Freehold vs leasehold in Thailand: what it means for a foreigner
In Thailand there are two forms of property ownership: freehold and leasehold. We explain the difference, what the foreign and Thai quotas within freehold actually mean, what the transfer costs are, and which option suits whom.
This is the first question buyers from abroad ask, and rightly so: the form of ownership affects both the price of a unit and how easily you'll be able to sell it later.
There are only two forms: freehold — ownership, and leasehold — long-term lease. Within freehold there's an additional split into foreign and Thai quota, and it's precisely this split that people most often mistake for separate forms of ownership. Let's break it down honestly — the pros, the cons and the fine print.
The basic rule: land and units are different things
One restriction in Thai law determines everything else:
A foreigner cannot own land. But a foreigner can own a condominium unit directly, registered in their own name.
That's exactly why foreigners in Pattaya mostly buy condominiums. A villa or a house with a plot means land, and different mechanisms apply here — see below.
Freehold — ownership
Full ownership: no time limit, a title document in your name, the right to sell, rent out, bequeath or gift it.
For condominium units the law divides each building into two parts: no more than 49% of the total floor area may belong to foreigners — this is the foreign quota — while the remaining 51% makes up the Thai quota.
The ownership right itself is identical in both parts. What differs is only who it can be registered to — and, consequently, the price and how easily the unit can be resold.
Foreign quota (foreign freehold)
The cleanest option. The unit is registered in your name, and you receive a chanote — the title deed — at the Land Department.
- Ownership is perpetual, and you are the full owner
- You can sell, rent out, bequeath or gift it
- No Thai partners, companies or intermediaries required
- Easier to resell: the next foreign buyer wants exactly this
- More expensive than the same unit in the Thai quota — usually by 10–20%
- The money must come from abroad: you can't do it with cash
- In a popular building the foreign quota may already be taken
What's often left unsaid: to register a unit under the foreign quota, the funds must arrive from abroad in foreign currency. The Thai bank then issues a foreign exchange transaction certificate — without it the Land Department simply won't register the deal.
Two practical rules follow from this:
- You can't bring cash and buy under the foreign quota
- The payment purpose must state that the transfer is intended for a property purchase
The second point: the foreign quota in a particular building may already be exhausted. The building is popular, 49% has been sold — and no new foreign owners will appear there. Check this before you fall in love with a unit, not after.
Thai quota (Thai freehold)
The same 51%. The right itself is identical to the foreign quota — the only difference is who it can be registered to: a Thai citizen or a Thai company.
- Cheaper than a comparable unit in the foreign quota — usually by 10–20%
- No transfer of funds from abroad required
- A wider choice: there's always more Thai quota in a building
- A foreigner cannot register it directly in their own name
- The pool of future buyers is narrower, which affects resale
- A sale usually takes longer
Foreigners gain access to the Thai quota through a Thai spouse or through a Thai company. An example from the catalogue: a 30 m² studio in Riviera Santa Monica — this is precisely the Thai quota.
And here comes the most important warning in this article.
The scheme where "we set up a Thai company in which Thai shareholders own 51% only on paper" is against the law. Such shareholders are called nominees, and using them to circumvent restrictions on land and property ownership is illegal. The authorities periodically audit such companies.
A company as an ownership vehicle is legal and works — but only when it's a real company with real activity and real partners, not an empty shell. The difference is fundamental, and it should be assessed by a lawyer, not an agent.
If someone offers you a "nominee structure" as something routine, that's a reason to be wary and ask a lot of questions.
Leasehold — long-term lease
The second form. Here you're not the owner but a tenant for a long term. The lease is registered at the Land Department.
The maximum term of a single registered lease is 30 years. This is a statutory limit; nothing longer can be registered.
- Available to foreigners without quota restrictions
- Works where ownership isn't possible: villas, houses with land, plots
- Cheaper than freehold in the same project
- Tenant rights are protected by lease registration
You'll often be offered the "30 + 30 + 30" scheme with a promise of renewals. Here you need a clear head:
Only the first 30 years can be registered at the Land Department. A renewal is an obligation of the developer or owner, not an automatic right.
What will happen after 30 years if the property changes hands or the developer ceases to exist is an open question. This doesn't make leasehold something bad: for villas and land it's effectively the only legal route for a foreigner. But buy with your eyes open and ask a lawyer to check the renewal terms.
How much the transfer itself costs
Beyond the price of the property there are transaction costs. What they consist of depends precisely on the form of ownership — which is why we went through it in such detail.
Two practical notes:
- Who pays is a matter of negotiation. The law doesn't fix the split rigidly. Most often the transfer fee is split equally, while the taxes stay with the seller — but the contract can state anything, so read it carefully.
- The calculation is based on the appraised value, not the sale price. The Land Department charges its fees based on its own valuation of the property, which is usually lower than the market price.
What to choose
First choose the form, then the quota within it.
