Understanding Thai Leasehold vs. Freehold: What Every Foreign Buyer Must Know

Can I Buy Property in Thailand as a Foreigner? (2026 Rules)

Yes – foreigners can buy property in Thailand, but only in certain legal formats:

• Freehold (full ownership) – allowed
  But only up to 49% of condo units in a project.
• Leasehold (long-term lease 30+30+30) – fully allowed
  For villas, land, commercial units, townhouses, resort properties.
• Land ownership – only via legal Thai companies (strict compliance required)
  Not via nominees (illegal).

Now – let's break down the difference between freehold and leasehold and help you choose the right strategy.

Thailand Freehold vs Leasehold: Which Is Better in 2026?

Feature	Freehold (Condo)	Leasehold (Villa / Land)
Ownership	Full ownership	Right to use
Foreigners allowed	Yes (49% quota)	Yes (100%)
Duration	Unlimited	30 + 30 + 30 years
Asset types	Condos	Villas, land, resort units
Entry price	Higher	10–25% lower
ROI	5–7%	7–10%
Resale	Faster	Slower
Ideal for	Capital growth	High-yield rentals

Quick Comparison: Freehold vs Leasehold

Topic	Freehold	Leasehold
Ownership	Full, perpetual	Long-term lease
Best assets	Condos	Villas
Typical buyer	Investors, end-users	Lifestyle buyers, yield seekers
Fees	2% transfer	1% lease registration
Inheritance	Fully	Remaining term only
Liquidity	High	Medium
ROI	5–7%	7–10%

Read about: Types of property ownership in Thailand: freehold and leasehold.

Budget-Based Comparison: What You Can Buy (2026)

Budget	What You Can Realistically Buy
3–5M THB	Freehold studio / 1BR condo only
6–10M THB	Freehold 1–2BR condo or leasehold villa
10–15M THB	High-quality leasehold villa (1–3 BR)
20M+ THB	Luxury leasehold villa, rare freehold condos in prime zones

This table helps foreign buyers instantly understand their realistic options.

Where Freehold Works Best vs. Where Leasehold is Standard

Best Areas for Freehold (Condo Ownership)

• Bangkok – ideal for capital appreciation
• Pattaya – high rental yield for 1BR units
• Phuket: Bangtao, Cherng Talay, Rawai (condos)
• Samui – limited freehold supply, but available in selected condos

Best Areas for Leasehold (Villas & Land)

• Phuket: Nai Harn, Kata, Karon, Kamala, Layan, Cherng Talay
• Samui: Lamai, Bophut, Maenam, Plai Laem
• Koh Phangan: Srithanu, Hin Kong, Chaloklum

Most premium villas in Phuket, Samui and Phangan use leasehold – because foreigners cannot own land directly.

What Is Freehold?

Freehold = full ownership with your name on the Chanote title deed.

Foreigners can own:

• condo units
• up to 49% of a project
• with direct name registration

You must provide:

FET (Foreign Exchange Transaction)
or
Tor Tor 3 certificate

Without these documents you cannot repatriate funds later – a common mistake.

Common Freehold Mistakes

• Buying into "last foreign-quota units" without checking the quota status
• Transferring money in THB → no FET issued → no ownership
• Making bank transfers without proper purpose code
• Believing agents who don't explain tax residency or repatriation rules
• Not verifying that a condo project has a valid Condominium License

What Is Leasehold?

Leasehold = long-term registered lease (up to 30 years).

Contracts often include:

• 30-year lease
• + 30-year contractual renewal
• + 30-year renewal (third cycle)

This is the legally accepted 90-year model in Thailand.

Typical Structure of a Luxury Leasehold Villa

Most premium villa estates use the following structure:

• Land → leasehold 30+30+30
• Building → full ownership (superficies right)
• Management contract with villa operator
• CAM fees (common area fees) for estate maintenance
• Renewal mechanism clearly stated
• Bank guarantees or escrow-like milestones (for serious developers)

This structure is safe when executed with proper legal support.

Inheritance Rules Explained

Leasehold inheritance works in two ways:

1. Inheriting the leasehold rights

Heirs receive the remaining lease term (e.g., 24 years left).

2. Inheriting company shares

If the villa/land is owned by a Thai Co., Ltd. (common in luxury estates), heirs inherit shares, not the land directly.
This keeps control of the lease without re-registration.

This is why many premium villa estates use company-based structures.

Freehold vs Leasehold ROI: Which Performs Better?

Freehold condos:

• Lower entry risk
• High liquidity
• ROI 5–7% net
• Great for rental + resale

Leasehold villas:

• Higher nightly rates
• Bigger groups/families
• ROI 7–10% net
• Better for long-stay markets

Phuket & Samui villa markets outperform condos consistently.

DDA Case Studies

Condo (Bangtao) – Freehold

Price: 6.5M THB
Net ROI: 6.3%
Sold in: 14 months

Villa (Rawai) – Leasehold

Price: 13.9M THB
Net ROI: 8.7%
Booking rate (Nov–Apr): 100%

More about: Property investment in Thailand for foreigners.

DDA Insight: How to Choose the Right Structure

Choose freehold if you want:

• capital appreciation
• faster resale
• simplicity
• condo ownership

Choose leasehold if you want:

• villa living
• higher yields
• lower entry cost
• long-term lifestyle

Most clients choose both to diversify.

Read also: Property Maintenance Costs in Thailand, Which real estate in Thailand to choose: A new building or a ready-made apartment, Where It Is Better to Buy Real Estate in Thailand.

FAQ

Can foreigners own land?

Not directly.

Can leasehold be extended?

Yes, if contractually stated.

Can freehold be inherited?

Yes – fully.

Can leasehold be inherited?

Yes – remaining term or company shares.

Is leasehold safe?

With DDA due diligence – yes.

Looking to Buy Safely in Thailand?

Whether you're planning to purchase a freehold condo or a leasehold villa,
DDA Real Estate provides:

• legal due diligence
• foreign-quota verification
• FET/TorTor3 guidance
• developer vetting
• ownership structuring
• personalized investment strategy

Contact us today – the best foreign-quota units and premium villas sell out quickly.