Frequently Asked Questions (FAQ) for Warehouse or Factory Rental / Sale in Thailand

Yes, it’s possible to temporarily lease the property under the name of an authorized individual. Subsequently, the landlord will furnish you with the required documents for setting up your company. Then, you can modify the lease agreement to reflect your new company’s name. Alternatively, if you prefer to establish a company before renting the warehouse or factory, you can enlist the assistance of a law firm to provide a temporary address, which can later be changed to the rented property address.

Leasing a warehouse or factory within an IEAT (Industrial Estate Authority of Thailand) zone typically offers certain advantages compared to a non-IEAT zone:

1. Infrastructure and Facilities: IEAT zones often provide better infrastructure, including roads, utilities (such as water, electricity, and internet), and other amenities tailored for industrial activities. Non-IEAT zones may have varying levels of infrastructure development.
   
   
2. Regulatory Environment: IEAT zones usually have streamlined regulatory processes and procedures for obtaining permits and licenses, making it easier and faster to set up and operate a business. Non-IEAT zones might have more complex bureaucratic procedures.
   
   
3. Tax Incentives and Benefits: Businesses operating within IEAT zones may be eligible for tax incentives and benefits provided by the Thai government, such as tax exemptions or reductions. Non-IEAT zones may not offer the same level of tax incentives.
   
   
4. Community and Networking: Being part of an IEAT zone can provide opportunities for networking and collaboration with other businesses within the industrial estate, fostering a supportive business community. Non-IEAT zones may lack this organized community environment.
   
   
5. Accessibility to Services: IEAT zones often have access to additional services and support, such as security, maintenance, and business support services, which may not be as readily available in non-IEAT zones.

However, leasing in a non-IEAT zone might offer advantages such as greater flexibility in location choice, potentially lower costs (including land lease rates), and less stringent regulations, depending on the specific location and circumstances.

Ultimately, the choice between leasing in an IEAT or non-IEAT zone depends on factors such as your business requirements, preferences, location needs, and the incentives or benefits you seek. It’s essential to carefully evaluate these factors before making a decision.

Yes, it is generally allowable under the BOI application to lease or buy a warehouse or factory in a non-purple zone. Typically, the location or color zone of your factory isn’t a significant factor in determining the BOI incentives you’ll receive. BOI applications focus more on the type of industry encouraged by the government and its potential economic value to Thailand. However, it’s advisable to verify this with the specific regulations and requirements outlined by the BOI, as policies can evolve or have specific conditions that must be met. You can click here for more information about BOI.

Not always! While factories are usually in purple zones (industrial areas), you can sometimes get a factory license in other zones depending on factors like:

• Building Permit History – If the building was originally approved for industrial use, you may still qualify, even if the zoning has changed.
• Business Type – Some industries, like car repair or furniture manufacturing, may be allowed in orange zones (residential-commercial mixed areas).
• Local Regulations – Authorities review applications case by case, considering environmental impact, workforce size, and machine horsepower.

To check if your property qualifies, it’s best to consult local authorities or legal experts

In Thailand, most lease agreements from landlords are in Thai. Some may offer translations in English. Alternatively, you can hire a law firm for an official translation. Ultimately, in case of disputes, the Thai court will require a translation into Thai.

Yes, you can. The landlord will furnish you with all the required paperwork for the electricity upgrade. However, you will be responsible for sourcing an electrician company for the installation. Alternatively, the landlord may handle the installation, but the expenses will be borne by the tenant.

When your company pays rent to the landlord, a portion is withheld as tax by your company and submitted to the revenue department as mandated by the Thai government. This withholding tax is an expense for your company and income for the landlord. It’s legally the tenant’s responsibility to pay this tax on behalf of the landlord and provide a withholding tax certificate as proof. Sometimes, the listed rental price doesn’t include the withholding tax, so you need to factor it in to determine your actual expense. It’s wise to clarify this with the landlord before renting to avoid any disputes. The amount deductible for withholding tax is 5% for rent and 3% for services.

