SECTION 8: BUYING A FOREIGN FREEHOLD CONDOMINIUM IN PHUKET
Making the Right Choices
Investing in property is always a big decision. Buyers want to have the confidence that their real estate investment is a well-considered and safe choice.
The laws in many countries make property ownership pretty straightforward, but in Phuket foreigners are not allowed to own land, and this restriction extends to landed property such as villas and houses. A foreign buyer may, however, buy freehold condominiums, which can be registered in their own name at the local Land Department.
Equipped with the right information, foreign buyers can make informed decisions. They can also use that information to deflect the inaccurate statements and questionable advice that sometimes comes from agents or developers. In many cases, buyers do not find out that they have made poor investment decisions – or even that they have flouted Thai Laws – until it is too late.
In the following two sections, we aim to cover every aspect of the laws governing property ownership, and is intended to help those discerning investors who are looking to invest in the Phuket property market to make intelligent and educated decisions. The next two sections cover the various ways for foreigners to own a Phuket villa, either with a leasehold contract and/or obtaining freehold ownership through a Thai Company Limited.
Let’s start with foreign freehold condos!
Phuket Condominium Laws
Freehold condo ownership is fairly clear-cut, and is the best way for foreigners to own property in Phuket. Thai law states that a condominium complex may have up to 49% foreign ownership, meaning at least 51% of any complex must be owned by Thai nationals.
A condominium title includes part of the building, meaning every owner has a “fractional interest” in the building. This includes the common area such as the swimming pool, gymnasium, gardens, car park and the reception area. A condominium title should specify not only the size of the unit itself, but also the total common area (and what percentage is owned by each condominium unit). For foreign freehold condo owners in Phuket, that fractional interest also represents the voting interest the owner will hold within the residents or owners association.
One of the many benefits and advantages of a freehold condominium is that it can be fully and legally owned by a foreigner. The condo ownership is permanent and in perpetuity until the owner decides to sell it.
Another benefit of a Phuket freehold condominium is the favourable legislation governing inheritance, i.e. foreigners are able to pass their Thai condominium on to their heirs. But while the inheritance laws are more beneficial than those for leasehold villas, they are neither perfect, nor perfectly clear.
There is competing legislation at work here. The Condominium Act states that any foreigner who inherits a condominium must notify the relevant Land Office within 60 days of the inheritance. Failing to meet specific criteria for ownership, the foreign heir may then be compelled to sell the unit within 1 year of the death of the owner.
The Thai Civil and Commercial Code (CCC), however, indicates that the inheritor of the property would also inherit the right to own the property, and this has been the formal legal opinion of the Land Department – that the right of the deceased owner to acquire property and retain ownership passes to his/her heir upon death.
But the Land Department’s interpretation of inheritance law under the CCC is not yet backed by sufficient case law for an heir to be 100% certain of receiving permanent ownership rights. One of the five requirements for condo ownership stipulated by the Condominium Act is a Foreign Exchange Transaction Form (FETF) issued in the name of the condo owner.
One way to make any future inheritance easier is for the buyer to have their overseas bank put multiple names on the telegraphic transfer instruction when wiring the money to Phuket for the property purchase. The Thai receiving bank will then be able to list all of those names on the FETF.
The names on the FETF must then be recorded as co-owners of the condo, which secures inheritance in the event of the death of the principal buyer of the property. (Making an offshore company the registered owner of the property is another way to ensure an easier succession, as the FETF will be in the company name.)
However, if a strict interpretation of the Condominium Act is applied to an inheritance— rather than the more favourable CCC interpretation — things get a little more complicated. Anyone who inherits a property (should they choose to keep it) may be required to transfer into Thailand the amount necessary to buy the unit. It may sound counter intuitive, but it is possible that someone must effectively buy the very condo they have just inherited. FETF requirements will be discussed in greater depth, but for more information about the five requirements (or “Doors”) to foreign ownership of a condo in Phuket see below from Sam Fauma of ILO.
