Buying Property & Condos in Phuket

Usual line first: I'm not a lawyer, and property is the one area where getting professional advice isn't optional. But people buy here all the time, and the rules aren't complicated once someone lays them out plainly. Here's the version I wish someone had given me.

Condos: the simple route

Foreigners can own a condo freehold, the same as a Thai owner, as long as it sits inside the building's foreign quota. By law a project can sell up to 49% of its total floor area to foreigners. Inside that quota you own the unit outright: live in it, rent it out, sell it, leave it to your kids. No expiry, no renewals. This is by far the cleanest way for a foreigner to own property in Thailand, which is why most do.

When the quota is full

If a building has already sold its 49% to other foreigners, you can't buy freehold there. The usual alternative is a leasehold: a long lease, typically 30 years with renewal options, where you get the use of the unit but don't own it freehold. It's cheaper to register, but it's a weaker form of ownership, so go in with your eyes open and weigh it against waiting for a freehold unit elsewhere.

Land and villas: the catch

Here's the big one: foreigners cannot own land in Thailand. So a house or villa is trickier than a condo. The legitimate routes are to take a registered 30-year lease on the land (with contractual renewals), or to own the building itself while leasing the land underneath it. Both are common and both are legal, but both need a lawyer to structure properly so you're actually protected.

Bringing the money in

To register a freehold condo, you have to prove the purchase money came from outside Thailand in foreign currency. Your Thai bank documents this on a Foreign Exchange Transaction Form, the FET (older name "Tor Tor 3"). Arrange it with your bank as you transfer the funds in. It's an easy step to overlook and then scramble for at the land office, so flag it early.

What it costs

On top of the price, budget for transfer costs. On a freehold condo these run roughly 3.5% if the seller has owned it more than five years, up to about 6.3% if less, made up of the transfer fee plus stamp duty or specific business tax. Who pays what is negotiable and often split with the seller. Leasehold registration is lighter, around 1.1%. Whatever the split, factor it into your budget from the start rather than as a surprise on completion day.

Do it properly

Use an independent lawyer, not the developer's or the agent's. Get the title checked, confirm the foreign quota actually has room, and look into the developer's track record before you put down a deposit. It's a small cost next to the purchase price, and it's the thing that keeps you out of trouble. For getting a feel for the areas first, the where to live guide is a good place to start.

This guide is general information, not legal advice. Property law is detailed and changes, so confirm the current rules and your own position with a qualified Thai property lawyer before you commit to anything.