"What exactly is leasehold property ownership in Thailand?" — This is one of the most frequently asked questions we receive from clients. Thai law is straightforward when it comes to owning property in Thailand, but for those unfamiliar with the legal structures, the process can feel complex. In this article we aim to clarify leasehold property ownership in Phuket and throughout Thailand. If anything remains unclear, please contact us and we will gladly guide you through the details.

Buying a Condo in Phuket: Difference Between Leasehold and Freehold

Under the 1979 Thai Condominium Act, non-Thai citizens cannot own more than 49 % of the total sellable square-metre area in a condominium building in Thailand. For example, if a building comprises 100 equally sized units, only 49 of them may be sold to non-Thai buyers while the remaining 51 must be held by Thai nationals or Thai companies. You may also want to read our article on how foreign buyers can own property in Thailand. The 49 units available for foreign buyers may be titled as “foreign freehold”, meaning the foreign buyer holds the title under that quota. In reality, this is the same title deed (Chanote) that Thai nationals may hold. A Chanote is the highest-level land title issued under Thai law.

The remaining 51 units (Thai quota) are typically held by a Thai person or a Thai company. A non-Thai may still purchase a unit under the Thai quota using a lease structure, but the Chanote remains registered in the name of a Thai individual or entity. In a condominium project it is common for the developer (a Thai company) to retain the Chanote, and then issue a lease to the non-Thai buyer for a fixed term—commonly 30 years and structured with potential renewals.

Is Leasehold Safe?

A standard lease term of 30 years is legally valid under Thailand’s Civil and Commercial Code, and this term cannot simply be cancelled at will. The key uncertainty lies in the renewal: what legal safeguards exist to ensure that the lessor will agree to extend or renew the lease for another term? Problems have arisen when the lessor is an individual rather than a company. In some cases, the original lessor passed away, and successors were unwilling to approve renewal.

When a Thai company is used as the lessor—especially a public company—these risks are greatly reduced because the company is a permanent legal entity whose purpose is to manage the property investment over time. We advise that any leasehold purchase should involve a Thai limited company as the lessor, and that your Sales & Purchase Agreement be reviewed by a qualified Thai property lawyer, with clear renewal and termination clauses defined.

Protected Leasehold / Corporate Freehold

“Protected leasehold” refers to a structure where unit owners not only hold leases but are also shareholders in the Thai company that owns the freehold (Chanote). This gives them effective control over lease renewals and reduces risk of termination. From a practical viewpoint, protected leasehold can function almost like freehold ownership in Thailand when it comes to security of tenure. The leases can be renewed indefinitely because the owners themselves oversee the Thai company holding the title deed.

Why is Leasehold Property Cheaper Than Freehold?

In many popular developments for overseas buyers, the foreign-quota freehold units are sold first. Units under the foreign freehold quota command a premium—both in initial price and in resale value—because they offer full title ownership. Developers often charge this premium when selling foreign quota units. For units under leasehold quota (Thai quota), there is no foreign quota premium and the transfer fees and taxes are lower (for example approx. 1.1 % vs 6.8 % of value). In practice, this means a leasehold unit can cost roughly 10-15 % less than a comparable foreign-freehold unit.

How to Buy and Sell a Leasehold Property in Thailand

When purchasing an off-plan leasehold unit from a developer, the transaction usually involves the developer (Thai company) issuing the lease directly to the buyer. If you later sell the lease, the new buyer may sign a fresh lease for another 30 years; this process must be done at the Land Office, where the buyer, seller (and in some cases the lessor) must be present. If you instead take over an existing lease, only the seller and buyer need to attend the Land Office. But the new owner acquires only the remaining term of the lease. Therefore price will reflect remaining years of lease term.

Is it Worth Paying the Premium for Freehold Ownership?

Foreign-quota freehold units typically enjoy stronger resale demand, so the initial premium may be recouped over time. Thailand’s relatively low property taxes (no capital gains tax for typical resale) and low annual ownership burdens enhance this proposition. That said, the decision depends on your strategy: if you plan to hold long-term, use or rent the unit, leasehold may offer excellent value. If you prioritise resale potential and maximum security, freehold may be worth the premium. We hope this article has helped you weigh those facts carefully.

Whether you're an investor, a future resident, or simply exploring your options, now is the time to think long-term. Browse our curated collection of suitable properties in Phuket—or reach out for a personal consultation. Better yet, schedule a one-on-one video call with Alex Seago, Managing Director of Pulse Real Estate. The team will help you find a home that makes sense for today—and for tomorrow.