Buying a Leasehold Villa in Phuket: The Lease Contract, Registration and Costs

When buying a villa in Phuket, foreigners often ask how ownership of it is arranged. There is a clear, legally protected way to hold it: a leasehold villa in Phuket is held through a long-term lease of the land plot, registered at the Land Office. The villa itself can be registered either as the buyer's own property, in the buyer's name, or as leasehold under the same lease.

Why a villa is held on leasehold

Leasehold in Thailand is the usual way for a foreigner to own a villa. Foreign individuals cannot buy land outright, under Section 86 of the Land Code (Land Code B.E. 2497). The plot under the villa is therefore held on leasehold: a 30-year lease with the option to renew for two further 30-year terms. Under Thai law, the villa itself, as a building, is an asset separate from the land.

What buying a villa on leasehold gives the buyer

A leasehold villa lets a foreign buyer hold the villa and the plot beneath it for the term set in the contract. Where the contract allows it, the buyer can:

• sell the villa: the new owner takes over the remaining lease term (if the contract has no such clause, the sale needs the lessor's consent, Section 544 of the Civil and Commercial Code);
• rent the villa out;
• pass the rights under the contract to heirs.

The buyer's rights also stay in place if the owner sells the plot: the new landowner takes it over together with the lease and is bound by it (Section 569 of the Civil and Commercial Code).

The villa itself, as a building, can be held in one of two ways:

1. As the buyer's own property, in the buyer's name, through a superficies: a separate right to own a building on another person's land. It is governed by Sections 1410 to 1416 of the Civil and Commercial Code and is also registered at the Land Office. The plot under the villa stays on lease.
2. On leasehold together with the plot: the buyer leases the plot and the villa under one contract for the whole term.

The leasehold contract

What to check in the contract:

• the lessor and the lessee;
• the plot, identified by its title deed;
• the term, up to 30 years;
• the rent and how it is paid: as one upfront sum or in instalments;
• the permitted use of the land and the villa;
• whether the lease may be transferred or the villa sublet;
• whether the rights under the contract pass to heirs.

Registration at the Land Office

A land lease of more than three years needs a written contract and registration at the Land Office (Section 538 of the Civil and Commercial Code). The lease is registered at the Land Office responsible for the plot, and the fees are paid there on the day of registration.

A single lease term cannot exceed 30 years: if the contract states a longer term, the law reduces it to 30 (Section 540). At registration, check that the term recorded at the Land Office matches the term in the contract.

The lease can be registered without travelling to Thailand. The buyer signs a power of attorney abroad on the Land Department's Tor Dor 21 form. It is usually notarised, then authenticated by the foreign ministry of the country where it is signed and legalised at a Thai embassy or consulate. At the Land Office, the buyer's authorised representative acts on the buyer's behalf. About half of Undersun Estate's international clients buy property this way.

What leasehold registration costs

Registering the lease costs the buyer about 1.1% of the total contract amount for the whole term: a 1% registration fee and 0.1% stamp duty.

For example, for a leasehold villa priced at THB 15 million (about $455,000 at 33 THB per $1), registration comes to about THB 165,000 (about $5,000). When the lease is renewed, the new term is registered again and the registration fees are paid again.

Where the villa is transferred to the buyer as their own property in a separate building sale, that transfer has its own charges: a registration fee of 2% of the government appraised value under the Land Code fee schedule, plus stamp duty of 0.5% or specific business tax of 3.3%, depending on the seller.

Information current as of November 2026. For legal and tax questions about your own purchase, check with a licensed Thai lawyer or tax adviser.

Undersun Estate: Villas in Phuket

Undersun Estate is a real estate agency in Phuket, a co-founder of the Phuket Property Association and a partner of the Phuket Real Estate Association (P-REA), a local industry association. Our database holds more than 500 developer projects and more than 200 resale properties.

If you are choosing a villa in Phuket, message us on WhatsApp or through the form on this page with your budget and the areas you are considering. We will select suitable options and support the deal through to registration at the Land Office.