Freehold vs Leasehold in Thailand: What Every Foreign Buyer Should Know
Freehold vs Leasehold in Thailand: What Every Foreign Buyer Should Know
Buying property in Thailand — especially in Phuket — is a dream for many international investors. Whether you’re looking for a luxury villa, a beachfront condominium, or an investment property, one of the most important things to understand before making a purchase is the difference between Freehold and Leasehold ownership.
In this guide, we’ll explain both types of property ownership, their legal frameworks, pros and cons, and how to decide which is right for you.
Understanding Freehold Ownership
Freehold means full ownership of the property, including the unit and a share of the land it sits on.
In Thailand, foreign buyers cannot directly own land, but they can legally own condominiums under foreign freehold quota — which allows foreigners to hold up to 49% of total saleable area in a condominium project.
Key Features of Freehold Ownership
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You have complete control and ownership of the property indefinitely.
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You can sell, transfer, or bequeath the property without restrictions.
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You own a proportionate share of the common land (in condos).
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Ownership is registered at the Land Department under your name.
Advantages
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Full, permanent ownership (no expiry date)
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Higher resale value and easier to finance
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Attracts foreign investors due to secure legal standing
Limitations
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Only available for condominiums under the 49% foreign quota
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Higher transfer taxes and registration costs
Understanding Leasehold Ownership
Leasehold ownership is common when buying villas or land in Thailand.
Foreigners cannot directly own land, but they can lease it under a 30-year renewable lease agreement, usually registered at the Land Department.
Key Features of Leasehold Ownership
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Lease term: 30 years (renewable by agreement)
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Property remains under the ownership of the Thai landowner
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Lease rights are legally recognized and transferable (under certain conditions)
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Commonly used for villas, houses, or townhomes
Advantages
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Allows foreigners to control land legally
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Lower transfer costs and taxes
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Often includes renewal clauses for up to 90 years (3 terms)
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Great option for long-term living or holiday homes
Limitations
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Ownership expires when the lease term ends (unless renewed)
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Renewal depends on the cooperation of the landowner
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Harder to resell compared to freehold property
Which One Is Right for You?
The right ownership structure depends on your investment goal, budget, and time horizon.
| Goal | Recommended Ownership | Reason |
|---|---|---|
| Long-term residence or retirement | Leasehold | Easier legal setup and lower upfront costs |
| Property investment or resale | Freehold | Higher appreciation and easier to transfer |
| Buying a villa with land | Leasehold | Legal and practical structure for foreigners |
| Buying a condo for rental income | Freehold | No restrictions, secure ownership |
Legal Tip for Foreign Investors
If you’re purchasing a villa, you can structure ownership through:
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Leasehold under your personal name (standard 30 years)
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Thai company structure (with legal shareholding compliance)
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Thai spouse ownership (land in spouse’s name, building in yours)
Always consult a licensed lawyer or agent before signing any agreement to ensure compliance with Thai property law.
Final Thoughts
Both Freehold and Leasehold ownership options offer great opportunities for foreign buyers in Thailand.
Freehold gives you the security of full ownership — ideal for condos and long-term investment. Leasehold, on the other hand, provides a practical and legal way for foreigners to enjoy villas and landed properties.
At Century 21 Hero Phuket, we guide our clients through every step — from property selection to legal due diligence — ensuring your investment is safe, transparent, and rewarding.
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