Inheritance and wills for foreign owners of Thai property
Updated · ZODIAC Co., Ltd.
Thai property is inherited under Thai law, whatever your nationality, because succession to immovable property is governed by the law of the place where it is located. A Thai will is the simplest way to control who inherits and to speed up the process. Foreign heirs can generally inherit a condominium, but some must sell within one year, and leases pass on only if the lease allows it.
Which law applies
Under Section 37 of Thailand's Act on Conflict of Laws, succession to immovable property is governed by the law of the place where the property is situated. A condominium, a building or a registered right over Thai land is therefore dealt with under Thai succession law, even if your home country's law governs the rest of your estate. Movable assets such as bank deposits are treated differently, generally by the law of the deceased's domicile.
In practice, this means that a will made at home may not be enough. Thai courts and Land Offices can recognise a valid foreign will, but it must be translated, legalised and proved, which adds time and cost. A separate Thai will covering Thai assets is usually more efficient.
What happens without a will
If you die without a valid will, the Civil and Commercial Code sets out the statutory heirs in order of priority: descendants, parents, siblings of full blood, siblings of half blood, grandparents, and uncles and aunts, with the surviving spouse sharing alongside them. Only a spouse in a marriage legally registered or recognised under Thai law counts. Unmarried partners have no statutory rights.
An administrator must usually be appointed by a Thai court before the Land Office will transfer the property. The process involves court filings, a hearing and, where heirs are abroad, legalised documents. It commonly takes several months.
Delays have practical costs. Until the administrator is appointed and the transfer registered, the property cannot be sold, common fees and bills continue, and any tenancy must be managed by someone without clear authority. A named executor in a Thai will shortens this period considerably.
Making a Thai will
Foreigners can make a will under Thai law. The common form is a written will signed before two witnesses who are not beneficiaries, often drafted in Thai and English. Naming an executor in the will lets that person apply to court for appointment and handle the Land Office transfer. A will can be limited to Thai assets so that it does not conflict with your home-country will; your lawyers in both countries should make sure the documents are consistent and that neither revokes the other by accident.
- Name specific assets: the unit number and title deed, or the lease and building.
- Name an executor who is practical to appoint, ideally resident in Thailand or with a local lawyer.
- Name alternative beneficiaries in case your first choice cannot inherit or keep the property.
- Keep the original safe and tell your executor where it is.
Foreign heirs and the condominium quota
The Condominium Act contains specific rules for foreigners who acquire a unit by inheritance. According to Tilleke & Gibbins' analysis of the Act, foreigners with Thai permanent residence or those in Thailand under investment promotion laws can keep an inherited unit within the foreign quota. Other foreign heirs or legatees must notify the authorities within 60 days and dispose of the unit within one year, although the Land Department has indicated that a foreign heir who meets the foreign funds category may be able to keep the unit. Practice varies between Land Offices, so the safest course is to take advice early and to plan the succession while you are alive.
If the heir cannot keep the unit, it can be sold to a Thai buyer or to another eligible foreigner within the quota, and the proceeds passed to the heir.
Land and villas
A foreign heir cannot keep inherited land. Under the Land Code, land inherited by a foreigner who is not entitled to own it must be disposed of within a period set by the authorities. For a villa held on a registered lease, the key document is the lease itself: a lease is treated as personal to the lessee and ends on death unless the contract provides that it passes to heirs. Make sure your lease includes this clause. A house owned by a foreigner as a building, and a right of superficies created for a fixed term, can be inherited under the general rules.
Joint ownership and spouses
Many couples buy a condominium in joint names. On the death of one owner, the deceased's share passes under their will or under the statutory rules; it does not automatically pass to the surviving co-owner, as it might under some common law joint tenancies. A Thai will that leaves each spouse's share to the other avoids gaps.
Where one spouse is Thai and the other a foreigner, the rules on who can hold what apply at every stage. A Thai spouse can inherit a condominium or land without restriction. A foreign spouse inheriting a Thai spouse's land cannot keep it and will have to dispose of it, which is one reason mixed-nationality couples often take specialist advice on how to hold family property.
Marriage also affects the estate itself. Under Thai family law, property acquired during a registered marriage is generally marital property, and the surviving spouse keeps their half before the estate is divided. Your lawyer can explain how this interacts with a prenuptial agreement or with the law of your home country.
Inheritance tax and transfer fees
Thailand's inheritance tax applies only where the value received by one heir exceeds THB 100 million. The excess is taxed at 5% for ascendants and descendants and 10% for other heirs; transfers to a spouse are exempt. Most property owners fall below this threshold.
Registering an inherited property at the Land Office carries a transfer fee of 0.5% of the appraised value for ascendants, descendants and spouses, and 2% for other heirs. Transfers by inheritance are generally not subject to specific business tax or personal income tax.
Alternatives worth considering
Some owners transfer property during their lifetime rather than by will, for example to a child who is eligible to own it. Lifetime gifts have their own tax consequences, including gift tax above certain thresholds and transfer fees. Joint ownership of a condominium between spouses is another option. Usufruct can give a surviving partner the right to live in a property for life while ownership passes to someone else. Each route has tax and legal trade-offs that depend on family circumstances.
A practical checklist
Keep your title deed or registered lease, your FET forms and a copy of your will together, and tell your family where they are. Review your will after marriage, divorce or the birth of children. Make sure your lease allows inheritance and assignment. If your intended heirs are foreigners without Thai residence, discuss with a lawyer how they will keep or sell a condominium within the legal time limits.
Finally, make sure someone you trust knows the name of your Thai lawyer and has copies of key documents, so that the process can start promptly if it is ever needed.