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Chambre d'une villa Koh Samui Estate à Koh Samui
Investor guide

Leasehold in Thailand, explained

Buying a villa in Thailand almost always raises the same question: "Can I really own it as a foreigner?" The answer comes down to one word found in every brochure on the island: leasehold. Here is what it really means — including an important 2025 legal development.

Why leasehold exists

Thai law sets a simple principle: a foreign national cannot own land freehold in their own name. It's not a grey area — it's the rule. To let international investors secure a villa nonetheless, the law offers two routes: condominium freehold (apartments only) and the long-term lease — leasehold — for villas and land.

Leasehold is therefore not a workaround: it is the normal, recognised legal framework for a foreigner to enjoy a villa with land over the long term.

What a lease actually is

A leasehold is a long-term rental contract between the landowner and you. Its maximum term is 30 years, capped by the Civil and Commercial Code. It is registered at the Land Department and noted on the title deed: this registration makes your right enforceable against third parties, including a future buyer of the land. An unregistered lease barely protects you — insist on registration first.

For those 30 years you use the villa as an owner in practice: you live in it, rent it out, pass it on for the remaining term, and you can own the building (the structure) separately from the land.

Renewal: the 2025 update

This is the most poorly explained topic on the market. Leases are often marketed as "30 + 30 + 30 = 90 years guaranteed." A 2025 Thai Supreme Court ruling (Judgment 4655/2566) clarified that pre-signed renewal clauses are a contractual promise between the original parties, not a real right attached to the land.

In practice: if the land is sold or the owner passes away, the renewal promise may not bind the new owner. Always base your investment on the 30 guaranteed years — renewals are a bonus to secure, not a given.

Note: in 2025 the government signalled a 99-year leasehold proposal. As of now it remains a proposal, not law.

Alternatives and complements

Condominium freehold: a foreigner may own an apartment freehold, within a 49% foreign quota of the building. This does not apply to standalone villas.

Thai company: holding land through a company is possible but tightly regulated; using nominee shareholders is illegal. Usufruct and superficies rights can strengthen the tenant's position alongside the lease.

Clauses to negotiate before signing

Always run a title due diligence with an independent lawyer — never the seller's alone.

What this means for Villa Sea View

Villa Sea View is offered on a registered leasehold, with the building in the tenant's name and support from an independent law firm reviewing the structure case by case — the clearest, most common route for a foreign buyer in Koh Samui.

Frequently asked questions

Is leasehold really safe?

Yes, provided it is registered and professionally drafted: registration makes your right enforceable for the whole term.

How long can I really count on it?

30 years, guaranteed. Renewals are not automatically enforceable against a new landowner since 2025.

Can I rent out and resell my villa?

Yes, if the contract expressly allows subletting and assignment of the lease.

Can my children inherit it?

Yes, for the remaining term, if transfer is provided for in the contract.

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General information current as of 2025, provided for guidance only. It does not constitute legal advice and must be reviewed with a Thai lawyer or notary before any commitment.

Sources: Savills — 2025 Guide to Thai Property Law · Formichella & Sritawat — 2025 Supreme Court ruling · Australian-Thai Chamber of Commerce · Alestria Property — 99-year leasehold proposal.