Property Ownership Forms in Thailand: Leasehold and Freehold

Freehold means full and permanent ownership. The owner of a freehold property has the full right to dispose of their property, including selling, inheriting, and gifting. In Thailand, foreigners can own up to 49% of the condominium's area on a freehold basis, while the remaining 51% must be owned by Thai citizens or legal entities.

Formally, foreigners cannot register land plots as freehold. However, legal entities with foreign founders can own land plots as freehold, provided that no less than 51% of the company's shares are held by Thai citizens.

Leasehold represents long-term property lease, usually it is 30 years with the extension up to 90 years. This form of ownership is often used by foreigners since Thai law limits their rights to direct land ownership. In the case of leasehold, the lessee has the right to use and own the property during the lease term, but after its expiration, the rights revert to the landowner.

Rules and Restrictions

1

Condominiums

Foreigners can own up to 49% of the total area of the building in the form of freehold.
2

Villas and Houses

Acquired under leasehold (as foreigners cannot own land directly in freehold) or freehold by registering under a legal entity.
3

Registration

Registration procedures include registration fees, property taxes, and lease taxes, as well as inheritance rules that may apply.

Legal and Tax Aspects

1

Registration Fees

When purchasing property, it is necessary to consider the costs of registering the transaction.
2

Property Taxes

Include taxes on the purchase and ownership of property, which may vary depending on the type of ownership.
3

Inheritance

Both freehold and leasehold properties can be inherited, with the difference that leasehold properties are inherited within the lease term and subject to review and re-registration after the lease term ends.

Comparison

Freehold provides more rights and freedoms of ownership but has restrictions for foreigners. Leasehold is easier to register and more accessible for foreigners but has time limitations and restrictions on rights.

If you have any questions or want to learn more about property ownership in Thailand, our experts are always ready to help. Contact us for a consultation to make a confident and informed choice. We will help you find the perfect property and provide full support at every stage.

Get in touch with us today and start your journey to successful real estate investment in Phuket!

Telephone: +66 967721697

E-mail: sales@azure-waves.com

Rawai, Mueang Phuket District, Phuket 83100

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