Usufruct Over a Condominium Unit in Thailand: When It Makes Sense

Reviewed by Wichuda Atthamethakon, LL.M., Thai Bar Licence 3149/2556, for ThaiLawOnline, a Thai law firm acting for foreigners since 2006.

usufruct in Thailand

Key Takeaways

• Yes, usufruct can be registered on condo units under the Civil and Commercial Code. Special considerations apply because the Condominium Act also governs the property.
• Usufruct does not count toward the 49% foreign ownership quota. This makes it an excellent workaround when the building’s foreign allocation is exhausted.
• Registration occurs at the Land Office, not at the condo juristic person office. Though you should notify the juristic person afterward.
• The usufructuary pays the running costs (CAM fees, utilities, and taxes, Civil and Commercial Code section 1426; ordinary maintenance and minor repairs, section 1424); extraordinary expenses stay with the owner (section 1425). But voting rights remain with the registered owner.
• Usufruct provides lifetime or extended security without the complexity of ownership transfer. A lifetime usufruct has no 30-year cap; a fixed-term one is capped at 30 years, like a lease (sections 1418 and 1403).
• Thai banks rarely finance usufruct rights. Most foreign usufructuaries pay cash or arrange offshore financing.

Can You Register Usufruct Over a Condo Unit?

Yes. But There Are Special Considerations

Foreigners can own a condominium unit outright, which makes a usufruct over a unit a narrower tool than it is over land. For how the right works in general, start with our complete guide to usufruct in Thailand.

Usufruct is expressly governed by Sections 1417-1428 of the Civil and Commercial Code (CCC). It applies to immovable property, including condominium units. A condo unit is registered as immovable property at the Land Office under the unit’s separate title deed.

To register a usufruct over a condo unit, you need:

• A valid condominium ownership certificate (title deed).
• The owner’s written consent in a usufruct deed.
• Both owner and usufructuary must execute and register the deed at the Land Office.
• Pay the registration fee to the Land Office. ( 2% fee plus 0.5% stamp duty calculated on the consideration amount. If no consideration, a fixed fee of 100 baht per unit is charged).

Once registered, the usufruct binds all later owners of the unit. It runs with the land and is enforceable against anyone who later acquires ownership.

Condo Act vs. Civil and Commercial Code

The Condominium Act B.E. 2522 (1979) and the Civil and Commercial Code apply simultaneously to condo units. The Condo Act establishes the framework for managing condominium buildings. It includes:

• The 49% foreign ownership quota: No more than 49% of the combined area of all the units in the building may be owned by foreigners. This applies to ownership only, not to usufruct.
• Juristic person governance: Each condo building has a registered juristic person (legal entity). It manages common areas and enforces building rules.
• Common area management: Owners and usufructuaries must comply with the juristic person’s rules and regulations.
• Transfer restrictions: Foreign ownership transfers are checked by the Land Office official, who registers a transfer only if the 49% limit is respected (sections 19 ter and 19 quater); the juristic person’s quota letter is the usual evidence. This ensures the 49% quota is not exceeded.

The Civil and Commercial Code governs the usufruct right itself. It covers how it is created, registered, what rights and obligations it imposes, and how it terminates. Both laws work together. The CCC provides the usufruct framework. The Condo Act provides condo-specific rules.

The law behind this page

English

Section 1417

A usufruct gives a person the right to possess, use and take the fruits and income of another person's immovable property, and the right to manage it. Ownership stays with the owner. The term is governed by Section 1418: it may be for a fixed period or for the usufructuary's life, and where a period is fixed, Section 1403 paragraph 3 applies, which caps it at thirty years.

Full text

An immovable may be subject to a usufruct by which the usufructuary is entitled to the possession, use, and enjoyment of the property. He has the right to manage the property. A usufructuary of a forest, mine, or quarry has the right to exploit the forest, mine, or quarry.

ThaiLawOnline translation

Our annotated sectionOfficial text

Section 1299

Subject to other provisions of this Code or other laws, an acquisition by juristic act of immovable property, or of a real right in it, is not complete unless the act is made in writing and registered by the competent official. A right acquired otherwise than by juristic act cannot be dealt with on the register until it is registered, and until then it cannot be set up against a third person who acquired for value and in good faith and registered his right in good faith.

