# Freehold vs leasehold in Thailand: what a foreign buyer gets

Source: https://www.thailandpropertyinvestor.com/guides/freehold-vs-leasehold
Updated: 2026-11-14
Publisher: Thailand Property Investor (Omnia Capital Group)

## The short answer

Freehold is outright ownership with no end date. For a foreigner it is available only on condominium units within the 49% quota. Leasehold is a right to use property for a fixed term, and the longest term that can be registered is 30 years. A renewal clause is a contractual promise by the landowner, not a registered right, and the Supreme Court has refused to enforce pre-agreed renewals used to exceed 30 years. Value a leasehold on its registered term and treat any renewal as a possibility.

## Key points

- Freehold for a foreigner means a condominium unit held within the building's 49% foreign quota.
- The Civil and Commercial Code caps a lease of immovable property at 30 years, and a lease of more than three years must be registered.
- A renewal clause binds the original landowner as a contract but is not registered against the land.
- Supreme Court decision 4655/2566 held pre-agreed renewals on the same terms void as a way round the 30-year limit.
- A leasehold loses value as the term runs down, so resale depends on the years left and on the lease allowing assignment.
- The proposal for 99-year leases has not been enacted, so 30 years is still the registrable maximum.

[Freehold](https://www.thailandpropertyinvestor.com/glossary/freehold) is ownership without a time limit. [Leasehold](https://www.thailandpropertyinvestor.com/glossary/leasehold) is a right to use someone else's property for a fixed period. In Thailand a foreigner can hold freehold only on a condominium unit inside the building's [foreign quota](https://www.thailandpropertyinvestor.com/glossary/foreign-quota). Houses, villas and land are held by lease, and the longest lease that can be registered is 30 years. The difference shows up in price, resale, inheritance and what a lender will accept.

## The two side by side

| | Freehold condominium | Registered leasehold |
|---|---|---|
| What you hold | Title to the unit and a share of common property | A right to possess and use for the term |
| Duration | No end date | Up to 30 years registered |
| Available to foreigners on | Condominium units within the 49% quota | Land, houses, villas and condominium units |
| Evidence | Unit title deed in your name | Lease registered on the landowner's title deed |
| Registration cost | [Transfer fee](https://www.thailandpropertyinvestor.com/glossary/transfer-fee) of 2% of appraised value, plus the seller's taxes | 1% of total rent over the term, plus 0.1% [stamp duty](https://www.thailandpropertyinvestor.com/glossary/stamp-duty) |
| Resale | Sell the title to any eligible buyer | Assign the remaining term, if the lease permits |
| On death | Passes under your will, subject to rules for foreign heirs | Depends on the lease wording |
| Mortgage | Can be mortgaged at the Land Office | Not ordinarily accepted as security |
| Value over time | Follows the market | Falls as the term runs down |

## What freehold gives you

A freehold condominium unit is registered in your name at the [Land Office](https://www.thailandpropertyinvestor.com/glossary/land-office). You own it indefinitely, vote in the [juristic person](https://www.thailandpropertyinvestor.com/glossary/juristic-person), and can sell, let, mortgage or leave it by will. The conditions are that foreign ownership in the building stays within 49% of total unit floor area, and that your purchase money came from abroad in foreign currency. Both are explained in [the condominium foreign quota](https://www.thailandpropertyinvestor.com/guides/condominium-foreign-quota) and [sending money to Thailand](https://www.thailandpropertyinvestor.com/guides/sending-money-to-thailand).

Freehold is not free of obligations. You pay the monthly [common-area fee](https://www.thailandpropertyinvestor.com/glossary/common-area-fee), contribute to the [sinking fund](https://www.thailandpropertyinvestor.com/glossary/sinking-fund) and pay land and building tax each year.

## What leasehold gives you

A lease gives possession and use for the term in return for rent, which in residential sales is usually paid in full at the start. You do not own the land. With a villa you can own the building separately, as set out in [buying a villa in Thailand](https://www.thailandpropertyinvestor.com/guides/buying-a-villa-in-thailand).

Some condominium units are also sold leasehold, typically where the foreign quota is full or the developer keeps the freehold. The tenant of a leasehold unit is not a co-owner of the condominium, so check what say the lease gives you in how the building is run.

## The 30-year limit and what registration does

Section 540 of the Civil and Commercial Code says a lease of immovable property cannot exceed 30 years, and a longer term is cut back to 30. Section 538 says a lease of more than three years is enforceable beyond three years only if it is in writing and registered by the Land Office.

Registration is what makes a lease secure. The lease is noted on the land title, so it survives a sale of the land: the new owner takes the land subject to the lease for the rest of the registered term. An unregistered long lease is good for three years and no more.

A separate statute allows leases of up to 50 years for qualifying commercial and industrial property in designated areas. It does not apply to a home.

## Renewal clauses are contract, not registered right

Section 540 allows a lease to be renewed when it ends, for up to another 30 years. That is the basis of the 30 plus 30 plus 30 structures sold in resort markets. The weakness is that only the first term is registered. The renewal is a promise in a contract.

Three risks follow.

- **The promise may be void.** In decision 4655/2566 the Supreme Court considered a 1990 lease of land and a house in Phuket, with two further 30-year terms agreed and paid for on the same day. The court held the renewal provisions void as a circumvention of Section 540 and upheld the tenant's eviction. It gave weight to the fact that the renewals repeated the original rent and conditions.
- **The promise may not bind a successor.** If the landowner sells, dies or is wound up, the registered term carries on but the renewal undertaking is personal to the original parties.
- **The promise needs co-operation.** Even a valid option requires the landowner to attend the Land Office and register a new lease in 30 years' time.

