Buying and owning property in Phuket as a foreigner

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

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.

What types of property can foreigners legally buy in Phuket compared to Thai nationals?

Foreigners can legally purchase freehold condominiums in Phuket, but only up to 49% of any single development's total floor area.

Thai nationals face no such restrictions and can buy any type of property including land, condos, villas, and commercial buildings without limitations. For villas and houses, foreigners can own the building structure itself but must lease the land through long-term contracts, typically 30 years with renewal options.

The key distinction is that foreigners cannot directly own land in Phuket, while Thai citizens have full land ownership rights. This means foreigners must use leasehold structures for landed properties like villas, townhouses, and single-family homes.

As of September 2025, the 49% foreign ownership quota for condominiums remains strictly enforced, and any attempt to circumvent land ownership laws through nominee structures is illegal and carries significant legal risks.

Can foreigners own land directly in Phuket, or must they use leasehold or other structures?

Foreigners cannot own land directly in Phuket under Thai law - this prohibition is absolute and applies to all foreign nationals regardless of their country of origin.

The legal alternatives for foreigners who want landed property are registered leaseholds, typically structured as 30-year terms with options for two additional 30-year renewals (totaling up to 90 years). Thai company ownership is another option, where foreigners can hold up to 49% of shares in a Thai-majority company that owns the land, though this requires strict compliance with company law and ongoing legal obligations.

Using nominee structures where Thai nationals hold land "on behalf of" foreigners is explicitly illegal and can result in property confiscation and legal penalties. The Land Department actively investigates suspicious transactions and has the authority to revoke titles obtained through illegal means.

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

For maximum security, foreigners should work with experienced legal professionals to ensure their leasehold agreements are properly registered and include appropriate renewal clauses and transfer rights.

Are there nationality-based differences in property rights between foreigners from different countries?

Thai property law treats all foreign nationals equally - there are no nationality-specific advantages or restrictions for property ownership rights.

Citizens from the United States, European Union countries, Australia, China, Japan, and all other nations face identical rules and limitations when purchasing property in Phuket. The 49% condominium ownership quota applies uniformly to all foreigners, and land ownership restrictions are universal.

Some foreigners mistakenly believe that certain bilateral treaties or trade agreements provide property ownership advantages, but this is not the case. The Thai Condominium Act and Land Code apply the same standards to all non-Thai nationals.

The only potential differences relate to visa requirements and banking procedures for fund transfers, which may vary slightly between countries, but the core property ownership rights remain identical for all foreigners.

What visas or residency permits are required to buy and hold property in Phuket?

No specific visa or residency permit is required to purchase and own property in Phuket as a foreigner.

Visa Type	Property Purchase Rights	Additional Benefits
Tourist Visa (60 days)	Full purchase rights with overseas fund transfer	Can complete transactions during short visits
Retirement Visa (1 year renewable)	Full purchase rights	Easier banking relationships and long-term planning
Elite Visa (5-20 years)	Full purchase rights	Premium banking services and concierge support
Investment Visa	Full purchase rights	May facilitate business-related property purchases
Education Visa	Full purchase rights	Suitable for younger investors or those studying Thai
Work Permit Holder	Full purchase rights	Better mortgage eligibility from Thai banks

However, you must transfer purchase funds from overseas to qualify for freehold condominium ownership. Long-term visas become important if you plan to spend extended time in your Phuket property or manage it personally.

The key requirement is demonstrating that your property purchase funds originated from outside Thailand through proper foreign exchange documentation, regardless of your visa status.

Do I need to be physically present in Phuket to complete a property purchase?

Physical presence in Phuket is not mandatory for completing a property purchase - many transactions can be handled remotely through Power of Attorney arrangements.

If you cannot be present for the final registration at the Land Department, you can grant Power of Attorney to a trusted lawyer who will represent you during the title transfer process. This legal document must be properly notarized and authenticated at a Thai consulate in your home country or completed in Thailand.

However, being physically present offers several advantages including the ability to conduct final property inspections, meet directly with sellers and agents, verify all documentation personally, and ensure smooth fund transfers through local banking relationships.

Many foreign buyers prefer to be present for the initial property viewing and selection process, then return for the final completion, while handling intermediate steps remotely through their legal representative.

What is the complete step-by-step process for foreigners to buy property in Phuket?

The property purchase process for foreigners in Phuket involves seven essential steps that typically take 30-60 days to complete.

