Foreign property ownership in Phuket: freehold, leasehold and company structures

Can foreigners own property in Phuket? Yes — but the route depends on the property type. Foreigners can own a condominium unit outright (freehold) within legal limits, while land (and therefore a villa's plot) generally cannot be owned directly by a foreigner. Understanding which structure applies is the single most important step before you buy.

How does condominium freehold work? Under Thailand's Condominium Act, foreigners may hold up to 49% of the total saleable floor area of a condominium building in freehold. If that foreign quota is still available for the unit you want, you can register the unit in your own name. To do so, the purchase funds must be transferred into Thailand from abroad in foreign currency and documented — the bank issues a Foreign Exchange Transaction (FET) record, which the Land Office requires for foreign-freehold registration. Always confirm, in writing, that the specific unit sits within the building's remaining foreign quota.

How do foreigners own a villa with land? Because direct foreign land ownership is not permitted, villas are usually held one of three ways: a registered leasehold (commonly 30 years, with contractual renewal options — note that renewals are a contractual promise, not an automatic legal right); through a Thai company that owns the land (the company must be genuinely Thai-majority and have real substance — nominee shareholders used only to disguise foreign control are illegal); or by owning the building structure while leasing the land beneath it. Each route has different cost, control and exit implications, so match the structure to your horizon.

What does the buying process look like? Typically: a reservation agreement and deposit; a sale and purchase agreement (SPA); due diligence on the title deed (a Chanote is the strongest form), the developer's track record and any encumbrances; for off-plan, staged payments tied to construction and, ideally, escrow or a bank guarantee; and finally transfer of ownership at the Land Office. A licensed Thai lawyer independent of the seller should review the SPA and run the title search.

What taxes and fees apply? On transfer you can expect a transfer fee (commonly 2% of the appraised value), plus either specific business tax and stamp duty or stamp duty alone, and withholding tax on the seller. Who pays what is negotiable and should be set out in the SPA. Off-plan buyers should also budget for the sinking fund and common-area maintenance fees.

How do I protect myself? Verify the title deed and foreign quota independently; insist on escrow or bank guarantees for off-plan; check the developer's delivery history; never rely on a nominee company to hold land; and keep all foreign-currency transfer documentation. These steps are routine for experienced buyers and dramatically reduce risk.