Types of property ownership in Thailand: freehold and leasehold
Freehold in Thailand is the equivalent of perpetual ownership of real estate, which exists in most countries.
Leasehold in Thailand is a long-term lease. A term of up to 30 years is registered with the Land Department. A contract may envisage later 30-year renewals, but each requires the landowner’s agreement and fresh registration; it does not guarantee 90 years of possession. Transfer and inheritance of the lease depend on the agreement.
The heirs should ideally be named in the contract at the stage of the transaction. This can be done later, but then legal services for changing the contract will cost 50–100 thousand baht (from 1,400 to 2,800 dollars).
A lease longer than three years is registered with the Thai Land Department. The owner may sell the property, but the registered lease generally binds the buyer until its term ends. Transfer of the lease to a third party and other tenant rights should be set out in the contract.
Quotas for foreigners in Thailand
There is a freehold quota for foreigners in Thailand. The area of the property on the site is divided into: 49% of the area is sold with the right of ownership (freehold), and 51% — with the right of ownership (leasehold).
The property purchased in the leasehold, with the consent of the owner and the availability of a free quota for foreigners in the building, can eventually be transferred to the ownership of the freehold with an additional payment, the amount of which is agreed individually. Usually, freehold properties are 5–10% more expensive.
Foreign individuals cannot register land plots in a freehold.
In Pattaya and Bangkok, freehold properties are most often bought. It is divided into a Thai 51% (for Thai citizens and companies) and a foreign 49% quota. The exceptions are premium projects on special plots of land in top locations: some of them can only be registered in a leasehold.
Features of owning apartments, condos, and villas in Thailand
Condominiums and apartment buildings differ in the form of registration and ownership.
Apartments (condos) in condominiums have separate cadastral numbers and can be registered with different owners in both freehold and leasehold. At the same time, foreigners can own only 49% of the condominium area by right of freehold, while foreigners can purchase the remaining 51% of the condo only in a leasehold.
From $128,000
Completion in: 2027.IV 295 units in total
From $171,000
Completion in: 2029.I 350 units in total
From $142,000
Completion in: 2027.I 859 units in total
From $123,000
Completion in: 2028.III 363 units in total
From $160,000
Completion in: 2028.I 542 units in total
From $140,000
Completion in: 2028.I 564 units in total
From $87,000
Completion in: 2028.II 452 units in total
From $116,000
Built in 2026 814 units in total
The apartments do not have separate cadastral numbers. A building with apartments can have only one owner, and the apartments themselves can be transferred to the ownership of the leasehold.
Since land in Thailand cannot belong to foreign individuals, only the apartment itself and a share of common buildings are transferred to ownership: swimming pools, gyms, etc. Residents can use common buildings on equal terms, regardless of the form of ownership — leasehold or freehold.
From $128,000
Completion in: 2027.IV 295 units in total
From $171,000
Completion in: 2029.I 350 units in total
From $351,000
Completion in: 2029.I 37 units in total
From $142,000
Completion in: 2027.I 859 units in total
From $123,000
Completion in: 2028.III 363 units in total
From $160,000
Completion in: 2028.I 542 units in total
From $140,000
Completion in: 2028.I 564 units in total
From $87,000
Completion in: 2028.II 452 units in total
Foreign buyers commonly use two contracts for a villa: freehold ownership of the building and a leasehold interest in the land. A genuinely Thai company may own land, but using nominee Thai shareholders to evade foreign-ownership restrictions is prohibited.
From $351,000
Completion in: 2029.I 37 units in total
From $594,000
Completion in: 2027.II 37 units in total
From $1,240,000
Built in 2026 45 units in total
From $669,000
Completion in: 2027.III 26 units in total
From $292,000
Built in 2024 150 units in total
Leasehold or freehold: the pros and cons
Foreigners purchasing property for investment purposes often prefer leasehold. Leasehold properties are typically 5–10% cheaper, and the leasing structure also reduces transaction registration and tax costs..
Pros of freehold and leasehold:
Freehold | Leasehold |
Unlimited property management | Property is not declared and is not subject to municipal annual tax |
No need to renew the contract every 30 years | Property price is lower by 5–10% |
No need to keep in touch with the owner | No transfer fee |
Cons of freehold and leasehold:
Freehold | Leasehold |
Property is declared and subject to property tax | Limited ownership |
2% property transfer fee | To sell or to renew the contract once every 30 years, it is necessary to keep in touch with the owner |
Property price is higher by 5–10% |
Freehold and leasehold taxes:
Freehold | Leasehold |
Property transfer fee — 2% | Lease registration fee — 1% |
Stamp duty — 0.5% | Stamp duty — 0.1% |
Annual municipal property tax — from 0.02% to 0.1% depending on the property value and number of registered residents | |
Withholding tax (income tax on sale) — from 1% to 35% depending on the value and tax status of the owner |
You can read more about property taxes in Thailand in our article.
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