Thinking of Buying a Condo in Phuket? Here’s Why So Many Foreigners Do So!

Buying a condo in Phuket can be a smart investment and a gateway to tropical island living. Foreigners are allowed to own condominium units in their own name in Thailand, making this one of the most straightforward ways for a non-Thai national to own property here.

Phuket is one of the most popular places in Asia for investors to buy property. The beautiful scenery, the stunning beaches, and the amazing Thai culture are all obvious attractions. In fact, Phuket has so much to offer that the potential for this amazing island is immediately evident to visitors.

Whether as a home or an investment property, people are extremely comfortable buying foreign freehold condos on the island. This is because they offer the best form of ownership for foreigners.

See our Phuket condominiums for sale.

In this article, we aim to cover the following areas:

  • Why Buy a Condo in Thailand?
  • Why Buy in Phuket?
  • Understanding the Phuket Property Market
  • Is a Phuket Condo Purchase a Good Investment?
  • What Kind of Return on Investment You Can Expect?
  • What’s the Cost of a Condo in Phuket?
  • What Are The Best Areas of Phuket in Which to Buy a Condo?
  • What Other Costs are Involved with Buying a Condo?
  • What to Watch Out For if You Buy a Condo!
  • The Full Purchase Procedure When Buying a Condo
  • Planning for Inheritance

What is a Condo and Why People Choose them Over Other Types of Property?

Some people are not familiar with the term “condominium” because that specific legal structure is not used in their home country.

Many people think of condos as multi-storey structures with hundreds of unit, but a condominium isn’t necessarily a type of building, but rather that building’s legal structure, or form of property ownership it offers.

The easiest way to define a condo is a building in which the owners, in additional to their individual units, jointly own everything within the complex. The size of each unit then determines each person’s fractional ownership of the common area.

This means you own a percentage of the gardens, swimming pools, gymnasium, corridors and reception areas, all of which form a part of the common areas.  In fact, your title will state the size of your condominium unit, the total common area of the resort, and your percentage ownership of that common area. (Your fractional ownership will also correspond to the voting rights you have within the owners association.)

It is this favourable legal structure which compels many investors to choose to buy a Phuket condominium over any other type of property.

Why Buy a Condominium in Thailand?

A condominium is the only form of true freehold ownership available to foreigners in Thailand.

While foreigners can lease land or villas for up to 30 years, or own property through a minority stake in a Thai company, only a condo allows full ownership in your own name. This is registered at the Land Department and comes with a freehold (Chanote) title, granting permanent ownership.

The Thailand Condominium Act (1979) makes this possible. It also includes strong investor protections, with amendments over the years to safeguard both Thai and foreign buyers.

By law, foreign ownership in any condominium project is limited to 49% of the total unit area. The remaining 51% must be Thai owned.

Importantly, foreign condo owners receive the same legal protections as Thai owners under the Act.

Thanks to this legislation, foreigners have been investing in Phuket condos with confidence for decades. Once purchased, the condo is entirely yours — until you decide to sell.

You can learn more about this law here:

The Things All Phuket Condominium Investors Should Know About the Condominium Act

Why Do People Choose to Buy a Condominium in Phuket?

Beyond freehold ownership, many buyers are drawn to condos because they are easy to manage compared to houses or villas.

With a condo, building maintenance is handled by the Condominium Juristic Person (CJP). This management body oversees staff, maintenance, and daily operations to ensure everything runs smoothly.

As an owner, you’re only responsible for what’s inside your unit—things like cleaning, utility bills, or fixing a leaky tap or broken air con. Any issues in the common areas, however, fall under the CJP’s responsibility.

If your condo is used purely as an investment and part of a rental program, the CJP also handles maintenance and repairs.

Condos also offer great security for holiday homeowners, with features like 24-hour guards and CCTV. Most developments also include a pool, gym, and landscaped common areas—all maintained by the CJP. Owners can simply relax and enjoy their tropical property.

If you want to learn more about the role of the CJP, read this article:

Buying a Condominium in Phuket: What is a Condominium Juristic Person (or CJP)?

So in addition to the legal advantages of condo ownership in Thailand, buyers enjoy convenience, security, and strong rental potential.

