If you own property in Thailand, make a Thai will that covers your Thai assets. Thai law will follow it, because there is no forced heirship. Without it, a fixed order of relatives inherits, the court process takes longer, and the people you intended to benefit may find that they cannot keep what they receive. The type of asset matters as much as the will: a freehold condominium, a lease and land are treated very differently when the owner dies.
If you die without a will
The Civil and Commercial Code sets out six classes of statutory heirs, and a nearer class excludes a more distant one:
- Descendants
- Parents
- Brothers and sisters of full blood
- Brothers and sisters of half blood
- Grandparents
- Uncles and aunts
The surviving spouse is a statutory heir alongside whichever class takes. Two points catch foreign owners out.
First, the spouse's entitlement comes in two steps. Marital property is divided, and the survivor keeps their own half. The deceased's half, together with any personal property, is the estate, and the spouse then shares it with the relatives in the class that inherits. The spouse does not automatically receive everything. Thai law has no joint tenancy, so a jointly owned condominium does not pass to the survivor by itself.
Second, the statutory order has no place for an unmarried partner, however long the relationship. If there is no spouse and no statutory heir, the estate goes to the State.
Why a Thai will matters
Freedom to choose. Section 1646 of the Code lets a person dispose of their property by will. There are no reserved shares for children or a spouse, so the will governs, and the statutory order applies only to whatever the will does not cover.
Speed. A foreign will can be enforced in Thailand, and Supreme Court judgment 6524/2561 recognises a will valid where it was made. The process is cumbersome: the will, the foreign court's grant and the death certificate must be certified and submitted to a Thai court, with the cost and delay that implies.
Clarity. The usual structure is two wills. A Thai will, limited in its terms to assets in Thailand, and a will at home that excludes them. Each must be drafted so that it does not revoke the other. Trusts are not recognised under Thai law, so a trust set up at home is not a substitute.
Making a valid Thai will
The Code recognises several forms. The two that foreign owners use are:
- A written will under Section 1656. In writing, dated, and signed by the testator in front of at least two witnesses who sign at the same time. It does not need to be registered or notarised. A beneficiary, or a beneficiary's spouse, must not act as a witness.
- A public will under Section 1658. Declared to an official at the district office before two witnesses, recorded and read back.
A wholly handwritten will under Section 1657 is valid without witnesses, but a lawyer-drafted will is the prudent choice for an estate that includes property. Name an administrator and a substitute.
Probate in Thailand
Succession is not automatic. Before a Land Office will transfer a condominium, a court must appoint an estate administrator, either the person named in the will or one the court selects. An uncontested application takes about three months for the court to deal with it, plus about 30 days for the order to become final. A contested estate can take a year or more. The court normally expects the applicant to attend the hearing, and a foreign national may serve as administrator with the court's approval.
What happens to each type of property
| Asset | Can a foreign heir inherit it? | Can they keep it? |
|---|---|---|
| Freehold condominium | Yes | Sometimes: see below |
| Lease of land or a unit | Only if the lease provides for succession | As a contractual right |
| Building owned separately from the land | Yes | Yes, subject to the right over the land |
| Land | Yes | No: disposal within one year |
Freehold condominiums
A foreign heir may be registered as owner if the building stays within its 49% foreign quota. Beyond that, the position depends on how the heir qualifies under Section 19 of the Condominium Act.
Heirs who hold Thai permanent residence or investment promotion status may keep the unit. Other foreign heirs must notify the authority in writing within 60 days and, on the wording of the Act, dispose of the unit within one year. If they do not, the Director-General of the Land Department may sell it for them.
There is a more favourable interpretation. Under a Land Department clarification, the heir of a foreigner who qualified by bringing in foreign currency may keep the unit without a forced sale. It rests on a Land Department memorandum of 2010 and has not been confirmed by the Supreme Court. This is a grey area. Ask your lawyer how the local Land Office currently applies it, and do not assume your children can hold the unit indefinitely.
Registration needs the death certificate, the will or other proof of inheritance, the court order appointing the administrator and supporting family documents. The inheritance is not subject to income tax, but the Land Office charges a transfer fee.
Leases
A lease is a personal contract. It ends when the tenant dies unless the agreement provides for succession. Where it does, the heirs can require the landowner who signed it to honour the clause, but the right is contractual and may not bind a later owner of the land. This is one of the main differences between freehold and leasehold, and it applies to most villas held by foreigners. Practical protections include naming more than one tenant, so that the lease continues with the survivor, and registering a superficies over the building. See leasehold and buying a villa in Thailand.
Land
A foreigner cannot be registered as the owner of land, and inheritance does not change that. Section 93 of the Land Code contemplates ministerial permission for a foreign statutory heir, but it depends on treaties that no longer exist. A foreign heir, typically the spouse or child of a Thai landowner, must dispose of the land within one year. Otherwise the Land Department may sell it and retain a fee of 5% of the price. The practical answer is to plan the sale, or a transfer to a Thai family member, in advance.
Inheritance tax
The Inheritance Tax Act B.E. 2558 (2015) taxes the heir, not the estate. An heir pays only on the part of what they receive from one deceased person that exceeds THB 100 million. The rate is 10%, or 5% where the heir is a parent or descendant. A spouse is exempt. Taxable assets include immovable property, securities, bank deposits and registered vehicles, and a foreign heir is liable on assets situated in Thailand.
For most foreign owners the Thai charge will be nil. The larger exposure is usually at home, where inheritance or estate tax may apply to worldwide assets, including a Thai condominium. See our pages for buyers from the United Kingdom, the United States and Australia.
A planning checklist
- Make a Thai will limited to Thai assets, and have your home will reviewed so the two do not conflict.
- Name an administrator who can act in Thailand, and a substitute.
- For a condominium, ask how your intended heirs would qualify under Section 19 and what happens if they must sell.
- For a lease, check the succession clause and consider co-tenants and a superficies.
- If you are married to a Thai citizen who owns land, agree what happens to it, because you cannot keep it.
- Keep title deeds, the Foreign Exchange Transaction Form and contracts where your administrator can find them. See selling property and repatriating funds.
Succession law for foreign owners has unsettled points, particularly for condominiums and lease renewals. Take independent legal advice in Thailand and in your home country.