Full text

Subject to a provision of this Code or other laws, no acquisition by juristic act of immovable property or of a real right appertaining thereto is complete unless the juristic act is made in writing and the acquisition is registered by the competent official. Where immovable property or a real right appertaining thereto is acquired otherwise than by juristic act, the acquirer's right cannot be dealt with through the register unless it has been registered, nor can it, without registration, be set against a third person who has, for value and in good faith, acquired it and registered his right in good faith.

ThaiLawOnline translation

Our annotated sectionOfficial text

Section 19 bis Condominium Act B.E. 2522

Full text

In each condominium, the units held in ownership by the aliens or juristic persons specified in section 19 must not, taken together, exceed 49 percent of the area of all the units in that condominium at the time the application to register the condominium under section 6 is made.

ThaiLawOnline translation

Official text

Section 19 quater Condominium Act B.E. 2522

Full text

When the competent official has received the documents and evidence under section 19 ter and, having examined them, finds that they are correct under section 19 ter, and that the ratio of ownership of units in the condominium by aliens or juristic persons under section 19, counting both those who already hold ownership and those applying to take the transfer, does not exceed the ratio prescribed in section 19 bis, the competent official shall register the rights and juristic acts relating to the unit under Chapter 4 for the alien or juristic person applying to take the transfer.

ThaiLawOnline translation

Official text

Section 1418

A usufruct may be created for a fixed period or for the life of the usufructuary. If no period is fixed, it is presumed to be for the usufructuary's life. Where a period is fixed, Section 1403 paragraph 3 applies, so it cannot exceed thirty years, though it may be renewed. A usufruct comes to an end on the death of the usufructuary and does not pass to heirs.

Full text

A usufruct may be created either for a period of time or for the life of the usufructuary. If no period has been fixed, it is presumed that the usufruct is for the life of the usufructuary. If a period has been fixed, the provisions of Section 1403 paragraph three apply mutatis mutandis. If the usufructuary dies, the usufruct always comes to an end.

ThaiLawOnline translation

Our annotated sectionOfficial text

Section 1426

For as long as the usufruct lasts, the usufructuary bears the expenses of managing the property, pays the taxes and duties on it, and is responsible for interest payable on debts charged upon it. He carries the running costs; the capital burdens, and extraordinary expenses under Section 1425, remain with the owner.

Full text

The usufructuary shall, for the duration of the usufruct, bear expenses for the management of the property, pay taxes and duties, and be responsible for interest payable on debts charged upon it.

ThaiLawOnline translation

Our annotated sectionOfficial text

Section 1425

All extraordinary expenses must be borne by the owner. To meet them, or the cost of major repairs under Section 1424, the owner may realise part of the property, unless the usufructuary is willing to advance the necessary funds without charging interest. The interest-free condition matters: a usufructuary who would lend only on interest cannot prevent the owner from selling.

Full text

All extraordinary expenses must be borne by the owner, but in order to meet such expenses, or the expenses under the foregoing section, he may realise part of the property, unless the usufructuary is willing to advance the necessary funds without charging interest.

ThaiLawOnline translation

Our annotated sectionOfficial text

ไทย

มาตรา 1417

ข้อความเต็ม

อสังหาริมทรัพย์อาจต้องตกอยู่ในบังคับสิทธิเก็บกิน อันเป็นเหตุให้ผู้ทรงสิทธินั้นมีสิทธิครอบครอง ใช้ และถือเอาซึ่งประโยชน์แห่งทรัพย์สินนั้น ผู้ทรงสิทธิเก็บกินมีอำนาจจัดการทรัพย์สินผู้ทรงสิทธิเก็บกินในป่าไม้ เหมืองแร่ หรือที่ขุดหิน มีสิทธิทำการแสวงประโยชน์จากป่าไม้ เหมืองแร่ หรือที่ขุดหินนั้น

ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)

