How Foreigners Can Buy Property in Phuket?

Phuket, with its stunning beaches, vibrant culture, and high-quality lifestyle, continues to attract global investors and expatriates. As Thailand’s most visited island after Bangkok, it offers exceptional opportunities not only for tourism but also for property investment — whether for lifestyle, rental income, or long-term capital appreciation.

With the Thai baht demonstrating remarkable currency stability, strong regional tourism recovery, and the country’s political and economic resilience, investing in property in Phuket is considered both safe and profitable. However, Thai property laws are unique, especially for foreign buyers — and understanding them is essential for making smart, legal, and rewarding investments.

Here’s a comprehensive breakdown of how foreigners can legally buy property in Phuket, the types of ownership available, and what you need to look for to protect your investment.

1. Why Phuket is a Smart Investment Destination?

Before diving into legalities, it’s important to understand why Phuket stands out for real estate investment:

• The Thai baht has shown resilience and strength, giving investors confidence in currency-based returns.
• With over 11 million tourists visiting Thailand in 2023 alone, and Phuket being a major international hub, the demand for short-term rentals, hotels, and lifestyle properties is strong.
• Phuket offers modern healthcare, international schools, and top-tier restaurants and beach clubs — making it ideal for retirees, remote workers, and families alike.

2. What Properties Can Foreigners Buy in Phuket?

There are three main types of properties foreigners typically invest in:

a. Condominiums

The only property type foreigners can legally own freehold under Thai law (up to 49% of the total sellable area of a condominium project). Ideal for individuals or couples looking for an easy-to-manage investment or holiday home. Many condos offer hotel-style facilities, rental management services, and guaranteed rental return (GRR) programs.

b. Villas and Houses

Foreigners cannot legally own land, but they can own the building (villa or house) and lease the land it sits on. Villas are often sold under leasehold arrangements or via company structures (explained below). Ideal for long-term living, retirement, or upscale rental investment.

c. Commercial Properties

Includes shop-houses, restaurants, hotels, and retail spaces. Ownership options vary, usually involving Thai company structures or long-term leasehold contracts. Commercial property is ideal for foreigners seeking to operate a business or earn high rental yields.

3. Legal Ownership Options for Foreigners

Since Thai land laws restrict foreign ownership of land, foreign buyers use several legal structures to acquire real estate.

a. Freehold Ownership (for Condominiums)

Under the Thai Condominium Act, foreigners can own a condo unit in their own name, provided:

• The foreigner’s ownership does not exceed 49% of the total units in the building.
• The funds for the purchase are transferred from overseas with proper foreign exchange documentation (FET).

Benefits:

• Full ownership title (Chanote) in your name
• Can sell, lease, or transfer without Thai involvement
• No lease expiration issues

b. Leasehold Ownership (for Land or Villas)

Foreigners can lease land or property for up to 30 years, with options to renew:

• Often structured as 30+30+30 years (initial lease with two optional renewals)
• The foreign buyer may own the villa/building and lease the land it stands on.

Key Considerations:

• Leasehold contracts over 3 years must be registered at the Land Office.
• Renewal clauses are not legally binding but commonly respected in practice.

c. Thai Company Ownership (For Land and Villas)

A foreigner can set up a Thai majority-owned company (with at least 51% Thai shareholders) to purchase land:

• The foreigner typically holds 49% and controls the company via preferred shares or legal agreements.
• The company owns the land, and the foreigner may live in or operate the property.

Legal Advice Required:

The structure must comply with anti-nominee laws. A reputable lawyer should establish the company to ensure the legitimacy of ownership.

4. Choosing the Right Type of Property Investment

Depending on your purpose—residency, rental income, or resale—you should evaluate your property choice carefully:

5. Important Tips for Foreign Buyers

• Always conduct due diligence on the title deed (Chanote title is best)
• Use a qualified local lawyer for all contracts and land registration
• Ensure 3+ year lease agreements are registered with the Land Office
• Ask for clarity on renewal terms, rental clauses, and ownership rights
• Understand tax implications for rental income and property resale
• Use Foreign Exchange Transaction Forms (FETs) for international transfers (condos/apartments)
• Be cautious with unregistered promises or handshake deals — always document legally

6. Secure Your Future with the Right Investment

Phuket continues to be a top-tier investment destination, offering a mix of lifestyle, financial return, and long-term security. Whether you’re looking to buy a seaside condo, a private villa, or a boutique hotel, it’s important to understand the legal landscape and choose a structure that protects your rights.

The key to successful property investment in Phuket lies in:

• Choosing the right property type
• Using the right legal structure
• Working with trusted professionals

At LuxeInvesta, we specialize in helping foreign investors navigate the Thai property market with confidence. From legal support to sourcing the best properties in Phuket, our team ensures your investment is secure, strategic, and suited to your goals.