THAILAND Trends and Developments Contributed by: Shunsuke Minowa, Yosuke Konno, Poonyisa Sornchangwat and Natthapa Jirathawong, Nagashima Ohno & Tsunematsu
ing the tax incentives. (c) Thai management requirement: this condition was added and requires that, within three years after the BOI certificate is issued, the operator employ Thai nationals in not less than 50% of the total number of management and specialist positions and such positions are not limited to director positions. (d) Tax incentives: the corporate income tax (CIT) exemption that is available for eligible data centre businesses was revised for the follow - ing. (i) For high-efficiency data centres, the CIT exemption may be granted for the follow - ing periods: • five years for projects located in the EEC area; and • eight years for projects located outside the EEC area.For other types of data centres, the CIT exemption may be granted for the following peri - ods: • three years for projects located in the EEC area; and • five years for projects located outside the EEC area. Foreign ownership and land rights To develop a data centre, securing land is essential. If investment promotion is obtained for the data centre, one of the key non-tax incentives that may be specifi - cally granted to a foreign-majority-owned company is the right to own land. Thus, obtaining investment promotion can be an alternative approach for foreign investors to hold absolute ownership over land. This can be attractive for foreign investors in the data cen - tre business sector. Impact of data centre businesses on the real estate industry As the demand for data centres increases, the real estate market is shifting its focus to locations that are suitable for these businesses. Prime locations for data centres are preferably areas that offer stable electric - ity, ample water supply and high-speed fibre optic net - works. The proliferation of data centres is transform - ing previously quiet areas into active economic hubs.
However, data centres may also negatively impact the attractiveness of nearby residential areas due to visual obstruction from large windowless buildings, opera - tional noise, heat emissions, etc, potentially resulting in decreases in housing values. In conclusion, investors should carefully factor in data centre demand, infrastructure requirements and potential community impact when shaping their real estate strategies. Key Updates in Recent Legal Amendments The following updates (ie, the amendments to the Land Allocation Act B.E. 2543 (2000) (LAA) and the notification on residential building leasing as a con - tract-controlled business) are critical for developers as they redefine the operational and regulatory bounda - ries of Thailand’s real estate sector. These amend - ments necessitate a strategic reassessment of both their project development structures and their day-to- day lease management practices in Thailand. Land allocation Purpose of amendment Land allocation (ie, the subdivision of land plots for sale, which is the common structure for housing pro - jects in Thailand) is governed under the LAA, which originally imposed an inflexible requirement on land developers to maintain public utilities and services, such as roads, water supply, electricity and waste management, in their original condition within and throughout their projects. The LAA was recently amended in 2025 to specifically address recurring disputes between land purchasers (ie, consumers) and land developers concerning the developer’s negligence in the management of public utilities and services (eg, incomplete road construc - tion, unreliable water and electricity supply and inad - equate waste management). This amendment applies to both existing and new land allocation projects. Key amendments Flexibility in maintaining utilities and services Formerly, developers were required to maintain the quality and functionality of public utilities and services in accordance with their original condition, meaning the state in which they were initially completed. Fol -
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