Thailand real estate inheritance procedures for foreigners

In Thailand, the inheritance procedure for foreign nationals, or non-residents, depends largely on what documents were executed by the testator before his or her death. In general, it is important to know the following:

Will: If the deceased left a will, inheritance will be according to the instructions in this document. Thailand allows foreigners to inherit real estate by will as long as it is not against local laws.

Without a Will: If there is no will, inheritance will be according to the law. Priority is given to spouse, children, parents and then other relatives. However, it is important to note that foreigners cannot own land in Thailand, so if the inheritance includes a plot of land, it will have to be either sold or re-titled to a Thai citizen.

Registration of title: To re-title property in Thailand, you must apply to the local land department with the relevant documents proving the right to inherit.

Taxation: Inheritance of property in Thailand may be subject to taxation. The amount of tax depends on the degree of relationship of the heir to the deceased and the value of the inherited property.

Here are the key aspects of inheritance taxation:

- Threshold for taxation: Inheritance tax is levied if the value of the estate exceeds 100 million baht (about US$3 million)

Tax rates:

For direct relatives (children, spouses), the rate is 5% of the value of the estate above the threshold of Baht 100 million.

For other heirs, including brothers, sisters and unrelated persons, the rate is 10%.

- Exemptions and exemptions:There are certain exemptions and exclusions for estates of small value or if the inheritance is transferred to government agencies, religious organizations, etc.

Legal advice: It is advisable to seek the assistance of a qualified lawyer specializing in inheritance matters in Thailand, especially if the case concerns the inheritance of real estate by a foreigner.

Foreigners can inherit either freehold (full ownership) or lishold (leasehold) depending on the type of property and the specific conditions of ownership.

Inheritance of freehold property by foreigners is subject to the same rules as for Thai citizens.

If a foreign owner dies, the real estate is passed on to the heirs in accordance with his will or inheritance law.

In the case of real estate that a foreigner is not entitled to inherit, the heir is given a reasonable period to sell.

In the case of real estate lishold inheritance:

A leasehold (lishold) agreement can be passed on to the heirs according to the terms of the contract.

Usually, the contracts stipulate that the lishold passes to the heirs in the event of the owner's death.

These general principles can vary depending on the particular circumstances, so it is always best to consult a competent inheritance specialist.

Housebook specialists will help you at all stages of the transaction and solve absolutely any questions concerning real estate and its legal component.