Ownership & the law
Exactly what a foreigner can and can’t own in Thailand, the legal structures that work, the ones that don’t, and how to choose between them for a Koh Samui purchase.
In short
- Foreigners can’t own land in Thailand in their own name, apart from a rarely used investment route.
- Foreigners can own a condo unit freehold, within the building’s 49% foreign quota, if the money comes from abroad.
- Foreigners can own a house or villa separately from the land beneath it, usually with a registered lease and superficies over the land.
- A Thai company with Thai nominee shareholders is illegal for holding land and can be unwound. A genuine operating business is different.
- The right structure depends on the property, your budget, how long you plan to hold and who should inherit. Decide it with your lawyer before you reserve.
“Can I buy property in Thailand?” is the first question almost every foreign buyer asks us. The honest answer is yes, but not in the way you might buy at home. Thai law draws a sharp line between land, which is reserved for Thai nationals, and buildings and condo units, which foreigners can own. Every structure used on Koh Samui is a way of working within that line. This guide explains each one, the law behind it, what it costs, and where buyers go wrong. When you’re ready to look at property, browse villas for sale or condos for sale.
General information, not legal advice. Laws and Land Office practice change. Your own property lawyer should confirm the structure for your purchase.
The basic rule: land and buildings are separate
Thai property law treats land and the buildings on it as separate things. That single principle explains almost everything a foreign buyer needs to know:
- Land is restricted. A foreigner can’t be registered as its owner.
- Buildings are not restricted. A foreigner can own a house, a villa or a condo unit.
- Rights over land can be granted to foreigners: a lease, a superficies, a usufruct, a servitude, habitation or a Sap Ing Sit.
The law
Foreigners may acquire land only under a treaty that grants that right, or as permitted by the Land Code, with the approval of the Minister of Interior.
Land Code B.E. 2497, section 86
In practice no current treaty gives foreigners a general right to buy land, so section 86 is effectively a ban. The sections that follow explain the routes that are open.
Your options at a glance
| Structure | What you hold | How long | Typical use on Samui | Main risk |
|---|---|---|---|---|
| Freehold condo | Ownership of the unit | No end date | Condos in Lamai, Bophut, Chaweng | Quota full; building management |
| Lease + superficies | Use of the land; ownership of the house | 30 years per lease | Most villas and land | Renewals not guaranteed; inheritance drafting |
| Sap Ing Sit | A tradeable right to use the property | Up to 30 years, no renewal | Rare so far | New, untested in practice |
| Usufruct / habitation | Use (and income) of the property | Up to 30 years or for life | Couples and family land | Ends on death; can’t be sold |
| Thai spouse owns the land | Nothing in your name unless added | Depends on the marriage | Married couples | Divorce, death, family disputes |
| Genuine Thai company | Shares in a company that owns the land | Indefinite | Hotels and real businesses | Must be a real business with real Thai investors |
| Section 96 bis investment | Up to 1 rai for a residence | Ownership | Very rarely used | ฿40m investment, ministerial approval |
Freehold condominium ownership
A condominium unit is the one property type foreigners can own outright on a title deed in their own name.
The law
Foreigners together may own up to 49% of the total floor area of all the units in a condominium. To qualify, a foreign buyer must bring the purchase money into Thailand in foreign currency, or pay from a foreign-currency or non-resident baht account; certain residents and investment-promoted persons also qualify.
Condominium Act B.E. 2522, sections 19 and 19 bis
What this means in practice:
- The quota is per building, measured by floor area, not number of units. Before you reserve, the building’s juristic person (its owners’ association) should confirm in writing that foreign quota is available for your unit.
- The money trail matters. Send the purchase price from your own overseas account, in foreign currency, with the purpose stated as buying a condominium unit. Your Thai bank converts it and issues a Foreign Exchange Transaction form (or a credit advice for smaller transfers). The Land Office needs it to register you as owner.
- You receive a condominium title deed (Or Chor 2) in your own name, which you can sell, mortgage, let or leave in your will.
If the quota is full, the unit can only be held by a foreigner on a lease. That is a weaker position, and usually worth less on resale. Read our full guide to buying a condominium in Thailand.
Leasehold land with a superficies: the standard villa structure
For villas and land, the structure almost every foreign buyer on Koh Samui uses is:
- A registered lease of the land, normally for 30 years, recorded on the title deed.
- A superficies over the same land, giving you registered ownership of the house and anything you build.
- The house itself in your name, through the building permit or a transfer at the Land Office.
The law
A lease of immovable property cannot exceed 30 years, and a lease of more than three years must be registered to be enforceable for its full term.
Civil and Commercial Code, sections 538 and 540
Done well, this gives you secure use of the land for 30 years and clear ownership of the villa. Done badly, with an unregistered lease, no superficies or vague renewal terms, it can leave you with little more than a contract with the landowner. The detail is in freehold vs leasehold in Thailand and usufruct, superficies and servitudes.
Watch out
Contracts often promise “30 + 30 + 30 years”. Only the first 30 years can be registered now. Renewal promises may not bind a new owner of the land or the landowner’s heirs. Value a leasehold villa on the registered term.
Sap Ing Sit: the newer 30-year right
The Sap Ing Sit Act of 2019 created a registered right to use land or a condo for up to 30 years that, unlike a lease, can be sold, mortgaged and inherited. It can’t be renewed, and it is still rarely used on Samui: landowners, banks and Land Office staff have little experience of it. It is worth asking about if a seller offers it, but it isn’t yet a mainstream route. See the Sap Ing Sit section of our rights guide.
Usufruct and habitation
A usufruct lets you use a property and keep its income; habitation lets you live in a building. Both can last for life, but both end when you die and neither can be sold. They are useful for couples and family arrangements. They aren’t a substitute for owning or leasing if resale or inheritance matters to you.
