Foreign Ownership in Phuket: How It Actually Works

Every buyer I speak to asks the same question within the first ten minutes, so here is the answer without the sales gloss. Foreigners cannot own land in Thailand. That is the starting point, and everything else is structure built around it. There are two structures that work, one that needs real caution, and a fair amount of marketing out there that pretends the rules are softer than they are. This page sets out the actual position.

Can foreigners own property in Thailand at all?

Yes, with conditions. A foreign buyer can own a condominium unit outright, in their own name, with a freehold title. For anything that sits on land, which means villas and houses, ownership of the land itself is not available to foreigners, so the purchase is structured either as a registered long-term lease or, in narrower circumstances, through a Thai company. The right route depends on what you are buying and what you need the asset to do, and the differences between them matter more than most listings suggest.

How does condominium freehold work?

Under Thailand’s Condominium Act, foreigners can hold freehold title to condominium units provided foreign ownership across the building does not exceed 49 percent of the total floor area of all units combined. Your name goes on the title deed at the Land Department. It is the cleanest form of ownership available to a foreign buyer in Thailand, and it is the reason condominiums dominate the foreign-freehold end of the market.

Two practical requirements. First, the purchase funds must be remitted into Thailand from abroad in foreign currency, evidenced by a Foreign Exchange Transaction form from your receiving Thai bank. Your lawyer and the bank handle the mechanics, but the paper trail is not optional; without it the transfer cannot register. Second, the 49 percent quota is per building and some popular projects run close to it, so have the quota position confirmed in writing with the building’s juristic office before you commit to anything.

What does a 30-year lease actually give me?

A registered 30-year lease is a genuine property right. It is registered on the title at the Land Department, it binds the landowner, and it binds anyone who buys the land during your term. For the full 30 years, your position is secure. Leases over three years must be registered to be enforceable beyond three, so registration is not a formality, it is the protection.

What a lease does not give you is anything beyond those 30 years, whatever the brochure says. For years, villas here were marketed on “30+30+30” structures: a 30-year lease with two pre-agreed renewals, presented as 90 years of security. In March 2025 the Thai Supreme Court ruled on exactly this structure, in a case that arose from a Phuket property, and the position is now beyond argument: pre-agreed renewal clauses are void and unenforceable. They are private promises, not property rights. They do not bind a new owner of the land, they cannot be registered in advance, and a court will not enforce them, even where the renewals were paid for up front.

The practical rule I give buyers: price the purchase as 30 years, because that is what you are buying. If the numbers only work over 60 or 90 years, the numbers do not work. A renewal at year 30 is a fresh negotiation with whoever owns the land then, on that day’s terms.

A well-drafted lease can still do useful work around the edges. Rights worth negotiating into the agreement include a right of first refusal if the land is sold, the right to transfer or assign your lease, sub-lease rights, and succession rights so the lease passes to your heirs. None of these extend the term. All of them improve your position inside it.

What about buying through a Thai company?

Some buyers hold land through a Thai-registered company. It was common for years, and it is the structure under the most official scrutiny today. Enforcement against nominee arrangements, where Thai shareholders hold shares in name only so a foreigner controls land, has tightened considerably, and a company that exists solely to hold a villa fits that description. Where a company route is legitimate, it involves a genuine operating business with genuine Thai shareholders, proper accounting, and specialist structuring advice from day one. For most private buyers, that is more risk and running cost than the outcome justifies. It is not a shortcut, and anyone presenting it as one is telling you something about themselves.

So which structure should I use?

It follows from what you are buying. If you want foreign freehold and a hands-off asset, the condominium route is the clean path, and in areas like Bang Tao there is a deep pool of quality resort-managed stock. If it is a villa, a registered 30-year lease with strong contractual protections is the standard structure, entered with clear eyes about what the term means. The company route is for specific situations with specialist advice, not a default.

Whatever the structure, use an independent Thai property lawyer who acts for you, not one recommended by the developer or agent selling to you. On a purchase of this size, independent advice is the cheapest insurance you will ever buy.

I cover what a purchase actually costs, transfer fees, taxes and the rest, in a separate guide. For a sense of how these structures play out on the ground, my Bang Tao area guide covers the market where most foreign buyers start.

Ask me the question you actually have

Ownership rules are where most buyers’ research stalls, and a ten-minute conversation usually clears what an evening of conflicting websites cannot. If you are weighing freehold against leasehold, or someone has shown you a structure that sounds too clever, get in touch. No obligation, no sales pitch.

Message me on WhatsApp or send an enquiry through the contact page.

Rex Butler Founder & Principal Advisor,
Butler Estates
rex@butlerestates.com

This guide is general information, not legal or tax advice. Ownership structures depend on your circumstances and the law changes over time. Take independent legal advice before committing to any purchase or lease in Thailand.