The Confusion Americans Bring to This Question
In the United States, real estate is almost universally freehold — you buy a property, you own it outright, no expiration date. The concept of paying millions for a property and "only" owning it for 30 years sounds alarming to most Americans. The reality is more nuanced. Leasehold is the normal structure for foreign villa ownership in Phuket, it has been used successfully for decades, and a well-structured leasehold is genuinely secure — with important caveats.
Freehold in Phuket: What You Actually Own
As a foreigner, freehold ownership is only available for one property type: condominium units, subject to the foreign quota.
The Foreign Quota
Under the Thai Condominium Act, foreigners can hold freehold title to condo units representing up to 49% of the total saleable floor area of any condominium building. The remaining 51% must be held by Thai nationals or Thai entities.
What freehold gives you:
- Ownership that does not expire
- Right to sell to another foreign buyer
- Full inheritance and estate planning rights
- Mortgageable with a Thai bank (subject to lending criteria)
- No Thai partner or company structure required
- Full title in your personal name
Leasehold in Phuket: What You Actually Own
Leasehold means you hold a registered long-term lease on the land. You own the structure (the villa) but not the land beneath it. The land remains owned by the Thai lessor.
For villa buyers, this is the standard structure. Foreigners cannot own land in Thailand. The leasehold is the legally established path to holding a meaningful interest in a villa property.
What Makes a Leasehold Legally Secure
- A leasehold registered at the Land Department is legally enforceable against any future owner of the land
- An unregistered leasehold is only enforceable against the current landowner — if the land is sold, your lease rights may not transfer
Always insist on a registered leasehold. Your lawyer verifies registration as part of due diligence.
The Critical Legal Reality of 30+30+30
Thai law only guarantees the first registered 30-year term. Renewal options are contractual rights against the current landowner — not automatically enforceable if the land changes ownership, the developer becomes insolvent, or a future court interprets the renewal provisions differently.
This is not a reason to avoid leasehold. It is a reason to have your lawyer review the renewal provisions carefully and to buy from developers with strong track records.
The 2024 99-Year Lease Reform
In 2024 Thailand enacted legislation allowing lease terms up to 99 years for BOI-promoted developments. A 99-year lease registered at the Land Department eliminates the renewal uncertainty of the 30+30+30 structure. Ask specifically about 99-year lease availability when evaluating newer developments — increasingly offered by higher-end developers as a selling point.
Which Structure Is Right for You?
Choose freehold condo if:
- You want permanent ownership with no expiry risk
- You are buying as a long-term investment or estate planning asset
- A foreign quota unit is available in a well-located building
Leasehold villa makes sense if:
- You want a private pool villa (not available as freehold for foreigners)
- Your investment horizon is 10-20 years (the initial 30-year term covers this)
- The developer has a strong track record and the contract has been reviewed by your independent lawyer
Frequently Asked Questions
Can I sell a leasehold villa in Phuket?
Yes. You sell the remaining years of the registered lease plus ownership of the structure. Buyers purchase the lease assignment, which transfers the remaining term to them. A villa with 25 years remaining on a 30-year lease is fully saleable.
What happens to my leasehold villa when I die?
A registered leasehold is an asset that can be inherited. Your heirs inherit the remaining lease term and structure ownership. Include the Thai property in your estate planning documents and inform your lawyer of how you want it handled.
Is a leasehold villa worth buying at $3M if I only own it for 30 years?
The 30-year initial term plus renewal options gives a potential 60-90 year hold. At $3M with 6-8% rental yield and strong appreciation in prime Bang Tao/Layan, the economics work over a meaningful investment horizon. Well-drafted renewal provisions and a reputable developer make this a viable structure.
What is the difference between a leasehold and a Thai company structure?
A Thai company can hold land freehold but foreign shareholders are capped at 49%. Some buyers historically used Thai nominee structures to effectively control land — these are explicitly illegal and actively prosecuted. The registered leasehold is the legally sound alternative.
About the Author
Peter Tumbas is a licensed real estate agent with Berkshire Hathaway HomeServices New England Properties, helping luxury buyers find their safe haven in Phuket. Connect on LinkedIn or subscribe to the Americans in Phuket newsletter.
