Yes! Whether you’re looking for a holiday home, an investment property, or a permanent residence, understanding the legal options and working with trusted experts is key to making your dream a reality.
If you’ve fallen in love with breathtaking beaches and vibrant lifestyle of Phuket, you’re not alone. Many expats, digital nomads, and real estate investors dream of owning a slice of paradise in Thailand’s most renowned island destination.
Navigating Thailand’s property laws might seem complex, but with the right guidance, owning property as a foreigner can be straightforward and rewarding. This guide will walk you through the legal options, key considerations, and practical tips to help you make informed decisions about investing in Phuket real estate.
How can foreigners own properties in Phuket?
Here are popular ways many foreigners use to own properties in Phuket:
- Own properties by buying condominiums
- Own properties through leasehold agreements
- Own buildings but not land
- Use a Thai company to own properties
- Marry Thai people to own properties
1. Condominiums (Freehold Ownership)
One of the most accessible ways for foreigners to own property in Phuket is through condominiums. Under the Thai Condominium Act, foreigners can own up to 49% of the total floor area of a condominium project. This is outright ownership, also known as freehold.
The process of qualifying for condo purchase requires foreign currency funds to transfer through a Thai bank for Baht conversion. The ownership registration process takes place on the title deed system known as "Chanote" which grants full rights equivalent to foreign property ownership.
A condominium stands out as an investment choice because it provides the highest level of ownership control with minimal restrictions. Condominiums serve as excellent investment properties because they provide better rental prospects to both tourists and long-term tenants.
Advantages of owning a condo in Phuket:
- Foreigners can legally own a condo in Phuket under the foreign ownership quota, registering it in their name.
- Condo units come with a title deed, allowing owners to use them as collateral for loans in Thailand.
- Phuket's condominium prices are more affordable compared to major Asian markets like Hong Kong, Singapore, and Japan.
- Condos require less maintenance and fewer repairs than other types of properties.
- Condominiums are among the most attractive real estate investments, offering strong rental potential and hassle-free management.
2. Leasehold Properties
For those drawn to villas, houses, or other property types, leasehold agreements are a viable option. Foreigners can lease land or property in Thailand for an initial term of 30 years, with the possibility of renewing the lease for two additional 30-year periods (30+30+30 years).
This arrangement provides long-term stability while offering flexibility for those hesitant to commit to permanent ownership. However, to ensure protection under Thai law, the lease agreement must be registered with the Land Department. While the land itself remains under Thai ownership, you retain control over the leased property for the duration of the agreement.
If a lavish villa with luxury amenities catches your eye, leasing might be the way to go while offering relatively simple legal processes.
Advantages of buying leasehold properties in Phuket:
- A wider variety of property types to choose from.
- Complete control over maintenance and upkeep.
- Potential for strong returns over the leasehold period, with the option to renew the lease in the future
3. Owning Buildings (Without Land)
Foreigners are legally permitted to own buildings or structures, even if they cannot own the land itself. For instance, you can purchase a villa and register ownership of the building while leasing the land it sits on. This structure is particularly appealing for those interested in custom-built homes.
This option provides an opportunity to tailor your property to your preferences while adhering to Thai legal requirements.
4. Using a Thai Company
Foreigners who establish or invest in Thai companies can obtain land ownership through their business operations. A company must register in Thailand while Thai nationals must hold at least 51% of its total shares. The foreigner holds the right to control up to 49% of company shares but must follow Thai corporate laws to establish the operational framework without creating illegal nominee structures.
The setup of a Thai company through foreign investment requires complex procedures and additional administrative tasks yet provides benefits for substantial commercial ventures.
5. Thai Spouse Ownership
Foreign nationals who are married to Thai nationals can establish ownership through property acquisition under their spouse's name. Under Thai law, you must sign a declaration which states you have no rights to the property. This method enables you to benefit from property ownership but fails to grant you any legal rights to the property as a foreign national.
Legal Aspects to Consider When Buying Property in Phuket
Restrictions on Land Ownership
Under current laws, foreigners cannot legally acquire land ownership in Thailand. The law prohibits foreign ownership of land in Thailand and attempts to circumvent this restriction through informal or illegal methods can lead to property confiscation.
Hire Legal Experts
Working with a local attorney specializing in Thai real estate law is essential. They can assist with performing due diligence, verifying title deeds, and ensuring all documents are in compliance with Thai property regulations.
Taxes and Fees
When purchasing property, it’s important to account for all associated costs, including transfer fees, stamp duty, withholding tax, and legal fees. These costs can vary depending on the ownership structure, so working with a lawyer can help clarify your obligations.
Practical Tips for Buying Property in Phuket
- Choose Condominiums for Full Ownership
If owning property outright is your priority, focus on finding a condominium within the foreign ownership limit. This allows you to have full legal ownership without any complications.
- Lease for Flexibility
Interested in villas or landed properties? Leasehold agreements provide a flexible and secure solution for long-term investment. They offer a practical way to access premium properties without requiring full ownership.
- Work with Trusted Agents
Engage with reputable real estate agents familiar with Phuket’s market dynamics. Experienced agents can also help you avoid common pitfalls and fraudulent deals.
- Register Agreements with the Land Department
Ensure all lease or ownership agreements are registered with the relevant authorities to secure your legal rights. This step is crucial for protecting your investment and ensuring compliance with local laws.
- Research Neighborhoods
Phuket offers a diverse range of property types and locations. Take the time to explore each area thoroughly to ensure it matches your preferences and long-term goals.
- Inspect Property Thoroughly
Before committing to a purchase, hire professional inspectors to assess the property’s structural integrity, utilities, and other essential features. A detailed inspection can save you from costly repairs or surprises down the line.
Why Invest in Phuket Real Estate?
Phuket continues to attract global investors due to its thriving tourism industry, stunning natural beauty, and vibrant culture. Properties in this region also offer excellent potential for return on investment, thanks to the strong rental demand from tourists and digital nomads.
Whether you wish to settle in this tropical paradise or diversify your investment portfolio, understanding the legal framework and ownership options ensures a smooth experience.
For those still exploring their next steps, you can also consider options to rent property in Phuket to test the waters before committing to purchase.
Thailand Property Reforms on Phuket Properties
Thailand has recently introduced significant changes to its property laws to attract foreign investment and stimulate economic growth. As of June 2024, the Thai government has approved measures that extend property leaseholds for foreigners from 30 years to 99 years and increase the foreign ownership cap in condominium projects from 49% to 75%.
Key Changes:
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Extended Leaseholds: Foreigners can now secure property leaseholds for up to 99 years, providing greater long-term security and making real estate investments in Thailand more appealing.
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Increased Condominium Ownership Cap: The foreign ownership limit in condominium projects has been raised from 49% to 75%, allowing more extensive foreign participation in the condominium market.
Check out our article "Thailand Property Reforms Highlight Foreign Ownership Expansion and Longer Leases" for more information.
Final Thoughts on Properties in Phuket
Owning property in Phuket as a foreigner is not only possible but highly rewarding when approached with the right guidance. By understanding the legal options and working with trusted professionals, you can securely invest in one of Southeast Asia’s most dynamic real estate markets.
If you’re ready to make your dream of owning property in Phuket a reality, Nestopa can help. We specialize in helping expats, investors, and digital nomads buy property in Phuket, offering a seamless and trustworthy experience. Visit Nestopa today!
