Inheriting property in Thailand: what a foreigner should know

Inheritance is the last thing people think about, yet it decides what your loved ones receive. In Thailand the order depends on the ownership form: a freehold condo, leasehold or a villa via a company are inherited differently, each with nuances. Here’s how a foreigner’s property passes on, why a Thai will matters, how the court procedure works, what taxes await heirs, and what to check in advance so you don’t leave your family with problems.

Contents

1. Can a foreigner inherit
2. Freehold condo
3. Leasehold: passing by contract
4. Villa via a company
5. Usufruct and superficies as planning tools
6. A Thai will: forms and requirements
7. How the inheritance procedure works
8. Heirs without a will: the statutory order
9. Taxes and fees on inheritance
10. Comparison: how each ownership form is inherited
11. Inheritance-planning checklist
12. Pitfalls
13. Case: leasehold with no inheritance clause

1. Can a foreigner inherit

Yes, a foreigner’s property in Thailand is inherited, but the order depends on the ownership form. Freehold, leasehold and a company structure have different rules. The general principle: a structure and will planned in advance spare heirs long procedures and risks.

It helps to understand the underlying framework. Thai succession law does not bar a foreigner from being an heir — whether under a will or by law. The restrictions kick in not at the stage of “can the heir receive the asset” but at the stage of “can they hold it”: the same foreign-ownership rules that apply at purchase keep applying at inheritance. A foreigner cannot own land directly — so inherited land cannot be held and must be disposed of. A freehold condo must fit within the building’s foreign quota — so the heir must fit within it too. Inheritance doesn’t cancel the restrictions; it runs the asset through them all over again.

The practical conclusion: inheritance planning in Thailand is not a separate “later” service but part of choosing the ownership structure before you buy. The very same villa, structured three different ways, leaves heirs three completely different scenarios — from a simple re-registration to a forced sale under a deadline.

🔗 Ownership forms: Foreigner ownership →

2. Freehold condo

A foreign heir can inherit a freehold condo. Two layers of rules apply here.

Layer one — the transfer of the right. The heir (under a will or by law) approaches the Land Department with the court decision appointing an estate administrator and registers the title transfer. This step itself is standard.

Layer two — the right to hold the asset. The building’s foreign quota (no more than 49% of the area held by foreigners) and the ownership requirements don’t go away. If the foreign heir meets the ownership conditions — the quota isn’t exceeded, their status allows it — they register the unit in their own name and own it like any other owner. If the conditions aren’t met, the law gives the heir one year to sell the unit — hence the “one-year nuance” worth knowing about in advance. It’s not confiscation: the heir keeps the sale proceeds, but selling against a deadline is a weak negotiating position.

A separate detail is the currency-inflow rule. At purchase, a foreigner evidences a foreign-currency transfer from abroad (the FET form); on inheritance no money is brought in, so the heir’s evidencing regime differs — a point to work through with a lawyer in advance, especially if the heir may later resell and repatriate the funds.

🔗 On currency inflow: FET and transferring money to Thailand →

3. Leasehold: passing by contract

The long-term lease (leasehold) is a contractual right, and it is inherited by the logic of the contract, not the logic of a title. The key point: under the general approach of Thai practice, a lease is treated as personal to the lessee, and without a specific clause its transfer to heirs is not guaranteed. So inheritance must be expressly provided for in the leasehold contract — with wording that the lessee’s rights and obligations pass to their heirs and successors.

What to check in the contract before the deal:

• The succession clause. Direct wording that rights pass to heirs — not “may be agreed”, but “shall pass”.
• The assignment clause. The ability to transfer the lease rights to a third party — important both for resale and as a fallback mechanism for heirs.
• Registration at the Land Department. A registered lease (leases over 3 years must be registered) gives heirs a clear starting point: the right is visible in the land office register.
• What happens to the remaining term. Heirs receive not “a fresh 30 years” but the remainder of the current lease term, with whatever renewal options the contract contained.

In strong projects the developer spells out inheritance clearly and handles the re-registration itself. It’s one of the points we assess in contract quality during due diligence.