For a full breakdown of the benefits, see:

The Benefits and Advantages of Buying a Freehold Condominium in Phuket

Why Choose Phuket Over the Rest of Thailand?

Phuket stands out as Thailand’s most sought-after destination for condo buyers. With its stunning beaches, world-class amenities, and modern infrastructure, it offers a lifestyle that’s hard to match.

Unlike many other parts of Thailand, Phuket combines natural beauty with convenience. You’ll find international schools, hospitals, restaurants, golf courses, and marinas—everything you need for long-term living or a successful investment.

Most importantly, Phuket has a large expat community and a well-established property market, giving foreign buyers confidence, transparency, and strong potential for capital appreciation and rental returns.

Understanding the Phuket Property Market

Phuket’s property market has grown steadily over the past two decades, largely driven by tourism. As visitor numbers rise, so does demand for real estate, particularly condominiums.

Unlike Bangkok, Phuket hasn’t experienced the same boom-bust cycles. Prices tend to remain stable, and buying a condo in Phuket has become a popular option for tourists and investors alike — many make purchases on their first visit.

The island’s appeal is supported by continuous infrastructure upgrades, like the expansion of Phuket International Airport, which boosts tourist capacity and investor confidence.

Because tourism fuels both the economy and the real estate market, buying a condo in Phuket remains a smart move for those seeking long-term value in a stable, resort-driven location.

Want to learn more about Phuket’s growing tourism industry? Read our full article here: How Much More Can Thailand’s Tourism Industry Grow?

Is Buying a Condo in Phuket a Good Investment?

Buying a condo in Phuket is considered a smart investment thanks to the island’s growing tourism sector and continuous infrastructure improvements. With millions of visitors each year, many developments are designed to meet investor demand, offering modern amenities, bold designs, and high build quality.

These projects often include fitness centres, pools, restaurants, and even retail spaces, making them attractive to both owners and holiday renters.

Phuket’s appeal is further enhanced by its excellent healthcare, education, and shopping options. Unless tourism faces a long-term decline, buying a condo in Phuket is likely to remain a sound investment.

What Kind of Investment Returns Can You Expect When Buying a Condo in Phuket?

When buying a condo in Phuket, investors can often secure guaranteed rental returns of 6–9% for up to 10 years. In many cases, rental income can repay the initial investment within just over a decade.

Phuket’s resilient tourism industry has weathered economic crises, health outbreaks, and even natural disasters, yet rental demand has remained strong. For savvy buyers who choose the right development, both rental income and capital growth make buying a condo in Phuket a rewarding long-term investment.

What Are the Best Areas to Buy a Condo in Phuket?

Phuket offers a wide variety of areas to suit different lifestyles. Many buyers choose familiar spots they’ve enjoyed on holiday, but it’s worth exploring the island before committing, each area has its own vibe and pros and cons.

Do you prefer vibrant nightlife or a quiet retreat? Mountains or beachfront? Sunset or sunrise views? Your property advisor can help match your preferences to the right location.

We’ve outlined the 21 most popular areas to help you compare. Read more here:

A Comprehensive Guide to the Best Locations to Buy Property in Phuket

What Other Costs Are Involved When Buying a Condo in Phuket?

Aside from the purchase price, buyers should be aware of standard taxes, fees, and ownership-related costs.

New Builds:
Developers usually split the 6.3% transfer fee with buyers, so it equates to 3,15% for each party. If you’re buying a foreign freehold unit, expect to pay an additional freehold upgrade fee, which can range from 150,000 to 500,000 Baht, or sometimes a percentage of the sale price.

Resale Units:
Costs vary depending on the seller’s profit and how long they’ve owned the unit. Typically, you’ll split the fees 50/50, with total costs around 1-2% of the sale price.

Sinking Fund:
This one-time payment covers future maintenance and repairs. It’s usually 500-700 Baht per sqm.

Common Area Maintenance Fee (CAM):
This covers upkeep like security, pool cleaning, and gardening. Expect around 50 Baht per sqm per month, either billed monthly or quarterly.

You can learn more about sinking funds here and common area fees here.

What is a Condominium Sinking Fund?

