What's the purchase process to buy a property in Phuket?

Last updated on September 1, 2025

Authored by the expert who managed and guided the team behind the Thailand Property Pack

Yes, the analysis of Phuket's property market is included in our pack

Buying property in Phuket requires navigating Thailand's foreign ownership laws, understanding multiple purchase options, and completing a multi-step legal process.

The property purchase process in Phuket typically takes 30-90 days and involves strict legal requirements, especially for foreign buyers who face ownership restrictions but have several legitimate options including condominium freehold, leasehold arrangements, and Thai company structures.

If you want to go deeper, you can check our pack of documents related to the real estate market in Thailand, based on reliable facts and data, not opinions or rumors.

Quick Summary:

Foreigners can own condominiums outright (up to 49% of building) but must use leasehold or Thai company structures for land ownership.

The purchase process involves due diligence, reservation agreement, sales contract, and transfer at the Land Department with total costs of 6-8% of property value.

Ownership Option	Property Type	Key Requirements
Condominium Freehold	Apartment units	49% foreign quota not exceeded
30-Year Leasehold	Villas, houses	Registered lease, renewable terms
Thai Company	Land and houses	51% Thai ownership, proper structure
Usufruct	Any property	Lifetime use rights, non-transferable
Superficies	Buildings on land	30-year building rights
Transfer Costs	All properties	6-8% total (taxes, fees, legal)
Money Transfer	All purchases	FET form required for >$50,000

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Phuket. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Thai real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Bangkok, Chiang Mai, and Phuket. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

✓✓✓

Attaya Suriyawonghae 🇹🇭

Real Estate Broker, Zest Real Estate

Attaya is a certified Thai Real Estate Broker who knows the Phuket market inside and out. With years of experience, she can guide you through the intricacies of the island's vibrant real estate scene, whether you're seeking a luxurious beachfront villa or a high-growth investment opportunity. After speaking with her, we reviewed the blog post, corrected a few points, expanded on others, and added her personal experience.

How do I check if foreigners are legally allowed to own property in Phuket?

Foreigners cannot directly own land in Phuket, but they can own condominium units outright under specific conditions.

The Thai Condominium Act allows foreign nationals to own up to 49% of the total floor area in any condominium building. This means you can purchase and hold full freehold ownership of an apartment unit, with the same rights as Thai nationals to sell, inherit, or lease the property.

For landed properties like villas and houses, foreigners must use alternative legal structures since direct land ownership is prohibited. The most common options include 30-year registered leases (renewable for additional terms), setting up a properly structured Thai limited company, or usufruct agreements that grant lifetime use rights.

As of September 2025, nominee arrangements where Thai nationals hold land on behalf of foreigners remain illegal and carry significant risks including property forfeiture and legal penalties.

Always verify the foreign ownership quota hasn't been exceeded in your target condominium by checking with the juristic person or developer before making any financial commitments.

What are the main ownership options for foreigners in Phuket?

Foreigners have five main legal options for property ownership in Phuket, each with distinct advantages and limitations.

Ownership Type	Duration	Property Types	Key Benefits	Main Limitations
Condominium Freehold	Perpetual	Apartment units only	Full ownership rights, can sell/inherit	49% foreign quota limit
30-Year Leasehold	30 years (renewable)	Villas, houses, land	Secure long-term possession	Not ownership, renewal not guaranteed
Thai Company	Company lifetime	All property types	Can own land and buildings	51% Thai ownership required
Usufruct	Lifetime or 30 years	All property types	Use and benefit rights	Non-transferable, ends at death
Superficies	Up to 30 years	Buildings on land	Own structures, not land	Limited to building structures

Condominium freehold offers the strongest ownership rights but limits you to apartment-style properties. Leasehold provides flexibility for houses and villas with 30-year terms that can often be renewed for two additional periods.

Thai company ownership requires maintaining a legitimate business structure with majority Thai shareholding, making it suitable for larger investments or commercial purposes.

How do I choose the right location in Phuket based on my goals?

Location selection in Phuket depends entirely on whether you're buying for personal residence, rental income, or long-term investment appreciation.

