Guide
Freehold vs leasehold in Thailand, explained
Most confusion about buying in Thailand comes down to two words. Freehold means you own it. Leasehold means you have the right to use it for a fixed term. For foreigners in Phuket, which one you get depends almost entirely on whether you are buying a condo or a villa. Here is how each works, and where the risks are.
Updated 27th October 2026 · 7 min read
Can foreigners buy property in Thailand?
Yes, with limits.
- Foreigners can own a condominium unit outright, on what is called foreign freehold title.
- Foreigners can own a building, such as a house or villa, separately from the land it stands on.
- Foreigners cannot own land in their own name.
- Foreigners can lease land on a registered lease of up to 30 years.
Everything else, from Thai companies to usufructs, is a way of working within those rules. Some are sound. Some are not.
Foreign freehold: condos
Under Thailand's Condominium Act, a foreigner can own a condo unit outright, with their name on the title. The unit is yours to sell, let, leave in your will or mortgage, like any freehold property.
Two conditions apply.
The 49% quota. Total foreign ownership in any one condominium building cannot exceed 49% of its total saleable floor area. Once that quota is used, further units can only be sold to foreigners on leasehold. Popular resort buildings in Phuket often sell out their foreign quota early, which is why foreign freehold units in good buildings tend to command a premium.
Money from overseas. You must bring the purchase money into Thailand from abroad in foreign currency. The receiving Thai bank issues a Foreign Exchange Transaction form (FET) as proof, which the Land Office needs to register you as owner. For transfers above USD 50,000 equivalent the bank issues it as standard.
Foreign freehold is the simplest, most secure way for a foreigner to own property in Thailand. It is the route Khun Mark recommends whenever a buyer's plans allow it.
Leasehold: villas, houses and some condos
Because foreigners cannot own land, villas and houses are usually bought through a land lease.
The 30-year limit
Thai law (Civil and Commercial Code, section 540) caps a lease of immovable property at 30 years. Any lease longer than three years must be registered at the Land Office to be enforceable in full. An unregistered long lease is a serious risk.
Renewal options
Many villa contracts advertise "30+30+30" or similar. The first 30 years can be registered. The renewal options are a contractual promise from the landowner, not a registered right, and Thai courts have not treated them as binding on later owners of the land. Value a lease on its registered term, and treat renewals as a possible bonus.
Owning the building
A foreigner can own the villa itself. This is usually documented through a separate sale of the building and, ideally, a registered superficies right, which gives you the right to own structures on someone else's land for the agreed term. When the lease ends, what happens to the building depends on the contract.
Inheritance and resale
A lease is a contract. Make sure it allows you to transfer it to a buyer, sublet it and pass it to your heirs. Otherwise your rights may be limited to your own lifetime and use.
Costs
Registering a lease costs 1% of the total rent for the whole term, plus 0.1% stamp duty.
Leasehold condos
Where a building's foreign quota is full, units are sold to foreigners on a registered 30-year lease. This is common in new Phuket developments, some of which offer both options. Leasehold units usually cost less than the freehold equivalent in the same building.
Thai companies
A Thai limited company can own land. If more than 49% of the company is held by foreigners, or the company is otherwise controlled by foreigners, it is treated as foreign and cannot own land.
For years, many villas in Phuket were bought through companies where a foreigner held 49% and Thai "shareholders" held the rest on paper only. Using nominee shareholders is illegal under the Foreign Business Act and the Land Code. If the Land Department finds a nominee structure, the land can be ordered to be sold, and the people involved can face penalties. The Land Office now asks about shareholders' funding when companies buy land.
A company structure can be legitimate when it runs a genuine business with real Thai shareholders who invested their own money. It also brings ongoing obligations: annual accounts, audits, tax filings and company meetings. Do not use a company purely to hold a house without independent legal advice.
Usufruct and other rights
Usufruct
A registered right to use and take income from land, typically for the holder's lifetime or a set term of up to 30 years. It is often used where a Thai spouse owns the land and the foreign partner wants a protected right to live there. It ends on the holder's death and cannot be passed on.
