A foreigner can buy a villa in Thailand, and thousands of people do every year. But between “I want a villa in Phuket” and the keys in your hand lies a chain of decisions where money is easy to lose: choosing the wrong form of ownership, paying before the documents are checked, mishandling the currency transfer, or accepting the property without a defect list. The good news is that the sequence of steps is well known and repeats from deal to deal. This guide walks through all of it: from setting the budget and format to registration at the Land Department and handover. It is written for a buyer who lives abroad and does not know Thai practice. It is not legal advice: it describes the logic of the transaction, while decisions about your property belong to an independent lawyer who has read the real documents.
Contents
- What a foreigner can actually buy
- Step 1. Goal, budget and format
- Step 2. Choosing the property and the seller
- Step 3. Due diligence before the first payment
- Step 4. Reservation and contract
- Step 5. Money: FET, payment schedule and fees
- Step 6. Registration and handover
- Traps
- Mini-case: a deal from a distance
- After the keys and a final checklist
1. What a foreigner can actually buy
The basic rule of Thai law is simple: a foreigner cannot hold land title directly. Everything else is built around that limit. A condominium unit can be held freehold by a foreigner within the 49% quota of the saleable area of a building, which the Condominium Act provides expressly. A villa, which stands on land, is bought differently.
| Format | What you get | Who it suits | Main risk |
|---|---|---|---|
| Freehold condo | A unit in your own name, within the foreign quota | Buyers who want full ownership with no term | The quota in a building may be used up; the FET form is required |
| Leasehold condo | A 30-year lease right with contractual renewal | Flexible entry, lower price and fee at the start | Renewal rests on the lessor’s undertaking, so the contract must be read closely |
| Villa on leased land | A long-term land lease and a separately registered house | Buyers who want an actual villa and a transparent structure | Lease term, renewal conditions, transferring the lease on resale |
| Villa via a Thai company | The company owns the land, the foreigner participates and manages | Complex cases handled by a lawyer | Nominee shareholders “for show” are a direct red zone |
We covered the differences in more depth in freehold vs leasehold in Thailand, how a foreigner can buy property in Phuket and the legal structure of a villa deal. If you are considering a company with an offshore holding, read our analysis of offshore structures: it shows when such a structure works and when it becomes a trap.
An important practical point: the buyer’s nationality does not matter under Thai law. The rules are the same for Americans, Europeans, Indians, Ukrainians and Russians. What differs is payment logistics: the route for transferring currency depends on the banks on both sides and changes over time, so it is checked for your particular deal before reservation.
2. Step 1. Goal, budget and format
Start not with listings but with three questions.
- What is the property for? Personal use, rental income or capital preservation. Everything depends on this: area, format, furnishing, form of ownership. If income is the goal, a five-bedroom villa with a pool is not always better than a studio in a managed project.
- What is your horizon? Three years and fifteen years are different decisions. A short horizon needs liquidity and a clear exit; a long one needs solid land rights and renewal terms.
- What is the budget once everything is counted? The price of the property is only part of the total.
| Budget line | What it includes |
|---|---|
| Property price | Per contract, usually in baht |
| One-off fees | Registration of the right, taxes of seller and buyer as split in the contract |
| Lawyer and checks | Independent lawyer, document translation, an inspector if needed |
| Money transfer | Bank charges and the exchange rate |
| Furnishing | Developer package or your own purchase |
| Recurring costs | Common area fee (CAM), land and building tax, utilities |
| Reserve | The unexpected: post-handover repairs, a delayed payment |
For orientation, take open catalog data. For Layan Verde the reservation is 200,000 THB, the recurring CAM fee is 85 THB/m² per month, the one-off sinking fund is 850 THB/m², and leasehold registration is 1.1% every 30 years. For Layan Green Park the CAM fee is 75 THB/m² per month and the sinking fund 650 THB/m². A full budget for a real unit is worked through in the cost of buying property in Phuket, and the mechanics of recurring charges in CAM fees and the sinking fund.
If income is the goal, treat forecasts soberly. The developer of Layan Verde and Layan Green Park states an owner’s net yield from the rental pool of about 8–10% a year (60% of the pool’s net profit to the owner, 40% to the management company) and a payback of around 12 years. These are the developer’s data and forecast, not a commitment. To calculate returns yourself, see how to calculate property ROI in Phuket and the calculator at /#roi.
