Freehold vs. Leasehold in Thailand
30 January 2025
When purchasing real estate in Thailand, foreign buyers have two ownership options: Freehold and Leasehold.
Which is better – long-term lease or full ownership? We explain the pros and cons of each option and help you make the best decision.
What is Freehold in Thailand?
Freehold means full and unlimited ownership of a property. However, foreigners can only purchase condominium units under Freehold, and only up to 49% of the total residential area of the building.
Advantages of Freehold:
✔️ Full ownership: The property can be sold, inherited, or used at your discretion.
✔️ Higher liquidity: Freehold units are easier to sell.
✔️ Voting rights: Owners can participate in condominium management meetings.
Disadvantages of Freehold:
❌ Restrictions for foreigners: No possibility to buy land or houses.
❌ More expensive than Leasehold: Typically 5–10% higher prices.
❌ Registration fees: Around 6.3% of the purchase price.
What is Leasehold in Thailand?
Leasehold means long-term rental. By law, the maximum lease term is 30 years, with the option to renew twice (up to a total of 90 years). However, automatic renewal is not guaranteed.
Advantages of Leasehold:
✔️ Accessible for foreigners: Leasing is possible for any type of property, including villas and land.
✔️ Lower price: Usually 5–10% cheaper than Freehold.
✔️ Lower registration fees: Around 1.1% of the lease value.
Disadvantages of Leasehold:
❌ Limited ownership period: The lease must be renewed after 30 years (extensions up to 90 years in total).
❌ Restricted rights: Selling or transferring the lease requires the landlord’s consent.
❌ No voting rights: Leaseholders cannot participate in condominium management decisions.
Which is the Better Choice – Leasehold or Freehold?
Your decision depends on your goals:
✔️ Looking for a liquid real estate investment? → Choose Freehold.
✔️ Planning a temporary stay or vacation? → Leasehold may be a better option.
✔️ Want to buy a villa or land? → Freehold is not available; Leasehold or alternative ownership structures (e.g., purchasing through a company) are your only options.
Before purchasing a property in Thailand, consulting with a legal expert is essential to avoid risks.
Planning to invest in real estate in Thailand?