What is the Common Area and the Common Area Fee?

What to Watch Out For if You Buy a Condo in Phuket

While there are many benefits to owning a condo in Phuket, buyers should be aware of a few key risks:

1. Hotel Licensing:
If you plan to rent short-term, confirm whether the building has a hotel license. Without one, daily rentals via platforms like Airbnb may be restricted.

Read more on Hotel Licensed Condominiums: 

2. Off-Plan vs. Completed Projects:
Off-plan condos often offer discounts but carry risks. Make sure you understand both the benefits and risks before committing.

Benefits Of Buying Off Plan | Risks of Buying Off Plan

3. Developer Reputation:
A financially weak or overleveraged developer poses risks. Always check their track record.

Why Developer Reputation Matters 

4. Dirty Land:
Avoid projects built on illegally acquired or “dirty” land. The government can reclaim such land at any time, even years later.

Learn More About Dirty Land 

5. Freehold vs. Leasehold:
Freehold offers better long-term value. Leaseholds may suit some lifestyles, but they generally don’t appreciate over time.

Learn more: Freehold vs Leasehold 

The Pitfalls: Why Leaseholds Carry Risk 

Thai Company Ownership Option – Not Recommended  

The Purchase Procedure When Buying a Condo in Phuket

Once you have decided to “take the plunge” into the Phuket property market, by following guidelines you can ensure everything is done painlessly and efficiently.

If you adhere to these step-by-step, you will be enjoying your perfect Phuket condo in no time flat!

First, Hire a Good Phuket Lawyer

Hiring an experienced local lawyer is essential. They’ll carry out due diligence, confirm land ownership, check for mortgages or legal issues, and ensure the property is legitimate and safe to buy.

This protects your investment and helps avoid common risks, like buying on illegal land or from an unstable developer.

For more, see:
The Importance of Legal Advice
What Is Due Diligence? 

Paying a Reservation Deposit for Your Condo in Phuket

Before placing a deposit on a condo, it’s wise to have a lawyer review the sale and purchase agreement and conduct due diligence. This helps protect your deposit and ensures the development is legitimate.

Reservation deposits typically range from ฿100,000-฿200,000 or may be a percentage of the purchase price. You’ll need to provide your passport, after which the developer (or seller) drafts a pre-sale agreement and shares key documents like the title deed.

On resales, the seller’s lawyer prepares the paperwork, including the tabien baan (house book). Developers often move quickly to finalize agreements, especially if buyers are heading home after a holiday.

Your lawyer will confirm all payment terms, including taxes, transfer fees, furniture packages, sinking fund contributions, and, if applicable, the foreign freehold upgrade. The reservation deposit will be noted and deducted from the total balance.

For more, see:
The Risks of Placing a Reservation Deposit 

Transferring Money into Thailand for Your Condo Purchase

To legally register a condo in your name, Thai law requires that the purchase funds originate from overseas. Each transfer of US$50,000 or more must qualify for a Foreign Exchange Transaction Form (FETF) – a certificate your Thai bank issues upon receipt of funds. This document is essential for the Land Office registration.

When wiring money, clearly state that it’s for a condo purchase in Phuket and include the names of all buyers. For new builds, developers may accept direct transfers and help obtain the FETF.

Be sure to store your FETF safely, you’ll need it if you ever sell the condo and wish to repatriate funds. A good lawyer can guide you through the entire process.

Learn More About the FETF 

How to Send Your Money Correctly via Telegraphic Transfer (TT)

When wiring funds for buying a condo in Phuket, make sure the total transfer amount matches or exceeds the purchase price, and that the TT instructions clearly state the purpose e.g., “Purchase of condominium unit at [Project Name].” Include the full names of all buyers.

To process the Foreign Exchange Transaction Form (FETF), your Thai bank will require:

  • Sender and recipient names

  • SWIFT code and bank details

  • Amount sent and converted

  • Stated purpose (condo purchase)

Funds can be sent from a third-party account as long as the buyers’ names and purpose are clearly documented.

Will I Need a Thai Bank Account if I Buy a Condo in Phuket?

