Usufruct in Thailand

Usufruct in ThailandUsufruct in Thailand. Usufruct, a legal concept recognized in Thailand, grants an individual the right to use and enjoy another person’s property for a specified period without owning it. This arrangement is commonly utilized in various scenarios, including real estate transactions, estate planning, and business agreements. In this article, we will delve into the intricacies of usufruct in Thailand, exploring its definition, legal implications, and practical applications.

Definition of Usufruct

Usufruct, known as “Sidhi-kep-kin” in Thai law, refers to the right of enjoyment and use of another person’s property without possessing ownership. It allows the usufructuary (the individual granted the usufruct) to derive benefits from the property, such as leasing, occupying, or cultivating, while the ownership remains with the grantor (the property owner). The usufructuary has the right to use the property within the limits set forth in the agreement or by law.

Legal Framework and Requirements

In Thailand, usufruct is governed by the Civil and Commercial Code, which outlines the rights and obligations of both parties involved. To establish a usufruct agreement, certain requirements must be met:

  1. Consent: The property owner (grantor) must consent to grant the usufruct to another person (usufructuary) willingly and without coercion.
  2. Duration: The duration of the usufruct must be specified and agreed upon by both parties. It can be for a fixed term or for the lifetime of the usufructuary.
  3. Purpose: The purpose of the usufruct, including the extent of the rights granted to the usufructuary, must be clearly defined.
  4. Registration: While registration is not mandatory, it is advisable to register the usufruct agreement with the competent authority to ensure its validity and enforceability.

Practical Applications of Usufruct

Usufruct is commonly utilized in various situations in Thailand, including:

  1. Real Estate Transactions: Property owners may grant a usufruct over their land or buildings to tenants, allowing them to use and occupy the property for residential or commercial purposes.
  2. Estate Planning: Usufruct can be used as a tool for estate planning, allowing individuals to provide for their family members or beneficiaries while retaining ownership of their property.
  3. Business Agreements: In business partnerships or joint ventures, one party may grant a usufruct over their assets to the other party for the duration of the partnership, enabling them to utilize the assets for business purposes.


Usufruct is a valuable legal instrument in Thailand, providing flexibility and versatility in property arrangements and estate planning. By understanding the definition, legal framework, and practical applications of usufruct, individuals can make informed decisions and utilize this concept to their advantage in various contexts. Whether in real estate transactions, estate planning, or business agreements, usufruct offers a viable solution for property use and enjoyment while preserving ownership rights.

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