For luxury living and high-end investment, Bang Tao and Surin offer premium beachfront properties with strong appreciation potential, attracting affluent residents and generating rental yields of 4-6% annually. These areas feature world-class amenities, international schools, and upscale shopping.

Patong remains the rental income champion for tourist-focused properties, delivering yields of 6-8% due to constant demand from short-term visitors, though it comes with higher noise levels and more commercial development.

Quieter residential areas like Nai Harn, Rawai, and Kata suit buyers seeking peaceful living environments with moderate rental potential of 3-5% annually, offering better value for money and local community integration.

Central locations like Karon provide balanced options with reasonable rental yields of 4-6% while maintaining proximity to beaches, restaurants, and essential services without the intense tourist crowds of Patong.

What documents should I review before making an offer on a Phuket property?

You must verify five essential document categories before submitting any purchase offer to avoid costly legal complications.

The Chanote title deed represents the gold standard of land ownership in Thailand, showing clear boundaries and ownership history. Request to see the original document and verify it matches the property boundaries through official land surveys.

For condominiums, examine the juristic person documents, building permits, completion certificates from local authorities, and current foreign ownership quota calculations to ensure legal compliance.

Review all existing lease agreements, service contracts, and maintenance records to understand ongoing obligations and potential liabilities you'll inherit as the new owner.

Property tax receipts, utility payment records, and any outstanding debt notifications should be current and clear, as unpaid obligations typically transfer to new owners.

Development permits, environmental impact assessments, and zoning classifications confirm the property's legal use and development potential for future modifications or expansions.

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How do I carry out proper due diligence on a Phuket property?

Due diligence requires systematic verification of legal, financial, and physical aspects of the property through official channels.

Visit the local Land Department office to verify title deed authenticity, ownership history, and check for any registered encumbrances, mortgages, or legal disputes affecting the property. This official search costs approximately 20-50 baht and provides definitive legal status.

For condominiums, confirm the foreign ownership percentage hasn't exceeded 49% by requesting current ownership records from the juristic person or building management, as this directly affects your ability to purchase.

Engage a qualified lawyer to review all contracts, conduct property searches, and verify compliance with zoning regulations and building codes that could affect future use or modifications.

Physical inspections should include structural assessments, utility connections, pest inspections, and verification that all advertised amenities and features actually exist and function properly.

It's something we develop in our Thailand property pack.

What steps are involved in signing the reservation agreement?

The reservation agreement secures your purchase intent while providing time to complete due diligence and arrange financing.

This initial contract typically requires a non-refundable booking fee of 50,000-200,000 baht (1-5% of purchase price) depending on property value and developer policies, paid immediately upon signing.

The agreement should specify the exact purchase price, property description, completion timeline for due diligence, and conditions under which the reservation can be terminated by either party.

Standard reservation periods last 14-30 days, giving you time to secure financing, complete legal checks, and finalize the main sales contract without losing the property to other buyers.

Ensure the reservation agreement clearly states that the booking fee will be credited toward your purchase price upon successful completion, and verify refund conditions if the sale falls through due to title issues or other problems beyond your control.

What are typical sales and purchase agreement terms in Phuket?

Sales and purchase agreements in Phuket follow standard structures with payment schedules tailored to property completion status.

For completed properties, typical payment schedules require 10-30% upon signing the SPA, with the balance paid at ownership transfer within 30-60 days, allowing time for final inspections and legal procedures.

Off-plan developments use milestone-based payments: 20-30% at SPA signing, 20-40% during construction phases (foundation, roofing, finishing), and 30-40% at completion and transfer.

Standard SPA terms include seller warranties for clear title, completion dates with penalty clauses for delays, defect liability periods of 1-2 years for new properties, and specific responsibilities for utility connections and transfer costs.

The agreement must specify currency (Thai baht is standard), foreign exchange rate mechanisms if applicable, and clear procedures for handling disputes through Thai courts or arbitration.

How does ownership transfer work at the Land Department?

Property transfer requires personal attendance by both buyer and seller at the relevant Land Department office with all required documentation.

