Legal guide
Freehold vs Leasehold in Thailand: The Foreign Buyer Decision
Quick answer
A freehold condominium in Thailand is owned outright by a foreign individual in their own name under the 49 percent foreign quota. A leasehold villa is a 30 year registered lease on the land under the villa, renewable contractually but not enforceable beyond 30 years pre-agreement.
Key facts
| Item | Value |
|---|---|
| Maximum registered lease term | 30 years, non-renewable on the title |
| Freehold condominium foreign quota | 49 percent of building sellable area |
| Typical leasehold discount to freehold | 25 to 40 percent |
| Leasehold registration fee | 1 percent of lease value |
| Leasehold mortgage availability | Limited, lender-specific |
What freehold actually means in Thailand
Freehold in Thailand is the registered, absolute ownership of a titled asset. The Land Department records the owner on the front of the Chanote for land or on the condominium unit title certificate. Freehold does not expire. It passes by inheritance under the Thai Civil and Commercial Code. A foreigner can hold freehold only in a condominium unit under the 49 percent quota, not in land. The marketing use of "freehold villa" by some agencies is shorthand for a villa held through a Thai company that owns the land freehold, not for the foreigner owning the land in their own name.
What leasehold actually means in Thailand
A leasehold in Thailand is a registered right of use on the land for a fixed term, not more than 30 years, recorded on the back of the Chanote. The Civil and Commercial Code Section 540 fixes the maximum term at 30 years. Renewal clauses for a second or third term are contractually available but a lease for more than 30 years pre-agreed is void. The lease runs with the land on resale. The lessee has the right to the buildings on the land during the lease. Leasehold registration fee is 1 percent of the lease value, payable at the Land Department at registration.
Why leasehold trades at a discount
A leasehold’s value decays toward zero as the term shortens. A 30 year lease at the start of registration is worth close to its full value; the same lease with 10 years remaining is worth roughly one third of that. A freehold asset does not decay this way. The 25 to 40 percent discount on leasehold villas reflects this time decay, the more limited mortgage availability, and a smaller buyer pool. A leasehold purchase should be cheaper than equivalent freehold across the whole term, not just at day one.
Why we do not recommend a Thai company
Some agencies still describe a Thai company as the way to a freehold villa. We do not recommend setting one up. The land would be owned by the company, not by you, and a company used only to hold land for a foreigner is the structure we will not advise. For a villa, use a registered leasehold. For ownership in your own name, buy a condominium under the foreign quota. Our Thai company page explains why we stopped recommending it.
Which structure suits which buyer
A buyer who wants a villa should use a registered leasehold. A buyer who is married to a Thai spouse may also consider a usufruct, which grants a lifetime right of habitation. A buyer who wants ownership in their own name should look at a freehold condominium first, because it is the only clean freehold in the foreign buyer's own name. We do not recommend a Thai company for any of these buyers.
The honest summary
There is no right answer to freehold versus leasehold. The right answer depends on your age, your estate plan, your tax residency, and whether you are comfortable with corporate accounting. The single best decision aid is to model your holding over the actual years you expect to use it, including sale or succession, not the headline sticker price.
This guide is published as of the updated date shown above and reflects Thai land and tax rules current at that time. It is general information and not specific legal or tax advice. For a transaction, instruct a Thai-qualified lawyer or accountant.
Frequently asked questions
Is a 30 year leasehold in Thailand renewable?
A 30 year lease is renewable under a renewal clause in the lease contract, but a lease for more than 30 years pre-agreed is void under the Civil and Commercial Code Section 540. Renewal is a contract right, not an automatic right, and depends on the lessor honouring the clause at the time of renewal.
Why are leasehold villas much cheaper than freehold villas?
Leasehold value decays toward zero as the term shortens, mortgage availability is limited, and the buyer pool is smaller. A 25 to 40 percent discount to equivalent freehold is the market clearing level as of Q3 2026.
Is a Thai company holding my villa safe?
We do not recommend setting one up. A company used to hold land for a foreign buyer is not ownership in your own name, and nominee shareholders are unlawful. For a villa we recommend a registered leasehold. If you already own shares in a company that holds a villa, have a Thai-qualified lawyer review that company before you rely on it.
Can I leave a Thai leasehold to my children?
Yes, the remaining lease term passes by inheritance. A 30 year lease bought at 65 has 30 years of useful life only if the lessee survives the term. The shorter the remaining term at inheritance, the lower the inherited value. A freehold structure has no such decay.
Can I mortgage a leasehold villa?
Limited. A small number of Thai banks lend against a registered leasehold, at 40 to 50 percent loan-to-value, at a 1 to 2 percent premium to freehold corporate rates. Most leasehold purchases are cash.
Which has lower total cost, freehold or leasehold?
A leasehold villa has lower entry cost and no annual company accounts. A freehold condominium in your own name does not decay with a lease term. We do not recommend a Thai company as the freehold alternative. Model the holding you will actually use.
Could Thailand change the leasehold law to longer terms?
Periodic consultation papers have proposed extending the maximum lease to 50 or 99 years. None has passed into law as of Q3 2026. Do not buy a leasehold expecting a legislative extension; the discount today already reflects the 30 year reality.