- A unit for yourself or for resale — freehold, foreign quota. The premium pays off on resale: the next foreign buyer will want exactly this. The most open foreign quota is in new projects at the launch of sales.
- A limited budget and a long horizon — freehold, Thai quota with a lawyer. A reasonable option, but only with an honest ownership structure and no nominees.
- A villa or a house with land — almost always leasehold, since land ownership isn't available to foreigners. Read the renewal terms carefully.
One question worth asking first
When a unit is shown to you, ask: "Is this unit in the foreign quota or the Thai one?"
The answer should be immediate and unambiguous. If the seller hesitates, retreats into vague phrases or suggests "sorting it out later," that will tell you more than the rest of the conversation.
This is a general overview, not legal advice: every deal is unique, and the documents for a specific property should always be checked by a lawyer. We can arrange such a check.
If you want to understand your specific situation, get in touch. We'll tell you which quota a particular property is in, whether the foreign quota in a given building is still open, and what really should be checked before you put down a deposit.
How to check that a unit is in the foreign quota
Checking the quota is the first thing to do before a reservation. This is how it usually works:
- Ask the seller or developer. The answer should be specific: "the unit is in the foreign quota" or "in the Thai quota".
- Ask for a copy of the chanote. For resale, the condominium title deed shows the owner; if it is a foreigner, the unit is already in the foreign quota.
- Request a letter from the condominium juristic person. The management issues a letter stating how much foreign quota remains in the building and that the unit has no fee arrears.
- Fix the quota in the contract. The reservation and sale agreements should state explicitly that the unit is transferred under the foreign quota.
For new projects the developer secures the quota at reservation. If it turns out at the last moment that there is no foreign quota, the contract should provide for a refund.
What documents the owner receives
After registration at the Land Office you hold:
- the unit's chanote — the condominium title deed in your name;
- the bank's foreign exchange certificate — proof that the money came from abroad; keep it with the chanote;
- registration documents — receipts for fees and taxes paid;
- a letter from the condominium juristic person — confirming no arrears at the date of transfer.
The bank certificate is also needed when selling: it confirms you can take the sale proceeds out of Thailand.
Freehold in resale and new projects
On the resale market the unit already has a chanote, and you can see which quota it is in. The transfer happens at the Land Office, and ownership passes to you the same day.
In a new project you first sign a contract with the developer and pay in instalments. Ownership is registered only after construction is completed, when the building is registered as a condominium and a chanote is issued for each unit. Until then you hold a contract with the developer, so its reliability and the contract terms matter most.
Leasehold: what the contract should contain
If you are buying a villa or house through a long-term lease, the quality of the contract decides everything. Pay attention to:
- the lease term — up to 30 years, and the lease is registered at the Land Office, not just signed by the parties;
- renewal terms — how and on what terms the lease is renewed, and whether there is a renewal fee;
- transfer of rights — whether the lease can be assigned to another person on sale and whether it survives a change of landowner;
- inheritance — whether the lease passes to heirs if something happens to the lessee;
- rights to buildings — a house on leased land can be held separately by the foreigner, through a superficies right or a building permit in the lessee's name;
- costs — who pays land tax and maintenance.
The lease registration fee is 1% of the total rent for the whole term, plus 0.1% stamp duty.
A house on leased land
A foreigner cannot own land but can own a building. So a common structure is to lease the land long term and register the house on it to the foreigner. For this the building permit is issued in the lessee's name, or a superficies is registered — the right to own buildings on someone else's land.
This structure is legal and gives the foreigner more protection than a lease alone. But here too the terms should be checked by a lawyer and the Land Office.
Can a unit be registered to a Thai spouse?
Yes. If the spouse is a Thai citizen, a Thai-quota unit or land can be registered in their name. The foreign spouse signs a statement at the Land Office that the purchase money is the Thai spouse's personal funds. Legally only the Thai spouse becomes the owner.
This option suits families with trust and shared long-term plans. Before buying, discuss with a lawyer how to protect both spouses' interests, for example through a lease or a usufruct in favour of the foreign spouse.
Freehold and inheritance
A foreign-quota unit can be inherited like any other property. It is easiest to make a will in Thailand in Thai and English. A foreign heir must also meet the quota conditions: if the unit is already in the foreign quota, this is usually enough. Without a will, heirs establish their rights through a Thai court — slower and more expensive.
Selling and taking money out
A freehold unit is a liquid asset: you can sell it at any time. On sale the seller pays withholding tax and specific business tax or stamp duty, while the transfer fee is usually shared with the buyer by agreement.
If the unit was bought under the foreign quota with money transferred from abroad, the sale proceeds can be taken out of Thailand. The bank is shown the chanote, the sale documents and the foreign exchange certificate obtained at purchase. So keep all these documents for as long as you own the unit.
