Thailand's Department of Business Development (DBD) has placed more than 125,000 companies linked to foreign shareholders under active scrutiny. Of those, over 36,000 hold land and a further 7,000 are registered as condominium owners. Per Thai Examiner reporting from September 2026, the investigation covers 305,838 land parcels with a combined area of approximately 1.064 million rai. For any foreign investor considering residential property in Phuket or Koh Samui, those figures reframe the entire acquisition decision: nominee structures are no longer a legal grey area - they are the subject of active enforcement.
At the same time, our analysts are tracking a clear directional shift among Phuket developers toward leasehold as the standard transactional framework for foreign buyers. As of September 2026, one agency with more than 600 active listings and membership in the Phuket Property Association has formalised a partnership with a major Thai developer to produce a ready-made leasehold documentation package targeted specifically at non-Thai purchasers. We treat this as a systemic signal rather than an isolated event.
Below we examine what leasehold means in practice under Thai law, what the registration process involves, and why this structure is gaining clear ground over nominee arrangements that carry increasing legal exposure.
Quick answer
- Leasehold (long-term lease) allows a foreign national to use property in Thailand for up to 30 years, with the lease registrable at the Land Office; contracts commonly include provisions for two further renewal periods (a 30+30+30 structure), though those additional periods carry no statutory guarantee
- The DBD's nominee crackdown is active and covers more than 125,000 companies and 305,000 land parcels as of September 2026
- Breaching anti-nominee law (Land Code Act, section 96 bis; Foreign Business Act) can result in criminal penalties, fines, and a forced sale order on the property
- Leading Thai developers are now producing standardised leasehold frameworks with bilingual documentation and Land Office registration support for foreign buyers
- Foreign nationals can acquire condominium freehold (subject to the 49% foreign-quota limit per building), but for villas and houses leasehold is the only fully compliant route without a BOI promotion
- Land Office registration fees for a leasehold run to approximately 1% of the official assessed value for the full lease term (as of 2026; confirm with a licensed Thai lawyer)
Options and scenarios
What leasehold means under Thai law
The Thai Civil and Commercial Code (Sections 537-571) defines a lease of immovable property with a statutory maximum of 30 years per registered term. Any lease exceeding three years must be registered at the local Land Office to be enforceable against third parties. In practice, a foreign buyer:
- signs a lease agreement with the land owner (an individual or developer)
- registers the agreement at the Land Office, with both parties present or represented by a licensed power of attorney
- receives an annotation on the reverse side of the chanot (title deed) confirming the encumbrance
The critical distinction from condominium freehold: a leaseholder is not the owner of the property but holds a registered right of use. That right is assignable and inheritable within the lease term, provided the contract does not restrict those rights.
The 30+30+30 structure - what it actually means
Many developers in Phuket districts including Bang Tao, Layan, and Kamala market leasehold units with a 30+30+30 formula. Our analysts consistently flag a key qualification: renewal periods beyond the first 30-year registered term carry no statutory guarantee. They represent a contractual commitment by the land owner, which can be complicated by a change in land ownership, developer insolvency, or future legislative changes. We recommend that buyers treat the secured horizon as 30 years, and any additional periods as a contractual option with limited legal certainty.
Why nominee structures are no longer viable
A nominee arrangement typically involves registering a Thai company in which the foreign buyer holds a minority stake while Thai nominees hold the majority. The company then purchases the land. The problem is straightforward: Thai law explicitly prohibits the use of nominees to circumvent foreign ownership restrictions.
Per Thai Examiner reporting from September 2026, the DBD's review does not stop at current share registers. Investigators are cross-referencing transaction histories, capital sources, financial statements, and actual economic interest, drawing on data from the police, the Department of Special Investigation (DSI), the Anti-Money Laundering Office (AMLO), and the BOI. Based on our monitoring, companies formed years ago are not immune from scrutiny.
For a foreign investor, the exposure is two-sided: loss of the property through a forced sale order, plus potential criminal liability including fines and up to two years' imprisonment under the Foreign Business Act.
The developer-led leasehold process in practice
Based on the framework that has emerged from the partnership between a major Thai developer and a Phuket agency in September 2026, a typical purchase sequence runs as follows:
- Reservation - a reservation deposit, typically in the range of 50,000-200,000 THB depending on the project
- Lease agreement - bilingual (English and Thai) document specifying the 30-year term, renewal conditions, assignment rights, and inheritance provisions
- Payment schedule - commonly 30-40% during construction in staged payments, with 60-70% due at handover
- Land Office registration - both parties attend in person or via power of attorney; registration fee is approximately 1% of the official assessed value
- Foreign remittance records - buyers planning to repatriate funds at a later stage should ensure incoming payments are structured as foreign-currency transfers with a clear transaction reference (covered in our separate analysis on capital transfer)
Leasehold on Koh Samui - specific market characteristics
On Koh Samui, leasehold is the dominant acquisition structure for villas in districts including Bophut, Maenam, and Lamai. Unlike Phuket, where larger developers are beginning to standardise documentation, the Koh Samui market remains more fragmented. Our data sets show a higher proportion of transactions concluded with individual land owners rather than developers, which places a greater due diligence burden on the buyer: chanot verification, mortgage and encumbrance checks, and identification verification for the lessor.
