What a usufruct is
A usufruct gives you the right to possess and use someone else's property and to derive income from it, such as living in it, renting it out or farming the land. The owner remains the owner. You receive a strong right of use, but no ownership, neither of the land nor of the house.
Key features
- •Term: Either for a fixed period of up to 30 years or for the lifetime of the holder.
- •Ends on death: The usufruct ends on the death of the holder. It cannot be inherited.
- •Not transferable: You cannot sell the right or pass it on to someone else.
- •Registration: The usufruct must be registered on the land title at the Land Department. It then also applies against a new owner if the land is sold.
- •Obligations: The holder is responsible for careful use and ordinary maintenance. Clarify in the agreement who pays for major repairs, insurance and running costs.
When a usufruct makes sense
Thai marriage or long-term partnership: If the land belongs to the Thai partner, a usufruct gives the foreign partner a lifetime right of residence, even if the relationship changes or the partner dies. This is the classic use case.
Retirement home: For older buyers, a lifetime usufruct can be more secure than a 30-year leasehold, because it cannot expire while the holder is alive.
Complement to a leasehold: Buyers who want security beyond 30 years in addition to a leasehold and superficies can add a lifetime usufruct.
Where the limits lie
- •No ownership of the house: If the house is to belong to you, you also need a superficies.
- •Nothing for your heirs: If resale or inheritance matters to you, a leasehold plus superficies or a Sap Ing Sith is a better fit.
- •Discretion of the authorities: The Land Department may refuse registration if it considers the arrangement a circumvention of the ban on foreign land ownership, for example if a foreigner pays an unrelated owner the full purchase price for a lifetime usufruct.
Our advice
A usufruct is neither a loophole nor a substitute for ownership, but a recognised right for specific situations. Whether it suits you depends on your relationship with the owner, your age and your plans for your heirs. Take advice from an independent lawyer before registration and remember to make a will.