1. **Property Selection and Quota Verification**: Choose your desired property type and confirm foreign ownership availability for condominiums (49% quota must be available).2. **Legal Due Diligence**: Hire a qualified Thai lawyer to verify title deed authenticity, check for encumbrances or liens, confirm seller's legal ownership rights, and review building permits and certificates.3. **Reservation Agreement**: Sign a reservation contract and pay a deposit of 1-5% of the purchase price to secure the property while finalizing arrangements.4. **Sales and Purchase Agreement**: Execute the comprehensive purchase contract reviewed by your lawyer, establishing payment schedules, completion dates, and transfer conditions.5. **Overseas Fund Transfer**: Transfer the full purchase amount from your foreign bank account to a Thai bank, ensuring proper foreign exchange documentation (Thor Tor 3 form) for freehold eligibility.6. **Final Payment and Registration**: Complete the remaining payment and attend the Land Department for official ownership registration, where titles are transferred and recorded.7. **Post-Purchase Documentation**: Collect all final documents including title deed, purchase receipts, tax payment confirmations, and foreign exchange certificates for future reference.

Required documents include your passport, signed purchase agreements, foreign exchange transaction forms, lawyer's due diligence reports, and proof of fund sources from overseas accounts.

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

Is hiring a lawyer mandatory for property purchases, and what risks exist without legal representation?

Hiring a lawyer is not legally mandatory but is strongly recommended for all foreign property purchases in Phuket due to the complexity of Thai property law and the significant financial risks involved.

Without proper legal representation, foreign buyers face multiple serious risks including fraudulent title deeds where properties may have forged or invalid ownership documents, hidden liens and encumbrances that aren't disclosed by sellers, illegal ownership structures that could result in property confiscation, incomplete or improper registration leading to disputed ownership, and loss of deposits through invalid purchase agreements.

Professional lawyers provide essential services such as comprehensive title deed verification, Land Department record searches, encumbrance checks, proper contract drafting and review, guidance on optimal ownership structures, and representation during official registration procedures.

As of September 2025, legal fees typically range from 1-2% of the property purchase price, which represents valuable insurance against potential losses that could amount to hundreds of thousands or millions of baht.

Given the irreversible nature of most property transaction mistakes and the limited legal recourse available to foreign buyers, professional legal guidance is considered essential by experienced investors and real estate professionals in Phuket.

What taxes, fees, and additional costs should I expect when buying and reselling property in Phuket?

Property purchase costs for foreigners in Phuket typically total 4-6% of the property value, significantly higher than the 2-3% paid by Thai nationals.

Cost Category	Rate/Amount	Who Typically Pays
Transfer Fee	2% of appraised value	Usually split buyer/seller
Stamp Duty	0.5% of purchase price	Buyer (sometimes included in agreement)
Withholding Tax	1% (corporate) / Variable (individual)	Seller (deducted from proceeds)
Legal Fees	1-2% of purchase price	Buyer
Agent Commission	3-5% of purchase price	Seller (sometimes split)
Lease Registration (villas)	1.1% of total lease value	Lessee (buyer)
Bank Transfer Fees	0.25-0.5% of transfer amount	Buyer

When reselling property, foreigners face similar transfer fees and taxes, plus potential capital gains tax depending on holding period and property appreciation. Agent commissions for resales typically range from 3-5% of the sale price.

Additional ongoing costs include annual property taxes, building maintenance fees for condominiums (typically 30-50 baht per square meter monthly), utility connections and deposits, and property management fees if using rental management services.

Can foreigners get mortgages in Phuket, and what are the typical conditions and approval strategies?

Foreigners can obtain mortgages in Phuket, but only for completed condominium units, not for land or villa purchases, with significantly stricter requirements than Thai nationals face.

Major Thai banks including Bangkok Bank, Kasikorn Bank, and Siam Commercial Bank offer foreign mortgages with typical interest rates of 6-8% annually, maximum loan-to-value ratios of 50-70%, and loan terms up to 30 years. However, applicants must hold a valid Thai work permit, demonstrate stable income through employment or business in Thailand, provide extensive financial documentation, and maintain a relationship with the lending bank.

Alternative financing options include developer installment plans, which are increasingly popular among foreign buyers. These typically offer 6% interest rates over 10-15 years without requiring work permits or extensive local documentation, making them more accessible for non-resident investors.

To improve mortgage approval chances, foreigners should establish Thai bank accounts early, maintain substantial deposit relationships, provide comprehensive income documentation from both Thai and foreign sources, consider using mortgage brokers familiar with foreign lending requirements, and be prepared for longer processing times of 60-90 days compared to 30 days for Thai applicants.

