Illegal Foreign Property Ownership in Phuket – The Inconvenient Truth

Phuket is one of the most sought-after destinations in Southeast Asia for foreign property buyers. With its tropical beaches, vibrant lifestyle, and growing infrastructure, it’s no surprise that thousands of international investors want to own a piece of paradise. But there’s one major reality every foreign buyer must face:

Foreigners cannot legally own land in Thailand — and that includes Phuket.

While it is technically legal for foreigners to own buildings (such as a condo unit), land ownership is strictly off limits under Thai law. Yet, many foreigners have unknowingly entered into risky or illegal arrangements in an attempt to bypass these regulations. In this article, we explore the legal ways to invest in Phuket real estate, highlight the common mistakes to avoid, and explain how to stay 100% compliant while still owning property here.

There are extremely limited and exceptional circumstances under which a foreigner can purchase land, and these are covered in a separate article. Please read here:

Foreign Freehold Land Ownership by Making a Prescribed Investment or Through the Board of Investment Scheme 

Why Foreigners Cannot Own Land in Phuket

Under Thai law, foreign nationals are prohibited from owning land in their own name. This includes land beneath villas or houses. Attempts to circumvent this through nominee arrangements (where Thai nationals act as “fronts”) or shell companies are considered illegal and may result in heavy penalties.

Authorities have become increasingly vigilant in recent years, especially in Phuket, where land is highly valuable. Investigations into nominee structures and fake company setups are becoming more frequent.

Legal Ways to Own Property in Phuket

Fortunately, there are safe and fully legal ways for foreigners to invest in Phuket property:

1. Freehold Condominiums

Foreigners can legally own Phuket condominium units in their own name, as long as foreign ownership in the building does not exceed 49%. This is the most straightforward and secure option for foreign ownership in Phuket.

2. Leasehold Agreements

Foreigners can lease land (or villas) for up to 30 years, with the option to renew. While this doesn’t grant full ownership, long-term leases that are properly registered with the Land Office offer a high level of security and peace of mind.

3. Lease + Superficies Structure

This structure allows you to lease the land and separately own the structure (villa or house) on it. Both agreements should be registered with the Land Office.

Owning Through a Thai Company

This is a legal option but only if the company is a legitimate business operating in Thailand. The company must have real Thai shareholders (owning at least 51%) and must not be set up solely to own property. If a company is found to be a nominee setup, it can be dissolved, and the property seized.

It is essential to seek legal guidance if you’re considering this route.

The Dangers of Illegal or Risky Ownership

Some buyers have unknowingly purchased villas or land in Phuket under the belief that ownership structures offered by agents or developers were legal. In many cases, these involve:

  • Thai nominee shareholders in companies
  • Undocumented extensions of 30-year leases
  • Unregistered rights to renew leases

If challenged in court, these ownership claims can be invalidated. Worse still, foreign buyers can lose their entire investment.

Is Phuket Still Worth Investing In?

Absolutely — if you do it the right way. Phuket’s property market is thriving, with rising demand for luxury villas and condominiums. While foreigners can’t own land directly, there are still excellent opportunities for secure, long-term investment.

In fact, leasehold and condominium ownership are now the norm for many overseas buyers, providing them with a legal and comfortable way to enjoy Phuket living.

How to Protect Yourself as a Foreign Buyer

  • Always use a qualified local property lawyer experienced in Phuket real estate
  • Ensure lease agreements and superficies are registered with the Phuket Land Office
  • Avoid nominee shareholders or fake company setups
  • Only buy condominiums in developments that meet legal foreign quota
  • Use Foreign Exchange Transaction Forms for all money transfers over USD 50,000

By following these steps, you can enjoy the benefits of owning a home in Phuket with full confidence.

Final Thoughts

Owning property in Phuket is still very achievable for foreign buyers — but it requires legal awareness and proper guidance. If you’re considering a purchase, our team can help you navigate the legal landscape and find a home or investment that suits your needs.

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