When buying property in Thailand, especially as a foreign buyer, understanding the difference between leasehold and freehold ownership is essential. Each structure comes with its own legal framework, benefits, and limitations, and choosing the right option can significantly impact your investment strategy.
Below is a clear overview of the key differences to help you make an informed decision.
Leasehold Ownership in Thailand
Leasehold is a widely used and legally recognized ownership structure for foreign property investment in Thailand. Under this arrangement, foreigners can hold 100% ownership rights to the property through a long-term lease, while the land itself is owned by a Thai company with 100% Thai shareholders. This structure helps reduce legal risks related to nominee or proxy ownership.
A leasehold agreement is granted for an initial 30-year term and can be renewed twice for additional 30-year periods, allowing a total potential lease duration of up to 90 years. Importantly, leasehold rights are fully transferable, meaning the owner can sell or assign the lease to a third party, who will receive a new lease term along with the agreed extensions.
Leasehold ownership is often preferred by foreign investors seeking flexibility, legal clarity, and strong rental potential.
Freehold Ownership in Thailand
Freehold ownership provides permanent ownership of the property unit. However, under Thai law, foreign ownership is limited to 49% of the total units in a condominium project. Once this quota is filled, additional foreign buyers must consider alternative ownership structures.
In this project, the first phase is offered as leasehold only. Depending on demand and legal availability, future phases may offer freehold units, although availability cannot be guaranteed.
Freehold ownership may appeal to buyers focused on long-term personal use or those who prefer permanent ownership where legally available.
Which Option Is Right for You?
Both leasehold and freehold structures can be secure and attractive when properly structured. The right choice depends on your investment goals, usage plans, and long-term strategy in Thailand.
Foreign buyers are encouraged to seek professional advice to determine which ownership model best aligns with their needs.