Comparison table
| Parameter | Leasehold (30 years) | Condominium freehold | Nominee company structure |
|---|---|---|---|
| Property type | Villas, houses, land | Condominiums only | Villas, houses, land |
| Maximum term | 30 years (+ contractual renewals) | Indefinite | Indefinite (until enforcement action) |
| Land Office registration | Yes - annotation on chanot | Yes - full title transfer | Yes - registered to Thai company |
| Legal risk in 2026 | Low - fully compliant | Low - fully compliant | High - 125,000+ companies under active scrutiny |
| Registration cost | Approx. 1% of assessed value | Approx. 2% transfer fee + 0.5% stamp duty | Company formation costs + annual accounting fees |
| Assignability | Assignable with lessor consent | Free sale | Share transfer (legal risk attached) |
| Inheritance | Within the lease term | Full | Via company shares (legally uncertain) |
| FET form required | No - no title transfer occurs | Yes - mandatory for foreign-quota units | Not directly applicable |
Risks and mistakes
Renewal uncertainty. The first 30-year registered term is legally secure. Renewals beyond that depend on the land owner's willingness and continued existence. Our monitoring has recorded cases where a change of land ownership through inheritance complicated renewal negotiations. A right of first refusal and a purchase option clause written into the original lease agreement are the standard mitigants.
Unregistered leases. A lease exceeding three years that is not registered at the Land Office is binding only between the original parties. If the land changes hands, the new owner is not bound by an unregistered lease. This is among the most common structural errors we observe in transactions concluded without legal support.
Documentation in English only. The Land Office will not register a lease agreement drafted exclusively in English. A Thai-language text is required, and the property description must correspond precisely to the chanot.
Currency exposure. On a payment schedule spread across 12-18 months, a 5-10% movement in the buyer's home currency against the Thai baht can materially change the total cost in local-currency terms. Based on our estimates, on a property priced at 5 million THB, an 8% exchange rate shift translates to a cost difference in the range of tens of thousands of euros or equivalent, depending on the buyer's home currency (figures to be modelled against current rates). We recommend consulting a currency specialist before locking in a payment schedule.
Confusing leasehold with usufruct. Usufruct (the right of use and enjoyment) is a distinct legal instrument: it is non-assignable and extinguishes on the death of the holder. Leasehold is assignable and inheritable within the contract term. Both structures appear in the Phuket and Koh Samui markets, sometimes in combination, and the distinction has material consequences for resale and estate planning.
FAQ
Can a foreign national own a villa in Phuket outright?
No. Thai law prohibits foreign nationals from owning land. Because a villa sits on land, freehold title to a villa is not available to a non-Thai buyer. The compliant options are leasehold (a registered lease of up to 30 years with contractual renewal provisions) or purchasing the building structure separately on leased land.
How much does it cost to register a leasehold at the Land Office?
Approximately 1% of the official assessed value of the property for the full lease term. The official assessed value is typically lower than the market transaction price. The exact figure should be confirmed at the local Land Office before signing.
Is leasehold on Koh Samui legally different from leasehold on Phuket?
The governing law is identical across Thailand. The difference is market structure: Koh Samui involves a higher proportion of individual land owners rather than developer-backed leases, which increases the due diligence requirement for buyers. On Phuket, standardised developer frameworks are becoming more common.
Can I sell a leasehold before the 30-year term expires?
Yes, provided the lease agreement includes an assignment clause. The majority of professionally drafted leasehold contracts in Phuket and Koh Samui include this provision. Assignment requires Land Office registration and typically the written consent of the lessor.
Is a Foreign Exchange Transaction (FET) form required for a leasehold purchase?
No. The FET form is required for condominium freehold purchases to document the inward foreign-currency transfer that supports the title registration. Since a leasehold does not involve a transfer of ownership, no FET is required. We do recommend retaining all transfer confirmation records in case funds are repatriated at a later date.
What documents does a foreign buyer need for a leasehold transaction?
A valid passport, a certified Thai-language copy or translation of the passport, a power of attorney if registration is handled through a lawyer, and sufficient funds for the deposit and registration fees. On developer projects with standardised leasehold packages, the majority of documentation is prepared by the selling party.
Does 30+30+30 guarantee 90 years of use?
No. Only the first registered 30-year term carries a statutory guarantee. Subsequent renewal periods are contractual commitments that may not be honoured in the event of a land ownership change, developer insolvency, or legislative amendment. Buyers should model their investment case on a 30-year horizon.
What happens to a nominee company if it is flagged by the DBD?
Per Thai Examiner reporting from September 2026, enforcement outcomes can include criminal fines, imprisonment, and a court-ordered forced sale of the property. The current review covers more than 36,000 land-holding companies and more than 7,000 condominium-holding companies.
Based on our analytical assessment, leasehold represents the most legally secure and best-documented structure available to foreign buyers seeking access to the villa and house market in Phuket and Koh Samui in 2026. Escalating regulatory pressure on nominee arrangements, combined with growing developer adoption of standardised leasehold frameworks, is moving the market toward greater transactional transparency. The critical requirements remain consistent: engage qualified Thai legal counsel for contract review and Land Office registration, and ensure that renewal conditions and assignment rights are explicitly addressed in the original lease agreement.
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