If you are seriously thinking of buying a condominium in Phuket, then you may want to read our comprehensive guide on how to do things correctly and what to expect throughout the entire process:
WHAT SAM SAYS ABOUT “THE FIVE DOORS”
Section 19 of the Condominium Act has “Five Doors” relating to the ownership of a Phuket condominium by a foreigner. If any one of the following conditions are met, the foreigner may proceed to purchase a condo in their own name, provided not more than 49% of that development is already foreign owned.
Section 19: An alien person or a juristic person deemed alien by law may have an ownership in a unit if it satisfies the following conditions:
1: The person obtains a residence permit in accordance with immigration law;
2: The person obtains a permit to enter the country in accordance with the law on investment promotion;
3: The person is a juristic person under section 97 and section 98 of the Land Code, registered as a juristic person under Thai law.
4: The person is an alien juristic person under the Announcement of the Revolutionary Council No. 281, dated the 24th November B.E. 2515 (1972), and obtains an investment promotion certificate in accordance with the law on investment promotion.
5: The person is an alien person or a juristic person deemed alien by law, bringing foreign currency into the country, withdrawing funds from a Thai Baht account of a person having a place of residence outside of the country, or withdrawing funds from a foreign currency-based deposit account.
Number 5 is obviously the FETF, which is the most common “door” foreigners use to buy a condo, but satisfying any one of the five is enough to qualify for freehold foreign ownership of a condominium in Phuket.

Using a British Virgin Islands (BVI) Company to Purchase a Property in Phuket
For any foreigner concerned with succession planning, it may be worthwhile buying a condominium (or villa) through an offshore company. This could be a company registered in the Seychelles, Mauritius, Turks and Caicos or other offshore jurisdiction, but BVI companies are generally preferred as property holding companies because they are one of the most established offshore centres, and have competitive annual running costs.
It is important to draw a distinction between using an offshore company to buy a condominium in Phuket, and using a Thai company to circumvent landed property ownership rules. (The latter practice is discussed in greater detail under “Phuket Villas, Houses and Landed Property”). Here we are referring to the legal purchase of a freehold condominium, not by a foreign individual, but by a foreign company. Offshore company ownership solves the inheritance issue because companies do not die.
Through a BVI company, the foreigner can control the ownership of the condo by controlling the shareholding of the company. In addition, should they wish to sell the condo, they need only to sell the BVI company. By transferring the company share ownership, the new buyer owns the company and the condo, but this may not be cost effective with lower-priced condos.
To begin with, establishing a BVI company costs a few thousand dollars. After that, the annual running costs are a little over $1,000 per year. For a $100,000 studio condo, this may be more than someone is willing to pay. For an $800,000 sea view Phuket penthouse, however, it may be a no-brainer.
There is also the question of what corporate ownership entails under Thai law. If an offshore company owns the property, there are potential tax consequences. Even though audited accounts are not a statutory requirement in the BVI, the company must file a balance sheet in Thailand detailing the rental income. Furthermore, if the foreign occupant is a director of the offshore company, their “free rent” is deemed to be a benefit in kind from the company. The individual must then pay income tax on the fair market value of the annual rent.
Finally, if the condo is sold, the BVI company must pay corporate tax in Thailand on any capital gain. If the purpose of the company is ease of inheritance, this last one can obviously be avoided by transferring ownership of the company.
When the property is ultimately sold, however many years in the future that maybe, the freehold title will be transferred away from the BVI company. When that happens, the ultimate seller (the final owner of the company) will have to pay income tax based on the total capital gains earned on the property.
Condotels and Hotel-Licensed Condominiums in Phuket
A Condotel is a hybrid species of Phuket real estate combining the services of a hotel and a condominium. It is a common concept in other parts of the world, which permits individual units to be privately purchased, and then rented as hotel accommodation. In short, this type of ownership is for anyone purely interested in investment, not for someone seeking a second home.
The owner of a Condotel unit may rent it out on a monthly, weekly, or even daily basis. (For anyone who has followed the restrictions being placed on Airbnb by cities and countries around the world, this is a huge advantage for any property investor.)
A hotel management company is typically employed to run the resort, and these companies all have attractive rental programs.
The owner is usually allocated a fixed number of days per year to use their unit, but for the remainder of the time the management company treats the unit as a normal hotel room. Under most arrangements, they also take care of maintenance and repairs to the unit.
