by sarah joan 
The Sap-Ing-Sith Act: Transforming Foreign Property Investment in Thailand
In April 2019, the Thai National Legislative Assembly introduced the Sap-Ing-Sith Act, a groundbreaking initiative designed to attract foreign investment in the Kingdom’s real estate sector. Translating to “property relying right,” this act offers a structured approach for foreigners looking to invest in Thai property, eliminating the complexities associated with establishing a Thai company with majority Thai shareholders.
A New Landscape for Foreign Investors
Before the Sap-Ing-Sith Act, the Thai Land Code imposed strict restrictions on foreign ownership of land, with only limited exceptions available. Foreign investors often faced convoluted arrangements, such as leasehold agreements or ownership through registered Thai companies, which could lead to significant legal complications if not properly managed.
The Sap-Ing-Sith Act changes this dynamic by streamlining property ownership for foreigners. Once an agreement is reached between the land or lease owners and the property buyer, the applicant must register the Sap-Ing-Sith at the Land Department for a fee of THB 20,000. If the land is mortgaged, consent from the mortgage holder is required. Upon successful registration, the Sap-Ing-Sith holder receives a certificate from the Land Office, which retains a duplicate for its records.
Rights and Obligations of the Sap-Ing-Sith Holder
The Sap-Ing-Sith holder enjoys a variety of rights and responsibilities designed to facilitate property use while safeguarding the interests of all parties involved:
- Usage Rights: The holder can use the immovable property as specified in the certificate, adhering to relevant property laws.
- Transferability and Security: The Sap-Ing-Sith can be transferred to another individual, used as collateral for a mortgage, or inherited. This flexibility allows holders to manage their investments more effectively.
- Liability for Property: While the holder is responsible for the property as if they were the owner, they cannot reclaim it from unauthorized parties or prevent unlawful interference—those rights remain with the actual owner. However, holders must notify the owner of any disturbances that could require protective action.
- Modification Rights: The holder can make alterations or additions to the property without needing the owner’s consent. These improvements belong to the holder for the duration of the certificate and revert to the owner upon expiration, unless otherwise agreed. In condominium units, modifications made by the holder still belong to the original owner.
- Return of Property: Upon expiration of the Sap-Ing-Sith period, the property must be returned to the owner in its original condition, unless both parties agree otherwise.
A Positive Shift for Foreign Investors
The Sap-Ing-Sith agreement is an attractive alternative for foreigners wishing to purchase land in Thailand. It provides numerous advantages, such as the ability to secure a mortgage and the right to transfer ownership without the owner’s consent. Although the Sap-Ing-Sith is valid for 30 years—similar to a traditional leasehold—it signifies a positive shift in Thai law, showcasing the country’s commitment to creating a more welcoming environment for foreign investors.
Sarah Joan Thailand proudly announces that we have successfully secured the very first Sap-Ing-Sith certificate—number 1—in Pranburi, Prachuab Kirikhan, in 2023. As pioneers in this new property ownership option, we are excited to lead the way in showcasing the potential of the Sap-Ing-Sith Act.
This innovative framework opens up fresh opportunities for foreign investors, and we are keen to monitor its effectiveness and growing popularity in the market. At Sarah Joan Thailand, we are committed to observing and supporting the progress of this transformative approach to property investment in the Kingdom.
With the Sap-Ing-Sith Act, Thailand is embracing a new era of property ownership, inviting international investors to discover and capitalize on its vast opportunities.
| Feature | Lease of Immovable Property | Sap-Ing-Sith |
|---|---|---|
| Authority to Grant Rights | The lessor may not be the property owner | The landowner holding the title deed (chanote) or the owner of the constructed building or condominium unit |
| Creation of Rights | Requires a written agreement signed by the parties for leases over three years, and must be registered with the Land Office | Must be officially registered with the Land Office, receiving a Sap-Ing-Sith certificate |
| Rights to Alter Property | The lessee must obtain the lessor’s permission to make any changes to the property | The Sap-Ing-Sith holder can modify or expand the immovable property without needing the owner’s approval |
| Responsibility for Defects | The lessor is accountable for any defects in the property | The Sap-Ing-Sith holder is responsible for defects as if they were the property owner |
| Transferability of Rights | The lessee cannot transfer their rights to others without the lessor’s written consent | Rights can be transferred to another party without the need for the owner’s consent |
| Mortgage Options | Can be mortgaged, especially for commercial and industrial leases | The property can be mortgaged under the Sap-Ing-Sith framework |
| Inheritance Rights | Lease rights terminate upon the lessee’s death | The Sap-Ing-Sith can be inherited by the holder’s heirs |
Ready to Explore Property Ownership in Thailand?
For more details and personalized consultations on acquiring property in Thailand, contact Sarah Joan Thailand today!
📞 Tel/WhatsApp: +66 97 109 6303
📧 Email: sarahjoan.thailand@gmail.com
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