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Purchasing real estate in Thailand is a serious investment that requires not only a sound choice of property, but also an understanding of the legal aspects, especially inheritance. For foreign property owners, the inheritance procedure can be complicated due to local laws and international legal conflicts.
This guide has been prepared by Montmari Real Estate Agency and contains explanations of the main provisions of Thai and Russian legislation, as well as practical recommendations.
Inheritance laws of Thailand
In Thailand, inheritance is governed by the Civil and Commercial Code of Thailand (CCTA). The main types of inheritance are:
1. Inheritance by will
The priority of a will is enshrined in Article 1646 of the SCCT:
“Any person may express his will in a will specifying the disposition of his property or other affairs to take effect at law upon his death.”
Requirements for a will:
- Written form (Art. 1656 SCCT );
- Signatures of the testator and two witnesses (Art. 1653 SCCT );
- Notarization by a notary public or court.
2. Inheritance by law
Applies if there is no will or it is recognized as invalid. The order of heirs is determined by Article 1629 of the Civil Code:
- Children of the testator;
- Parents;
- Full siblings;
- Incomplete siblings;
- Grandparents;
- Uncles and aunts.
The testator’s spouse also has inheritance rights depending on the treatment of the estate (Art. 1635 SCCT).
Comparing the order of succession: Thailand vs. Russia
| Queue | Thailand (Art. 1629 SCT) | Russia (Art. 1142 of the Civil Code of the Russian Federation) |
| 1 | Children | Children, spouse, parents |
| 2 | Parents | Brothers, sisters, grandparents |
| 3 | Full brothers and sisters | Nephews and nieces |
| 4 | Half-siblings | Great-grandparents |
| 5 | Grandparents | Second cousins, uncles and aunts |
| 6 | Uncles and aunts | Second cousins, great-grandchildren, great-uncle and grandparents |
Peculiarities of inheritance for foreign citizens
1- Restrictions on land ownership
According to the Land Code of Thailand, foreigners cannot directly own land. If a foreigner inherits a plot of land, he or she must sell it within one year.
2. Ownership of condominiums
Foreigners can own condominium units on a proprietary basis as long as the foreign owners’ interest in the building does not exceed 49% (Condominium Act of 1979).
3. Ownership of real estate through a Thai company
If the property is registered to a Thai company, it is not the property itself that is inherited, but the shares in the company that owns it. This creates a number of peculiarities:
- Shares in the company can be transferred to heirs, but the Department of Business Development (DBD) must be notified of the change of ownership.
- If a company has nominee Thai shareholders, there may be a conflict of interest in transferring control of the company.
- Thai authorities may conduct a check for fictitious ownership by a foreigner through a company. If irregularities are found, the property may be confiscated.
- To simplify the process, it is advisable to draw up an in-house succession agreement in advance and consult a lawyer.
Collisions of Russian and Thai legislation
1. Regulation of inheritance of immovable property
According to Article 1224 of the Civil Code of the Russian Federation, inheritance of real estate is governed by the law of the country where it is located. This may lead to conflicts in the issues of determining the order of heirs and spousal share.
2. International treaties
The 1997 Consular Convention between Russia and Thailand defines the process of interaction between consulates, but does not regulate real estate inheritance directly.
3. place of discovery of inheritance
- If a citizen of the Russian Federation dies in Russia, the inheritance is opened at the last place of residence (Article 1115 of the Civil Code of the Russian Federation).
- In Thailand, the place of inheritance is determined by the laws of the testator’s country of citizenship, unless this is contrary to local laws.
Inheritance tax
When you inherit real estate in Thailand, you need to pay tax according to the 2015 law:
- 0% – for property valued up to 100 million baht;
- 5% – if the heir is a direct relative (children, parents);
- 10% – for other categories of heirs.
Frequently occurring problems
- The invalidity of a will
- Errors in execution (lack of signatures, witnesses, notarization).
- A will is against Thai law.
- Disputes between heirs
- In the absence of a will, there may be conflicts between relatives.
- Difficulties with the execution of documents
- All documents must be translated into Thai and legalized.
- Sale of land by a foreigner
- Finding a buyer can take time, especially if the plot is in a remote area.
Advice on making a will
1. contacting a Thai lawyer
It is advisable to consult a lawyer specializing in Thai inheritance law to take into account all legal nuances.
2. Content of the will
- Full details of the testator and heirs (full name, dates of birth, passports, addresses);
- Clear description of the property (cadastral numbers, addresses);
- Determining the shares of heirs;
- Appointment of the executor of the will (name, contact information, duties);
- Indication of applicable law.
3. legalization of the will
- If the will is made in the Russian Federation, it must be apostilled or certified at a Thai consulate.
- The will must be translated into Thai by a certified translator.
Conclusion
The process of inheriting real estate in Thailand requires a careful legal approach, especially for foreigners. To avoid problems, it is advisable to draw up a will in advance, taking into account Thai law, to properly execute the documents and consult a qualified lawyer.