Most Phuket Condos set up with hotel licenses offer either a guaranteed return or the option to enter into a “rental pool,” which requires the owner to make their unit available for rental (together with the other participating owners). The owners then “pool” the rental income, and share together in the profits.
The attraction of a Condotel investment for a foreigner is obvious. Firstly, they are permitted to own a Phuket freehold condominium unit in perpetuity. Secondly, they are legally allowed to have the rental of their unit managed for them by a professional hotel management company. They can therefore take advantage of Thailand’s flourishing real estate sector, while simultaneously capitalising on Phuket’s booming tourism industry. At the same time, they can also enjoy “free” accommodation in Phuket fora few weeks every year.
To function effectively as a condo, as well as a hotel, a Condotel development should apply for commercial use on day one. It is theoretically possible for the juristic person at a condominium to allow (or at least condone) short-term rentals, effectively “commercialising” the condo for use as a Condotel. If the juristic person chooses to allow this, the agreement of the owners is not required. But to apply for the hotel license, thus officially making the development into a Condotel, not only must the juristic person agree, but this legal commercialisation of the common area also requires the assent of 100% of the owners.
It is unfortunate that many Phuket condominium projects were rushed into development without first contemplating their use as a hotel. Shorter-term rentals (e.g. daily and weekly) are technically illegal in Thailand without a hotel license, yet many condominium developments offer guaranteed returns based largely on the short-term rental market.
It is also possible that many of the people profiting from short-term rentals are not paying tax on their income. Anyone who gets to know Thailand soon understands that nothing is a problem until lawmakers decide to take action. In other words, everything is OK . . . until it isn’t.
If Phuket should experience a slowdown in tourism, hoteliers may campaign in strength for an end to illegal short-term rentals. Any development already run with a hotel license would of course be immune from the potential backlash. So if hoteliers were successful in any such campaign against short-term rentals, Condotels would profit right along with them.
You can read more about the situation with short term rentals in our article on the subject here:
An Overview on the Current Situation of Short-Term Rentals in Phuket 2020
Phuket’s Branded Residences
Phuket’s luxury real estate sector also offers a hybrid hotel/investment property which can be owned freehold by foreigners. While some branded residences in Phuket are villas, many developments are legally structured as condominiums.
The appeal of branded residences for high net worth individuals is obvious. Investors get to buy into the quality and high levels of service which are synonymous with upscale 5-star hotel chains. They also get to have the property resort managed for them, including a rental pool if they are not living on site.
This attraction has seen the popularity of these units expand significantly over the last two decades. While the USA has around one-third of the world’s total, the global market now has more than 50,000 units of branded residences worldwide, spanning 400 different developments.
The origins of Branded Residences date back to 1927 when the Sherry-Netherland Hotel opened on Fifth Avenue, at the southeast corner of New York’s Central Park. While other branded residences followed, the sector did not really become popular again until the 1980s when Four Seasons launched condominiums attached to their hotel in Boston.
The first branded residence in Phuket followed shortly thereafter with the Amanpuri in Phuket, which revolutionised the concept with its resort setting.
In the last 30 years, the sector has gone from strength to strength. Today there are over 70 hotel groups which have entered the sector.
It is not a coincidence that the decade which saw the creation of branded residences (the 1920s), and the periods which saw an expansion in the market for luxury hotel-branded accommodation (the 1980s and present day), were all times of significant wealth creation.
According to UBS’s Global Wealth Report 2024, there are 58 million millionaires in the world, while Forbes magazine places the number of billionaires at nearly 2,800. And in the last decade, the numbers of millionaires and billionaires in the world have more than doubled.
This shifting demographic is good news for branded residences, as their prices tend to be a few notches above traditional condominiums. But for that money, buyers know they can expect exquisite designs, often from world-renowned architects, as well as luxury interiors with the highest quality fixtures. In Phuket, they can also expect resort settings with magnificent landscaping, and wonderful views.
The quality standards that accompany a luxury hotel name not only ensure that the condominiums sell for premium prices, but also that they are in high demand as rental properties, and command premium rental prices.
