Leasehold vs Freehold in Thailand: A Phuket Guide for Foreign Buyers (2026)

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After “Can I buy property in Phuket?”, the next question we hear is: “Should I buy freehold or leasehold?”

For foreign buyers, the answer depends mostly on what kind of property you want. A condo can often be freehold. A villa almost always involves a lease of the land. Here’s a plain-English comparison from our family team, so you can see what each option really gives you. (If you’re new to the basics, start with our guide: Can Foreigners Buy Property in Phuket?)

Freehold vs Leasehold at a Glance

• Freehold means you own the property outright, in your own name, with no end date. For foreigners in Thailand, this is realistically available for condominium units only.
• Leasehold means you have a registered right to use the property for a fixed term, up to 30 years. The landowner still owns it. This is the usual route for villas and houses, and for condo units when the building’s foreign quota is full.

Freehold Condos: The 49% Foreign Quota

Under Thailand’s Condominium Act, a foreigner can own a condo unit freehold, in their own name. The limit is the foreign quota: foreigners together may own no more than 49% of the total floor area of all units in a building. If the foreign quota is full, a Thai-owned unit can’t be transferred to you freehold (though a unit already in foreign hands can still pass from one foreign owner to another).

Freehold condo buyers also need to bring the purchase money into Thailand from overseas in foreign currency, and keep the bank’s Foreign Exchange Transaction (FET) document or credit advice. Our foreign ownership guide explains this step by step.

You may have read headlines about a 75% quota or 99-year leases. As of October 2026, neither has been enacted: the 49% quota and the 30-year lease limit are still the law.

Tip: Before you pay a deposit, get written confirmation from the building’s juristic person (management) that foreign-quota space is available for your specific unit.

Leasehold: How a 30-Year Registered Lease Works

Thailand’s Civil and Commercial Code allows a lease of land or buildings for a maximum of 30 years. If a contract says longer, the law cuts it back to 30. A few key points:

• Register it at the Land Office. A lease longer than three years must be in writing and registered at the Land Office, where it’s recorded on the back of the title deed. An unregistered lease can only be enforced for three years.
• It survives a sale of the land. A registered lease binds anyone who later buys the land for the rest of the term.
• Check who you’re dealing with. Make sure the person signing the lease is the registered owner on the title deed, and check the title for mortgages or other encumbrances.
• Registration costs. The Land Office charges a fee of 1% of the total rent for the whole lease term, plus 0.1% stamp duty. For example, on a 30-year lease with total rent of ฿3,000,000, that’s about ฿30,000 plus ฿3,000. Who pays is up to the parties, so put it in the contract.

The Truth About “30+30+30” Renewal Clauses

Many leasehold villas are marketed as “30+30+30” or “90-year” leases. Please be careful. Only 30 years can be registered at a time. A renewal can only be registered as a new lease after the first term ends, and the Land Office fee is paid again then.

In Supreme Court Decision No. 4655/2566, a case about land in Phuket, a buyer had paid rent for 90 years up front under a 30-year registered lease with a promise of two more 30-year terms. When the first 30 years ended, the court held that the renewal promise was void because it was a way around the 30-year limit. The buyer had to leave and didn’t get the extra 60 years.

A renewal promise also isn’t a registered right, so it generally won’t bind someone who buys the land from your landlord. In practice:

• Treat the first registered 30 years as what you’re really buying, and judge the price on that basis.
• Don’t prepay rent for any period beyond the registered term.
• Have your lawyer review the renewal wording, but don’t count on it.

Villas: Lease the Land, Own the House

Foreigners generally can’t own land in Thailand. The common legitimate villa structure is:

• A registered lease of the land (up to 30 years), and
• Ownership of the house itself in your own name. Thai law treats a building separately from the land under it, so the house can be registered to you (for example, through the building permit or a registered transfer of the building).

Some buyers also register a superficies (see below) so that their right to own the house on someone else’s land is recorded on the title deed.

Condo Freehold vs Villa Leasehold: Which Suits You?

• Freehold condo: simplest ownership, no end date, part of your estate, generally easier to resell. Limited by the foreign quota, and you share the building and common fees with other owners.
• Leasehold villa: more space, privacy and land, often at a lower entry price than a comparable freehold would cost. But the land right ends when the term ends, and its value usually falls as the remaining years shrink.
• Leasehold condo: an option when a building’s foreign quota is full. You can buy without the foreign-quota limit, but you get a time-limited right instead of ownership.

