Thailand is home to one of the most diverse real estate markets in Asia, with opportunities ranging from beachfront villas to urban condominiums. The country attracts international investors, retirees, and business owners not only for its variety of property choices, but also for its high-quality healthcare that is often more affordable than in the West, as well as its comparatively lower cost of living.

However, while demand remains strong, Thailand’s land ownership laws remain a source of confusion for many buyers. What can and cannot be purchased under freehold? How can a foreigner buy a landed property? Thai company or leasehold?

In this article, we will review Thailand’s property laws, outline the options for buying and leasing, and present scenarios to help you decide which approach best suits your goals.

Buying Real Estate as a Foreigner in Thailand

According to the law in Thailand, foreigners are prohibited from buying land in their own name. Even so, there are a few legal workarounds that make it possible to secure property rights, but these are dependent on personal circumstances and the kind of property you wish to acquire.

Condominium Units in Thailand

Foreigners are allowed to buy condominium units in Thailand under full freehold ownership. That said, some regulations exist: for instance, money for such a purchase must come from abroad and in foreign currency. Also, foreign ownership of a condominium development is capped at 49% of the total saleable area, with the remaining 51% reserved specifically for Thai nationals. This means that while you cannot own an entire building, you can still buy multiple condominium units across Thailand, provided the regulations are followed.

In practice, and in most regions with strong local demand, the 49% foreign quota is rarely exceeded. However, in some resort destinations with high demand from foreign buyers, the developers often opt to sell units in excess of this quota under leasehold ownership - normally at lower prices than freehold.

Land Ownership in Thailand Through a Company

Foreigners can sometimes buy land in Thailand through a company structure, but it is important to note that in this case, the land belongs to the company, with the foreign buyer as the director, with the sole authority to make the decisions on behalf of the company.

There are two main ways to buy land in Thailand through a company:

Thai Limited Company: You can hold up to 49% of the shares in a Thai Limited Company, while the remaining 51% must be owned by Thai nationals. In this case, the company is the legal landowner.
BOI-Promoted Foreign-Owned Company: In certain cases, a company that receives promotion from the Thailand Board of Investment (BOI) can be majority foreign-owned and may be allowed to own land for purposes directly tied to the company, such as office space and residences for employees. However, this is only tangentially related to residential property ownership, as it is most relevant only when it applies to company-owned housing.

Joint Ownership of Property with a Thai Spouse

If you are married to a Thai national, you can buy property in Thailand together under joint ownership. This can include condominiums, houses, or other types of buildings. Joint ownership of land is also possible, but the full ownership rights cannot be transferred to you through a will or divorce settlement.

In the event of a divorce, if you can demonstrate that your personal funds were used to buy the property, the court may consider it part of the marital assets. If that happens, the land will be sold and the earnings will be equally divided between you and your spouse.

Leasing Real Estate as a Foreigner in Thailand

In Thailand, most residential lease agreements run between 12 and 36 months, with the maximum lease term set at 30 years. If the lease term is longer than 3 years, it must be registered with the Land Department; the lessee’s name is included on the land’s title deed, creating an encumbrance – meaning that if the land is sold to a 3rd party, the new owner still has to honor the lease. When a lease term ends, it can be extended with the approval of both the lessor and the lessee.

It is also worth mentioning that structures built by the tenant on leased land are treated as separate from the land itself. This means you can own the house you had constructed on the leased property.

Leasing in Condominium Developments

In popular resort destinations such as Phuket and Pattaya, where demand from foreign buyers is particularly high, developers often offer units on a leasehold basis. This is due to the foreign ownership cap of 49% of the total saleable area in a condominium development, as mentioned earlier.

When the foreign quota is still available, developers may allow foreign buyers to acquire freehold ownership, usually for an added “freehold fee” charged either by unit type or per square meter. However, once the 49% quota has been reached, no additional freehold sales to foreigners are allowed, and the remaining units must be offered on a leasehold basis.

Benefits of Leasing Real Estate in Thailand

Leasing real estate in Thailand allows foreigners to enjoy long-term property use without the restrictions tied to land ownership and comes with several added benefits:

More Property Options: You will be able to access a broader selection of properties, including villas, houses, townhouses, land, and more.
Flexibility and Control: You will have more control over the property's upkeep and, with the lessor's approval, make modifications or improvements.
Transferrable Rights: Depending on the agreement, the leasehold rights can be transferred to another party or inherited.

Should Foreigners Lease or Buy Property in Thailand?

Deciding whether to lease or buy property in Thailand depends largely on your personal circumstances and long-term goals. Below are a few common scenarios to help you understand which option might be the most practical for you:

Investing for Profit: If your goal is to generate income, condominiums are the most straightforward option. They are easier for you to acquire than land or standalone houses, and they can provide steady rental returns driven by Thailand’s strong demand from tourists and expats. If you are aiming for shorter-term gains, buying a condominium in a high-demand area also gives you strong resale potential, though you will need to keep an eye on market trends and new infrastructure developments.
Owning a House: If your priority is long-term stability and the privacy of a standalone home, leasing land may be the best option. This arrangement allows you to design and build a house to your own preferences, while still retaining ownership of the structure itself.
Vacation Homes: If you are planning to visit Thailand often, buying a condominium can provide a convenient and low-maintenance option, since many developments offer management services to look after your unit while you are away. But if you are uncertain about how frequently you will return, choosing a short-term lease gives you the flexibility to have a place only when you need it.
Retirement: If you are planning to settle down in Thailand and already know the area you want to live in, a long-term lease can be a good option, as it reduces ongoing financial commitments. If you are still deciding, short-term leases give you the chance to experience different locations before making a final decision. And if you prefer a simple, low-maintenance lifestyle, condominiums remain an attractive option, especially if you are not interested in maintaining the property yourself.

Explore Real Estate Opportunities With Experts in Thailand

Whether you are searching for a vacation retreat, a retirement haven, or an investment opportunity in one of Thailand's most sought-after locations, the process can feel overwhelming without the right support.

At Sunway Estates, we specialize in helping international clients from around the world discover properties that truly fit their needs. From beachfront villas and luxury condominiums to investment opportunities in prime locations, our team combines local market insights with personalized service.

To take the first step in securing the property of your dreams, contact Sunway Estates today!

Should You Buy or Lease Property In Thailand?