Phuket has long been one of the most attractive destinations in Thailand for international buyers. White sandy beaches, a cosmopolitan lifestyle, luxury villas and penthouses overlooking the Andaman Sea—these are the images that inspire people from around the world to own a piece of this paradise. Yet, while the dream of property ownership is universal, the reality for foreigners in Thailand comes with specific legal frameworks and restrictions. Understanding these is essential before stepping into a transaction.
This article provides a clear and in-depth overview of what foreigners can and cannot buy in Phuket, highlighting the legal possibilities, current restrictions, and future developments that may change the landscape.
Freehold Property for Foreigners: Condominiums and Penthouses
One of the most straightforward options for foreigners in Phuket is the purchase of condominiums. Under the Thai Condominium Act, foreigners are legally allowed to own condominium units in their own name, provided that no more than 49% of the total floor area of the condominium project is owned by foreigners.
This rule has shaped Phuket’s real estate market for decades, with developers designing projects that cater specifically to international buyers. For foreign investors, this translates into the ability to purchase freehold condominiums—whether they are studio apartments, luxury penthouses, or high-end residences with sea views.
Owning a condominium in freehold means complete ownership, including the right to resell, mortgage, or bequeath the property. Maintenance and management fees ensure the common areas are well maintained, and property titles (chanote titles) are clear and recognized. For many foreign buyers, this is the simplest and safest way to secure property in Phuket without needing complex ownership structures.
Penthouses—often occupying the top floors of luxury developments—fall under the same rules. Whether you are buying a one-bedroom unit or a multimillion-dollar penthouse, the legal foundation is identical: freehold condominium ownership is fully legal and transparent.
Land and Villas: The Restrictions
Unlike condominiums, land ownership for foreigners is generally prohibited. Thailand maintains strict laws that prevent foreigners from holding land titles in their own name. This restriction includes standalone villas, houses, or townhouses built on private land.
This does not mean, however, that foreigners cannot enjoy villa living in Phuket. Several legal and practical solutions have been developed over the years to address this demand, with leasehold arrangements being the most common.
Leasehold: 100% Legal and Secure
Leasehold agreements are the backbone of villa ownership for foreigners in Phuket. Thai law allows foreigners to lease land or property for up to 30 years, with the possibility of renewal clauses that extend the term. While renewals are not automatic under the law, most contracts are structured with two possible renewals of 30 years each, giving a practical duration of 90 years.
In practice, this means a foreigner can secure a villa on a 30-year lease, with contractual rights to renew the lease at the end of the term. During the lease period, the lessee enjoys the same rights as an owner, including the ability to resell the leasehold, rent the property, or pass it on to heirs.
Importantly, leasehold contracts are registered with the local land office, providing security and legal recognition. Buyers should always ensure their lease is properly registered, as only registered leases provide enforceable rights.
The Serious Proposal to Extend to 99 Years
Over the last few years, there has been significant discussion in Thailand about modernizing property laws to attract foreign investment, especially in high-value real estate markets like Phuket. One of the most serious proposals involves extending leasehold terms for foreigners to 99 years.
This proposal, which has been raised at both local and national levels, is aimed at making Thailand more competitive with other Asian markets, such as Singapore, Malaysia, and Vietnam, where foreigners enjoy more favorable ownership rights.
If approved, a 99-year leasehold would give foreigners greater confidence and long-term security, effectively allowing families to treat leasehold properties as generational assets. Developers in Phuket have already responded to this discussion, offering contracts that anticipate longer lease terms once the law is clarified.
Options to Buy During Lease Period
Another innovative solution in Phuket’s property market is the inclusion of purchase options within lease contracts. This means that during the lease period, the lessee has the contractual right to purchase the property if and when Thai law allows it.
For example, a foreign buyer may lease a villa for 30 years with two renewal terms. Within this lease, the contract may include an option to convert the leasehold into freehold ownership should the law change in the future, or if the buyer becomes eligible to purchase through other structures (for example, by setting up a Thai company or through marriage with a Thai national).
This structure not only gives the lessee long-term use of the property but also keeps the door open to eventual freehold ownership. It also provides flexibility in terms of resale: the lease, along with the purchase option, can be transferred to another eligible buyer, making the property more attractive on the secondary market.
Eligible Buyers and Transfer of Leasehold
One of the advantages of leasehold is that it can be transferred. If a foreign buyer decides to sell during the lease period, the remaining years can be assigned to a new lessee. This makes leasehold villas and townhouses a viable investment option, as they retain resale value.
When structured with an option to buy, the leasehold becomes even more appealing. The new buyer not only acquires the remaining lease years but also inherits the right to convert to ownership should the law change or if they meet eligibility criteria.
This flexibility ensures liquidity in the market, which is essential for foreign investors who may eventually want to exit their investment.
Why Leasehold Remains Attractive Despite Restrictions
Critics often point out that leasehold is not the same as freehold ownership. While this is true, it is also important to recognize that leasehold in Phuket has been a stable, secure, and widely used structure for decades. Thousands of villas are currently owned and enjoyed by foreigners under leasehold agreements without issue.
Furthermore, the lifestyle benefits of owning a villa in Phuket—privacy, space, private pools, and proximity to world-class beaches—often outweigh the legal limitations. For many, the 30-year renewable leasehold structure provides more than enough security for their intended use, whether as a holiday home, retirement residence, or investment property.
Looking Ahead: Evolving Laws and Market Opportunities
The Thai government has consistently shown interest in attracting foreign investment, particularly in the property sector. The COVID-19 pandemic accelerated this conversation, as policymakers looked for ways to stimulate the economy and support tourism-driven provinces like Phuket.
The proposal to extend leasehold to 99 years, coupled with flexible ownership options, indicates a willingness to adapt. While these changes take time, foreign buyers should feel reassured that the legal environment in Thailand is moving in a direction that favors long-term investment.
In the meantime, freehold condominiums and leasehold villas remain fully legal, secure, and popular. Phuket’s property market continues to thrive, with demand from Europe, Russia, China, and increasingly, the Middle East and North America.
Buying property in Phuket as a foreigner comes with restrictions, but also with clear legal avenues that make ownership possible and secure. Freehold condominiums and penthouses are fully open to foreigners without restriction, while villas and land are accessible through leasehold arrangements that are 100% legal.
With serious proposals to extend lease terms to 99 years and options to purchase during the lease period, the landscape is evolving toward greater flexibility and long-term stability.
For anyone dreaming of a home in Phuket, understanding these frameworks is the first step. With the right legal advice and a well-structured agreement, foreigners can confidently secure a piece of paradise and enjoy the lifestyle that has made Phuket one of the world’s most desirable destinations.
