Freehold vs Leasehold in Thailand
A complete comparison of the two forms of property ownership in Phuket. No legal jargon, just facts and figures.
In short: 5 key differences
Ownership term: Freehold — forever, Leasehold — 30-90 years
Price: Leasehold is roughly 10% cheaper
For foreigners: Freehold only in condos (up to 49%), Leasehold — anywhere
Resale: Freehold is easier and holds value, Leasehold loses value over time
Best for: Freehold — long-term investment, Leasehold — yield and villas
Comparison table
| Parameter | Freehold | Leasehold |
|---|---|---|
| Ownership term | Forever | 30-90 years (renewable) |
| Price | 100% of market value | ~90% of Freehold |
| For foreigners | Condos only (up to 49%) | Any property |
| Villas on land | ||
| Resale | Easy, price grows | Possible, price drops |
| Instalment plan | Available, incl. post-handover — not everywhere, ask | Available, incl. post-handover — not everywhere, ask |
| Inheritance | No restrictions | Remaining term is transferred |
| ROI (yield) | 6-8% per year | 8-10% per year |
Freehold: Full ownership
Freehold pros
- • Own forever
- • Easier to sell and at a higher price
- • Value grows over time
- • Instalment plans available (not everywhere)
- • More prestigious
- • No dependence on a landlord
Freehold cons
- • More expensive (~10%)
- • Condos only for foreigners
- • The 49% quota may be taken
- • No freehold villas for foreigners
- • Lower ROI (yield)
Important to know about Freehold
Under Thai law, foreigners may own a maximum of 49% of a condominium's area on a freehold basis. The remaining 51% must belong to Thais. Always check the quota before buying.
Leasehold: Long-term lease
Leasehold pros
- • Cheaper (~10%)
- • Access to villas on land
- • Higher ROI (yield)
- • Renewable up to 90 years
- • Can be resold
- • Suitable for 10-15 year investments
Leasehold cons
- • Limited ownership term
- • Value drops over time
- • Harder to sell
- • Dependence on the landowner
- • Lower liquidity
- • Risk of non-renewal
What to check in a Leasehold
Always check in the contract:
- • Right to renew (2nd and 3rd 30-year periods)
- • Right to sub-let
- • Right to resell
- • Termination conditions
What to choose for your situation
Choose Freehold if:
- ✓You plan to hold for more than 15-20 years
- ✓You are buying for yourself / your family
- ✓You need liquidity on resale
- ✓You want to leave an inheritance
- ✓An apartment in a condo works for you
Choose Leasehold if:
- ✓You are investing for 10-15 years
- ✓You want a villa on land
- ✓High yield (ROI) matters
- ✓Limited budget
- ✓You accept resale risk
Frequently asked questions
What is Freehold in Thailand?
Freehold (full ownership) is the right to own property with no time limit. You own the unit forever. For foreigners it is only available in condominiums, where foreigners may own up to 49% of the total sellable area in a building.
What is Leasehold in Thailand?
Leasehold is a long-term lease of property, typically for 30, 60 or 90 years (three 30-year periods). It is the only legal way for foreigners to own a villa on land. Leasehold is roughly 10% cheaper than Freehold.
Can you sell or rent out a Leasehold property?
Yes, a Leasehold can be sold (transferring the remaining lease term to the new owner) and sub-let. Selling requires the landowner's consent as set out in the contract. The value decreases as the term runs down.
What happens to a Leasehold after the term ends?
After 30 years the lease can be extended for another 30 years (if written into the contract). In total, three 30-year periods are possible = 90 years. If not extended, the property reverts to the landowner, but practically all developers provide for renewal.
Which option is better for investment?
Freehold is better for long-term investment and resale. Leasehold is more profitable for short-term holdings (10-15 years) and on a smaller budget — you can buy a villa instead of an apartment for the same money. Leasehold ROI is usually higher because of the lower entry price.
Need help choosing?
We'll tell you about specific properties, check the documents, and explain all the nuances.