Foreign investors interested in Thai real estate face strict restrictions on direct land ownership under the Land Code Act. While certain indirect arrangements have historically been considered, authorities have increased enforcement against non-compliant structures, emphasizing the importance of lawful options. One established legal mechanism is the Sap-Ing-Sith right (known in Thai as ทรัพย์อิงสิทธิ), commonly referred to in English as a “Right over Leased Asset” (ROLA) introduced under the Sap-Ing-Sith Act B.E. 2562 (2019). This registered real right provides foreigners with long-term control over immovable property while complying with ownership laws.
Overview of Sap-Ing-Sith
The Sap-Ing-Sith right is a registrable property interest issued by the Land Department. It allows the holder to possess, use, and manage the property as specified in the agreement, for a maximum initial term of 30 years (renewable subject to agreement with the landowner). It is governed by its own specific legislation, designed to facilitate investment without altering core land ownership rules.
The certificate is distinct from a standard title deed and serves as official evidence of the holder’s rights.
In practice, the Sap-Ing-Sith right is often described in English as a “Right over Leased Asset” (ROLA). This term is not a separate legal right, but a functional English description commonly used to help foreign investors understand the nature of the registered interest.
Eligible Property Types
A Sap-Ing-Sith right may be established over:
- Land holding a formal title deed (Chanote).
- Structures built on titled land.
- Condominium units registered under strata title.
Advantages Over Standard Long-Term Leasehold
Compared to a conventional 30-year lease (governed by the Civil and Commercial Code), the Sap-Ing-Sith right offers enhanced protections and functionality:
- It is a registered real right (in rem), providing stronger enforceability against third parties, rather than a personal contractual obligation.
- The right is transferable (with landowner consent where required), inheritable, and may be used as collateral for financing.
- Holders can independently apply for construction permits, utility connections, and other official authorizations without relying on the underlying owner.
- Once registered, the underlying title is protected; no new encumbrances can be placed on the property without the holder’s consent.
These features make Sap-Ing-Sith a secure option for long-term property utilization, particularly for residential or investment purposes.
Foreign investors should consult qualified legal professionals to assess suitability and ensure proper registration. Other compliant alternatives include freehold condominium ownership (within the 49% foreign quota) and registered leases combined with superficies or usufruct rights.