Superficies
A registered right to own buildings or plants on someone else's land, for a fixed term or for life. Often combined with a lease to protect ownership of a villa.
Thai spouse
A foreigner married to a Thai national cannot own land jointly. The Thai spouse can buy land in their own name, and the foreign spouse signs a declaration at the Land Office that the money belongs to the Thai spouse.
The ฿40,000,000 investment route
Under section 96 bis of the Land Code, a foreigner who invests at least ฿40,000,000 in approved Thai assets and keeps it there for at least five years can apply for permission to own up to one rai (1,600 sqm) of land for residence. Approvals are rare, and it is not a practical route for most buyers.
BOI-promoted companies
Companies promoted by the Board of Investment can sometimes hold land for their business. These exceptions are rare and do not apply to private homes.
Freehold vs leasehold: the comparison
| Foreign freehold condo | Leasehold condo | Leasehold villa (land lease plus building) | Thai company | |
|---|---|---|---|---|
| What you hold | The unit, outright | Right to use the unit for the lease term | Land lease plus ownership of the building | Shares in a company that owns the property |
| Term | Indefinite | Up to 30 years registered | Up to 30 years registered | Indefinite while the company is valid |
| Renewal | Not needed | Contractual option only | Contractual option only | Not needed |
| Foreign limit | 49% of building floor area | None | None | Foreign shareholding 49% maximum |
| Money from overseas required | Yes, with FET | Recommended | Recommended | Company's own funding scrutinised |
| Resale | Straightforward | Depends on lease terms and time left | Depends on lease terms and time left | Sale of shares or land; complex |
| Inheritance | Through your will | Only if the lease allows | Only if the lease allows | Through shares |
| Main risk | Low when title is clean | Shrinking term, landlord dispute | Shrinking term, renewal not guaranteed | Illegal if nominee shareholders are used |
| Khun Mark's view | First choice where possible | Fine with a long remaining term | The normal route for villas, with a strong lease | Only with a genuine business and independent advice |
Proposed changes
In 2025 the Thai government floated two changes: extending the maximum land lease for foreigners to 99 years, and raising the condo foreign quota to 75% in certain areas. As of the latest check, neither had been passed into law. The 30-year lease limit and the 49% condo quota still apply. Buy on the law as it stands today.
Which is right for you?
- You want the simplest, most secure ownership: a foreign freehold condo.
- You want a pool villa: a registered 30-year land lease plus ownership of the building, with a superficies right and clear transfer and inheritance terms.
- You are married to a Thai national: your spouse can own the land, with your rights protected by a usufruct, lease or superficies.
- You are buying as an investment and want flexibility to sell: foreign freehold condos are the easiest to resell to other foreigners.
Whichever route you choose, use an independent lawyer, check the title deed at the Land Office, and make sure every lease and right is registered.
Questions
Frequently asked questions
Can a foreigner buy land in Thailand?
No. Foreigners cannot own land in their own name. They can lease land on a registered lease of up to 30 years, own a building on leased land, or in rare cases apply for permission under the ฿40,000,000 investment route.
Can foreigners buy villas in Phuket?
Yes, with a structure. You can own the villa building outright and lease the land for up to 30 years. Some villas are held through Thai companies, which must have genuine Thai shareholders to be legal.
Can foreigners own a condo in Thailand?
Yes. A foreigner can own a condo unit outright on foreign freehold title, if the building's 49% foreign quota has space and the money comes from overseas in foreign currency.
What happens when a 30-year lease ends?
The right to use the land ends. Any renewal depends on the landowner honouring the renewal option in the contract, which is not guaranteed. What happens to the building depends on your contract and any superficies right.
Is a 30+30+30 lease legal in Thailand?
The first 30 years can be registered and are enforceable. The extra terms are contractual promises to renew, not registered rights, and may not bind a later owner of the land.
This is general guidance, not legal advice.
Not sure which structure fits?
Try the "Can I own it?" tool, or talk to Khun Mark and he will explain the options for the homes you are looking at.
