Foreigners are allowed to lease land on short or long term contracts. These leases may be registered for up to 50 years and often have a renewal clause for additional periods of 50 years. This is completely acceptable and the foreign owner may enjoy very broad rights to the land throughout the duration of the lease. Take note that however broad the rights, foreigners will at no time own any interest in the actual land.
Any long term lease agreement, 3 years or more, must be registered with "The Land Office". The agreement is then shown on the land title papers. This protects the term of the lease and the rights of the tenant for the length of that lease, even if the land is sold to a third party.
Failure to register the agreement results in the terms of the lease only being valid for the initial 3 year period. Recent Law changes now make allowances for industrial or commercial purposes to be for terms up to 50 years with renewable further periods of up to 50 years.
Without prejudice. The information presented on these pages are solely guidelines. Nikolsons strongly recommend you consult with a qualified lawyer before commencing any business transaction.