Protected Leasehold Villas in Phuket – A Clear and Honest Guide for Foreign Buyers
If you are researching villas for sale in Phuket, chances are you’ve already come across terms like leasehold, protected leasehold, or BVI structure. For many buyers, this is the point where things start to feel confusing.
That’s completely understandable.
We regularly speak with buyers who are well-researched and experienced, yet still unsure how these ownership structures actually work in practice. Often, they’ve heard different explanations from different agents, or read articles that make the structure sound either more complex—or more powerful—than it really is.
This guide explains protected leasehold villa ownership in Phuket clearly and honestly, so you understand what you are buying, what protection exists, and where the limits are.
Foreign ownership and land in Thailand: the starting point
Foreigners cannot own land freehold in Thailand in their personal name.
Because of this legal restriction, most villas in Phuket are sold under leasehold ownership, typically with a 30-year registered lease. Some leasehold arrangements are very simple. Others are set up within a more structured estate framework to improve governance, management, and long-term stability.
When people refer to a protected leasehold in Phuket, they are usually referring to this more structured version.
The protected leasehold structure explained simply
In practice, there are four separate components involved:
- You, the villa owner, holding your own registered lease
- A Thai land-owning company, which owns the land freehold as required by law
- A Thai estate management company, responsible for day-to-day estate operations
- A shared offshore holding company (often referred to as a “BVI structure”), owned collectively by villa owners
Each part has a specific role. None of them override Thai land law.
Your registered lease is the foundation
Every foreign buyer purchasing a leasehold villa should focus on this first.
- An individual lease registered at the Land Office
- Issued by the Thai land-owning company
- Usually for 30 years
This lease:
- Applies only to your specific villa plot
- Is legally enforceable
- Cannot be cancelled arbitrarily
- Exists independently of other villa owners
In simple terms, your registered lease is your legal right to use the land. Nothing in the offshore or company structure replaces this.
What people usually mean by a “BVI structure”
Many buyers come across a BVI structure when looking at Phuket real estate for sale, especially villas within established developments.
In simple terms, a “BVI structure” refers to the offshore holding company element within a protected leasehold setup. This offshore company is commonly incorporated in jurisdictions such as the British Virgin Islands (BVI), which is why the term is used.
It’s important to be clear about what this does—and what it doesn’t do.
The offshore (BVI) company:
- Does not own the land
- Does not replace your registered lease
- Does not override Thai land ownership laws
Instead, it typically:
- Holds a minority shareholding (often 49%) in the Thai land-owning and/or management companies
- Is owned collectively by villa owners
- Provides a layer of governance, continuity, and alignment of interests
This does not change who owns the land—it changes how the estate is governed.
The question buyers eventually ask: does this guarantee lease renewal?
This is the most important question, and it deserves a clear and balanced answer.
Under Thai law, lease renewal is never automatic, regardless of structure.
Individual leasehold
- A 30-year lease expires
- The owner may request a renewal
- Renewal depends on the landowner’s agreement at that time
- There is no legal mechanism to force renewal
Protected leasehold / BVI-style structure
- The same 30-year lease expires
- The owner may also hold shares in a shared offshore company
- That offshore company typically holds a minority interest (often 49%) in the Thai land-owning company
- The Thai shareholders retain majority control
- Renewal still depends on the landowner’s decision at that time
- There is no legal mechanism to force renewal
The legal position at the moment of renewal is the same in both cases.
A protected leasehold or BVI structure does not give foreign buyers legal control over land or guaranteed renewal.
What it changes is not the law, but the commercial incentives surrounding that decision.
So what protection does a protected leasehold actually provide?
This is where expectations need to be realistic.
The value of the structure is not about enforceability at year 30. It is about how the estate behaves over the life of ownership.
The practical idea behind these structures is not guaranteed renewal, but aligning incentives so that keeping the estate operating smoothly—and renewing leases where possible—remains commercially attractive over the long term.
What this structure genuinely improves
Better behaviour and alignment
Instead of one owner negotiating alone, decisions affect an entire estate. Refusing renewals across a development can carry serious financial and reputational consequences for the landowner, especially where long-term estate operations generate ongoing value.
Better resale confidence
Most buyers of villas in Phuket sell before lease expiry. Structured estates often support resale value and buyer confidence better than isolated individual leases.
Professional estate management
Day-to-day operations are handled by a dedicated management company rather than informal arrangements, reducing uncertainty and inconsistency.
Risk management, not certainty
The structure can make hostile behaviour commercially unattractive—but not impossible.
A transparent reality check
It’s important to be very clear.
A protected leasehold or BVI structure:
- Does not give land ownership
- Does not guarantee lease renewal
- Does not override Thai land law
What it can provide is:
- Better governance
- Better alignment of interests
- Reduced exposure to arbitrary decision-making
- More predictable long-term outcomes
This is risk management, not certainty.
Who this structure is suitable for
- Buyers who want to buy a villa in Phuket for lifestyle or medium-term investment
- Buyers who understand leasehold ownership in Thailand
- Buyers who value estate quality and resale confidence
- Buyers who are comfortable managing risk rather than seeking guarantees
Who it may not be suitable for
- Buyers who require guaranteed long-term land control
- Buyers who expect automatic lease renewal
- Buyers who are uncomfortable with leasehold risk
- Buyers who prefer only freehold ownership
In those cases, freehold condominiums in Phuket may be more appropriate.
Frequently Asked Questions (FAQ)
Does a protected leasehold give me ownership of the land?
No. The land remains owned by a Thai company. Your legal right comes from your registered lease.
What is a “BVI structure” in Phuket property ownership?
A BVI structure usually refers to an offshore holding company (commonly incorporated in the British Virgin Islands) that is owned collectively by villa owners and typically holds minority shareholdings (often 49%) in Thai land-owning and/or management companies. It supports governance and continuity; it does not provide land ownership.
Does a BVI structure give foreigners control of Thai land?
No. Thai law still requires land to be majority Thai-owned. A BVI company does not give foreign buyers control of land or guaranteed lease renewal.
Can villa owners force lease renewal through voting?
No. Lease renewal is governed by the lease contract and the decision of the Thai land-owning company at that time, which is controlled by the 51% majority shareholder(s), not by minority shareholder voting through the offshore structure.
Who are the Thai shareholders in the land and management companies?
In many developments, the Thai companies are originally set up by the developer, and the Thai shareholders are often connected to that developer (for example, the developer, family members, or long-term partners). This is normal and legal.
Is this safer than a simple individual lease?
It can be safer in practice, not because it guarantees renewal, but because it can improve governance, alignment, and resale confidence over time.
What should buyers focus on most?
The quality of the lease, the land title, the developer’s track record, and the long-term management of the estate.
Final advisory note
Protected leasehold and BVI structures exist to work within Thai law more professionally, not to bypass it.
If you would like to explore which ownership structure suits you best, you can view all of our Phuket properties for sale here.
Or contact us directly to discuss which type of ownership aligns best with your goals. We’re always happy to explain the options clearly, calmly, and honestly.