Existing developments have been extremely popular with wealthy Thai investors, which bodes very well for the industry in Thailand in general, and in Phuket in particular.
With 49% of any condominium development available freehold to foreigners – and Thai investors already eager to invest in the other 51% of branded residences – the Luxury Condominium sector will likely be developing more of this hybrid hotel/condo investment in Phuket.
The first branded residence in Thailand followed shortly thereafter with the Amanpuri in Phuket, which revolutionised the concept with its resort setting.
In the last 30 years, the sector has gone from strength to strength. Today there are over 70 hotel groups which have entered the sector.
It is not a coincidence that the decade which saw the creation of branded residences (the 1920s), and the periods which saw an expansion in the market for luxury hotel-branded accommodation (the 1980s and present day), were all times of significant wealth creation.
According to Credit Suisse’s Global Wealth Report 2018, there are 42.2 million millionaires in the world, while Forbes magazine places the number of billionaires at 2,153. And in the last decade, the numbers of millionaires and billionaires in the world have more than doubled.
This shifting demographic is good news for Branded Residences, as their prices tend to be a few notches above traditional condominiums. But for that money, buyers know they can expect exquisite designs, often from world-renowned architects, as well as luxury interiors with the highest quality fixtures. In Phuket, they can also expect resort settings with magnificent landscaping, and wonderful views.
The quality standards that accompany a luxury hotel name not only ensure that the units sell for premium prices, but also that they are in high demand as rental properties, and command premium rental prices.
Existing developments have been extremely popular with wealthy Thai investors, which bodes very well for the industry in Thailand in general, and in Phuket in particular.
With 49% of any condominium development available freehold to foreigners – and Thai investors already eager to invest in the other 51% of branded residences – the Luxury Condominium sector will likely be developing more of this hybrid hotel/condo investment in Phuket.
Buying and Leasing Property in Phuket Articles
Katamanda Resort: One of Phuket’s Most Prestigious Hillside Communities
Nestled in the lush hills between Kata and Kata Noi beaches, Katamanda Resort is an exclusive gated community of private villas offering a perfect blend of tropical charm and modern luxury. With sweeping sea views, spacious layouts, and resort-style facilities, Katamanda is ideal for discerning buyers seeking privacy, tranquility, and proximity to some of Phuket’s most beautiful beaches. Whether for a full-time residence, holiday home, or investment property, Katamanda delivers timeless elegance in one of the island’s most prestigious enclaves.
Phuket’s Most Breathtaking Views: And the Areas Nearby to Buy a Villa or a Condo
From iconic lookouts like Big Buddha and Promthep Cape to the hillside bars of Kata Noi, explore Phuket’s top viewpoints - and the best nearby places to buy a sea view villa or condo.
Nai Harn Villas with Lush Gardens: A Wildlife Haven for Birds, Butterflies & Nature Lovers
Discover the charm of owning a villa in Nai Harn or Rawai with a vibrant tropical garden that attracts birds, butterflies, and nesting wildlife. A nature lover’s paradise in Phuket’s most peaceful area.
Why Nai Harn Is Phuket’s Best Area for Villa Buyers in 2025
Nai Harn is quickly becoming Phuket’s top destination for villa buyers. With better prices, stunning scenery, and a strong community feel, it’s the ideal place to find your dream home or investment in 2025.
The Title Projects in Phuket: Rawai, Nai Harn & Kata Beginnings to Bang Tao Expansion
Explore the full collection of “The Title” condominium and villa developments across Phuket by Rhom Bho Property PLC, including Rawai, Nai Harn, Kata, Naiyang, and Bang Tao. From stylish resort-style condos to luxury private pool villas, The Title projects offer exceptional value, amenities, and long-term investment appeal for property buyers in Thailand.
Nature on Your Doorstep: Buying a Villa or Condo in Nai Harn & Rawai
Thinking of buying a villa or condo in Nai Harn or Rawai? These peaceful southern Phuket locations offer more than just great property—they surround you with tropical gardens, exotic birdlife, butterflies, and even friendly lizards. Discover what it’s like to live in a home where nature is truly on your doorstep.