A foreign-quota unit is easier to sell: both foreigners and Thais can buy it. A Thai-quota unit can only be bought by a Thai buyer or Thai company, which narrows the market.
Other property rights: usufruct and habitation
Besides ownership and lease, the Thai Civil and Commercial Code provides several other rights registered at the Land Office:
- usufruct — the right to use a property and take income from it, for example by letting it, for up to 30 years or for life;
- habitation — the right to live in a house or apartment without the right to let it; can be for life;
- superficies — the right to own buildings on someone else's land, for up to 30 years or for life.
These rights are often combined: for example, land is registered to a Thai spouse, and the foreign spouse has a registered lifetime usufruct. This protects the foreigner even without owning the land. Which option suits your case is for a lawyer to decide after reviewing the situation.
Comparison: freehold and leasehold
| Freehold, foreign quota | Freehold, Thai quota | Leasehold | |
|---|---|---|---|
| What you buy | ownership | ownership | lease right |
| In whose name | yours | a Thai citizen or company | yours |
| Term | perpetual | perpetual | up to 30 years per registration |
| Used for | condominium units | condominium units | villas, houses, land |
| Price | higher | 10–20% lower | lower than freehold in the same project |
| Resale | easiest | harder | depends on the contract terms |
How we help with ownership structure
For every property in our catalogue we check in advance which quota it is in and whether the building still has foreign quota open. When you buy, we help with the money transfer and payment purpose, request a letter from the condominium juristic person and accompany registration at the Land Office. For villas and Thai-quota deals we bring in a lawyer to check the contract and ownership structure. That way you know exactly what you are buying and how you can sell it in future. If you already have a contract or an offer from another seller, send it to us — we will tell you what to look out for.
Common mistakes by foreign buyers
- Not checking the quota before reserving. It turns out the foreign quota is full after the money has been paid.
- Transferring money without a payment purpose. Without the correct purpose the bank may not issue the required certificate.
- Trusting a "Thai company on paper". A nominee structure is illegal, and the risk falls on the buyer.
- Taking a lease renewal promise as a guarantee. Only the first period of up to 30 years is registered.
- Not reading the contract. Cost sharing, deadlines and refund terms must be clear before signing.
- Not involving a lawyer. For villas and the Thai quota, a lawyer's check is an essential step.
How long registration takes
On the resale market a freehold apartment deal usually takes two to six weeks: most of the time goes on transferring money from abroad and obtaining bank confirmations, while registration at the Land Office itself takes one day. A villa leasehold takes longer: a lawyer checks the land title, prepares the lease and, if needed, superficies documents, after which the lease is registered at the Land Office. For a new project the timing depends on construction: ownership can be registered only after the building is completed. You do not have to come in person — the deal can be done under a power of attorney.
Read also: how ownership works for foreigners next door — buying property in Cambodia.
Frequently asked questions about freehold and leasehold
Can a foreigner own an apartment in Thailand?
Yes. A foreigner registers a condominium unit in their own name under the foreign quota — this is perpetual ownership (freehold) with a chanote title deed from the Land Office. A foreigner cannot buy land.
How does the foreign quota differ from the Thai quota?
The ownership right itself is the same. Foreigners may own no more than 49% of a building's floor area — this is the foreign quota; the other 51% is the Thai quota, registered to a Thai citizen or Thai company. A Thai-quota unit is usually 10–20% cheaper but harder to resell.
Can I buy under the foreign quota with cash?
No. The money must come from abroad in foreign currency, and the payment purpose must state that it is for buying property. Without the bank's foreign exchange certificate the Land Office will not register the transfer.
How long is a leasehold?
A single lease can be registered for a maximum of 30 years. "30 + 30 + 30" renewals are an obligation of the developer or owner, not an automatic right, so their terms should be checked with a lawyer.
How can a foreigner buy a villa or house with land?
A foreigner cannot own land, so villas and houses with land almost always use leasehold — a registered long-term lease. Structures with nominee Thai shareholders in a company are illegal.
Who pays the transfer costs?
The law does not fix this strictly — the split is set in the contract. Most often the transfer fee is shared equally, while taxes stay with the seller. Fees are calculated on the Land Office appraised value, not the sale price.
See also
Read also
Property Taxes in Thailand 2026: Buying, Owning and Selling
Buying an Apartment in Vietnam 2026: Rules for Foreigners
Buying Property in Cambodia 2026: Rules for Foreigners
Sources
- Thailand's Condominium Act — the 49% limit on foreign ownership of a building's floor area
- Transfer fees and taxes — rates published by the Thai Land Department
Department of Lands, Thailand — https://www.dol.go.th
Condominium Act B.E. 2522 and Thai Civil and Commercial Code — https://www.krisdika.go.th
This blog is written by Anna — Realty 51’s AI guide. The agency team checks the facts against open sources; still, errors are possible — double-check the details with us. Base any decision about buying, renting or relocating on the documents of the specific property and on professional advice.