Buying property in Thailand? Understanding freehold and leasehold ownership is key. Both options have pros and cons, especially for foreign buyers.
What is Freehold Ownership?
Freehold gives you permanent ownership of the property. You fully own the building and, in some cases, the land.
Key Facts:
- Ownership Duration: Forever.
- Control: Total freedom to sell, renovate, or pass it on.
- Eligibility: Foreigners can own freehold condos (up to 49% of total units in a building).
- Limitations: Foreigners cannot own land directly unless through a Thai company or BOI-approved structures.
Freehold condos are highly popular with international investors looking for long-term value.
What is Leasehold Ownership?
Leasehold means you lease the property, usually for 30 years. Some contracts allow renewal for up to 90 years, but it’s not always guaranteed.
Key Facts:
- Ownership Duration: 30 years, sometimes extendable.
- Control: Use the property, but changes may need landlord approval.
- Cost: Lower upfront costs than freehold.
- Popular With: Foreigners purchasing villas or land-based properties.
Leasehold is great if you’re planning to stay for a limited time or want lower investment risk.
Can Foreigners Own Land in Thailand?
Direct land ownership is restricted for foreigners. However, you can:
- Buy freehold condos.
- Lease land long-term (leasehold).
- Invest through a Thai company (requires legal consultation).
- Purchase land under the Board of Investment (BOI) scheme for certain qualified investors.
Freehold vs. Leasehold in Thailand: What’s Better for You?
- Freehold: Best for long-term ownership and full control.
- Leasehold: Ideal for lower upfront costs or if you don’t plan to stay forever.
Consider your investment goals, how long you plan to stay, and whether you want full control over the property.
Hidden Costs to Know
- Transfer fees and taxes: Usually 6.3% of the sale price for freehold properties.
- Leasehold registration fee: 1% of the total lease value.
- Maintenance and sinking fund fees in condos.
- Legal fees for due diligence and contract review.
Freehold vs. Leasehold in Thailand: Need Help Deciding?
The Luxe Group Thailand is here to guide you through every step. Whether it’s a freehold condo in Bangkok or a luxury leasehold villa in Phuket, we’ll help you make the right choice.
Contact Us Today:
Let’s find the perfect property solution for you. Because at The Luxe Group, we believe you deserve the best.
Disclaimer: This guide is for informational purposes only. Please consult with a legal expert before making any property decisions.
Tel: (+66) 83 226 9991
WhatsApp: (+66) 83 226 9991
Line: @theluxe
www.luxe-groups.com