Phuket Property Ownership Costs in 2025: Homes, Villas & Living Expenses
Discover the true cost of owning property in Phuket in 2025 — from utilities and maintenance to insurance, taxes, and property management fees. A must-read for serious buyers and investors.
The Transformation of Andaman Cove Condominium, Rawai – A New Era Begins
Once part of the famous Evason Resort, Andaman Cove Condominium in Rawai is finally being transformed. After years of decline, the site has been acquired by luxury hotel developer YTL Group. This marks a turning point for owners, with the promise of rising property values, improved surroundings, and renewed access to Bon Island—all just minutes from Nai Harn and Phuket’s southern beaches.
Buying Property in Rawai & Nai Harn – Phuket’s Southern Gems for Expat Home Buyers
Rawai and Nai Harn, located in the south of Phuket, are emerging as the island’s most attractive locations for villa buyers and expats. With affordable luxury homes, proximity to top schools, and a relaxed beach lifestyle, these southern hotspots offer unbeatable value in 2025.
Understanding Leasehold Property Ownership in Phuket: How Foreign Buyers Can Protect Themselves
Foreigners cannot legally own land in Thailand, but leasehold remains a secure and viable option in Phuket — if handled correctly. This guide explains how to protect your leasehold investment through solid contracts, legal building ownership, and renewal clauses.
Thailand’s Cannabis U-Turn and Its Ripple Effect on Phuket’s Property and Real Estate Market
Thailand’s cannabis U-turn in 2025 is reshaping Phuket’s property market. From fading dispensaries to shifting buyer interest, here’s how the crackdown is creating both risk and opportunity for investors and developers.
How to Avoid Overpaying for a Condo in Phuket: A Smart Buyer’s Guide
Avoid overpaying when buying a condo in Phuket. This guide covers market pricing, valuation tips, and how to spot overpriced listings before you invest.
Understanding the Role of the Condominium Juristic Person in Phuket Property Management
If you own or are planning to buy a condo in Phuket, understanding how the Condominium Juristic Person (CJP) manages the building is essential. Here's what you need to know.
Land Titles in Phuket – What Property Buyers Should Know
Before buying land or property in Phuket, it's essential to understand land titles. Here's what buyers should know about Chanote, Nor Sor 3, and Nor Sor 3 Gor titles—and why due diligence is critical.
Minor International & Kiara Reserve Residences – Luxury Villas & Condos at Layan Bay, Phuket
Minor International & Kiara Reserve Residences – Branded Luxury Villas & Condos in Layan Bay, Phuket Kiara Reserve is a prestigious residential estate developed by Minor International in partnership with Kajima, set amidst the tropical beauty of Phuket’s Layan Bay. Offering a collection of 17 luxury pool villas and 29 branded condominiums, each residence is meticulously designed and managed by Minor Hotels for seamless full-service living. With its tranquil beachfront location, exceptional build quality, and the credibility of billionaire Bill Heinecke’s Minor International, Kiara Reserve delivers an unrivalled combination of elegance, exclusivity, and long-term investment appeal.
Tri Vananda Villas – A Wellness-Centered Sanctuary in Pru Champa, Phuket
Tri Vananda Villas is a visionary wellness community in Phuket’s peaceful Pru Champa area, offering luxury pool villas designed for natural living and holistic health. With only 77 private villas surrounded by wetlands, gardens, and lakes, the estate features biophilic architecture, integrative medical and spa facilities, and a Michelin-starred restaurant. Just minutes from Laguna, UWC, and Phuket International Airport, Tri Vananda is ideal for families, retirees, and investors seeking sustainable, wellness-focused living in one of Phuket’s fastest-emerging residential zones.
How to Avoid Common Property Scams in Phuket
Phuket’s booming real estate market has become a magnet for international investors — but where there’s opportunity, scams often follow. From fake land titles to off-plan development frauds, this guide exposes the most common property scams in Phuket and how to avoid them. With the right legal support and a cautious approach, you can confidently invest in your dream home or rental property without falling victim to costly mistakes.