The safer drafting is an option the tenant exercises at expiry, with rent for the new term fixed at that time. That improves the position. It does not turn a renewal into a registered right. A prudent buyer pays for 30 years.

## Resale

A freehold unit in the foreign quota can be sold to a Thai or a foreign buyer, and the quota allocation passes with the unit when the buyer is foreign.

A leasehold is harder to sell. Under Section 544 a tenant cannot assign or sublet without the landlord's consent unless the lease says otherwise, so the right to assign must be written in. The buyer receives only the years left. Some developers undertake to grant a fresh 30-year lease to a buyer on resale. That is another contractual promise and should be weighed like a renewal clause.

## Inheritance

A freehold unit forms part of your estate. Whether a foreign heir can keep it depends on the Condominium Act: the statute requires heirs who do not themselves qualify to dispose of the unit within one year, although a Land Department clarification is more favourable to heirs of owners who bought with remitted foreign currency. The position needs advice at the time.

For leases, the older case law treats a lease as personal to the tenant, so that it ends on death. Supreme Court judgment 11058/2559 held that a lease can pass to heirs where its terms show the tenant's personal qualities were not essential, for example where rent for the whole term was paid up front or subletting was permitted without consent. Do not rely on inference. Include an express succession clause and read [inheritance and wills](https://www.thailandpropertyinvestor.com/guides/inheritance-and-wills).

## How lenders see it

A freehold unit can be mortgaged at the Land Office. An ordinary residential lease cannot be used as security in the same way: the ability to mortgage a lease belongs to the separate commercial and industrial leasing statute. Do not assume local finance for either tenure. Our guide to [mortgages for foreigners](https://www.thailandpropertyinvestor.com/guides/mortgages-for-foreigners) covers what is available.

## Other registered rights

Three rights sit between a lease and ownership. A [superficies](https://www.thailandpropertyinvestor.com/glossary/superficies) lets you own a building on another person's land. A [usufruct](https://www.thailandpropertyinvestor.com/glossary/usufruct) gives possession and use, often for life, and ends on the holder's death. A sap-ing-sith, created by registration over Chanote land or a condominium unit, runs for up to 30 years and can be transferred, inherited and mortgaged without the owner's consent. Each is limited to 30 years or, for superficies and usufruct, a lifetime. None is freehold.

## The 99-year proposal

In June 2024 the government announced work on 99-year leases. In September 2025 the new government set aside the legislation, which was still under study. Nothing has been enacted. A contract clause that promises a longer term if the law changes costs nothing to include. It is not a reason to pay more.

## Questions

### Is a 30 plus 30 plus 30 year lease enforceable?

Only the first registered term of up to 30 years is secure. The Civil and Commercial Code allows a lease to be renewed when it expires, but in decision 4655/2566 the Supreme Court held renewals agreed and paid for at the outset, on the same terms, to be void. A renewal that the parties negotiate and register when the first term ends is a different matter. Take independent legal advice on any renewal wording.

### Can a leasehold property be inherited?

It depends on the drafting. The traditional position in Thai case law is that a lease is personal to the tenant and ends on death. A 2016 Supreme Court judgment (11058/2559) held that a lease can pass to heirs where its terms show the tenant's identity was not essential. A clear succession clause, and legal advice on it, are essential.

### What happens to a registered lease if the landowner sells the land?

A registered lease is not ended by a change of ownership. The buyer of the land takes over the landlord's obligations for the remaining registered term. A promise to renew is different: it is a personal undertaking of the original landowner and may not bind a successor.

### Can a foreigner get freehold on a villa?

Not on the land. A foreigner can own the villa building and hold the land under a registered lease, superficies or usufruct. Offers of freehold through a Thai company with nominee shareholders are unlawful.

### Has Thailand introduced 99-year leases?

No. A proposal was announced in June 2024, and in September 2025 the new government set it aside. The maximum registrable residential lease remains 30 years.

## Sources

- [Civil and Commercial Code, Sections 537 to 545 (hire of property), Siam Legal law library](https://library.siam-legal.com/?p=107)
- [Addleshaw Goddard, Supreme Court decision 4655/2566 on lease renewals](https://www.addleshawgoddard.com/en/insights/insights-briefings/2025/real-estate/thai-supreme-court-strikes-down-automatic-long-term-lease-renewals/)
- [Tilleke & Gibbins, inheritance of leasehold property and Supreme Court judgment 11058/2559](https://www.tilleke.com/insights/inheritance-leasehold-property-thailand/)
- [Tilleke & Gibbins, Condominium Act Sections 19 and 19 bis and foreign heirs](https://www.tilleke.com/insights/inheritance-condominium-units-foreigners-thailand)
- [Chambers Real Estate 2026, Thailand chapter (Duensing Kippen), leases](https://gpg-pdf.chambers.com/Real-Estate-2026/628/)
- [Chambers Real Estate 2026, Thailand chapter (Duensing Kippen), usufruct, superficies and sap-ing-sith](https://gpg-pdf.chambers.com/Real-Estate-2026/627/)
- [Tilleke & Gibbins, due diligence checklist for property buyers](https://www.tilleke.com/insights/due-diligence-checklist-property-buyers)
- [Forvis Mazars Thailand, taxes on selling properties in Thailand (fee table)](https://forvismazars.com/th/en/content/download/554264/file/Thailand%20Property%20Taxes%20-%202014.pdf)
- [Government Public Relations Department, 99-year lease and 75% quota proposal, June 2024](https://thailand.prd.go.th/en/content/category/detail/id/52/iid/300660)
- [The Nation, new government shelves 99-year leasehold plan, 16 September 2025](https://www.nationthailand.com/news/policy/40055500)