Looking at the Options of a Foreign Freehold vs Leasehold Condo? Here’s Why You Should Try and Find a Freehold Unit.
If you’re considering the options and weighing up the differences between a foreign freehold vs leasehold condo in Phuket, it is best to fully understand the differences. This is one of the most important decisions you’ll face. With changing laws, increasing demand, and tighter legal enforcement in Thailand, understanding these two options in 2025 is essential for any foreign buyer.
This article will help you navigate the pros, cons, and crucial legal differences between foreign freehold and leasehold in Phuket, so you can make a smart, secure investment.
What Is a Foreign Freehold Condo in Phuket?
A foreign freehold condo refers to a unit legally owned outright by a foreign individual in their own name, with the title registered at the Phuket Land Office.
- Foreigners are allowed to own up to 49% of the total saleable area of any condominium development in Thailand.
- This type of ownership gives permanent legal title to the unit.
- Foreign freehold owners can sell, transfer, or bequeath the property just like any Thai national.
Key Benefit: You own the condo indefinitely, and your name is on the title deed (Chanote).
You can view all the Foreign Freehold Condos for Sale in the link below:
Foreign Freehold Condos for Sale in Phuket
What Is a Leasehold Condo in Phuket?
In contrast, a leasehold condo is where the foreign buyer signs a long-term lease agreement for up to 30 years.
- The lease is registered at the Land Office, giving you legal rights to occupy the unit for a fixed term.
- Some contracts offer renewal clauses (another 30 + 30 years), but these are not guaranteed by law and must be carefully reviewed.
- In most cases, leasehold condos are used when the 49% foreign freehold quota has already been filled.
Key Benefit: You can still live in and rent out the condo, but you do not legally own the unit.
Comparing Foreign Freehold vs Leasehold in Phuket
| Feature | Foreign Freehold | Leasehold |
| Ownership Type | Full ownership under Thai law | Long-term lease (possibly more renewals) |
| Title Deed | Your name on Chanote title deed | Thai owner retains title, lease registered |
| Security | Permanent, strong legal ownership | Contract-based, can vary by developer |
| Resale Value | Higher – more attractive to foreign buyers | Lower – lease term may deter some buyers |
| Inheritance Rights | Yes – can leave to heirs | Complex – legal advice required |
| Quota Limitation | Subject to 49% foreign ownership cap | No quota limit available to all |
Why Would Someone Choose Leasehold in Phuket?
Despite its limitations, leasehold can still be a practical option in 2025:
No foreign freehold units available in your chosen project or area
- The price is lower than freehold units
- You’re buying into a development with high rental yields
- You’re working with a well-established developer offering strong lease protections
- The leasehold price is cheaper than renting the same unit over the long term
Still, it’s critical to work with an experienced real estate agent in Phuket and a reputable lawyer to ensure the lease contract is air-tight.
Important 2025 Update: Legal Crackdowns and Risks
Some foreigners decide to set up a Thai company to own a leasehold unit as a freehold. This is possible because the 51% of units may be owned by a Thai, and a Thai company is considered as a Thai entity.
However, the authorities in Thailand are increasing scrutiny on illegal nominee structures. Foreigners should be aware!
This makes choosing a safe and legal path, like foreign freehold or properly registered leasehold, more important than ever.
In 2025, it’s no longer just about price or convenience – it’s about legal security and future flexibility.
Which Is Better: Foreign Freehold vs Leasehold in Phuket?
If you’re eligible and can find a foreign freehold unit in the building you love, it’s usually the better, more secure option.
However, a well-structured leasehold agreement, with clear terms and optional conversion rights, can still be a good solution when:
- The development is of high quality
- You trust the developer
- You plan to use the property for a defined time period (e.g., retirement or rental)
Final Advice for Foreign Buyers in 2025 on Freehold vs Leasehold Condos in Phuket
Before signing anything:
- Check the condo’s foreign ownership quota
- Have a Phuket property lawyer review all contracts
- Ask your agent about resale implications
- Avoid nominee structures that expose you to legal risk
Summary
Choosing between foreign freehold vs leasehold in Phuket is one of the most critical decisions foreign property buyers will make in 2025. Each option has pros and cons, but the right choice depends on your goals, timeline, and risk appetite.
If you’re unsure, reach out to our expert advisors at Thai Residential. We’ve helped hundreds of buyers find secure and legally compliant properties across the island, and we’re here to guide you too.
FAQ: Foreign Freehold vs Leasehold Condos in Phuket (2025)
Q: Is it better to buy a leasehold or freehold condo in Phuket?
A: Foreign freehold is usually better for long-term security, but leasehold can work well in some situations if structured properly and the freehold quota is full.
Q: Can I convert a leasehold to foreign freehold later?
A: Potentially, yes, but only if two conditions are met:
- Your lease agreement includes a conversion clause (which most do), and
- The condominium’s foreign freehold quota has not yet been fully allocated.
It’s always best to confirm both with your lawyer before proceeding.
Q: Can foreigners own land in Phuket freehold?
A: No, foreigners cannot legally own land in Thailand. They can own condo units (foreign freehold) or lease property.
Q: How long does a leasehold last?
A: Typically 30 years. Some contracts offer 30+30+30 renewals, but these need legal verification.
Q: Is leasehold legal and safe in 2025?
A: Yes, if the lease is properly registered and reviewed by a real estate lawyer. Avoid unregistered or informal agreements.
Related Articles:
Read our renowned Phuket Property Guide to Learn More About the Phuket Real Estate Market:
Phuket Property Guide: Everything You Need to Know
And to find the ideal place to buy a property in Phuket, you can read our comprehensive Area Guide:
A Comprehensive Guide to the Best Locations to Buy Property in Phuket
This article is also of value, about how to avoid scams in Phuket:
How to Avoid Common Property Scams in Phuket
Ready to Find the Right Ownership Structure?
At Thai Residential, we help buyers choose between leasehold and freehold with full legal clarity. Let us guide you to the safest, smartest investment, and help you navigate Phuket’s evolving 2025 property landscape with total peace of mind.
Need expert help choosing the safest way to buy property in Phuket? Whether you’re leaning toward a freehold condo or exploring leasehold options, our experienced team at Thai Residential will walk you through every legal detail and help you make a fully informed purchase.
Contact us today for a no-obligation consultation.
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