As of September 2025, foreign mortgage availability has tightened compared to previous years, making cash purchases or developer financing increasingly common among international buyers in Phuket.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Thailand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Which areas in Phuket are most popular with foreigners for living, renting, and investment?

Foreigners consistently prefer beachfront and near-beach areas in Phuket, with Patong, Bang Tao, Kata, Karon, Kamala, and Surin leading in both lifestyle appeal and investment returns.

Patong remains the most popular area for rental investment due to high tourist traffic, offering rental yields of 6-8% for well-located condominiums, though property prices are premium at THB 90,000-160,000 per square meter. Bang Tao and Surin attract affluent expats and high-end investors, with villa prices ranging from THB 30-100+ million and strong capital appreciation potential driven by luxury resort developments.

Kata and Karon provide excellent lifestyle balance for permanent residents, combining beautiful beaches with more relaxed atmospheres and slightly lower property prices while maintaining strong rental demand from quality-conscious tourists. Kamala appeals to families and long-term residents seeking quieter beachfront living with good international school access.

Emerging areas like Nai Harn and Rawai offer higher rental yields (7-9%) at lower entry costs (THB 65,000-120,000 per square meter), making them attractive for yield-focused investors. Chalong, while inland, provides excellent value for money and strong rental demand from boat owners and diving enthusiasts.

As of September 2025, tourism recovery has reached pre-pandemic levels, with Phuket receiving over 10 million visitors annually, supporting robust rental markets across all major beach destinations.

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

What is the current property price breakdown across different areas of Phuket?

Phuket property prices vary significantly by location, property type, and proximity to beaches, with beachfront areas commanding premium prices while inland locations offer better value for money.

Area	Condominium Price (THB/sqm)	Villa Price Range (THB Million)
Patong Beach	90,000 - 160,000	15 - 80
Bang Tao / Surin	100,000 - 180,000	30 - 100+
Kata / Karon	85,000 - 150,000	20 - 70
Kamala	90,000 - 140,000	25 - 60
Nai Harn	80,000 - 130,000	18 - 50
Rawai / Chalong	65,000 - 120,000	12 - 35
Kathu (inland)	60,000 - 100,000	8 - 25

Beachfront properties command significant premiums, with direct beach access adding 30-50% to property values compared to properties located 500-1000 meters inland. New developments with modern amenities typically price 20-30% above older properties in the same areas.

As of September 2025, property prices in prime beachfront locations have appreciated 15-25% since 2022, driven by post-pandemic tourism recovery and limited supply of new beachfront developments due to environmental restrictions.

Foreign buyers should budget for premium pricing in popular areas but can find excellent value in emerging neighborhoods like Rawai and Nai Harn, which offer strong rental potential at more accessible price points.

What are the most common mistakes and pitfalls foreigners should avoid when buying property in Phuket?

Foreign property buyers in Phuket frequently encounter costly mistakes that can result in significant financial losses or legal complications, many of which are completely avoidable with proper preparation.

**Legal Structure Mistakes:**- Attempting direct land ownership or using illegal nominee structures to circumvent foreign ownership laws- Failing to verify proper condominium foreign ownership quotas before purchase- Not registering leasehold agreements properly with the Land Department- Using informal agreements instead of legally binding contracts**Due Diligence Failures:**- Skipping comprehensive title deed verification and encumbrance checks- Not confirming building permits and legal construction status- Failing to verify seller's legal ownership rights and authority to sell- Ignoring zoning restrictions that could affect future use or development**Financial Planning Errors:**- Underestimating total transaction costs by 2-3% of property value- Not budgeting for ongoing maintenance, management, and tax obligations- Failing to research rental market conditions and realistic yield expectations- Choosing areas with oversupplied markets or declining tourist demand**Professional Service Mistakes:**- Not hiring qualified lawyers for complex transactions- Using unlicensed agents or those without proper foreign buyer experience- Failing to work with banks experienced in foreign exchange documentation- Not obtaining proper property management for rental properties

The most expensive mistake is attempting to own land through nominee structures, which can result in complete property loss and legal penalties. As of September 2025, Thai authorities actively investigate suspicious land transactions and have the power to revoke illegally obtained titles.

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.

Sources

1. Digital Villas - Can Foreigners Buy Property in Phuket
2. Benoit Partners - Buying Property Phuket
3. Banyan Group Residences - Foreign Property Ownership
4. Phuket Realtor - Thailand Property Ownership
5. Singha Legal - Investing in Phuket Property
6. Silk Legal - Phuket Property Guide for Foreign Buyers
7. Storm Phuket - Home Loans for Foreigners
8. Phuket Buy House - Thai Bank Mortgages for Foreigners