Ownership Structures for Buying Property in Thailand

How Foreigners Can Buy Villas, Houses and Land in Thailand

For simplicity, we use the term “villa” to refer to any house, covering detached homes, semi-detached and terraced houses/townhouses.

Under Thai law, foreigners are not permitted to own land. However, they may legally own buildings. Therefore, if a foreigner wishes to purchase a villa, townhouse, house with land, or acquire land on its own, there are two main legal structures to consider for securing rights to use the land:

1. Thai Limited Company Ownership

One option is to hold the freehold of the land in a Thai limited company. The company must operate as a legitimate profit-making business, not merely as a holding vehicle for the property. It must maintain proper financial records, submit annual statements, and conduct shareholder meetings in compliance with Thai corporate law.

• Foreigners may own up to 49% of the shares.
• A minimum of two Thai shareholders is required.
• These Thai shareholders must not be nominees. They must have a genuine financial or business interest in the company. Paying dividends alone is no longer sufficient for the Thai shareholders not to be considered nominees.
• Legal safeguards are often included to give control to the foreign director(s). These may include:
  • Enhanced voting rights for foreign shares
  • Contract authority limited to foreign directors

Once the company is properly structured, it may legally hold the freehold land, giving the foreign investor indirect ownership rights over the land. The building itself (i.e. the house or villa) can be registered directly in the foreigner’s name or held within the company. There are advantages to either approach. Registering the building in the foreigner’s name offers added security by separating it from the company structure, while holding both the land and building in the company may offer benefits in terms of tax efficiency and ease of transfer. With the freehold held in the company, the investor can then sell, lease, or transfer the property, including passing ownership to heirs.

Note: In 2024, Thai authorities began stricter enforcement against nominee structures. It is essential that any company structure is fully compliant and has real operational purpose. This determination by the government to fully close the loophole of nominee-based corporate holding structures used by foreigners has not gone away and is fully evident. In May 2025, the Deputy Commerce Minister confirmed a new bill is being drafted to criminalise nominee arrangements, allowing asset seizures under financial crime legislation.
Source: Bangkok Post, “Minister calls for tougher law on nominee firms,” 28 May 2025

2. Leasehold of Land

An alternative to setting up a company is to acquire a lease on the land. The maximum lease term permitted under Thai law is 30 years. However, some agreements include additional renewal clauses, which may bring the total intended lease period to 60 or 90 years. In certain cases, the lease may also include an option to purchase the freehold title, subject to legal requirements.

• The foreign buyer may own the building outright – it can be registered directly in their name
• The lease on the land can also include an option to purchase the freehold

Condominium vs Apartment Ownership in Thailand

Thailand distinguishes legally between condominiums and standard apartments.

Condominiums

Condominiums are registered developments with a condominium licence. Foreigners may own up to 49% of the private area of the building on a freehold basis. The remaining 51% must be:

• Owned by Thai nationals
• Held via a Thai company
• Leased by foreigners

Apartments (without a condominium license)

Apartments in Thailand are legally distinct from licensed condominiums. Ownership is usually offered through:

• A 30-year lease, and/or
• Shares in the company that owns the freehold land and building

In some cases, the buyer receives both: a lease agreement and company shares. This is often referred to as a protected leasehold structure, offering more secure rights over lease renewal and land use.

Note: The same lease term rules apply to apartments as to land. Thai law limits the initial lease term to 30 years. However, lease agreements often include renewal options, which may extend the total intended lease period beyond 30 years, quite commonly with two additional renewal periods, bringing the total to 90 years.

Villas Within Freehold Condominium Projects

While most villas in Thailand are held via company or leasehold structures, a lesser-known option is villa ownership within a condominium-licensed project. These detached or semi-detached villas are classified as condominium units and can be owned freehold by foreigners.

This structure is more common in Phuket than in other resort destinations and offers a straightforward, secure alternative to company ownership for achieving perpetual usage rights.

It should be noted that this is not freehold land ownership in the pure legal sense – the land is held in common by all co-owners of the condominium. However, the foreign buyer owns the villa unit outright and has legal rights to exclusive use and indefinite occupation of the land beneath it, managed via the development’s registered juristic person.

Legal Reform Proposal (June 2024):
In June 2024, the Thai government announced proposals to extend lease terms to 99 years and increase the maximum foreign ownership quota in condominium projects to 75%, but no changes have yet been enacted into law. These proposals remain politically sensitive, and it is still unclear whether they will ultimately be passed.

Disclaimer:
This content is provided for general guidance only. Buyers should seek advice from qualified legal and tax professionals before making any decisions.