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Freehold vs Leasehold Property in Thailand: What's the Difference?
Quick Answer
Freehold means you own the property indefinitely under your name, while leasehold means you have the right to use the property for a fixed period through a registered lease agreement. In Thailand, foreigners can legally own condominium units as freehold under the Condominium Act B.E. 2522, while land is generally accessed through leasehold arrangements.
In Thailand, real estate ownership is commonly structured as either freehold or leasehold. Understanding the difference is essential for international buyers purchasing property in Thailand.
Freehold ownership means the buyer holds full legal ownership of the property without a time limit. Owners can sell, transfer, or pass the property to heirs. Under the Condominium Act B.E. 2522 (1979) and its amendments, foreigners are allowed to own condominium units in their own name, subject to legal requirements and the foreign ownership quota defined by law.
Leasehold ownership, on the other hand, provides the right to use or occupy a property for a specified period under a lease agreement registered with the Thai Land Department. Leasehold structures are commonly used for houses or villas built on land, since foreign individuals are generally restricted from directly owning land under the Thai Land Code.
Many international buyers therefore purchase condominiums under freehold ownership and use leasehold arrangements for villas or land-based properties. When properly registered and drafted in accordance with Thai law, both ownership structures can provide legal security for property use and investment.
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In Thailand, real estate ownership is commonly structured as either freehold or leasehold. Understanding the difference is essential for international buyers purchasing property in Thailand.
Freehold ownership means the buyer holds full legal ownership of the property without a time limit. Owners can sell, transfer, or pass the property to heirs. Under the Condominium Act B.E. 2522 (1979) and its amendments, foreigners are allowed to own condominium units in their own name, subject to legal requirements and the foreign ownership quota defined by law.
Leasehold ownership, on the other hand, provides the right to use or occupy a property for a specified period under a lease agreement registered with the Thai Land Department. Leasehold structures are commonly used for houses or villas built on land, since foreign individuals are generally restricted from directly owning land under the Thai Land Code.
Many international buyers therefore purchase condominiums under freehold ownership and use leasehold arrangements for villas or land-based properties. When properly registered and drafted in accordance with Thai law, both ownership structures can provide legal security for property use and investment.