In Thailand, property tax, known as “land and building tax,” is applicable to various properties, including industrial ones. While many assume landlords should cover this tax, there’s no fixed rule in Thailand. Responsibility usually relies on the agreements reached between landlords and tenants. Some landlords include property tax in rental rates, while others prefer tenants to pay directly to the government, considering it’s not part of their income. Property tax is a yearly cost and can be listed as an expense for the tenant’s company. To learn how the government calculates property tax, click here

When you rent a warehouse or factory in Thailand, it’s important to get insurance. You should consider getting insurance that covers things like fire, flood, theft, and accidents. The landlord should have insurance to cover the building and property, but you should get your own insurance to protect your belongings and liability. It’s a good idea to talk to an insurance provider to find the right coverage for your needs.

When renting a warehouse or factory as a tenant, you should consider the following types of insurance:

1. Commercial Property Insurance: This type of insurance covers the physical structure of the warehouse or factory, as well as the contents inside (equipment, inventory, machinery, etc.). It protects against risks like fire, theft, vandalism, and certain natural disasters. Make sure to understand whether the landlord’s insurance covers the building structure itself so you can tailor your coverage accordingly.
   
   
2. General Liability Insurance: General liability insurance is essential to cover third-party bodily injury or property damage claims that occur on your rented premises. This can include incidents like a visitor slipping and falling on the warehouse floor or damage caused by your operations to someone else’s property.
   
   
3. Business Interruption Insurance: This type of insurance provides coverage for lost income and certain operating expenses if your business operations are interrupted due to a covered event (such as fire or natural disaster). It helps to mitigate the financial impact of downtime and can assist in covering ongoing expenses while your business recovers.
   
   
4. Workers’ Compensation Insurance: If you have employees working in the warehouse or factory, workers’ compensation insurance is typically mandatory. It provides coverage for medical expenses and lost wages for employees who are injured or become ill while on the job.
   
   

It’s important to assess your specific business operations and risks when selecting insurance coverage for a warehouse or factory. Working with an insurance agent or broker who specializes in commercial insurance can help ensure you have the right coverage tailored to your needs.

As a landlord of a warehouse or factory, it’s important to protect your investment and mitigate potential risks. Here are key types of insurance you should consider purchasing:

1. Commercial Property Insurance: This insurance covers the physical structure of the warehouse or factory, including fixtures, equipment, and any improvements made to the property. It typically protects against risks such as fire, flood, theft, vandalism, and certain natural disasters. Make sure the policy covers the full replacement cost of the property.
   
   
2. Landlord Liability Insurance: This type of insurance provides coverage if someone is injured or their property is damaged on your property and you are found legally responsible. It helps cover legal fees, medical expenses, and damages awarded in a lawsuit.
   
   
3. Loss of Rental Income Insurance: Also known as rental income protection or business interruption insurance, this coverage provides compensation for lost rental income if your property becomes uninhabitable due to a covered peril (like fire or storm damage). It helps you maintain cash flow while repairs are being made.
   
   

Before purchasing insurance, carefully assess the specific risks associated with your warehouse or factory property and consult with an insurance agent or broker who specializes in commercial property insurance. They can help customize a policy that meets your needs and provides adequate protection for your investment.

They are the units of measurement typically used for industrial property and land in Thailand as shown below:

– Rai: A unit for land size where 1 Rai equals 1,600 square meters (sqm).

– Ngan: Another unit for land size with 1 Ngan equivalent to 400 sqm.

– Sq.wah: Used for smaller land areas, where 1 Sq.wah equals 4 sqm.

– Sqm: A unit for measuring usable area within buildings or sheltered/enclosed spaces.

Scenario:
A warehouse/factory spans 1,200 sqm on a land plot of 2-1-1 Rai.

Explanation:
2-1-1 Rai translates to 2 Rai, 1 Ngan, and 1 Sq.wah. Therefore, the total land area is calculated as (2 x 1,600 sqm) + (1 x 400 sqm) + (1 x 4 sqm) = 3,604 sqm.

The 1,200 sqm warehouse/factory includes all sheltered or enclosed spaces, including a second-floor office, meaning the actual production area is smaller due to the office space within the warehouse.

