Foreign Freehold, Thai Freehold and Leasehold: how foreigners own property in Thailand

The three ownership types every foreign buyer in Thailand chooses between. What they mean, what they cost, and which one fits your situation — including the parts most agents skip.

It is the first question overseas buyers ask, and rightly so. Ownership type determines both the price you pay and how easily you can sell later.

Here is the honest breakdown — upsides, downsides and the traps.

The core rule: land and apartments are different

One restriction shapes everything else in Thai property:

A foreigner cannot own land in Thailand. But a foreigner can own a condominium unit outright, in their own name.

This is why foreign buyers in Pattaya mostly buy condominiums. A villa or a house sits on land, so different structures apply — more on that below.

For condominiums the law allows foreign ownership with one limit: no more than 49% of the building's total area may be foreign-owned. That 49% is the foreign quota; the remaining 51% is the Thai quota.

Foreign Freehold — outright ownership in your name

The cleanest option. The unit is registered to you, and you receive the chanote (title deed) at the Land Department.

• Ownership is permanent and fully yours
• You can sell, rent out, gift or leave it to heirs
• No Thai partners, companies or intermediaries needed
• Easier resale: the next foreign buyer wants exactly this

What often goes unmentioned: to register a unit under the foreign quota, the money must arrive from abroad in foreign currency. The Thai bank issues documentation of the inbound transfer, and without it the Land Department will not complete the transfer.

Two practical consequences:

• You cannot bring cash into the country and buy under the foreign quota
• The payment purpose must state that the transfer is for a property purchase

There is a second catch: the foreign quota in a specific building may already be full. If the project is popular and the 49% is sold, no new foreign owners can be registered there. Check this before you fall in love with a unit, not after.

Thai Freehold — the same ownership, held by a Thai party

This is the other 51%. Legally it is identical full ownership — but only a Thai national or a Thai company can hold it.

• Cheaper than a comparable foreign-quota unit — typically by 10–20%
• No requirement to transfer funds from abroad
• Wider choice: Thai quota is always the larger share of a building

• A foreigner cannot hold it directly
• The pool of future buyers is smaller, which shows at resale
• Selling usually takes longer

Foreigners access the Thai quota through a Thai spouse or a Thai company.

And here comes the most important warning in this article.

The arrangement where "we set up a Thai company and the Thai shareholders hold 51% on paper only" is against the law. Those shareholders are called nominees, and using them to work around ownership restrictions is illegal. Authorities do run checks on such companies.

A company can be a legitimate ownership vehicle — but only when it is a real company with real activity and real partners, not an empty shell. The difference is fundamental, and a lawyer should assess it, not an agent.

If someone offers you a "nominee structure" as if it were routine, that is a reason to slow down and ask a lot of questions.

Leasehold — long-term registered lease

The third route: you are not an owner but a long-term tenant, with the lease registered at the Land Department.

A single registered lease runs for a maximum of 30 years. That is the statutory ceiling — nothing longer can be registered.

• Available to foreigners with no quota limits
• Works where ownership is impossible: villas, houses, land
• Cheaper than freehold in the same project
• Registration gives the tenant real protection

Projects often advertise "30 + 30 + 30" with promised renewals. Be clear-eyed about this:

Only the first 30 years can be registered at the Land Department. Renewal is a contractual promise from the developer or owner, not an automatic right.

What happens in 30 years if the property changes hands or the developer no longer exists is an open question. That does not make leasehold a bad choice — for villas and land it is essentially the only lawful route for a foreigner. But buy it with open eyes, and have a lawyer review the renewal terms.

What the transaction itself costs

Beyond the price of the unit there are transfer costs. Which ones apply depends on the ownership type — which is why we went through it in such detail.

Two practical notes:

• Who pays is negotiable. The law does not fix the split. Most commonly the transfer fee is shared 50/50 and the taxes stay with the seller — but the contract can say anything, so read it carefully.
• Costs are calculated on the appraised value, not the sale price. The Land Department charges fees against its own valuation, which is usually lower than the market price.

Which one to choose

In short:

1. Buying a condo to live in or to resell — go Foreign Freehold. The premium pays for itself when you sell.
2. Tight budget and a long horizon — Thai Freehold via a lawyer can make sense, but only with an honest ownership structure.
3. You want a villa or a house with land — almost always leasehold. Read the renewal terms carefully.

The one question to ask first

When you are shown a unit, ask: "Is this unit in the foreign quota or the Thai quota?"

The answer should be immediate and unambiguous. If the seller hesitates, talks around it, or suggests sorting it out later, that tells you more than the rest of the conversation.

This is a general overview, not legal advice: every transaction is different, and the documents of a specific unit should always be checked by a lawyer. We arrange that check.

If you want clarity on your own situation, message us. We will tell you which quota a given unit sits in, whether the building's foreign quota is still open, and what to verify before you put down a deposit.