Ownership & the law
What you actually own, for how long, and how easily you can sell it or pass it on. This is the decision that shapes every Koh Samui property purchase.
In short
- Foreigners can own a condo unit freehold, within the building’s 49% foreign quota, and can own a building separately from the land.
- Foreigners can’t own land. On Koh Samui, villas and plots are usually held on a registered lease of up to 30 years.
- “30 + 30 + 30” renewals are contract promises, not guarantees. They may not bind a new landowner or the landowner’s heirs.
- Registering a lease costs 1.1% of the total rent for the whole term, paid at the Land Office.
- Leasehold villas are bought and sold regularly. The remaining term and the quality of the lease drive the price.
Almost every property question on Koh Samui comes back to one point: are you buying freehold or leasehold? The answer decides what is registered in your name, how long your rights last, what happens if you die, and how easily you can sell. This guide explains both in plain English, with the Thai law behind them, so you can compare villas for sale and condos for sale on equal terms.
General information, not legal advice. Have the contract for your purchase reviewed by an independent property lawyer.
What freehold means
Freehold means outright ownership with no end date. Your name is recorded at the Land Office as the owner, and you can sell, mortgage, let or leave the property to your heirs without anyone’s permission.
Thai law limits what a foreigner can hold freehold. There are two everyday routes, and one rare exception:
- A condominium unit. You receive a condominium title deed (Or Chor 2) in your own name, for your unit and a share of the common property. This is the most common freehold purchase for foreigners on Koh Samui.
- A building on someone else’s land. Thai law treats land and buildings as separate property, so a foreigner can own a house while the land is leased. This is usually protected with a registered superficies (see below).
- Land, in limited cases. The Land Code allows a foreigner to acquire up to one rai for a residence after investing at least ฿40 million in Thailand, with Ministry of Interior approval. In practice it is rarely used.
The law
Foreigners together may own up to 49% of the total floor area of all units in a registered condominium. The purchase money must be brought into Thailand in foreign currency.
Condominium Act B.E. 2522, sections 19 and 19 bis
When a villa is advertised as “freehold” to foreign buyers, read the small print. It usually means the house is freehold, the land is leased, or the land is held by a Thai company. Each is very different. See foreign property ownership in Thailand.
What leasehold means
Leasehold gives you the right to use land, or land and a building, for a fixed term in exchange for rent, usually paid in full up front. The landowner keeps ownership. On Koh Samui, a registered lease is the standard way for foreigners to buy a villa or a plot.
A properly registered lease is recorded on the back of the title deed. It survives a sale of the land: a new owner takes the land subject to your lease.
The law
A lease of immovable property cannot exceed 30 years; a longer term is reduced to 30. It may be renewed, but each renewal cannot exceed 30 years. A lease longer than 3 years must be in writing and registered, or it can only be enforced for 3 years.
Civil and Commercial Code, sections 538 and 540
Freehold
Condominium unit
Best for: owning outright, lower upkeep
- Term
- No end date
- Registered
- Condo title in your name
- Inheritance
- Passes by will
- Selling
- Transfer the title
- On Samui from
- about ฿2.5 million
Leasehold
Villa or land
Best for: pool villas, building your own home
- Term
- Up to 30 years
- Registered
- Lease on the land title
- Inheritance
- Depends on the lease
- Selling
- Assign the lease, with consent
- On Samui from
- about ฿4.5 million
Freehold and leasehold side by side
| Freehold | Leasehold | |
|---|---|---|
| What you hold | Ownership with no end date | The right to use for a fixed term |
| Typical on Koh Samui | Condos | Villas and land |
| Maximum term | Unlimited | 30 years per registration |
| Renewal | Not needed | By agreement, registered again at the time |
| Selling | Transfer the title | Assign the lease or grant a new one, usually with the landowner’s consent |
| Inheritance | Passes to heirs by will | Depends on how the lease is drafted |
| Cost to register | 2% transfer fee plus taxes, shared as agreed | 1% of total rent plus 0.1% stamp duty |
| Mortgage from a Thai bank | Rare for foreigners | Very rare |
How a Koh Samui villa is usually held
Most foreign villa buyers on the island end up with three things working together:
- A registered land lease, normally 30 years, recorded on the land title deed.
- A superficies over the same land, so that you own the house and anything you build. A superficies is a separate registered right; unless the deed says otherwise, it can usually be transferred and inherited.
- The house in your name, through the building permit or a transfer of the building at the Land Office.
The lease gives you the right to use the land. The superficies and the building ownership mean the villa itself is yours, not the landowner’s, if anything goes wrong. Read more in usufruct, superficies and servitudes explained.
The truth about “30 + 30 + 30”
Many villa contracts promise a 30-year lease “with two further renewals of 30 years”, sold as a 90-year lease. It is worth knowing exactly what that promise is worth.
Watch out
Only the first 30 years can be registered now. A promise to renew is a contract between you and the landowner who signed it. Thai courts have treated it as a personal obligation of that landowner, so if the land is sold, or the owner dies, the new owner or the heirs may not be bound to renew.
