Condominium Ownership in Thailand for Foreigners | Legal Guide:
What You Need to Know Before Buying

Buying a condominium in Thailand is a popular option for foreigners who want to own property in the country. Unlike land or houses, which are largely off-limits for direct foreign ownership, condos offer a legal way for non-Thais to acquire property rights, but with important limitations and legal nuances.

Here’s what every foreigner should know before buying a condo in Thailand.

1. What Is a Condominium in Thailand?

A condominium is a multi-unit building where each unit has its own title deed. When you purchase a condo, you own the unit outright (freehold) and share ownership of the common areas with other unit owners.

However, foreign ownership is capped: only 49% of the total floor area of all units in a condo project can be foreign-owned. The remaining 51% must be owned by Thai nationals or Thai entities. This makes early due diligence essential, especially in tourist areas where many foreigners are interested in buying.

2. Know the Rules Before You Buy

Before committing to a purchase, request and read the condominium’s rules and regulations. These are often included in the developer’s sale package and may affect your lifestyle, costs, and rights.

• Monthly maintenance and sinking fund fees
• Voting rights in the owners’ association
• Number of unsold or rented-out units (which may be controlled by the developer)

If a developer retains a large share of the units, they may hold disproportionate influence in decision-making.

3. Freehold vs. Leasehold: Understanding the Difference

Freehold Ownership

As a foreigner, you are permitted to own a condominium unit in your own name, provided that the foreign ownership quota, capped at 49% of the total sellable area of the condominium, is not exceeded. This remains the most secure and legally protected form of property ownership available to non-Thais. To ensure clarity and compliance, the sale and purchase agreement should explicitly state that the transaction involves freehold ownership, registered with the Land Department, and that the unit falls within the foreign ownership quota of the condominium project.

Leasehold Structure

When the foreign quota is full, some developers offer units on a leasehold basis, which is a 30-year lease agreement . Leasehold is as such does not exist under the Civil and Commercial Code. It should be in the same chapter 'real right' where you also find right of usufruct, right of superficies, right of habitation, but there is no 'leasehold. 'Leasehold' does not exist, lease can be found in the chapter 'Rent of Property' in the Civil and Commercial Code meaning it is a lease as a personal contract right.

Lease comes with several important limitations that prospective buyers should carefully consider. Unlike freehold properties, lease arrangements do not provide a title deed in your name. However, your name will typically be recorded on the reverse side of the title deed to reflect your registered lease interest. A key limitation is that the lease agreement generally terminates upon the lessee’s death, unless otherwise extended through legal provisions. Furthermore, leased properties cannot be resold or assigned without the express cooperation of the freehold owner. When a lease is sold or assigned to a new lessee, the new lessee must be registered with the Thailand Land Registry, a process that also requires the owner’s full cooperation. Lastly, a lessee do not automatically receive voting rights within the property’s co-ownership or management framework, which may affect your influence over collective decisions.

4. The Risks of Lease in Practice

Lease agreements are governed by the Thai Civil and Commercial Code, not the Condominium Act. This means:

• Maximum lease term is 30 years
• Promised renewals are not enforceable
• Lease ends on death unless renegotiated
• Leases are not protected under consumer law

Leasehold contracts often shift significant costs to the lessee and may include unenforceable clauses.

5. Common Financial Obligations for Lessees

If you are leasing a condominium, it is important to be aware of the typical costs and obligations that may arise. Lessees are generally responsible for contributing to the sinking fund and paying ongoing maintenance fees, both of which support the upkeep and management of the building. Additionally, a lease registration fee, usually amounting to 1.1% of the total lease value, is payable at the time of registration. Rental tax may also apply, typically around 0.5% of the property’s appraised value per year. If you intend to sublet the property, be aware that this is only permitted if explicitly allowed in the lease agreement; otherwise, subletting is not permitted under Thai law. Furthermore, any rental income may be subject to personal income tax. Lessees should also consider the possibility of being held liable for major upgrade or repair costs, even during the final years of the lease term, depending on the terms of the agreement.

6. Voting Rights and Developer Control

'Leaseholders' generally do not have voting rights in condo meetings. Developers who retain ownership of leased units may control key decisions, such as maintenance budgets or management appointments, which may not align with the interests of individual owners.

