Buying a Villa in Phuket as a Foreigner: Legal Process Explained

Phuket has become one of Southeast Asia’s most desirable real estate destinations, attracting thousands of international buyers each year.
Whether you’re dreaming of a private tropical villa or investing in a property for rental income, understanding Thailand’s legal framework is essential before making your purchase.

This guide breaks down the legal process for foreigners buying a villa in Phuket — step by step, with clarity and confidence.

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Can Foreigners Buy Property in Thailand?

Yes, foreigners can legally buy property in Thailand, but direct ownership of land is restricted.
This means while foreigners can own condominiums (Freehold) outright, owning landed properties like villas requires using legal structures such as:

1. Leasehold ownership

2. Thai company ownership

3. Ownership through a Thai spouse (with specific legal conditions)

Each structure has its pros and cons — the best option depends on your goals, risk tolerance, and intended use of the property.

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1. Leasehold Ownership – The Most Common Option

The leasehold model is the simplest and most secure way for foreigners to purchase a villa in Phuket.
Under Thai law, a foreign individual can lease land for a period of 30 years, with an option to renew for additional terms (commonly two renewals, up to 90 years in total).

Key Points:

• The lease agreement must be registered at the Land Department.

• You own the villa structure (building) but lease the land it sits on.

• The lease can often be renewed or transferred, depending on the contract.

Advantages:

• 100% legal and recognized by Thai law

• Straightforward process for individual buyers

• Lower taxes and transfer fees than freehold

Considerations:

• Lease term is limited (renewal depends on the landowner)

• Not ideal for buyers seeking inheritance or resale flexibility

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2. Thai Company Ownership

Another option is to set up a Thai limited company to purchase the land on your behalf.
This is a popular choice among investors who plan to own multiple properties or run rental operations.

Legal Requirements:

• The company must have at least 51% Thai shareholders and 49% foreign shareholders (you).

• The company must operate legitimately (not purely for property ownership).

• Annual audits and tax filings are required.

Advantages:

• You effectively control the property through the company.

• Allows ownership of both land and villa.

• Suitable for long-term investment portfolios.

Considerations:

• Requires ongoing accounting and legal compliance

• Must ensure the structure is legitimate to comply with Thai law

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3. Ownership Through a Thai Spouse

If you are married to a Thai national, your spouse can legally purchase the land in their name.
However, you (as a foreigner) must sign a declaration confirming that the funds used are your spouse’s personal funds, not joint marital property.

Advantages:

• Simplest route for married couples

• Direct land ownership (under Thai spouse)

Considerations:

• You have no ownership rights over the land

• The villa can be registered under your name as a separate structure

• A usufruct or lease agreement can help protect your interest

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Legal Steps to Buy a Villa in Phuket

Once you’ve chosen the ownership structure that fits your situation, here’s how the process typically works:

Step 1 – Due Diligence

Hire a qualified lawyer or agent to review land titles, building permits, and any encumbrances. This ensures the property is clear of legal disputes.

Step 2 – Reservation Agreement

Sign a reservation form and pay a small deposit (usually 100,000–300,000 THB) to secure the property while contracts are prepared.

Step 3 – Sale & Purchase Agreement (SPA)

The SPA outlines payment terms, ownership structure, handover conditions, and construction timelines (if off-plan).

Step 4 – Land Office Registration

The ownership transfer (or lease registration) is finalized at the Phuket Land Department.
You’ll pay relevant transfer fees and taxes, typically shared 50/50 between buyer and seller.

Step 5 – Handover & Ownership Documents

Once the payment is complete, you receive all ownership documents — including the Chanote (land title) or lease registration certificate — and the villa is officially yours.

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Taxes and Fees to Expect

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Why Work with Century 21 Hero Phuket

Buying property in Thailand can be a smooth and secure process with the right guidance.
At Century 21 Hero Phuket, we assist foreign buyers with every detail — from legal consultation and documentation to property management after purchase.

We work directly with trusted lawyers, developers, and financial institutions to ensure a transparent, worry-free experience for every client.

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Final Thoughts

Owning a villa in Phuket is not only possible — it’s one of the most rewarding investments you can make.
Whether through leasehold, company setup, or family ownership, foreigners have multiple legal paths to enjoy the island’s luxury lifestyle and steady rental returns.

Start your journey to owning a piece of paradise today.

📞 +66 (0)62 696 9226
📧 sales@c21hero.com
🌐 www.c21hero.com