register.
A leasehold on death
A registered leasehold of 30 years passes to the heirs for the remaining term only, under the Civil and Commercial Code. A lease bought at 65 with 30 years of stated term has, in reality, a shorter useful life to an heir, because the term decays. The renewal clause, if any, is a contract right that may require the lessor to agree. A foreign buyer who plans to leave the property to a younger heir should weigh this decay carefully and is often better served by a freehold condominium in their own name. We do not recommend a company held villa for that plan.
The two will position
A foreign owner of Thai property needs a Thai will covering the Thai assets, made under Thai form requirements, and a home country will that either covers the Thai asset consistently or excludes it so the Thai will governs. The two wills must not conflict. A Thai will is made in writing, dated, signed by the testator and two witnesses, and ideally notarised. It is registered at the local Amphoe office in Hua Hin on request. Without a Thai will, the foreign grant must be translated, certified, and recognized by a Thai court, which adds six to twelve months to the inheritance. With a Thai will, the Land Department transfer proceeds in a few months.
The usufruct and the Thai spouse
A foreign buyer married to a Thai spouse often uses a usufruct, which grants the foreign buyer a lifetime right of habitation on the land held in the spouse name. On the death of the spouse, the land passes under the spouse succession, but the usufruct runs until the death of the foreign buyer, protecting the survivor. On the death of the foreign buyer first, the usufruct ends and the land passes to the spouse heirs. A usufruct is a survivorship tool, not an inheritance tool, and should be drafted by a Thai-qualified lawyer.
Sources
This guide is published as of the updated date shown above and reflects Thai land and tax rules current at that time. It is general information and not specific legal or tax advice. For a transaction, instruct a Thai-qualified lawyer or accountant.
Frequently asked questions
Does my home country will cover my Thai property?
It can, but a Thai will covering the Thai asset is faster and cleaner, and the two wills must not conflict. The succession of a Thai immovable is governed by the owner national law, but the practical transfer at the Land Department is far smoother with a Thai will made under Thai form requirements.
Which law governs the succession of my Thai property?
Under the Thai Conflict of Laws Act, the succession of immovable property in Thailand is governed by the national law of the deceased at death, not automatically Thai law, unless the deceased elected Thai law. A Japanese, German, or UK owner has their Thai property governed by their national law.
How is a freehold condominium inherited?
The heirs inherit under the governing national law, and the transfer is registered at the Land Department on production of the foreign grant, translated and certified, and the foreign quota check. The unit stays in the foreign name provided the building foreign quota is not exhausted at the date of transfer.
How is a company held villa inherited?
By inheritance of the shares, not transfer of the land. The shares are personal property and pass under the owner national law, registered at the Department of Business Development. This avoids Land Department transfer fee and SBT, but requires the company to be in good standing at death.
What happens to a leasehold on the death of the lessee?
The leasehold passes to the heirs for the remaining term only. The renewal clause, if any, is a contract right that may require the lessor to agree. A leasehold decays and a younger heir inherits less useful life, which is why a leasehold suits an older buyer more than an inheritance plan.
Do I need a Thai will as well as my home country will?
Usually yes. A Thai will covering the Thai asset, made under Thai form requirements, makes the Land Department transfer proceed in months rather than the six to twelve months a foreign grant recognition can take. The two wills must be consistent and not conflict.
Does a usufruct protect my interest if my Thai spouse dies first?
A usufruct grants the foreign buyer a lifetime right of habitation on the land, so if the Thai spouse dies, the land passes to the spouse heirs but the usufruct runs until the foreign buyer dies. It is a survivorship tool, not an inheritance tool, and should be drafted by a Thai-qualified lawyer.
Is there inheritance tax on Thai property?
Thailand has no inheritance tax on a direct inheritance of an individual. Some home jurisdictions, including Germany and the UK, may tax the inherited Thai asset under the owner national law. Take advice in both jurisdictions and make a will that reflects the planning.