มาตราพร้อมหมายเหตุของเราข้อความทางการ

มาตรา 1299

ข้อความเต็ม

ภายในบังคับแห่งบทบัญญัติในประมวลกฎหมายนี้หรือกฎหมายอื่น ท่านว่าการได้มาโดยนิติกรรมซึ่งอสังหาริมทรัพย์หรือทรัพยสิทธิอันเกี่ยวกับอสังหาริมทรัพย์นั้นไม่บริบูรณ์ เว้นแต่นิติกรรมจะได้ทำเป็นหนังสือและได้จดทะเบียนการได้มากับพนักงานเจ้าหน้าที่ถ้ามีผู้ได้มาซึ่งอสังหาริมทรัพย์หรือทรัพยสิทธิอันเกี่ยวกับอสังหาริมทรัพย์โดยทางอื่นนอกจากนิติกรรม สิทธิของผู้ได้มานั้น ถ้ายังมิได้จดทะเบียนไซร้ ท่านว่าจะมีการเปลี่ยนแปลงทางทะเบียนไม่ได้ และสิทธิอันยังมิได้จดทะเบียนนั้น มิให้ยกขึ้นเป็นข้อต่อสู้บุคคลภายนอกผู้ได้สิทธิมาโดยเสียค่าตอบแทนและโดยสุจริต และได้จดทะเบียนสิทธิโดยสุจริตแล้ว

ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)

มาตราพร้อมหมายเหตุของเราข้อความทางการ

มาตรา 19 ทวิ พระราชบัญญัติอาคารชุด พ.ศ. 2522

ข้อความเต็ม

อาคารชุดแต่ละอาคารชุดจะมีคนต่างด้าวหรือนิติบุคคลตามที่ระบุไว้ในมาตรา ๑๙ ถือกรรมสิทธิ์ในห้องชุดได้เมื่อรวมกันแล้วต้องไม่เกินอัตราร้อยละสี่สิบเก้าของเนื้อที่ของห้องชุดทั้งหมดในอาคารชุดนั้นในขณะที่ขอจดทะเบียนอาคารชุดตามมาตรา ๖

ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)

ข้อความทางการ

มาตรา 19 จัตวา พระราชบัญญัติอาคารชุด พ.ศ. 2522

ข้อความเต็ม

เมื่อพนักงานเจ้าหน้าที่ได้รับเอกสารและหลักฐานตามมาตรา ๑๙ ตรี และตรวจสอบแล้วเห็นว่าเป็นเอกสารและหลักฐานที่ถูกต้องตามมาตรา ๑๙ ตรี และอัตราส่วนการถือกรรมสิทธิ์ในห้องชุดของคนต่างด้าวหรือนิติบุคคลตามมาตรา ๑๙ ทั้งผู้ที่ถือกรรมสิทธิ์อยู่แล้วและผู้ที่ขอรับโอนไม่เกินอัตราที่กำหนดไว้ในมาตรา ๑๙ ทวิ ให้พนักงานเจ้าหน้าที่ดำเนินการจดทะเบียนสิทธิและนิติกรรมเกี่ยวกับห้องชุดตามหมวด ๔ ให้แก่คนต่างด้าวหรือนิติบุคคลผู้ขอรับโอนนั้น

ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)

ข้อความทางการ

มาตรา 1418

ข้อความเต็ม

สิทธิเก็บกินนั้น จะก่อให้เกิดโดยมีกำหนดเวลา หรือตลอดชีวิตแห่งผู้ทรงสิทธิก็ได้ ถ้าไม่มีกำหนดเวลา ท่านให้สันนิษฐานไว้ก่อนว่าสิทธิเก็บกินมีอยู่ตลอดชีวิตผู้ทรงสิทธิ ถ้ามีกำหนดเวลา ท่านให้นำบทบัญญัติมาตรา ๑๔๐๓ วรรค ๓ มาใช้บังคับโดยอนุโลม ถ้าผู้ทรงสิทธิเก็บกินถึงแก่ความตาย ท่านว่าสิทธินั้นย่อมสิ้นไปเสมอ

ข้อความจากฐานข้อมูลประมวลกฎหมายของเรา โปรดตรวจสอบกับข้อความทางการ (Thai text from our annotated code. Check it against the official text.)