7. Legal and Contractual Considerations

• Buying from the developer in an off-plan purchase only freehold sales are government-regulated with consumer protections.
• Buying from the developer the lease contracts are not governemt-regulated and may contain misleading or invalid clauses.
• Always consult a qualified Thai property lawyer.

8. Condo Projects in Tourist Areas: A Foreign-Focused Market

Many condo developments in areas like Phuket or Pattaya are marketed to foreigners and priced beyond what most Thai nationals can afford. This leads to low domestic demand for the Thai-owned portion of these projects.

Before 2006, it was common for foreigners to acquire Thai-side units via a Thai limited company structure. By registering a company with nominee shareholders, the foreigner could technically "own" the unit. However, this practice is now heavily scrutinized and discouraged by authorities.

The Thai Land Department has since imposed stricter rules on company ownership, including requirements for:

• Majority Thai shareholders
• Proper business activity and tax filings
• Annual audits and corporate compliance

Today, using a Thai company for the sole purpose of owning residential property is considered a violation of the law and a risky route best avoided.

9. Who Can Own a Condominium in Thailand?

Section 19 of the Condominium Act allows a foreign buyer to register a condo in their own name if they qualify under one of the five categories below. Note that only category 5 requires the bank’s Foreign Exchange Transaction (FET) form.

If you fall under category 5, keep the bank-issued FET and transfer slips, you must present them when the title deed is transferred. Buyers in categories 1–4 follow their own documentation paths and do not submit an FET.

10. Be aware of the type of development, condominium vs. holiday apartment projects

In Thailand's tourist areas, there are generally two types of multi-unit developments that may appear similar but differ significantly in legal structure and buyer protections. The first type is a true condominium, which is formally registered under the Condominium Act with the Land Department. These developments offer individual ownership of units along with shared ownership of common areas, and are subject to regulatory oversight and legal protections.

The second type consists of so-called holiday apartment projects. Although they may resemble condominiums in appearance and marketing, these projects are not registered under the Condominium Act. Instead, they typically offer only a leasehold interest, sometimes structured as timeshare schemes, without granting title ownership to individual units. Buyers in such developments do not receive the same legal safeguards as condominium owners.

These unregulated schemes are particularly prevalent in tourist zones and are often marketed aggressively to foreigners through high-pressure sales tactics. Once a contract is signed, buyers are usually locked in, with limited recourse. There is no government oversight or consumer protection specific to these arrangements, and no formal ownership structure exists. As a result, foreign buyers should exercise heightened caution and seek independent legal advice before proceeding with any purchase in such a project.

Final Thoughts

While owning a condo is the most straightforward legal option for foreigners in Thailand, it requires careful planning. Freehold offers the most security. Leasehold may seem like a solution, but it comes with serious limitations under Thai law.

Key takeaways:

• Freehold is safest and offers legal title
• Leasehold is limited, cannot be freely assigned or sold, and could end upon death
• Due diligence and legal advice are essential

Conclusion: Protect Yourself With the Right Legal Support

Owning a condo in Thailand is one of the most straightforward legal options for foreigners to acquire property, but it requires careful planning. As discussed throughout this article, the legal structure, ownership limitations, and contractual details, especially around leasehold, carry real risks that should not be underestimated.

Leasehold arrangements in particular often come with hidden disadvantages, limited protections under Thai law, and misleading promises that are not enforceable in practice. Even freehold purchases require due diligence, especially concerning voting rights, common area obligations, and developer influence.

Whether you're preparing to buy a condo, reviewing a lease, or simply want to better understand your rights as a foreign owner or tenant, clear legal documents and expert advice are essential.

Our Condominium Sale and Purchase Agreement Package is specifically designed for foreign buyers in Thailand. It includes a professionally drafted SPA contract, a buyer's checklist, and a questionnaire to help you identify potential risks before committing to a purchase. Need more personalized assistance? We also offer contract review services and can help you draft custom legal agreements tailored to your specific situation.

Don’t leave your investment to chance, get informed, stay protected, and consult a legal expert before you commit.

→ Browse our legal templates or contact us for a consultation

• Condo Sale-Purchase contract
• Condo Ownership Explained
• Condo Unit Title Deed Sample
• Foreign Ownership Section in The Condominium Act
• Lease or Tenancy under Thai law