Whether you need a Thai bank account depends on your situation. If you buy a new condo directly from a developer, they may assist with the FETF process and even pay your rental income overseas, so a local account might not be necessary.

However, if you buy a resale condo and plan to rent it out, having a Thai bank account is highly recommended. It allows easy access to rental income and simplifies local transactions.

To open an account, you’ll usually need:

  • Your passport and arrival card

  • The Sales & Purchase Agreement

  • Your reservation deposit receipt

Most banks will only open an account after you’ve placed a deposit. A good lawyer or agent can guide you to a bank that works well with foreign buyers.

Will I Need to Go to the Phuket Land Office?

If you’re buying a new or resale condo in Phuket, you’ll typically not have to go to the Land Office to complete the transfer of ownership. Developers usually handle this for new builds, or your lawyer can go on your behalf with Power of Attorney.

You (or your lawyer) will need:

  • Your passport and immigration slip

  • A letter from the Condominium Juristic Person (CJP) confirming the foreign quota and no outstanding fees

  • Your FETF document

  • A banker’s draft for the remaining payment

  • Cash for transfer taxes and fees

  • A marriage certificate if your spouse will also be on the title

Your lawyer will guide you through the process. After signing the official paperwork and paying the fees, you’ll receive the Chanote title deed with your name as the legal owner.

Inheriting a Phuket Condo: Succession Made Simple

One major benefit of owning a Phuket condo is that it can be legally inherited by your loved ones. With proper planning, succession is straightforward, but without it, the process can become complicated.

To ensure a smooth inheritance, include your beneficiaries’ names on the initial bank transfer used for the purchase. Their names will appear on the FETF, satisfying Thai law that foreign condo owners must bring funds into Thailand from abroad.

Alternatively, some buyers use an offshore company (e.g. BVI or Seychelles) to hold ownership. Upon death, shares in the company can be passed to heirs, transferring condo ownership at the same time.

For more details, see:
What You Need to Know if You are Inheriting a Phuket Condo or Wish to Plan for Succession
Owning a Freehold Condominium through an Offshore Company

Getting the Keys to Your New Phuket Condo

Well, that’s about it. As the new owner of a Phuket condominium, you’ll only have a few loose ends to tie up before you either move in or start to rent it out.

The only other thing you’ll need to care of is ensuring the water and electricity metres are registered in your name. On a new development, the CJP or developer will normally assist you with this, but on a resale you will likely need the help of the selling agent or the old owner.

After that there is nothing else to do apart from enjoy your life or your holidays in this wonderful tropical paradise!!

If you’re still browsing options, view our latest Phuket condos for sale.

Frequently Asked Questions About Buying a Phuket Condo 

Can foreigners own a condo in Phuket?
Yes, foreigners can legally own a condominium in Phuket under the Foreign Freehold quota, which allows up to 49% of a condo building’s units (by area) to be owned by non-Thai nationals. The title is registered at the Land Office in the foreign buyer’s name.

How much does it cost to buy a condo in Phuket?
Prices vary depending on location, project, and size. Entry-level condos inland can start around THB 2-4 million, while luxury beachfront units may exceed THB 70 million. Use our condo listings to compare prices.

What taxes and fees will I need to pay?
Typical costs include:

  • Transfer fee: 2% of the government-assessed value

  • Specific Business Tax (SBT): 3.3% (if applicable)

  • Stamp Duty: 0.5% (only if SBT not charged)

  • Withholding Tax: varies (typically 1% for private sellers)

  • All of the above are usually split 50/50 between the seller/developer and the buyer

  • Legal and due diligence fees are additional and highly recommended which will be an additional cost.

Is leasehold or freehold better for foreign buyers?
Freehold offers outright ownership and is often preferred if available.
Leasehold can be an alternative where freehold units are unavailable — but it’s essential the lease is well structured (30+30+30 years) and legally secured.

What Are the Best Areas to Buy a Condo in Phuket?

Popular locations include:

  • Bang Tao & Laguna – upscale resorts and investment potential

  • Patong – central and lively, great for rental yield

  • Rawai & Nai Harn – more peaceful, growing with digital nomads and families

  • Surin & Kamala – luxury living with sea views
    Explore our guide to Phuket’s best areas to buy

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