มาตราพร้อมหมายเหตุของเราข้อความทางการ

มาตรา 1426

ข้อความเต็ม

ในระหว่างที่สิทธิเก็บกินยังมีอยู่ ผู้ทรงสิทธิต้องออกค่าใช้จ่ายในการจัดการทรัพย์สินตลอดจนเสียภาษีอากร กับทั้งต้องใช้ดอกเบี้ยหนี้สินซึ่งติดพันทรัพย์สินนั้น

ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)

มาตราพร้อมหมายเหตุของเราข้อความทางการ

มาตรา 1425

ข้อความเต็ม

ค่าใช้จ่ายอันเป็นการจรนั้น ท่านว่าเจ้าของต้องเป็นผู้ออก แต่เพื่อจะออกค่าใช้จ่ายเช่นว่านี้ หรือค่าใช้จ่ายตามความในมาตราก่อน เจ้าของจะจำหน่ายทรัพย์สินบางส่วนก็ได้ เว้นแต่ผู้ทรงสิทธิเก็บกินจะเต็มใจทดรองเงินตามที่จำเป็นโดยไม่คิดดอกเบี้ย

ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)

มาตราพร้อมหมายเหตุของเราข้อความทางการ

Français

Article 1417

Un immeuble peut être grevé d'un usufruit, qui donne au titulaire le droit de posséder, d'user et de percevoir les fruits du bien, ainsi que le pouvoir de l'administrer; sur une forêt, une mine ou une carrière, il peut les exploiter.

résumé non officiel

Notre article annotéTexte officiel

Article 1299

Sous réserve de la loi, l'acquisition par acte juridique d'un immeuble ou d'un droit réel immobilier n'est parfaite que par écrit et enregistrement. Acquis autrement, le droit non enregistré n'autorise aucune mutation au registre et est inopposable au tiers de bonne foi, à titre onéreux, ayant enregistré de bonne foi.

résumé non officiel

Notre article annotéTexte officiel

Article 19 bis Condominium Act B.E. 2522

Dans chaque immeuble en copropriété, les lots détenus par les étrangers ou personnes morales de l'article 19 ne peuvent excéder au total 49 % de la superficie de tous les lots, calculée au moment de la demande d'enregistrement prévue à l'article 6.

résumé non officiel

Texte officiel

Article 19 quater Condominium Act B.E. 2522

Si les documents de l'article 19 ter sont conformes et que la quote-part étrangère (détenteurs actuels et cessionnaire) ne dépasse pas le plafond de l'article 19 bis, le fonctionnaire compétent enregistre les droits et actes juridiques sur le lot au profit de l'étranger ou de la personne morale cessionnaire.

résumé non officiel

Texte officiel

Article 1418

L'usufruit est constitué à terme ou à vie. Sans terme, il est présumé viager. Avec terme, l'article 1403, alinéa 3, s'applique par analogie. Il s'éteint toujours au décès de l'usufruitier.

résumé non officiel

Notre article annotéTexte officiel

Article 1426

Pendant la durée de l'usufruit, l'usufruitier doit supporter les frais de gestion du bien, payer les impôts et taxes, et payer les intérêts des dettes grevant ce bien.

résumé non officiel

Notre article annotéTexte officiel

Article 1425

Les dépenses extraordinaires sont à la charge du propriétaire. Pour y faire face, ou pour couvrir les dépenses visées à l'article précédent, le propriétaire peut aliéner une partie du bien, à moins que l'usufruitier n'accepte d'avancer sans intérêt les fonds nécessaires.

résumé non officiel

Notre article annotéTexte officiel

Supreme Court decisions

• 7199/2552 (2009): A Will Granting 'Right of Habitation and Usufruct for Life' Gives Only Usufructuary Rights, Not Ownership
• 10344/2551 (2008): A Gift With a Reserved Usufruct is a Burdened Gift: Cannot Be Revoked for Ingratitude Under Section 535

Sources

• Civil and Commercial Code, Office of the Council of State, retrieved 31 October 2026
• Condominium Act B.E. 2522, retrieved 31 October 2026
• deka.supremecourt.or.th, Supreme Court of Thailand decisions database (copy held in our library), retrieved 19 February 2026

When Does Usufruct Make Sense for a Condo?

