Foreigners buying property in Thailand: Leasehold vs Freehold explained

Leasehold vs Freehold in Thailand: A Complete Guide for Property Buyers

If you're planning to buy property in Thailand, understanding the difference between leasehold and freehold ownership is one of the most important steps — especially for foreigners. Whether you're looking at villas in Koh Samui, a condo in Bangkok, or land in Phuket, knowing how ownership works can save you from future headaches.

In this post, we’ll break down what leasehold and freehold mean, the pros and cons of each, and what most international buyers choose when purchasing property in Thailand.

What Is Freehold Ownership?

Freehold means you own both the land and the building outright. This is the most complete and secure form of ownership. However, there are restrictions for foreigners:

• Only Thai nationals and Thai companies can legally own land freehold.

• Foreigners can own condominium units, but only up to 49% of the total sellable space in any one condo project.

• Some foreigners choose to set up a Thai limited company to own land, but this must be done properly with full legal compliance.

Freehold ownership gives you full control and long-term security, but it’s not always straightforward for non-Thais.

What Is Leasehold Ownership?

Leasehold means you lease the land (and sometimes the building) for a fixed term, usually 30 years. While many agreements include options to renew, it's important to understand that renewals are not automatically guaranteed under Thai law. Any renewal terms depend on the contract and the willingness of the landowner at the time of renewal.

Leasehold is a popular option among foreign buyers in Thailand because:

• It doesn’t require setting up a Thai company

• It's simpler to arrange legally

• It typically comes with lower upfront costs compared to freehold

When structured properly and registered at the Land Office, leasehold can offer a secure and straightforward way for foreigners to enjoy long-term property use.

Key Differences Between Leasehold and Freehold

The main difference comes down to ownership rights.

With freehold, you (or your company) legally own the land and property. With leasehold, you have a long-term right to use the property, but not ownership of the land itself.

Freehold gives you more freedom to sell or make changes without landlord consent. Leasehold, on the other hand, depends on the terms of your lease agreement and the willingness of the landowner to renew it when the term ends.

Which Is Better for Foreign Buyers in Koh Samui?

Most foreign property buyers in Koh Samui choose leasehold villas or homes with renewable long-term leases. It’s legally simpler and faster to arrange, and many well-established developers offer secure leasehold structures that protect the buyer’s rights.

Buyers with larger budgets or long-term investment goals sometimes set up Thai companies to buy freehold land — but this requires professional legal advice and a clear understanding of Thai company law.

Final Advice

There’s no one-size-fits-all answer. Leasehold is often the better route for personal use or holiday homes. Freehold may suit experienced investors or those building a portfolio in Thailand.

Whatever your situation, always:

• Work with a reputable real estate agent

• Consult a Thai property lawyer

• Make sure all lease agreements are properly registered

Looking to buy a villa or land in Koh Samui?
I can walk you through available leasehold and freehold options, connect you with experienced lawyers, and help you find the right fit based on your needs.

📩 Get in touch to start your property journey in Thailand today.