Thinking about investing in property in Phuket? You’re not alone. With its stunning beaches, laid-back lifestyle, and solid real estate market, Phuket is one of Thailand’s top locations for foreign buyers. But what are the rules when it comes to foreigners owning property in Thailand?
Let’s clear it up: yes, foreigners can legally own property in Phuket—but with some limitations. While owning land outright is generally restricted, there are several secure and legal pathways for foreign nationals to invest in condos, villas, and houses.
This updated 2025 guide explains everything you need to know, from freehold vs. leasehold to offshore structures and taxes—all tailored specifically for foreign buyers in Phuket.
Property Ownership Basics: What Can Foreigners Actually Own?
In Thailand, foreign property ownership is governed by specific laws. Here’s what foreigners can and cannot legally own:
- ✅ Condos: Yes, foreign individuals can own condominium units in their own name—freehold.
- 🚫 Land: Foreigners cannot own land freehold.
- ✅ Houses or Villas: Foreigners can own the structure (villa/house) but not the land it sits on. Legal structures like long-term leases or company ownership are used to control land.
🏢 Owning a Condo in Phuket as a Foreigner
The most straightforward route for foreigners is buying a condominium. According to Thailand’s Condominium Act, up to 49% of the total sellable area in any condominium development can be owned by non-Thai nationals. This is known as the foreign freehold quota.
✅ Key Requirements:
- Foreign Currency Transfer: Purchase funds must be sent from overseas in a foreign currency and converted into Thai Baht, accompanied by a Foreign Exchange Transaction (FET) form.
- Quota Check: Make sure the unit you’re buying is within the legal 49% foreign ownership limit.
- Legal Entry: Buyers must have legal status in Thailand (e.g., tourist visa, work permit, retirement visa).
💡 Pro Tip: Buying off-plan? Work with the developer to confirm the unit is available under the foreign quota.
🏡 Buying a Villa or Housein Phuket as a Foreigner
Foreigners cannot own land in Thailand directly. But many expats and investors successfully purchase villas or houses using legal alternatives. Here’s how:
1. Leasehold (Up to 30 Years)
- Foreigners lease the land and register it at the Land Office.
- Typically structured as 30 years + optional 30-year renewals.
- Foreigners can own the villa structure outright and register it separately from the land.
2. Thai Limited Company
- Set up a Thai company (with majority Thai shareholders—at least 51%) to hold the land title.
- The foreigner controls the company through voting structure or preference shares.
- Common but requires strict legal compliance and is best done with a qualified lawyer.
3. Protected Leasehold Structure (BVI Model)
- Used in high-end developments: land is held by a Thai company partially owned by an offshore holding company (e.g., in the British Virgin Islands).
- Each property buyer holds shares in the offshore company.
- This structure ensures long-term control and lease renewals without relying on external parties.
🧾 Freehold vs. Leasehold: What’s the Difference?
🟩 Freehold:
- Unlimited ownership of the condo unit.
- More expensive, but offers long-term security.
- Can sell, transfer, or inherit without restrictions.
🟨 Leasehold:
- Up to 30 years, renewable.
- Lower upfront cost.
- Not considered permanent ownership.
- Legal security if registered properly with the Land Office.
⚠️ Note: Agreements for 30+30+30 years (90 years total) are common in marketing but not legally enforceable unless each term is re-registered every 30 years.
📜 Leasehold Legalities: What You Need to Know
✔️ How to Secure a Legal Lease:
- Must be in writing.
- Any lease longer than 3 years must be registered at the Land Department.
- Lease is noted on the Chanote title deed for official protection.
🔁 Can You Sell or Transfer a Lease?
Yes—if the lease contract allows assignment and the landowner consents. The transfer must be registered and recorded at the Land Office.
💸 Lease Registration Fees:
- 1.1% of the lease value, typically split 50/50 between buyer and seller.
- Payable again every 30 years if renewed.
🛡️ What is a Protected Leasehold (BVI Structure)?
Used mostly in resort-style and legacy developments in Phuket, this structure offers foreign buyers a secure way to control property long-term.
How it works:
- The land is owned by a Thai company.
- That company is controlled by a BVI (offshore) holding company.
- Foreign buyers hold shares in the BVI company.
- Each buyer’s lease can be continuously renewed, protecting their rights indefinitely.
✅ Advantages:
- Control: Owners collectively control the structure via shared ownership.
- No Third-Party Risk: You don’t depend on an individual Thai landlord to renew.
- Precedent: Proven legal model used successfully in Phuket for over a decade.
🏦 Property Transfer Taxes & Fees in Thailand
For Freehold Transfers:
| Tax/Fee | Rate | Who Pays? |
|---|---|---|
| Transfer Fee | 2% of appraised value | Usually 50/50 |
| Specific Business Tax (SBT) | 3.3% | Seller (if owned <5 yrs) |
| Withholding Tax | 1% | Seller |
| Stamp Duty | 0.5% | Seller (if SBT not applied) |
For Leasehold:
- Lease Registration Fee: 1.1% of lease value (or remaining lease amount when transferred).
- Shared between buyer and seller unless agreed otherwise.
🔮 What’s Next for Foreign Property Ownership in Thailand?
As of 2025, there are ongoing discussions at the national level to:
- Increase the foreign ownership quota in condos above 49%.
- Introduce longer lease terms for foreign investors.
- Allow more flexible structures for foreign ownership through legal reforms.
📢 Stay tuned: If passed, these changes could significantly open the Thai property market to international buyers.
✅ Final Thoughts: Can Foreigners Safely Invest in Phuket Real Estate?
Absolutely—if done right. From freehold condos to leasehold villas and company structures, there are clear, legal ways for foreigners to own and control property in Phuket.
Whether you’re buying a holiday home, relocating, or investing, it’s essential to:
- ✅ Choose the right ownership structure.
- ✅ Work with licensed agents and legal professionals.
- ✅ Understand the long-term implications of your decision.