🔗 Leasing breakdown: Freehold vs leasehold →

4. Villa via a company

If a villa is held via a Thai company, what is inherited is not the property as such but the shares in the land-owning company — plus the building itself, if it’s registered to the foreigner separately from the land. This creates a two-layer task:

• The corporate layer. Shares are movable property; they form part of the estate and pass under the will or by law. But then the company’s articles kick in: do other shareholders hold pre-emption rights, how do voting shares transfer, who becomes director. If the sole director was the deceased owner, the company is temporarily left without a governing body, and the heirs must first appoint a new director through corporate procedures before they can deal with the asset.
• The property layer. The land stays with the company — nothing needs re-registering when a shareholder changes. A building in the foreigner’s name is inherited as a separate asset through the standard procedure.

Practical measures to put in place in advance: a will that expressly covers the Thai company shares; articles that don’t block share transfers to heirs; a backup director or power of attorney in case of incapacity; an up-to-date shareholder register. Without these, the shares “hang” — and with them, control of the villa.

And remember: the structure itself must have real substance, not be nominee-based — otherwise the heirs inherit its risks too.

🔗 Structure: Villa via a Thai company →

5. Usufruct and superficies as planning tools

Besides a will, Thai law offers two real (in-rem) rights registered at the Land Department that are often used precisely to protect loved ones:

• Usufruct — the right to use the property and take its fruits (including renting it out) for up to 30 years or for life. The classic scenario: title sits with one spouse or a company, while a lifetime usufruct is registered in the other spouse’s favour. Whatever happens to the title after the owner’s death, the usufructuary keeps the right to live in the home for life.
• Superficies — the right to own a building on someone else’s land. Used in villa structures: land with the company or lessor, while the superficies secures the house itself to the foreigner (or a family member).

Both tools are registered during your lifetime, not through a will — and that’s exactly why they work reliably: they don’t depend on the speed or outcome of the probate procedure. Discuss them with a lawyer at the purchase-structuring stage — negotiating a usufruct registration retroactively with a new landowner is far harder.

6. A Thai will: forms and requirements

A separate Thai will for Thai assets is strongly recommended:

• Speeds up the Thai court process (probate).
• Reduces the risk of conflict with a home-country will.
• Clearly names heirs and an executor.

Thai law recognises several forms of will. In practice foreigners use three:

• Written with two witnesses — the most common form: the document is dated, signed by the testator and at least two witnesses (a witness must not be a beneficiary under that will).
• Holographic — written, dated and signed entirely in the testator’s own hand; no witnesses needed, but a higher risk of challenge and drafting errors.
• Public — at the local district office (amphoe) — declared to an official before witnesses and kept in an official register; the most formalised and hardest-to-contest option.

The sensible practice for someone with assets in several countries is parallel wills: a Thai will for Thai assets, a home-country will for the rest, each with an express statement that it does not revoke the other. Have both drafted by lawyers who can see each other’s texts: a stray “I revoke all previous wills” phrase in a new home-country will can annul the Thai one.

A will from another jurisdiction can also apply in Thailand, but requires legalisation, a certified Thai translation and explaining foreign law to the court — months of extra time for your heirs.

7. How the inheritance procedure works

There is no automatic transfer “on the death certificate” in Thailand — heirs need a court stage before they can deal with the assets. Simplified, the order looks like this:

1. Gathering documents. Death certificate, the will (if any), proof of kinship, asset documents (the Chanote, leasehold contract, shareholder register). Foreign documents need legalisation and translation.
2. Applying to court. A petition is filed to appoint an estate administrator (with a will — usually the executor named in it). The court schedules a hearing and, absent objections, issues the order.
3. The administrator’s powers. With the court order, the administrator can deal with the assets: re-register title, re-register the leasehold, transfer shares, close accounts.
4. Registration at the Land Department. The final step — re-registering the property to the heir (or selling, if a foreign heir cannot hold the asset).

On timing: with a ready Thai will and no disputes, the procedure usually fits within a few months. Without a will, with a foreign will, or with a conflict among heirs, it runs to a year or more. All that time the asset is effectively frozen: it can’t be sold, and rental and payment matters go through the administrator.

8. Heirs without a will: the statutory order

Without a will, Thai inheritance law applies: the Civil and Commercial Code divides statutory heirs into six classes, called in order:

1. descendants (children, grandchildren);
2. parents;
3. full-blood brothers and sisters;
4. half-blood brothers and sisters;
5. grandparents;
6. uncles and aunts.

The surviving spouse is a statutory heir with special status: they inherit alongside whichever class is called, and their share depends on which class inherits with them. An important nuance for unregistered couples: a common-law partner is not a statutory heir — they can only be protected by a will, a usufruct, or the ownership structure.