Thai-Owned Unit with Foreign Occupant

The most common scenario is when a foreigner wants long-term security over a unit owned by a Thai spouse, business partner, family member, or local investor. The Thai owner retains title. The foreigner receives a usufruct for life or a fixed term.

This structure allows the foreigner to:

• Legally occupy and use the unit without owning it.
• Enforce the usufruct against the owner and later owners.
• Avoid the complications of foreign ownership transfer.

Estate Planning Between Family Members

Usufruct is valuable for intergenerational planning. A parent might own a condo and grant a usufruct to a child without transferring ownership. This arrangement provides:

• Security for the child’s living arrangement.
• Tax efficiency (no transfer fees or inheritance complications during the parent’s lifetime).
• Flexibility: the parent keeps ownership. They can still mortgage, sell, or gift the property if necessary (subject to the usufruct).

When the 49% Foreign Quota Is Full

This is perhaps the most strategic use of usufruct for condo purchases. If a building has reached its 49% foreign ownership limit, a foreigner cannot buy a unit in their own name. However, they can receive a usufruct from a Thai owner. The usufruct does not consume any portion of the 49% foreign quota.

This advantage makes usufruct especially popular in prime Bangkok locations (Thonglor, Ploenchit, Lumphini). Many buildings have already hit the foreign cap.

Investment and Rental Income Protection

An investor managing a unit for rental income can use usufruct to secure management rights. It ensures the income stream is protected. The usufruct deed can require the owner not to sell the unit. It can also specify conditions (e.g., the owner cannot change rental agreement terms).

Registration Process for Condo Usufruct

Required Documents (Condo-Specific)

The Land Office requires the following documents to register a condo usufruct:

Document	Description	Notes
Condominium Ownership Certificate	The condo unit’s title deed	Must be current. Must show the unit owner as registered owner.
Usufruct Deed	A written agreement creating the usufruct right	Must specify duration (lifetime, 10 years, etc.). Must include any conditions. Signed and registered before the Land Office official; no notarisation is required (section 1299).
Owner’s ID Card / Passport	Proof of identity of the unit owner	Copy certified or original
Usufructuary’s ID / Passport	Proof of identity of the usufructuary	For foreigners: passport required. Work permit or valid visa may be requested.
Condo Juristic Person Letter	Letter from the building’s juristic person confirming the unit is properly registered and owned	Reduces delays. Not always required but recommended.
Marriage Certificate (if applicable)	If the owner and usufructuary are spouses	Thai marriage certificate (or certified English translation)
Building Diagram / Unit Plan	A certified plan showing the unit’s location in the building	Usually provided by the developer or juristic person

Fees and Costs

The Land Office charges 2% plus 0.5% stamp duty on the consideration stated in the agreement. Where no consideration is stated, which is the norm, you pay only the fixed fee of 100 baht per unit under the Ministerial Regulation on condominium fees (B.E. 2553), clause 1(7). The 50 baht and 1% rates often quoted are the land rates and do not apply to a condominium unit. A lease is charged differently: 1% of the total rent plus 0.1% stamp duty. A usufruct without consideration, and a lease, both cost less than an ownership transfer (2% plus transfer taxes).

Additional costs may include:

• Lawyer’s fees: 5,000-15,000 THB if using a local lawyer to prepare and manage the registration.
• Juristic person letter and coordination: Usually 500-1,000 THB.

Juristic Person Notification

After registering the usufruct at the Land Office, notify the condo’s juristic person. While the usufruct registration at the Land Office is legally sufficient, the juristic person needs to know about it. They need to:

• Update building records and access cards.
• Direct utility bills and CAM fee notices to the correct party.
• Recognize the usufructuary as the party responsible for payment and building compliance.
• Avoid disputes about who can attend meetings or make decisions about the unit.

