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Freehold vs Leasehold Property in Phuket: A Simple Guide for Foreign Buyers

If you are looking at buying property in Phuket, one of the first questions you will encounter is whether a property is freehold or leasehold.

We speak to buyers every week who are confused by the terms, and understandably so. Many people are told different things by different agents, and it is not always explained clearly.

We have put together this guide to explain more clearly what freehold and leasehold ownership in Phuket is in simple terms, based on what we see daily with our own clients.

We often get asked: “Can foreigners own property in Phuket?”

The short answer is yes, but how you own it matters.

Thailand has clear laws around land ownership, and understanding them properly will help you avoid surprises later.

What is Freehold Property in Thailand?

Freehold means full ownership with no expiry date.

If you own a property freehold:

  • You own it permanently
  • You can sell it at any time
  • You can rent it out
  • You can pass it to your heirs

Can foreigners own freehold property in Phuket?

Foreigners can own freehold condominiums in Thailand, provided:

  • The building does not exceed the 49% foreign ownership quota
  • Purchase funds are transferred from overseas into Thailand in foreign currency

This is why many international buyers searching for “Phuket condos for sale” or “freehold condominium Phuket” focus on developments with available foreign quota.

Important limitation: Freehold land ownership

Foreigners cannot own land freehold in their personal name.

This is why:

  • Villas and houses are rarely sold freehold to foreigners
  • Alternative structures such as leasehold or company ownership are commonly used

What is Leasehold Property in Phuket?

Leasehold is a long-term registered rental agreement, most commonly for 30 years.

With a leasehold property:

  • You have the legal right to use the property
  • You can live in it or rent it out
  • You can sell the remaining lease term
  • The lease is registered at the Land Office

However:

  • You do not own the land
  • The lease has an expiry date

Leasehold is extremely common for:

We often hear: “It’s 30 + 30 + 30 years, so that’s 90 years, right?”

This is one of the most common misunderstandings we see.

Only the first 30 years is legally registered at the Land Office.

The additional periods:

  • Are written as options in the contract
  • Are not automatically guaranteed
  • Depend on the landowner and legal structure

In practice, some leases are renewed smoothly, while others are not. This is why the quality of the lease agreement matters far more than the headline number. In reality, who owns the land, how the lease is written, and how credible the landowner is will have a much greater impact on your long-term security than whether a brochure says “30 + 30 + 30”.

What happens when a lease expires?

When a lease reaches the end of its term:

  • Rights return to the landowner
  • Renewal depends on the contract and cooperation of the owner
  • There is no automatic extension under Thai law

This is why we always advise clients to:

  • Review the land title
  • Understand who owns the land
  • Assess long-term exit options before buying

Owning the building but not the land

Another structure we frequently see in Phuket is:

  • Leasehold land
  • Separate ownership of the building (villa or house)

This allows buyers to:

  • Own the physical structure
  • Secure long-term use of the land
  • Potentially pass building ownership to heirs

However, it is still not the same as owning freehold land, and should be assessed carefully.

From our experience: What do clients usually prefer?

Based on years of working with international buyers:

  • Clients looking for long-term security and resale usually prefer freehold condominiums
  • Clients focused on lifestyle, privacy, and space often choose leasehold villas
  • Investors often combine both, depending on yield and exit strategy

There is no single “best” option. The right choice depends on:

  • Budget
  • Intended holding period
  • Rental plans
  • Risk tolerance
  • Family and inheritance considerations

Freehold vs Leasehold: Simple Comparison

Freehold

  • Permanent ownership
  • Strong resale value
  • Mostly available for condominiums
  • Limited by foreign quota

Leasehold

  • Fixed term (usually 30 years)
  • Lower entry price in many cases
  • Common for villas and houses
  • Requires careful legal review

Why proper advice matters

The biggest mistake buyers make is focusing only on:

  • Price
  • Design
  • Location

Without fully understanding:

  • Ownership structure
  • Legal risks
  • Long-term implications

At Issara Real Estate, we explain ownership clearly before you commit, not after.

Considering buying property in Phuket?

If you are researching:

We are happy to walk you through the options and explain what works best for your situation.

Or speak with us directly for guidance tailored to your goals.

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