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Freehold and Leasehold in Thailand
forms of property ownership available to foreigners and their key differences
10.12.2025
Freehold and Leasehold in Thailand: forms of property ownership for foreigners
When purchasing real estate in Phuket, foreigners encounter two main forms of ownership — Freehold and Leasehold. These models differ in legal rights, duration of ownership, cost, and the ability to transfer property to heirs. Below is a complete guide to help you understand the nuances and choose the optimal option.
Property ownership types in Thailand
Thailand is one of the most open countries in Asia for investors, yet there are clear regulations regarding land and property ownership.
Foreigners have access to two legal forms:
Both forms are widely used on the market and have their advantages.
Foreigners have access to two legal forms:
- Freehold — full ownership of the property.
- Leasehold — long-term lease for up to 30 years with renewal options.
Both forms are widely used on the market and have their advantages.
What is Freehold?
Freehold is full and perpetual ownership of real estate, similar to what foreign buyers are accustomed to in Europe.
Advantages of Freehold
Foreigners can own condominium units or apartments as Freehold, but cannot own land directly. Therefore, villas for foreign buyers are usually structured as:
Advantages of Freehold
- Full ownership of the property.
- Ability to sell at any time.
- Ability to pass the property to heirs.
- No time limitations on ownership.
- Higher liquidity and market demand.
Foreigners can own condominium units or apartments as Freehold, but cannot own land directly. Therefore, villas for foreign buyers are usually structured as:
- the building — Freehold,
- the land — Leasehold for up to 30 years with renewal options.
What is Leasehold?
Leasehold is a long-term lease, legally granted to foreigners for up to 30 years. Developers often offer a structure of 30 + 30 + 30 years (up to 90 years), executed through consecutive lease agreements.
Advantages of Leasehold
A leasehold has a defined term, and the property cannot be passed on as “ownership”, only as an active lease right.
Advantages of Leasehold
- Lower price compared to Freehold.
- Simple and fast registration process.
- Ability to hold villas, land, or townhouses.
- Suitable for investors focused on rental returns and short-term payback.
A leasehold has a defined term, and the property cannot be passed on as “ownership”, only as an active lease right.
What is the difference between Freehold and Leasehold?
Foreign Quotas in Thailand
The Condominium Act sets a clear rule: only 49% of the total residential area of a condominium project may be owned by foreigners under Freehold.
This means:
This means:
- Every project has a Foreign Quota.
- Once the quota is fully allocated, the remaining units can be sold to foreigners only as Leasehold.
- Freehold units are always more expensive and sell faster.
Ownership specifics for apartments, condos, and villas in Thailand
Condos and Apartments
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A foreigner can fully own a unit in Freehold.
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Common areas are managed by the condominium’s juristic person.
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CAM fee and sinking fund payments are mandatory for all owners.
Villas
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The land always remains owned by a Thai individual or a Thai company.
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Foreigners receive leasehold for the land and full ownership of the building.
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The 30 + 30 + 30-year structure is commonly used.
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Some developers offer corporate ownership structures, but these require legal due diligence.
What to choose — Leasehold or Freehold?
The choice depends on your goals.
Choose Freehold if:
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Full ownership is important
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You plan long-term ownership
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You want the property to be transferable to children
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You consider liquidity and resale value a priority
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You are buying a condo in a high-demand area
Choose Leasehold if:
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Your budget is limited and a lower entry price is important
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The property is purchased for rental income and quick ROI
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You plan to own the property for 10–20 years
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You are buying a villa or townhouse
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You prefer a simpler legal structure
Conclusion
Freehold and Leasehold are both legal and secure forms of property ownership in Thailand.
Freehold provides foreigners with full ownership rights, higher liquidity, and long-term stability.
Leasehold is a more affordable and flexible option that enables foreigners to own villas or land-use rights.
The right choice depends on your investment goals, budget, and long-term ownership plans.
Freehold provides foreigners with full ownership rights, higher liquidity, and long-term stability.
Leasehold is a more affordable and flexible option that enables foreigners to own villas or land-use rights.
The right choice depends on your investment goals, budget, and long-term ownership plans.
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