The procedure without a will is longer and less predictable: the court must establish the circle of heirs, and any dispute between them stops everything. A will is almost always preferable.

9. Taxes and fees on inheritance

The good news: the tax burden on heirs in Thailand is among the mildest in the region.

• Inheritance tax exists (the law has been in force since 2016), but with a high threshold: only the portion of an inheritance above 100 million THB per heir is taxed. The rate is 10%, reduced to 5% for parents and direct descendants; a surviving spouse is fully exempt. For the vast majority of condo and villa owners in Phuket, inheritance tax simply never arises.
• Land Department registration fees. Re-registering inherited property is a separate registration act with a fee; preferential regimes apply for close relatives. Exact amounts depend on the assessed value and degree of kinship — a lawyer calculates them before filing.
• Taxes on a later sale. If the heir sells the property, the standard seller’s set of payments applies — withholding tax, stamp duty or SBT, the transfer fee. We covered them in detail in the article on taxes when selling.

Don’t forget the heirs’ home jurisdiction either: their tax obligations where they are resident (inheritance tax, reporting foreign assets) are a separate question for their own tax adviser.

10. Comparison: how each ownership form is inherited

The table is a simplification: in a real deal the ownership form and the inheritance plan are chosen together, around the buyer’s family situation. For a married couple, a freehold condo with a will in the spouse’s favour is the shortest path; for a villa with land, you compare a leasehold with a strong succession clause against a company with well-drafted articles.

11. Inheritance-planning checklist

The minimal set of actions that closes 90% of the risks:

1. Before buying: check the contract for succession and assignment clauses (leasehold) or the company’s articles (villa); understand the foreign-quota status (freehold).
2. At the deal: keep the full document set — contract, Chanote/extracts, FET confirmations, shareholder register. Your heirs will need all of them.
3. After the deal: make a Thai will for the Thai assets; where relevant, register a usufruct/superficies for loved ones.
4. Tell your heirs. The most underrated measure: your family should know the asset exists, where the documents are and which lawyer to call. Plenty of properties get “lost” simply because the heirs didn’t know about them.
5. Review every few years — on changes in family circumstances, a sale, refinancing or changes in the law.

🔗 Checking a property before purchase: Due diligence in Phuket → · How to verify a Chanote →

12. Pitfalls

• No Thai will. Heirs face a long procedure and foreign paperwork.
• A new home-country will revoked the Thai one. An “I revoke all previous wills” clause with no Thailand carve-out.
• Leasehold with no inheritance clause. Transfer is complicated or not guaranteed.
• Ignoring the freehold one-year nuance. An heir may need to sell within a year.
• Company with no inheritance plan. Shares and the directorship “hang” without a clear structure.
• An unprotected common-law partner. They’re outside the statutory order — only a will or usufruct helps.
• Heirs unaware of the asset. Documents and the lawyer’s contacts must be accessible to the family.
• Skipping a lawyer. Inheritance planning is built individually, around the family and the structure.

13. Case: leasehold with no inheritance clause

Consider a typical scenario. An investor took a leasehold unit without noticing the inheritance section of the contract — it was vaguely worded. After their passing, the heirs found the lease transfer had to be proven and negotiated, losing time: the court appointed an estate administrator within a few months, but then came negotiations with a lessor who had no contractual obligation to re-register the lease. In strong projects the developer spells out inheritance clearly and handles the re-registration itself — that’s what to check at the contract stage.

The counter-example from practice looks mundane, and that’s its value: an owner with a Thai will, a succession clause in the contract, and a document folder the family knew about. The procedure took a few months, most of it waiting for the court hearing, and the heirs received the asset without a single dispute.

Takeaway: inheritance is part of due diligence, not “later.” A Thai will, a correct contract, and two registrable tools — usufruct and superficies — spare your loved ones trouble.

I’ll help check the inheritance clauses in the contract and arrange a Thai will with a lawyer.

Sources

Primary sources for this topic. Rates, fees and procedures change — at the time of your transaction check them directly rather than relying on this article.

• Department of Lands, Thailand — title deeds, Chanote, registration of transfers and leaseholds
• The Revenue Department of Thailand — income tax, withholding tax, stamp duty

Informational only, not legal advice; build the inheritance structure with a Thai lawyer.