Freehold vs leasehold in Phuket 2026: how a foreigner can buy property
The difference between freehold and leasehold in Thailand, why a foreigner cannot own land directly, and how the 49% condominium foreign-ownership quota works.
Updated: 2026-08-19 · 7 min read · AURA Phuket
Thai law does not allow foreigners to own land directly — the first thing to understand before buying property in Phuket. Here is what is actually available in practice, and how it differs for a condo versus a villa.
Key facts
- Freehold for a foreigner is available only for condominium units, and no more than 49% of a building.
- Leasehold is a lease of up to 30 years, renewable for another 30 + 30.
- Freehold units typically cost 5–10% more than a comparable leasehold.
- The land under a villa can never be owned directly by a foreigner, regardless of the structure.
- With available quota, a leasehold can sometimes be converted to freehold for an extra payment.
Freehold: full ownership, but not on everything
Freehold means full ownership registered in your name, with a chanote (the official title deed) issued. But it is available to foreigners only for condominium units, and never more than 49% of a building’s total area — the remaining 51% must belong to Thai nationals or be held as leasehold. Before putting down a deposit, ask the developer directly how much freehold quota is still available in that specific building.
Leasehold: a long-term lease as the alternative
Leasehold is a lease agreement for up to 30 years, in practice often arranged with the right to renew for another 30 + 30 — effectively 90 years forward. This is how villas are typically bought: a foreigner can never own the land under the house outright, but can own the building itself and lease the land for a very long term.
What costs more, and what is more practical
Freehold usually costs 5–10% more than a comparable leasehold — the price of full ownership and no expiry date. Leasehold means lower taxes and a lower entry price, but requires close attention to the renewal terms in the contract: a good lawyer checks exactly this clause first, since it determines whether that “90 years” is actually guaranteed or just wording on paper.
Frequently asked questions
Can a foreigner buy land in Phuket?
No, Thai law prohibits foreigners from owning land directly in any form. Only freehold on a condominium unit, or leasehold (a long-term lease) of the land under a villa, are available.
What happens to a leasehold villa when the term ends?
If the contract includes a renewal right, the lease extends for a new term. That is exactly why the renewal terms are the most important part of the contract, to be checked before signing, not after.
Can a leasehold be converted to freehold later?
Sometimes — if quota frees up within the building’s 49% cap and the seller or developer agrees, with the price difference paid on top. There is no guarantee in advance — it depends on the specific building.
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