Understanding Leasehold Property in Phuket

When foreigners consider buying real estate in Phuket, one of the most common ownership structures available is leasehold. While it allows access to villas, land plots, and certain types of property, leasehold in Thailand does not mean ownership. Instead, it grants the lessee a legal right to use the property for a specified term — most commonly 30 years.

This system can be beneficial, but it’s important to fully understand how it works before committing to any purchase.

How Leasehold Works in Thailand

Thai law restricts foreign land ownership. As a result, most foreign investors who wish to buy landed property (like Phuket villas) in Phuket will do so through a leasehold structure.

Under this structure:

  • The lease is registered at the Land Office for a maximum of 30 years.

  • Some developers or agents may offer renewal options — often described as 30+30+30 — but these extensions are not guaranteed by law.

  • In most cases, leaseholds apply to villas or land, while foreigners can own Phuket condominium units freehold (up to the 49% foreign quota of a condo building).

In most situations, it is not advisable for people to enter a lease agreement on a condominium unit. You can read more about this here:

The Pitfalls of Buying a Condominium Leasehold Unit

The 30+30+30 Lease Explained

You may see properties advertised with “30+30+30” lease terms — suggesting a 90-year total lease. While this sounds appealing, only the initial 30-year lease can be legally registered.

The two extensions are often written into the contract as renewal clauses, but they are not enforceable against a new landowner. If the property changes hands or the original lessor passes away, the new owner is not obligated to honour any unregistered extensions.

In short, there is no legal guarantee of lease renewal beyond 30 years.

Judges are the arbiters of the spirit of the law, and courts have already ruled that extensions “written in stone” within a lease agreement are attempts at de facto foreigner ownership.

You can read our article on this here:

The Problem with Condo and Villa 30+30+30 Leaseholds in Phuket

Leasehold Ownership Through a Thai Company

Some buyers choose to lease a property through their own Thai Limited Company. In this case, the company becomes the lessee, offering more flexibility and control.

However, it’s crucial that this company:

  • Is a legitimate, operating business

  • Complies with Thai corporate law

  • Does not use nominee Thai shareholders illegally

If a company is deemed a nominee setup created solely to circumvent land ownership laws, it may be ruled illegal — which could result in seizure or nullification of the property rights.

Common Leasehold Property Risks

While leasehold offers a viable path to living or investing in Phuket, it’s not without risks:

  • No guarantee of renewal: Future lease extensions are not protected under Thai law.

  • Heirs may not honour renewals: If the original lessor dies, heirs are not bound by renewal promises.

  • Loss of land access: If legal access to the land is not properly registered, you could lose physical access to the property.

  • Nominee structures are illegal: Using a Thai company with fake shareholders is a serious legal offense.

This is why conducting professional due diligence is absolutely critical.

Rather than entering into a leasehold contract, it is highly advisable to instead purchase a Foreign Freehold Phuket Condominium. 

There are many benefits and advantages of owning a freehold condominium in Thailand.

Leasehold Condos vs. Leasehold Villas

While foreigners can own condos freehold, some buyers still choose to lease condominium units, often through a Thai company or for tax planning reasons.

However, in most cases, freehold condo ownership is preferable for foreigners, while leasehold is the go-to option for villas and land due to land ownership restrictions.

Legal Advice Is Essential

Always have your contracts reviewed by a lawyer who is well-versed in Thai real estate law. Lease agreements should be carefully structured to:

  • Register the lease at the Land Office

  • Include terms for maintenance, inheritance, and use

  • Avoid risky or illegal nominee arrangements

A properly drafted lease can offer long-term security — but poor structuring can lead to costly problems.

🔍 Related Reading for Phuket Property Buyers

FAQ: Phuket Leasehold Property

Q: Can foreigners own land in Phuket?
A: No, Thai law prohibits foreign land ownership. However, foreigners can lease land for up to 30 years and register this lease at the Land Office.

Q: What does a 30+30+30 lease mean?
A: It means an initial 30-year lease with two optional 30-year extensions. However, only the first 30 years can be registered. Renewal clauses are not enforceable against future landowners.

Q: Is leasehold secure for long-term investment?
A: It can be — if legally structured and registered. However, buyers must accept the risk of renewal denial after 30 years.

Q: Can I lease land through a Thai company?
A: Yes, but the company must be legitimate. Using nominee shareholders to skirt foreign ownership laws is illegal.

Q: What happens if the landowner dies?
A: The lease continues for the duration of the registered term, but heirs are not required to honour unregistered extensions or promises.

Thinking of Buying a Leasehold Property in Phuket?

Whether you’re looking to lease a villa or structure a long-term property agreement, our team is here to guide you every step of the way. We help buyers navigate Thai leasehold laws, ownership structures, and long-term risk protection.

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