A usufruct is enforceable and registered when the 'competent official' (the land office local or provincial branch office) records it in the land Register. Included Thailand usufruct contract documents in the ZIP-file: Thai English usufruct main contract, cover page, headers and footer, law text in WordPad.

How to use the usufruct template and notes

• complete the missing details in the usufruct agreement and prepare the attachments to the contract
• prepare 3 sets of documents + attachments in Thai and English and staple together (1 land office copy and a copy for each party)
• bring 2 witnesses to the local land office in Thailand for registration of the usufruct on the land title ownership deed
• bring usufruct registration fees, and all original documents related to the land and house and house book of the owner, original ID's.
• each party should sign the contract, certify with their signature the ID attachments and initial each page of the contract and attachments.

Note 1: it is common that land officials in Thailand expect extra money for official registrations (e.g 3000 baht for the registration of a usufruct), but this depends on the officials you are dealing with and the local land office policy. Beware, this is common practice, irrespective if they are dealing with foreigners or Thais. Paying tea money should only give you a sort of VIP treatment and quick and smooth service. It is not that they turn a blind eye to anything illegal or unlawful.

Note 2: before you turn up at the local land office, some local land offices in Thailand have a standard policy to reject any custom drafted usufruct as they see it as an attempt to circumvent the law prohibiting foreign land management/ ownerhip and/or only accept their own standard template 1 page Thai usufruct contract, or sometimes objections are made by officials are simply a result of not paying some tea money. Some office in tourist ares require a larger sum of tea money (we have heard of amounts of up to 10,000 baht in Hua-Hin). This usufruct template is in compliance with Thai law and should be accepted.

In the event of sub lease the original lessee in the lease agreement remains liable to the lessor. Sublease or sub-rent is a contract between the lessee and someone who rents the property from the lessee. In case of sub-rent the lease contract remains binding upon the original lessee. In case of sub lease the lessee in the lease agreement has to execute and a new rental agreement with the sub-lessee.

One controversial lease in the Thailand property development sector is the 30-year land lease agreement with 2 renewal options, defined as a 90-year Thai lease agreement, usually two 30 year renewals are prepaid for a minimal amount as part of the total lease or purchase price. Under such a lease agreement, the real lease is registered for 30 years, but the lessee pays a certain amount of money for two renewals.

Property taxes in Thailand can be divided into taxes imposed upon the owner and collected by the local government based on the value of property taxed, taxes and fees charged when transferring property based on the registered or actual value of the property transferred and income and withholding taxes derived from property imposed upon individuals and real estate companies.

Real estate investing companies in Thailand with a share capital of 5 million baht or more are subject to Thai corporate income of 30% on net taxable profits. Rental income, and other income derived from real estate in Thailand, is taxable. Expenses incurred wholly and exclusively for the purpose of the business, except those specifically listed in the corporate income tax law, e.g., excessive entertainment expenses, income tax, artificial or fictitious expenses, etc.

The FET form or foreign exchange transaction form relates to the official statement by an authorized financial institution (Thai bank) of exchanging foreign currencies into Thai baht. The authorized bank in Thailand exchanges a quantity of foreign currency for a quantity of Thai baht and issues a FET form of the conversion of foreign currency into Thai baht.

This documents (FET-form) formally known as 'Thor Tor 3'. The FET form is among others required when buying and registering ownership of a condominium unit as a non resident foreigner in Thailand

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