For condos, freehold is almost always the better choice. Thailand’s Condominium Act allows foreigners to own up to 49% of floor area in any registered condo building with genuine freehold title. For villas, foreigners cannot own land, so long leasehold is the standard structure: a 30-year term registered against the title, plus two contractual options to renew for 30 years each. Thai law caps registration at 30 years, so the 90-year total is an intended horizon rather than a registered one.
Understanding the Legal Framework
- Foreigners cannot own land in Thailand directly
- Foreigners can own condo units (the airspace, not the land beneath) via the Condominium Act
- For villas, which sit on land, foreigners must use leasehold, company structure, or BOI pathways
This creates two distinct buying scenarios with different legal structures, risk profiles and resale implications.
Freehold Condos: The Gold Standard for Foreign Buyers
- Transferable: you can sell, gift or bequeath it
- Mortgageable: Thai banks will lend against it (though lending to foreigners is rare)
- Permanent: no expiry date, no renewal required
- Protected: courts recognise and enforce your ownership
Requirements for freehold condo ownership:
- The building must be a registered condominium under the Condominium Act
- The foreign quota (49% of total floor area) must not be fully sold
- You must transfer purchase funds from overseas in foreign currency
- You receive a Foreign Exchange Transaction (FET) certificate from your Thai bank
The FET certificate is what proves funds came from outside Thailand, it’s the legal basis for your foreign quota ownership. Without it, you would be limited to the Thai quota (not available to non-residents).
Leasehold Villas: Legally Sound but Different
- Initial 30-year lease registered at the Land Office
- Option to renew for two additional 30-year periods written into the lease contract
- Some agreements include purchase options tied to future legal changes
Key facts about Thai leasehold:
| Feature | Detail |
|---|---|
| Initial term | 30 years (registerable) |
| Total potential duration | 90 years (30+30+30) |
| Registration | At the Land Office, legally recorded |
| Transferability | Yes, you can sell your leasehold interest |
| On lessor death | Lease is binding on heirs |
| Renewal enforceability | Contractual, the second 30 not automatically guaranteed by law |
The critical nuance: only the first 30 years is registered and legally enforceable as a property right. The second and third 30-year periods are contractual obligations, generally honoured but technically dependent on the landowner’s heirs respecting the agreement.
Common Misconceptions
“Freehold is always better”, Not always. A $300,000 freehold condo studio may offer worse lifestyle value than a $300,000 leasehold 3-bedroom villa. The best choice depends on your purpose.
“Company ownership is a workaround”, Using a Thai company to hold land is technically legal but legally grey, and Thai authorities periodically crack down on nominee arrangements. For most buyers, leasehold is simpler and safer.
What This Means for Buyers?
- Buying a condo? → Go freehold. Check that foreign quota is available. Confirm funds are transferred from overseas for FET certificate.
- Buying a villa? → Accept leasehold as the standard. Ensure the lease is registered at the Land Office, the renewal terms are clearly documented in the contract, and you have a Thai property lawyer review the agreement.
MORE Group guides every buyer through the ownership structure before any purchase commitment. We work with vetted local lawyers and offer this process at 0% buyer commission.
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Frequently Asked Questions
No, foreigners cannot directly own land in Thailand. They can own condo units (freehold) or hold land via registered leasehold (for villas). Company ownership structures exist but are legally complex.
30 years, registerable at the Land Office. Most villa developers offer 30+30+30 (90 years total) through contractual renewal terms written into the lease agreement.
49% of the total floor area of any registered condominium building. If a project is popular, this quota can sell out, always check availability before committing.
Harder than freehold condos, but not impossible. Leasehold villas in prime Phuket areas (Bang Tao, Kamala) do transact regularly, particularly among European and Australian buyers.
A registered lease is binding on the landowner's heirs, they must honour the remaining lease term. This is why Land Office registration of your leasehold is essential, not optional.
Maksim Shchegolev
Founder, MORE Group
Founder of MORE Group. Four years in investment banking before moving to Phuket, where he has worked in the local property market since 2018. Oversees developer relationships and every engagement above $300K.
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