Both parties must present valid passports (foreigners) or ID cards (Thais), the signed sales and purchase agreement, original title deed, tax clearance certificates, and proof of payment for all transfer fees and taxes.

The Land Department officer reviews all documents, calculates final taxes based on official property valuations, and processes the ownership transfer by updating the title deed with new owner information.

For condominium purchases, additional documents include foreign ownership quota certificates, building permits, and juristic person confirmations before the transfer can be completed.

The entire transfer process typically takes 2-4 hours if all documentation is correct, with the new title deed issued immediately upon completion and payment of all required fees.

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What taxes and fees should I expect when buying in Phuket?

Total purchase costs in Phuket typically range from 6-8% of the property value, including various taxes, fees, and professional services.

Cost Type	Rate	Who Pays
Transfer Fee	2% of appraised value	Usually split buyer/seller
Stamp Duty	0.5%	Buyer (if exempt from business tax)
Specific Business Tax	3.3%	Seller (if held <5 years)
Withholding Tax	1% individuals, higher for companies	Seller
Legal Fees	1-2% of purchase price	Buyer
Due Diligence	20,000-50,000 baht	Buyer
Translation Services	5,000-15,000 baht	Buyer

Transfer fees are calculated on government-appraised values, which often differ from actual sale prices, potentially reducing your tax burden compared to market value calculations.

Legal representation costs vary significantly based on property complexity, with simple condominium purchases requiring minimal legal work compared to company structure setups or complex lease arrangements.

What common mistakes do foreigners make when buying in Phuket?

The most dangerous mistake involves illegal nominee arrangements where Thai nationals hold property titles on behalf of foreign buyers.

These nominee structures violate Thai law and can result in complete property loss, criminal charges, and substantial financial penalties, with recent court cases resulting in property confiscation worth millions of baht.

Many foreigners sign ambiguous lease contracts without guaranteed renewal options, leaving them vulnerable to rental increases or eviction after the initial 30-year term expires.

Failing to verify condominium foreign ownership quotas before purchase can lead to transaction cancellation after significant time and money investment, as exceeded quotas prevent legal foreign ownership.

Inadequate due diligence on title deeds, existing debts, or legal encumbrances frequently results in inherited problems that cost substantial amounts to resolve after purchase completion.

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How do I properly document money transfers for future repatriation?

Proper documentation of foreign currency transfers is essential for legal property purchase and future fund repatriation.

For transfers exceeding US$50,000, Thai banks issue Foreign Exchange Transaction (FET) forms that specify the source and purpose of funds, which must clearly state "property purchase" to comply with Bank of Thailand regulations.

Maintain complete records including international wire transfer receipts, bank conversion rates, FET forms, and property purchase contracts to establish the legal source and use of foreign currency.

When selling property later, these documents prove the foreign source of your original investment, enabling legal repatriation of sale proceeds up to the documented amount brought into Thailand.

Without proper FET documentation, you may face restrictions on transferring sale proceeds abroad, potentially trapping your investment capital in Thailand indefinitely.

What ongoing costs should I understand after purchasing in Phuket?

Post-purchase expenses in Phuket include regular maintenance fees, utilities, insurance, and various property management costs that many buyers underestimate.

Condominium maintenance fees typically range from 30-80 baht per square meter monthly, covering common area upkeep, security, building insurance, and sinking fund contributions for major repairs.

Utility connection costs for electricity (10,000-25,000 baht), water (3,000-8,000 baht), and internet services (2,000-5,000 baht) are usually paid upon initial connection and periodically for ongoing service.

Property insurance for condominiums costs 0.1-0.3% of property value annually, while house insurance may cost 0.2-0.5% depending on location and coverage levels.

Professional property management services charge 8-12% of rental income if you're leasing the property, while self-management requires significant time investment for maintenance, tenant relations, and legal compliance.

It's something we develop in our Thailand property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Purchasing property in Phuket requires careful navigation of Thai foreign ownership laws and a systematic approach to legal compliance.

Success depends on choosing the right ownership structure, conducting thorough due diligence, and working with qualified legal professionals throughout the entire process.