Owning property in Phuket is a dream for many—a tropical paradise with stunning beaches, a lively expat community, and excellent investment opportunities. But Thailand’s property laws? They can be tricky for foreigners. Navigating ownership rules here is like solving a puzzle, but don’t worry—we’ve got you covered.
This guide breaks down leasehold vs. freehold ownership, legal pathways, and potential risks, so you can make an informed decision. Whether you’re looking at condos, villas, or investment properties, we’ll help you find the right route.
(Disclaimer: This guide is for informational purposes only. Always consult a property lawyer before making any financial commitments.)
1. Leasehold: A Practical Option for Foreigners
Leasehold is one of the most common ways for foreigners to secure long-term property rights in Thailand. While you don’t actually own the land, a lease gives you the legal right to use it for up to 30 years, with possible renewals.
How Leasehold Works:
- Standard term: 30 years (with potential but not guaranteed renewals)
- Ownership: You lease the land but can own the structure (house, villa, etc.)
- Legal security: Requires registration at the Land Office
- Renewal risk: No automatic extensions—depends on the landowner
Pros of Leasehold:
✅ More accessible for foreigners—a legal and widely used option
✅ Lower upfront costs compared to freehold properties
✅ Allows ownership of houses and villas
Cons of Leasehold:
❌ No guaranteed renewal—extensions depend on agreements
❌ Limited resale value—a lease with fewer years left is less attractive to buyers
❌ Less control—you depend on the landowner’s compliance
Pro Tips:
✔️ Register your lease at the Land Office to secure your rights
✔️ Work with a reputable developer to avoid renewal issues
✔️ Get legal advice before signing any lease agreements
2. Freehold Property: The Best Option for Condo Buyers
If you want full ownership, buying a freehold condo is your best bet. Thai law allows foreigners to own up to 49% of the units in a condominium building.
How Freehold Condo Ownership Works:
- You get a title deed in your name, just like in your home country
- You can sell, rent, or pass it down without restrictions
- Ownership is permanent—no lease expiration
Pros of Freehold Condos:
✅ 100% ownership rights—no need for a Thai partner or company
✅ Stronger legal security than leasehold agreements
✅ Easier to resell and rent out
Cons of Freehold Condos:
❌ Limited availability—only 49% of a building’s units can be foreign-owned
❌ Higher price tags compared to leasehold properties
Pro Tips:
✔️ Verify the foreign ownership quota before buying
✔️ Choose reputable developers with a strong track record
✔️ Inspect the property before purchase to avoid unexpected costs
3. Buying Land Through a Thai Company: A Complex but Common Strategy
Foreigners cannot directly own land in Thailand, but some investors set up a Thai company (where at least 51% of shares are held by Thai nationals) to buy land.
How It Works:
- The company owns the land, and you hold control through legal agreements
- You must run an actual business, not just use it as a holding company
- Nominee shareholders (silent Thai partners) are illegal, so be cautious
Pros of Buying Land via a Company:
✅ Gives control over land ownership
✅ Allows investment in villas and land plots
Cons:
❌ Requires ongoing legal and accounting costs
❌ Strict laws against nominee shareholders
❌ Risk of legal scrutiny if improperly structured
Pro Tips:
✔️ Work with an experienced property lawyer to ensure compliance
✔️ Only use this method if you plan to operate a legitimate business
✔️ Ensure Thai shareholders are genuine business partners
4. LTR Visa & Land Ownership: A Path for High-Net-Worth Investors
Thailand’s Long-Term Resident (LTR) Visa program offers a legal way for wealthy foreigners to own land. To qualify, you must invest at least $1.1 million USD in Thai assets, including real estate.
Steps to Buy Land with an LTR Visa:
- Apply for the LTR visa via Thailand’s Board of Investment (BOI)
- Invest $1.1 million USD in qualifying assets
- Submit your application for land ownership approval
Pros of LTR Visa Land Ownership:
✅ Legal freehold land ownership for foreigners
✅ Includes residency benefits
Cons:
❌ Very high investment threshold
❌ Approval process can be slow and selective
Pro Tips:
✔️ Ensure your investment qualifies before applying
✔️ Work with BOI-approved legal experts
Final Thoughts: Which Path is Right for You?
The best ownership option depends on your budget, risk tolerance, and long-term plans:
- Want hassle-free ownership? → Buy a freehold condo
- Looking for a house or villa? → Consider leasehold
- Willing to invest big for land? → Explore the LTR visa option
- Running a business in Thailand? → A company structure might work
No matter what route you take, get professional legal advice before making any commitments. Phuket’s property market is full of opportunities, but smart investing means understanding the legal landscape.
So, ready to start your property journey in Phuket? Do your research, consult the experts, and find your perfect tropical home! 🌴