Buying with a Thai spouse
Many couples on Koh Samui register land in the Thai spouse’s name. That is legal, with conditions:
- At the Land Office, the foreign spouse signs a declaration that the money used is the Thai spouse’s own separate property, or that they have no claim to the land. This protects the purchase from being treated as a foreigner acquiring land.
- The land belongs to the Thai spouse. On divorce or death, the foreign spouse has no ownership of it, and a foreign heir who inherits land can be ordered to dispose of it.
How couples protect the foreign partner:
- A registered lease or usufruct from the Thai spouse to the foreign spouse, so the foreign partner keeps a right to live there.
- A superficies so the house is in the foreign spouse’s name.
- Thai wills for both partners.
- For unmarried couples, the same tools apply, but with more care: the land is simply the Thai partner’s property.
Thai companies: the legal and the illegal
For years, a common workaround was a Thai limited company set up so that Thai shareholders held 51% “on paper”, with the foreign buyer controlling the company and funding everything. That is a nominee structure, and it is illegal.
The law
A company is treated as foreign if more than 49% of its capital is held by foreigners, or more than half its shareholders are foreign. Thais who hold land on behalf of a foreigner, and the foreigner, commit an offence, and the land can be ordered sold.
Land Code, sections 97, 111 and 113; Foreign Business Act B.E. 2542
Land Offices now routinely ask companies buying land to show where their Thai shareholders’ money came from. Structures without genuine Thai investment have been investigated and unwound.
A company is legitimate when it is a real operating business: for example, a resort or hotel with genuine Thai partners who invested their own money and share in the profits. That is a business decision with accounting, tax and licensing obligations, not a way to own a holiday villa. Take specialist advice.
The Board of Investment and section 96 bis
Two narrow routes allow foreigners to hold land directly:
- Section 96 bis of the Land Code allows a foreigner to acquire up to one rai for a residence after investing at least ฿40 million in qualifying Thai investments, kept for a minimum period, with Ministry of Interior approval. In practice it is rarely used.
- Board of Investment (BOI) promoted companies can be permitted to own land needed for their promoted business, such as a factory or a qualifying hotel project. It isn’t a route for a private home.
Inheritance: plan it at the start
What happens to your property when you die depends on the structure:
| Structure | What happens on death |
|---|---|
| Freehold condo | Passes under your will, or Thai intestacy rules |
| Lease | Depends on the lease. Courts have treated leases as personal to the tenant, so it should name a successor or allow transfer to heirs |
| Superficies | Passes to heirs unless the deed says otherwise |
| Sap Ing Sit | Passes to heirs |
| Usufruct / habitation | Ends |
| Land in a Thai spouse’s name | Passes under the Thai spouse’s estate |
Make a Thai will covering your Thai property, alongside any will at home, and ask your lawyer to check the lease and superficies wording against it.
Bringing in and taking out money
How you fund the purchase affects how easily you can sell and take the money home:
- Transfer from abroad in foreign currency, in your own name, with the purpose stated. Keep the bank’s FET form or credit advice.
- Avoid cash and third-party payments, which leave no clear trail and can delay registration.
- When you sell, the record of money brought in supports sending the proceeds back out.
Which structure is right for you?
- You want the simplest outright ownership, or a lower budget: a freehold condo.
- You want a private pool villa: a 30-year registered lease, a superficies and the house in your name, with careful renewal and succession wording.
- You’re building your own home: lease the land with a superficies, then build in your name.
- You’re married to a Thai national: land in your spouse’s name, protected by a lease or usufruct and a superficies for you, plus wills.
- You’re running a hotel or resort business: a genuine Thai company or BOI route, with specialist legal and tax advice.
See how these play out in practice in our complete guide to buying property in Koh Samui.
Common mistakes
- Using a company with Thai nominee shareholders to “own” a holiday villa.
- Paying for “90 years” when only 30 can be registered.
- No superficies, so the villa legally belongs to the landowner.
- Transferring money without the FET paperwork needed to register a condo.
- No Thai will, and no succession clause in the lease.
- Relying on proposed law changes, such as 99-year leases or a higher condo quota, that aren’t yet in force.
Before you reserve
- You know exactly what will be registered in your name: a title, a lease, a superficies or something else.
- For a condo, the juristic person has confirmed foreign quota in writing.
- For a villa, the lease and superficies will both be registered on the title deed.
- Your funds will come from abroad in your name, with the right paperwork.
- No part of the structure relies on nominee shareholders.
- You have a plan for inheritance, including a Thai will.
- Your own independent lawyer has approved the structure.
Frequently asked questions
Yes, but not land. Foreigners can own condo units freehold, within the 49% quota, and can own buildings such as villas separately from the land, which is usually leased.
Not in their own name, except through the rarely used ฿40 million investment route or a BOI-promoted business. Foreigners usually lease land for up to 30 years.
Only if the company is a genuine business with real Thai shareholders who invested their own money. Using Thai nominees to hold land for a foreigner is illegal.
Yes. The land is registered to the Thai spouse, and you sign a declaration at the Land Office. Protect yourself with a registered lease or usufruct, a superficies for the house, and wills.
It depends on the structure. A superficies passes to heirs; a lease depends on its wording; a usufruct ends. Plan this with your lawyer and make a Thai will.
It has been proposed and debated. At the time of writing, the maximum registrable lease is still 30 years. Don’t buy on the strength of a proposed change.
It’s difficult. Few Thai banks lend to non-residents, especially on leasehold. Most foreign buyers pay cash, use developer payment plans or borrow at home.
Not sure which structure suits you?
We’ll explain the options for any property you’re considering, in a free consultation.
General information only, not legal or tax advice. Laws and Land Office practice change; confirm the structure for your purchase with an independent lawyer.