Notification is not a legal requirement for validity. But it is a practical necessity for smooth building management. In practice many buildings now require it for access cards, voting proxies, or rule enforcement. Non-compliance can lead to practical lockouts or fines even if legally unenforceable. A well-drafted usufruct agreement can include a proxy-voting clause. Note also that CAM and sinking-fund bills are often issued to the titled owner rather than the usufructuary.

Usufruct vs. Ownership vs. Lease for Condos

The following table compares these three options specifically for condominium units in Thailand:

Criterion	Usufruct	Ownership	Lease
Legal Basis	CCC Sections 1417-1428	Condo Act + CCC property law	Called “Hired of Property” into the CCC Sections 537-571
Foreign Eligibility	Yes (does not count toward 49% quota)	Yes (counts toward 49% quota)	Yes (does not count toward quota)
Duration	Lifetime or fixed term (maximum 30 years if fixed)	Permanent (inheritable)	Maximum 30 years (renewable)
Registration	Land Office (formal registration)	Land Office (title deed)	Land Office (required for a term over 3 years, CCC s.538)
Registration Cost	2% fee plus 0.5% stamp duty calculated on the consideration amount. If no consideration, a fixed fee is charged (100 baht per unit)	Transfer fee 2% (0.01% until 30 June 2027 for an individual Thai-national buyer, residential property up to 7 million baht) + Stamp Duty + Sometimes Specific Business Tax + Withholding Tax.	1% registration fee plus 0.1% stamp duty, both calculated on the total rent.
Voting Rights at Condo Meetings	Owner retains rights (unless proxied to usufructuary)	Full voting rights	None (unless specified in lease)
Mortgage / Financing	Limited (few Thai banks offer mortgages)	Readily available from Thai banks	Generally not available
Upon Death of User	Usufruct terminates (section 1418). The owner holds the unit free of it.	Inheritable to heirs	Lease normally ends on the lessee’s death unless the contract provides for succession
Foreign Quota Impact	No impact	Counts toward 49% foreign limit	No impact
Security / Enforceability	High (Land Office registration, binding on future owners)	Highest (full ownership with title deed)	Moderate (depends on lease registration and terms)

Summary

Usufruct bridges the gap between ownership and lease. It offers the security and enforceability of registration. It provides the flexibility of a fixed or lifetime term. And it avoids consuming the foreign quota. For many foreign investors, especially when the 49% quota is full, usufruct is the optimal choice.

Maintenance Fees and Common Area Responsibilities

Who Pays the CAM Fees?

Under Section 1426 of the Civil and Commercial Code, the usufructuary pays the expenses of managing the property and its taxes, and Section 1427 lets the owner require the usufructuary to insure it. Extraordinary expenses stay with the owner under Section 1425, so agree in the deed who pays sinking-fund calls for major works. In a condominium context, the usufructuary’s share usually includes:

• Common Area Maintenance (CAM) fees.
• Sinking fund contributions (for major repairs and common element replacement).
• Utilities (electricity, water, gas) if billed separately.
• Property taxes on the unit.
• Annual building insurance contributions.

In practice, the condo juristic person may continue billing the registered owner. This requires a private arrangement between the owner and usufructuary. You should ensure the usufructuary reimburses the owner for these costs. The usufruct agreement should clarify this arrangement. It should specify monthly or annual payment terms.

Voting Rights at Condo Meetings

The right to vote at Annual General Meetings (AGMs) belongs to the registered owner, not the usufructuary. However, the owner can grant proxy authority to the usufructuary in writing. This allows the usufructuary to vote on the owner’s behalf.

Best practice is to address this in the usufruct agreement. Common arrangements include:

• Automatic proxy: The owner automatically grants proxy to the usufructuary for all condo meetings.
• Limited proxy: The usufructuary may vote on routine matters (e.g., CAM fee increases) but major decisions (e.g., sale of common property) require the owner’s direct approval.
• No voting: The owner retains voting rights. The usufructuary may attend meetings to observe but not vote.

Some juristic persons may allow the usufructuary to attend meetings and participate in discussions. This occurs even without formal voting rights, especially if the usufructuary is the resident occupant.

