Leasehold vs freehold is one of the first questions that comes up when getting to know Thailand's real estate market. The form of ownership determines your rights today, the costs at the time of the deal, and your ability to sell the property in the future.

Freehold: full ownership

Freehold is ownership in the full sense of the word: you can sell, gift, bequeath, or rent out the property without restrictions and without third-party approval. There's no time limit on ownership.

The right is confirmed by a Chanote — the Thai equivalent of a title deed (also known as Nor Sor 4). The Chanote is held in two copies: one with the owner, the other at the Land Department.

Foreigners can own a condominium unit as freehold under one condition: the share of foreign buyers in the building cannot exceed 49% of total floor area (the foreign quota). Once the quota is filled, the next foreign buyer only has access to leasehold. In popular projects in Bang Tao and Kamala, the quota often fills up as early as the construction stage.

An important note for 2026: this limit is currently under government discussion. A reduction of the overall quota to 30–39% is being considered, with a targeted cut to 25% for Phuket, Samui, and Pattaya, since according to REIC data, foreigners already account for over 40% of condominium transactions in Phuket. The reform won't affect chanotes already issued — the constitution protects existing ownership rights — but it may change the terms for future purchases. Passing such a law through parliament typically takes 8–18 months, so no changes should be expected before late 2026. Anyone planning a purchase within the next year should check on this separately.

Leasehold: long-term right of use

Leasehold is not ownership but a long-term lease. The standard term in Thailand is 30 years, with the possibility of renewal twice more for 30 years each. Theoretically that's 90 years — in practice, it's exactly what's specified in the particular contract.

A point that's often overlooked: leasehold renewal is not an automatic right. It depends on the terms of the SPA and on the land owner's position 30 years down the line. If the owner has changed, the terms have shifted, or the contract wording was vague, the right to renew can come into question.

Any leasehold property should be reviewed by a lawyer before deciding to buy — the specific wording on leasehold renewal determines what happens to the property thirty years from now.

Key differences

Freehold gives full freedom to dispose of the property with no time limit. The transfer fee at registration is 2% of the appraised value (typically split evenly with the seller). The price is generally 5–12% higher than a comparable leasehold. Liquidity on the secondary market is higher: both foreign and Thai buyers more often choose freehold.

Leasehold is available even when the freehold quota is filled. The registration fee is 1.1% of the contract amount (1% registration + 0.1% stamp duty), usually paid by the tenant. The price is 5–12% lower than freehold. Transferring the lease is possible but requires separate paperwork and recalculation of the remaining term. The secondary market is less liquid than for freehold.

What happens after 30 years

The answer depends on the contract. A well-structured leasehold agreement contains clear renewal terms: notice period, price of the new contract, registration procedure — giving the buyer real protection. Wording like "renewal by mutual agreement of the parties" is not protection — it's dependence on someone else's decision.

Signing a leasehold contract without an Ыindependent lawyer is not advisable. The renewal clauses hide what you need to know before the purchase, not after.

When leasehold is a reasonable choice

Leasehold makes sense in a few situations: when the freehold quota in a complex is already filled and it's the only way into a desired project; when the ownership horizon is 5–7 years and the renewal question 30 years out isn't a priority. The most common case is villa purchases: foreigners in Thailand cannot own land as freehold at all, so land leasehold for villas is standard practice, not an exception.

In any of these situations, one thing matters: an informed choice based on a vetted contract — not leasehold as a forced condition without understanding what's written in the SPA.