Freehold Condominiums
Foreigners may legally own condominium units in their own name provided the foreign ownership quota within the building does not exceed 49% of the total saleable area. This is generally the strongest and simplest ownership option available to foreign buyers.
In practice, the quota is the first thing to check on any condominium: it is finite, and once the foreign side of a building is full, remaining units can only be bought under Thai name.
Leasehold Villas
Foreigners generally cannot own land directly, but they may register a land lease for up to 30 years. Depending on the project structure, the villa itself may be owned separately from the land.
Some agreements include renewal provisions, however Thai law does not provide an automatic right to renew after the registered term expires. Any future lease depends on the agreement of the parties and the law in force at that time.
This is the structure behind most villa purchases on Koh Samui, which is why the lease document itself deserves as much attention as the house.
Right of Superficies
A registered Right of Superficies allows one person to own a building located on land owned by another person. It is frequently used to provide additional legal protection where a villa is built on leased land.
Usufruct
A registered Usufruct grants the right to possess, use and enjoy another person's land or property for a fixed period or for the lifetime of the beneficiary, as permitted by Thai law. It is commonly used in family situations.
Purchasing with a Thai Spouse
A Thai spouse may own land in their own name, subject to Thai law and Land Office procedures. The foreign spouse does not automatically acquire ownership rights over the land, and specific declarations may be required.
Thai Company
In certain commercial situations, land may be owned by a genuine Thai company operating in compliance with Thai law. This structure should only be used for legitimate business purposes and never solely to avoid foreign ownership restrictions.
BOI & LTR
Certain BOI-promoted businesses may receive permission to own land where necessary for approved investment activities. This is not a general route for purchasing a private residence.
The LTR Visa may recognise qualifying investments but does not change Thailand's land ownership laws.
Due Diligence
Before committing to any purchase, an independent Thai property lawyer should verify:
- Title
- Permits
- Zoning
- Encumbrances
- Contracts
- Payment schedules
- Developer credentials
Why Palmstone
Palmstone works with international buyers by explaining legal ownership structures, coordinating with experienced independent lawyers and guiding clients through every stage of the purchasing process with transparency and professionalism.
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