Why Phuket Is Still a Great Place to Live in the Rainy Season
Don’t let the weather stop you — this is one of the best times to explore the island’s lush landscapes, cultural gems, wellness retreats, and indoor adventures without the crowds. From cozy cafés and cooking classes to misty temples and roaring waterfalls, the green season offers a quieter, more authentic side of Phuket that many travelers never get to see.
Rungtiva Villas – Modern Tropical Villas in the Heart of Pru Champa, Phuket
Rungtiva Villas is a boutique collection of modern pool villas nestled in the peaceful Pru Champa area of central Phuket. Surrounded by nature yet close to top schools, golf courses, and both east and west coast attractions, these spacious 3 and 4 bedroom homes offer exceptional value for families, retirees, and investors alike. With a focus on privacy, quality, and livable design, Rungtiva Villas is the ideal choice for those seeking a quiet lifestyle in one of Phuket’s most convenient and up-and-coming residential areas.
Phuket Living in 2025 – Dos and Don’ts for New Property Owners
Dreaming of island life in Phuket? Whether you're planning a long-term move or have already unpacked your bags, living in Thailand’s tropical haven requires more than sunscreen and a hammock. From choosing the right neighborhood and budgeting realistically to navigating visa laws and embracing Thai culture, this guide outlines the key do’s and don’ts for making expat life in Phuket smooth, safe, and deeply rewarding. If you're relocating in 2025, consider this your essential handbook for thriving on the island.
What You’ll Need After Buying a Property in Phuket – A New Homeowner’s Checklist
Thinking of buying a home in Phuket? This 2025 checklist breaks down the essentials every new property owner needs — from furnishings and utilities to internet and safety gear.
Lucky Villas Phase 2 – Contemporary Tropical Living in Phuket
Discover contemporary tropical living at Lucky Villas Phase II, a boutique development of modern pool villas near Layan Beach and the Laguna Phuket resort complex. Nestled in a peaceful residential enclave in the northeast of Cherng Talay, these stylish 3- and 4-bedroom villas are designed for privacy, comfort, and easy island living. With close proximity to international schools, golf courses, shopping, and Bang Tao’s vibrant beach scene, Lucky Villas Phase II offers a rare blend of tranquility and convenience, perfect for families, retirees, or investors seeking strong rental potential in one of Phuket’s most sought-after locations.
Pru Jampa – Phuket’s Next Residential Hotspot
Pru Jampa is quickly becoming one of Phuket’s most desirable addresses, thanks to a growing collection of luxury villa projects that blend contemporary design with natural serenity. Surrounded by lush greenery yet just minutes from beaches, international schools, and lifestyle hubs, the area is home to some of the island’s most exciting new developments. From award-winning builders like Botanica, Erawana, and Anchan, each project offers privacy, quality, and strong investment potential — making Phu Champa the smart choice for buyers seeking peace without compromise.
Erawana Creek – Tropical Serenity in the Heart of Pru Jampa, Phuket
Erawana Creek - Boutique Tropical Pool Villas in Pru Jampa. Discover the tranquility of Pru Jampa at Erawana Creek, a beautifully designed enclave of private pool villas by the respected Erawana Group. Each villa blends modern tropical architecture with seamless indoor‑outdoor living, featuring natural light, spacious terraces, and lush garden surrounds. Located minutes from Bang Tao and Layan beaches, and just a short drive to lifestyle hubs like Boat Avenue, this intimate development offers serenity without sacrificing convenience, an ideal choice for discerning buyers seeking privacy, quality, and a rare sense of retreat in Phuket.
Erawana Grand – Elegant Ayutthaya‑Style Villas in Prime Layan
Erawana Grand – Ayutthaya-Inspired Luxury Villas in Layan. This exclusive collection of just nine ultra-luxurious 4-bedroom pool villas set in the peaceful and upscale enclave of Layan, Phuket. Designed with a distinctive Ayutthaya-style influence, each villa features soaring ceilings, handcrafted woodwork, and seamless indoor-outdoor living. With generous land plots, lush tropical landscaping, and a prime location just minutes from Bang Tao Beach, Laguna, and the airport, Erawana Grand offers the perfect blend of privacy, elegance, and convenience — making it one of Phuket’s most refined residential offerings.
Social Contact