Inheritance and Selling a Lease

This is where leasehold and freehold differ most, so get advice before you sign:

• Freehold condo: it’s your property, so it can pass under your will or Thai inheritance law. Foreign heirs may have to meet the foreign-ownership conditions, so check this with a lawyer.
• Lease and your death: Thai courts have traditionally treated a lease as personal to the tenant, ending when the tenant dies. Later Supreme Court decisions (including Full Bench Decision No. 11058/2559) allowed a registered lease to pass to the tenant’s heirs where the contract allowed subletting or transfer. Ask your lawyer to make sure the lease expressly allows assignment, subletting and succession by your heirs.
• Selling a lease: you can only transfer the lease to a new buyer if the landlord consents or the contract already allows it. The transfer should be registered at the Land Office.
• If the landlord sells or dies: a registered lease continues for the rest of the term against the new owner or the landlord’s heirs.

Usufruct and Superficies (Briefly)

You may also hear about two other registered rights in the Civil and Commercial Code:

• Usufruct: a right to use and take income from property, for up to 30 years or for the holder’s lifetime. It always ends when the holder dies, so it can’t be left to your heirs. It’s often used within families, for example by a Thai spouse in favour of a foreign partner.
• Superficies: a right to own buildings on someone else’s land, for up to 30 years or for the lifetime of the landowner or the holder. Unlike a lease, it can generally be transferred and inherited unless the agreement says otherwise. It’s usually combined with a land lease for villas.

Each has its own limits and paperwork, so only use them with advice from your own lawyer.

A Warning About Thai Companies and Nominees

You may be told you can “own” land freehold through a Thai limited company. A genuine Thai company with real Thai shareholders running a real business can own land. But a company where Thai “shareholders” hold shares on paper only, on behalf of a foreign buyer who really owns and controls it, is a nominee arrangement. Nominee structures are illegal under Thai law and can lead to criminal penalties and forced sale of the land.

The same applies to leases: a lease at a token rent on land the foreigner actually paid for, with a Thai owner in name only, can be treated as a nominee arrangement rather than a real lease. Thai authorities are actively screening land- and condo-holding companies for nominees (The Nation). We don’t recommend or arrange nominee structures.

Why Independent Legal Due Diligence Matters

Whether you buy freehold or leasehold, we always recommend hiring an independent, licensed Thai lawyer who acts only for you, not for the seller, landlord or developer. A good lawyer will check the title deed and encumbrances, confirm the foreign quota or the landlord’s ownership, review the lease (term, rent, renewal, assignment and inheritance clauses), verify building permits, and attend the Land Office registration. You’re free to choose any lawyer you like.

For property paperwork, registrations and taxes, we recommend A. Accounting & Tax Business (www.interacc.com). They’re an accounting and tax firm, not a law firm, so they work alongside your lawyer rather than replacing one.

Quick FAQ

Can a foreigner buy a villa freehold in Phuket?

Generally no, not the land. Foreigners typically lease the land for up to 30 years and own the house itself.

Is a 90-year lease possible?

No. Only 30 years can be registered at a time. Renewals promised in advance, especially with rent prepaid, may be void, as the Supreme Court held in Decision No. 4655/2566.

How much does it cost to register a lease?

About 1% of the total rent for the term, plus 0.1% stamp duty, paid at the Land Office.

Can my children inherit my lease?

Possibly, but only if the lease is written for it. Ask your lawyer to include clear assignment and succession clauses.

Is a freehold condo better than a leasehold villa?

Neither is “better”. Freehold gives you lasting ownership, and leasehold gives you a time-limited right to a home with land. Choose based on your plans, budget and how long you intend to stay.

Ready to Explore Phuket?

Browse our current listings on happythaiproperties.com, or reach out to our team (Grape, Stacey or Patty) and we’ll be happy to help, from viewings in Phuket to closing the sale. For property paperwork and taxes, we can point you to A. Accounting & Tax Business. We’d love to help you find your place in paradise.

Disclaimer: This article is general information only and is not legal, tax, or financial advice. Thai laws and fees can change. Please consult a qualified independent Thai lawyer before making any property decision.