Foreigners who wish to own property in Thailand face restrictions when it comes to land, but condominiums present a legal and straightforward path. Under the Condominium Act, a foreigner may hold a unit in their own name as long as the 49% foreign ownership quota is available. Another route that sometimes comes up is Phuket condo offshore ownership, where the unit is registered under a foreign company instead of directly in an individual’s name.

However, some foreigners choose a different approach: holding their Phuket foreign freehold condominium through an offshore company, often registered in jurisdictions such as the British Virgin Islands (BVI), Hong Kong, or Singapore. This practice is lawful under Thai law, but it is not without limitations or additional responsibilities.

This guide explains what offshore ownership means, how it works in practice, the benefits, the risks, and the alternatives so you can clearly understand where it fits within Thailand’s property framework.

What Offshore Ownership of Condos in Phuket Means

An offshore ownership structure involves registering a condominium unit in the name of a foreign company instead of directly in an individual’s name.

  • The offshore company is typically incorporated in a jurisdiction such as the BVI, Hong Kong, Singapore, or any other offshore jurisdiction.

  • The company becomes the registered owner of the condo at the Phuket Land Office.

  • The individual then owns the company shares, which indirectly control the condo.

This differs from leasehold or nominee arrangements – the company itself is the legal owner under Thai law, and the title deed is issued in its name.

Legal Basis: How Foreign Companies Can Hold Freehold Titles

Thai law recognises the right of foreign juristic persons to own condominium units. Section 19 of the Condominium Act allows foreign entities, including offshore companies, to register ownership as long as:

  • The condominium project is properly registered with the Land Office.

  • The 49% foreign ownership quota has not been exceeded.

  • All required documents establishing the company’s legal status are provided.

The Land Office may request a certified set of incorporation documents, proof of directors, and confirmation of shareholder structures before approving registration.

Section 19 of the Condominium Act allows foreign entities, including offshore companies, to register ownership as long as the condominium project is properly registered with the Land Office, the foreign ownership quota (49%) under the Condominium Act has not been exceeded, and all required documents establishing the company’s legal status are provided.

Benefits of Offshore Ownership Structures

Some foreign individuals prefer offshore company ownership because it can provide:

  • Succession flexibility – ownership can transfer via share transfer without registering a new deed.

  • Anonymity and privacy – the company is the registered owner, not the individual.

  • Asset protection – useful when property is part of wider international holdings.

  • Ease of transferability – in some cases, selling company shares can be more straightforward than a direct property transfer.

These advantages explain why offshore ownership remains a recognised, though relatively niche, option in Phuket’s property market.

Risks and Limitations to Be Aware Of

Despite being lawful, offshore ownership is not without its risks:

  1. Regulatory Scrutiny – Regulatory scrutiny is expected to increase, in line with global transparency initiatives, including OECD momentum on beneficial ownership. 

  2. Higher Costs – company formation and annual maintenance (accounting, compliance fees) can be significantly more expensive than direct ownership.

  3. Tax Implications – depending on the jurisdiction, offshore entities may face withholding taxes, capital gains treatment, or double-taxation considerations.

  4. Market Perception – resale may be harder, as not every buyer is comforable acquiring a property help in the name of a BVI or Hong Kong company.

Offshore Ownership: Costs, Compliance, and Exit Tax Liability

While offshore company ownership of Phuket condominiums is legally recognised, it comes with practical realities that every investor should weigh carefully.

1. Administrative and Ongoing Costs
Running an offshore company involves annual maintenance fees, registered office costs, accounting filings, and compliance obligations in both the jurisdiction of incorporation and Thailand. These costs may outweigh the benefits if the asset is relatively modest in value.

2. Land Office Scrutiny
The Land Office often applies stricter checks on offshore structures than on individual foreign buyers. Expect requests for:

  • Company registration and shareholder documentation

  • Proof of funds and source of income

  • Notarised and translated records

3. Foreign Exchange Transaction (FET) Rules
All funds must be remitted into Thailand in foreign currency and declared as a property purchase. While transfers above USD 50,000 require a formal FET form, best practice is to ensure every property-related remittance is properly documented. Originals should be retained for registration and for future resale repatriation.

4. Exit and Tax Liability
When a condominium is removed from an offshore company’s balance sheet — for example, by transferring it into personal ownership years later — the tax liability does not disappear. The final party in the chain may bear the accumulated tax obligations, which can become significant if values have appreciated. This is an often-overlooked risk that should be considered from the outset.

Bottom Line
Offshore ownership may be suitable for high-net-worth individuals seeking estate planning or asset protection. For most, however, direct foreign freehold ownership in personal name remains simpler, more cost-efficient, and easier to manage. Always seek both Thai and international legal advice before choosing this route.

Alternatives to Offshore Ownership in Phuket

For those who want a simpler or more cost-effective structure, there are several alternatives:

  • Direct Foreign Freehold – registering the unit in your personal name under the 49% foreign quota (the most straightforward and transparent method).

  • Thai Company with Majority Thai Shareholding – possible but comes under strict scrutiny to prevent nominee misuse.

  • Leasehold Agreements – registering a 30-year lease (renewable up to 90 years in practice), although it does not carry the permanence of freehold.

Which Option Makes the Most Sense?

For most foreign nationals, direct freehold in their own name is the clearest and least complicated route. Offshore company ownership is legitimate but more common in specialised circumstances, such as high-value estates, privacy-driven investors, or cases where property is being held as part of an international portfolio.

The “best” option depends on individual priorities: clarity, cost-efficiency, privacy, or succession planning.

FAQ: Offshore Ownership of Phuket Condos

Can an offshore company really own a Phuket foreign freehold condo?
Yes. Under Thai law, foreign companies can hold condominiums directly as long as the project quota allows it.

Is this the same as nominee ownership?
No. The offshore company itself is the registered owner, not a Thai nominee.

Why do some people use offshore companies instead of direct ownership?
Often for succession flexibility, privacy, or asset protection within a broader international investment structure.

Are there extra risks?
Yes, mainly higher costs, tax considerations, resale challenges, and closer scrutiny from regulators.

What’s the most straightforward alternative?
Direct registration in your personal name under the 49% quota remains the simplest and most transparent method.

Conclusion

Phuket condo offshore ownership is a lawful and acknowledged path for foreigners under the Condominium Act. While it offers privacy, flexibility, and succession advantages, it comes with higher costs, greater scrutiny, and more complexity than holding a unit in your own name.

For most people, direct foreign freehold ownership provides the clearest and most secure long-term approach. Offshore ownership, while legitimate, tends to suit specific circumstances rather than the majority.

By weighing the benefits, risks, and alternatives, anyone exploring this route can make an informed decision that aligns with both legal requirements and personal priorities.

Bottom line: Offshore ownership of Phuket condos is a recognised but specialised path. For most, direct foreign freehold remains the simplest option, but understanding all structures ensures you can make informed, secure decisions in Phuket’s property market.

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