Building Rules and Regulations

The usufructuary is fully bound by the condo juristic person’s rules and regulations. These include:

• Pet policies and restrictions.
• Noise and nuisance restrictions.
• Renovation and remodeling limitations.
• Subletting restrictions (some condos prohibit or limit short-term rentals).
• Common area usage rules.
• Parking and vehicle restrictions.

Violations can result in warnings, fines, or legal action by the juristic person. The owner may also be held liable if the usufructuary breaches the building rules.

Special Considerations for Foreign Usufructuaries

The 49% Quota Advantage

This is the primary reason many foreigners choose usufruct over ownership. Under the Condominium Act, no more than 49% of the combined area of all the units in a building may be owned by foreign nationals or companies. This quota is strict and is enforced by the Land Office at every transfer.

However, usufruct does not count toward the 49% quota. A foreigner can hold a usufruct even when foreign owners already hold the full 49% of the unit area. This makes usufruct an excellent workaround in buildings where the foreign ownership cap has been reached.

Work Permit and Visa Considerations

No work permit is required to register a usufruct in Thailand. The Land Office only requires:

• A valid passport.
• A valid visa or permit to stay (tourist visa, retirement visa, non-immigrant visa, etc.).
• An address in Thailand (can be the condo unit itself).

Foreigners should ensure their visa status is valid at the time of registration. Visa runs and border bounces are not necessary. Any visa or stamp that allows legal presence is sufficient.

Financing Limitations

Thai banks rarely provide mortgage financing against a usufruct right. Most lenders prefer ownership with a clear title deed. Usufruct is viewed as a limited or secondary right.

Foreigners using usufruct typically:

• Pay cash from personal funds.
• Arrange financing from offshore banks (e.g., Singapore, Hong Kong).
• Seek alternative financing from non-bank lenders (less common and more expensive).

This is an important consideration if you plan to leverage financing to acquire a condo usufruct.

Supreme Court Decision 1463/2542 (1999): a Tax Case About Condo Usufruct Contracts

This decision is sometimes cited as authority on condo usufructs. It is a tax case, and it decides less than is usually claimed. A condominium developer had signed contracts it called usufruct contracts (สัญญาสิทธิเก็บกิน) that let foreign customers use and manage units, at a time when the law did not allow foreigners to own them. The Revenue Department taxed the payments as receipts from a sale of immovable property under section 77 of the Revenue Code. The Supreme Court disagreed: the contracts only handed over possession and use while ownership stayed with the developer, so they were not a sale and the payments were not taxable as sale proceeds.

That is the whole of its usufruct holding. The judgment does not rule on whether a juristic person can refuse or revoke a registered usufruct, or on enforceability against later owners. Those points rest on the Code itself: under section 1299 a real right over immovable property is complete only when it is made in writing and registered with the official, and once registered it binds later owners of the unit.

Frequently Asked Questions

Last reviewed: 30 September 2026. Read in Thai: Civil and Commercial Code sections 538, 540, 1299, 1403, 1417 to 1419, 1421, 1423, 1425 to 1428; Supreme Court Decision 1463/2542 in full; the Department of Lands fee schedule under Ministerial Regulation No. 47 (B.E. 2541) and its stamp-duty guidance. The Land Office document list, the juristic person practice, financing availability and professional fees are practice, not read in a primary.

Need Help With Your Usufruct? ThaiLawOnline has registered hundreds of usufruct agreements since 2006. We know the law, the Land Office process, and the Supreme Court decisions that protect your rights. Call us today: +66 (0) 87 225 1340 or email info@thailawonline.com.

Buying or holding a condo unit? Our condo lawyer service covers title and foreign-quota checks, the sale and purchase agreement, and registration at the Land Office, including registering a usufruct where it is the right tool.

Getting Your Usufruct Agreement: Three Routes

All three produce the same underlying document, the bilingual usufruct agreement this firm uses for its own clients. Download the editable template at 890 THB and complete it yourself, let the Document Maker build a finished personalised version if you are a Gold member, with translation available, or send us your details and we draft it around your facts in English and Thai for a fixed 3,900 THB, guiding you through registration at the Land Office. They are compared side by side in our complete guide, with our published fees.