Section 540 — Maximum lease term — 30 years for immovables
Statutory text (Thai original)
อันอสังหาริมทรัพย์ ท่านห้ามมิให้เช่ากันเป็นกำหนดเวลาเกินกว่าสามสิบปี ถ้าได้ทำสัญญากันไว้เป็นกำหนดเวลานานกว่านั้น ท่านก็ให้ลดลงมาเป็นสามสิบปีอนึ่ง กำหนดเวลาเช่าดังกล่าวมานี้ เมื่อสิ้นลงแล้วจะต่อสัญญาอีกก็ได้ แต่ต้องอย่าให้เกินสามสิบปีนับแต่วันต่อสัญญา
Verbatim from the Royal Gazette / Office of the Council of State
English translation
The duration of a hire of immovable property cannot exceed thirty years. If it is made for a longer period, such period shall be reduced to thirty years. The aforesaid period may be renewed, but it must not exceed thirty years from the time of renewal.
This English translation is provided for reference only and has not yet been firm-verified — always rely on the Thai original.
Firm annotation
Section 540 is the cap on Thai lease duration. The famous "90-year lease" marketed by some property developers is a myth — it is actually three back-to-back 30-year leases, each requiring renewal by mutual consent and Land-Office registration. Courts have struck down upfront-paid 90-year arrangements as attempts to circumvent §540. SC decisions on renewal options consistently hold that the renewal must be a true new agreement, not a unilateral right of the lessee. For long-term foreign investment, usufruct (life-of-lessee) or superficies (separately registered building right) are more durable than lease-renewal chains.
Supreme Court decisions interpreting this section
- 4655/2566 (2023) ★ 90-Year Lease Exceeds 30-Year Cap — Void
- 5277/2540 (1997) ★ Lease Renewal Clause Is Discretionary
Showing decisions in our database that cite this section. The list updates automatically when new decisions are added.