Koh Phangan draws people who want a long-term home on the island, whether that’s a villa, a retreat, or a small resort. Foreigners generally cannot own land in Thailand, so most buyers choose between two main routes: a registered 30-year lease or the newer Sap-Ing-Sith (ทรัพย์อิงสิทธิ). Both give you a legal right to use land you don’t own, but they work differently and protect you differently.
Option 1: The Registered 30-Year Lease
This is the traditional route. Section 540 of the Civil and Commercial Code caps the term of an immovable property lease at thirty years, and any longer term is automatically reduced to thirty. Under Section 538, a lease of more than three years must be in writing and registered at the Land Department, otherwise it is enforceable for only three years.
What you need to know
- Registration is essential. An unregistered lease of more than 3 years is not protected beyond year 3.
- “30+30+30” is not a guarantee. For years, leases were sold with automatic renewal clauses promising 60 or 90 years. A Supreme Court ruling rejected this structure, holding that pre-agreed renewals beyond the initial 30 years are invalid and unenforceable. Treat any lease as a 30-year right. Anything after that is a new contract that needs the owner’s agreement.
- Renewal premiums carry risk. A pre-paid renewal premium is not protected if the land is transferred or inherited.
- It is a contract with a registered right attached. It is widely understood and easy for banks, buyers and officials to recognise.
Option 2: Sap-Ing-Sith
Sap-Ing-Sith was introduced under the Sap-Ing-Sith Act B.E. 2562 (2019). It is a registrable real right that lets the holder possess, use and benefit from Chanote-titled land, buildings or condominium units for up to 30 years. It is created by agreement with the Thai owner, registered at the Land Office, and comes with an official certificate. Unlike a simple contract, it binds future owners.
What you need to know
- Chanote title only. The land must have a full Chanote title. This matters on Koh Phangan, where many plots have weaker documents such as Nor Sor 3 or Sor Kor 1.
- Stronger and more flexible. The holder can sell, mortgage and bequeath the right without the owner’s consent, though every dealing must be registered at the land office.
- No nationality restriction. The Act sets no nationality test, so a foreigner can hold it.
- Still a 30-year cap. The Act contains no renewal mechanism. It does not give you 90 years.
- Government costs are higher. One source puts creation at about 30,000 THB (20,000 plus 10,000 for the certificate) and transfer at 2% of the declared value. Confirm current fees with the Land Office before relying on these figures.
- It doesn’t fix a bad ownership structure. Only the registered owner can create the right, so the land must already be lawfully held by the right person.
Side-by-Side Comparison
| Registered Lease | Sap-Ing-Sith | |
|---|---|---|
| Maximum term | 30 years | 30 years |
| Renewal | New contract, owner’s consent needed | No renewal in the Act |
| Nature of right | Contract, registered | Registered real right (in rem) |
| Land title required | Flexible, depending on document type | Chanote only |
| Resale / transfer | Usually needs the lessor’s consent | Can be sold without owner’s consent |
| Mortgage | Limited in practice | Possible |
| Inheritance | Governed by the lease terms | Can pass to heirs |
| Government cost | Lower | Higher |
| Familiarity | Very common | Newer, less tested |
Which Should You Choose?
A registered lease may suit you if:
- Your budget is tight and you want lower registration costs.
- Your land doesn’t have a Chanote title.
- You plan to hold the property for the full 30 years and don’t intend to resell.
Sap-Ing-Sith may suit you if:
- Your land has a Chanote title.
- You want to resell, mortgage or pass the right to your family.
- You want a stronger legal position against future owners.
For a resort or business, the structure should also consider who owns the building, the company holding the business, and the exit plan. The right answer depends on your facts, so don’t pick one from a brochure.
Key Conditions to Check Before You Sign
- Verify the title. Confirm the document type and that the seller is the true owner.
- Search for encumbrances. Check for mortgages, liens, or existing leases.
- Confirm road access and boundaries. Island plots often have unclear access and disputed borders.
- Register everything. Never rely on a private agreement alone.
- Be realistic about the term. Plan for 30 years, not 90.
- Review the clauses. Pay particular attention to rent, payment schedule, transfer rights, building ownership at the end of the term, and termination.
Get It Done Right with TR Law & Counsel
Choosing between a lease and Sap-Ing-Sith is only the first step. Due diligence, drafting and registration have to be done properly, or a 30-year right can be worth very little.
TR Law & Counsel is based on Koh Phangan and serves clients across the island, Koh Samui and Thailand. We can help you with:
- Land title and due diligence checks
- Drafting and negotiating lease or Sap-Ing-Sith agreements
- Registration at the Land Office
- Structuring your purchase, villa or business investment
Contact TR Law & Counsel today for a consultation before you pay a deposit.
Disclaimer: This article is general information, not legal advice. Laws, fees and procedures change and each property is different. Please consult a qualified lawyer about your specific situation.
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