- Treat the first 30 years as what you are buying.
- Ask your lawyer to add protections, such as an obligation on any buyer of the land to honour renewals, and a pre-agreed renewal fee.
None of this makes leasehold a bad buy. Thousands of Koh Samui villas are held this way and change hands regularly. It means you should price the property on the registered term and treat renewals as a possible bonus.
What happens when you die
This is where freehold and leasehold differ most.
- Freehold condo or building: it passes under your will, or Thai intestacy rules if there is no will. Your heirs can keep it or sell it.
- Leasehold: Thai courts have generally treated a lease as personal to the tenant, so it can end on the tenant’s death unless the lease says otherwise. Good leases name a successor or allow the lease to pass to heirs, and a registered superficies over the house helps further.
If you buy leasehold, make a Thai will and have your lawyer check exactly how the lease and superficies pass to your family.
Selling: freehold vs leasehold
A freehold condo is sold like any other property. You and the buyer go to the Land Office, the title transfers, and fees and taxes are paid. A clear FET form from your purchase makes it easier to send the proceeds abroad.
A leasehold property is usually sold in one of two ways:
- Assigning the remaining lease to the buyer and transferring the building and superficies.
- The landowner granting a new lease directly to the buyer, sometimes for a fresh 30 years.
The law
A tenant cannot sublet or transfer a lease to someone else without the landowner’s consent, unless the lease allows it.
Civil and Commercial Code, section 544
So before you buy, check that the lease allows assignment without further consent. It makes your future sale much simpler. The remaining term matters to buyers: a villa with 27 years left will usually sell more easily, and for more, than the same villa with 12 years left. See selling property in Koh Samui.
Registering a lease, step by step
- Agree terms and reserve. Price, lease term, renewal wording, assignment rights and who pays the fees go into a reservation agreement with a deposit.
- Due diligence. Your lawyer checks the title deed, the landowner’s identity, existing leases or mortgages, legal access and building permits. See property due diligence.
- Sign the lease and superficies. In Thai and English, reviewed by your own lawyer.
- Register at the Land Office. The lease and superficies are recorded on the title deed and the fees are paid. Your lawyer can attend under power of attorney if you are abroad.
- Transfer or register the house. The building is transferred to you, or registered in your name as it is built.
What it costs
Full details: property taxes and transfer fees in Thailand.
Leasehold condos and 99-year proposals
When a building’s 49% foreign quota is full, foreigners can still buy a unit there on a lease. It is cheaper but holds its value less well than a freehold unit, so it suits buyers planning to stay for a fixed period.
Proposals to allow 99-year leases and to raise the condo foreign quota have been discussed publicly. At the time of writing, the 30-year maximum and the 49% quota still apply. Never pay for a property on the strength of a proposed change: confirm the law in force on the day you sign.
Which should you choose?
- You want to own outright, with the simplest exit: a freehold condo. See Koh Samui condos and buying a condominium in Thailand.
- You want a private pool villa or a sea view: leasehold is the normal structure. Focus on a well-drafted, registered lease, a superficies, a Chanote title and a reputable landowner.
- You plan to build: lease the land with a superficies. See buying land in Koh Samui.
- You’re buying to let: both work. Compare likely rental income against the remaining term. See our investment guide.
Common mistakes
- Paying for “90 years” when only 30 can be registered.
- Signing a lease that is never registered at the Land Office.
- No superficies, so the house legally belongs to the landowner.
- No right to assign, so selling depends on the landowner’s goodwill.
- No provision for heirs, and no Thai will.
- Using a company with Thai nominee shareholders to get “freehold land”. This is illegal and can be unwound.
Before you sign
- The lease will be registered on the title deed, not just signed.
- The land has a Chanote title and the landowner’s identity is confirmed.
- Renewal wording is clear, and binds future owners as far as possible.
- You can assign the lease without further consent.
- A superficies is registered and the house is in your name.
- The lease says what happens if you die, and you have a Thai will.
- Your own lawyer has read every document.
Frequently asked questions
Yes: a condo unit within the building’s 49% foreign quota, or a building separately from the land. Foreigners can’t own land in their own name, except in a rarely used investment route.
It can be. Most villas on Koh Samui are leasehold and sell regularly. Value depends on the remaining term, the quality of the lease and the location.
Only by registering a renewal each time the term ends. A renewal promise in the contract isn’t a guarantee and may not bind a new landowner.
It depends on the lease. Courts have treated leases as personal to the tenant, so the lease should name a successor or allow it to pass to heirs. Make a Thai will.
Yes, usually by assigning the lease and transferring the house, or by the landowner granting the buyer a new lease. Check that assignment doesn’t need the landowner’s consent.
1% of the total rent for the whole term plus 0.1% stamp duty, paid at the Land Office.
Not at the time of writing. It has been proposed, but the maximum registrable term is still 30 years.
Not sure which suits you?
We’ll explain how any property you’re considering is held, in a free consultation.
General information only, not legal or tax advice. Laws and fees change; confirm the details for your purchase with an independent lawyer.