A Free Zone is an indicated area for industrial manufacturing, logistic and other business activities operations with no customs duty and VAT on purchases or importation of raw materials, components or finished goods.

In a General Zone, unlike a Free Zone, customs duty and VAT are imposed on those imported raw materials, components or finished goods.

To make your visit more efficient, we recommend seeing as many properties as possible in half a day or a full day to give you more options for comparison. This approach ensures that your trip is worthwhile since you’ll be traveling.

Additionally, it is usually insufficient to make a decision after visiting just one property. Having multiple options will help you make a more informed choice.

Not all property listings on our website are guaranteed to be available for rent or sale. The availability of each listing can change frequently as tenants move in and out.

To ensure we can find the best options for you, we recommend selecting a range of suitable listings based on pictures, price, location, and other details. We will then verify the real-time availability, check if the landlord accepts your industry, and determine if the property meets your needs.

Once we have this information, we will arrange appointments for you to visit the available and eligible properties.

The price shown on our website will be exactly the same as the landlord’s quotation, as we do not mark up the price.

Please be aware that the listed price may or may not include taxes, as different landlords have varying pricing policies.

Some property listings may not reflect the most recent pricing adjustments made by landlords, as prices can change over time. However, we strive to keep our pricing information as up-to-date as possible.

Therefore, we recommend verifying the pricing with us before making a decision to rent or buy.

No. We will only charge the landlord a commission fee when the deal closes because we offer marketing, advertising, representative support, and handle documentation for them. Rest assured, the price listed on our website matches the price quoted by the landlord. We maintain pricing transparency and do not mark up.

Engaging our agency is beneficial because we handle negotiations, resolve any issues, and manage disputes that may occur between landlords and tenants throughout the lease.

To protect property information and ensure proper client screening, our website only displays the Sub-district, District, and Province of each property.

If you’re looking for a property near a specific location, you can tell us the area and the distance range (in km), and we will filter suitable listings for you.

Once you register your profile with us, we will personally take you to visit the exact location, allowing you to make a well-informed decision.

The ideal location for your warehouse or factory depends on your business requirements. Consider the following factors to determine the best area for your needs:

1. Proximity to Customers or Suppliers
If your business needs to be close to customers or suppliers in a specific area, such as Ayutthaya, choosing a location nearby would be beneficial.

2. Access to Airports or Seaports
For businesses reliant on air freight, locations near Suvarnabhumi Airport, such as Samut Prakan or Chachoengsao, are recommended.
If your operations require proximity to a major seaport, consider Chonburi or Rayong for easy access to Laem Chabang Port.

3. Proximity to Bangkok
If being near Bangkok is important for business operations, executive hiring, or city conveniences, Samut Prakan, Pathum Thani, or Nonthaburi are strategic choices.

4. Distance from Your Head Office or Accommodation
Choosing a location close to your company’s head office or your residence can improve operational efficiency and convenience.

Before making a decision, researching Thailand’s geography and evaluating these factors will help you identify the most suitable location. This approach ensures a more focused property search, saving time and effort.

As part of our client screening process, we require a company profile to register your interest and present it to the landlord. This includes your business card, company website, company introduction, product photos, or images of your current factory or warehouse (if applicable). Providing this information helps the landlord understand who their potential tenant or buyer is.

If the landlord does not permit your business activity on their property, this process prevents unnecessary visits, saving time for both you and the landlord.

If you are establishing a new company or branch in Thailand, you can provide your company profile from your home country instead.

To schedule a property visit, please select your preferred listings from the website link provided by our salesperson. Once we confirm the availability of the selected properties and the number of locations that can be visited, we will proceed with scheduling an appointment.

We recommend booking your visit at least 2 to 3 days in advance, as appointment slots are subject to availability and demand.

Our property visit hours are:

Monday to Friday
Morning session: 9:30 AM – 12:00 PM
Afternoon session: 1:00 PM – 4:00 PM

Each session allows visits to approximately 5 to 8 locations, depending on travel distances between properties.
If you wish to visit properties in two provinces, you will need to schedule two separate days, one for each province.