3. Step 2. Choosing the property and the seller
There are three types of seller on the market, and each carries a different risk logic.
| Source | Pros | Cons |
|---|---|---|
| Developer, off-plan | Instalments, fixed price list, choice of layouts | Wait for completion, delay risk, payments precede the finished result |
| Developer, completed unit | Can be inspected, no waiting | Smaller choice, price already reflects completion |
| Resale market | Real condition is visible, sometimes a rental history exists | Full checks of title, seller and debts on the unit are needed |
The choice between new build and completed property is covered in off-plan vs ready in Phuket and resale vs new build. For delivery times see new build timelines in Thailand.
Two catalog examples show how different the terms can be. Layan Verde is an off-plan district on 7.5 hectares with 774 residences, completion planned for December 2028, prices starting from $235,995 (7,833,125 THB), paid by instalments. In Layan Green Park, phase 1 has operated since 2024 and the developer has sold it out, so its entire price list consists of resales (studios from $142,602), while the developer offers phase 2 with completion in 2026, studios from $224,043 (7,424,784 THB). These are two different risk scenarios: wait for construction on staged payments, or buy an operating unit and pay in full at once.
The area also affects price and rentals. For quiet beach life and steady demand look at Layan; for richer infrastructure and villas, Bang Tao; the comparison is in Layan vs Bang Tao. Developer reliability has its own guides: how to choose a developer in Phuket and developer red flags.
Do you need an intermediary? An agency helps compare options and see open price lists and terms. Layan Real Estate selects offers among developers across the whole of Phuket, and the purchase contract is concluded directly with the developer at its price list. The agency’s commission is at market rates, with terms discussed at a meeting. More about the agency on the /agency page.
4. Step 3. Due diligence before the first payment
This is the most underrated stage. It costs little and saves the most. One rule: until the checks are finished, we pay nothing, not even a “small reservation”.
| What we check | How and where | Why |
|---|---|---|
| Land title | Copy of the chanote, verified against Land Department data through a lawyer | Confirm the seller owns the land and no one else holds rights |
| Encumbrances | Notes on the document: mortgage, leases to third parties, restraints | So you do not buy someone else’s debt |
| The seller’s legal entity | DBD registry: registration date, directors, stated objects | Rule out a shell company |
| Building permits | Copies of permits and completion records, reviewed by a lawyer | The property was built lawfully |
| Foreign quota | Certificate from the condominium juristic person on free quota in the building | Confirm that freehold is available |
| Debts on the unit | Certificate of no arrears on service charges | Do not inherit the owner’s debts |
| Layout and specification | Schedules to the contract | Fix the area, finishes and pool |
The detailed procedure is in due diligence before buying property and how to verify a chanote. For condos specifically, see checking the condo quota.
Two practical remarks. First: the checks are done by your lawyer, not the seller’s. Independence is not a formality: someone who depends on the other side has no duty to look for problems. Second: ask for copies, not retellings. “The chanote is clean” is not a document; a dated, stamped extract is.
One more point. If a listing looks too good, the pressure of “money today” feels suspicious, and the seller avoids a video call from the property, stop. Typical schemes are collected in property scams in Thailand.
5. Step 4. Reservation and contract
Once the checks are done, the property is secured. This is usually two documents.
The reservation agreement (booking agreement). It fixes the unit or plot number, the price, the form of ownership and the validity period. Before paying, check three things: what exactly is secured, for how long, and what happens to the money if the deal fails for a reason outside your control (document problems, registration refused). Refund terms differ between sellers and must be read, not assumed. See reservation and deposit in Thailand.
The sale and purchase agreement (SPA) or lease agreement. The main document. What it should contain:
- Subject of the deal: land registry data, unit number, area, and a statement of what exactly you are buying (ownership, a leasehold, a house on leased land).
- Specification and schedules: materials, equipment, pool, parking, furniture, layout. Everything critical to you must be written down, otherwise you cannot rely on the advertising. More in villa not as advertised.
- Payment schedule: amounts, dates, tie to construction milestones.
- Completion date and liability for delay: penalty, right to withdraw, refund procedure.
- Handover terms: the time limit to report defects and to have them fixed.
- For leasehold: term, number of renewals, who the lessor is, and the right to convert to freehold if it exists.
- Allocation of fees: who pays the transfer fee, taxes and registration.
- Governing law and jurisdiction.
The contract is usually drawn up in English and Thai. If the versions differ, you need to know which one prevails. If you cannot be present in person, signing and registration can be done under a power of attorney: see buying property in Phuket remotely and power of attorney in a remote deal. Grant it for specific actions and a limited period.
6. Step 5. Money: FET, payment schedule and fees
FET. For a freehold condo, the bank must confirm that the payment arrived from abroad in foreign currency and was converted in Thailand. The document is the Foreign Exchange Transaction form (FET). It is needed for registration for the full amount of the deal and later for repatriating funds on a sale. Currency rules are published by the Bank of Thailand at bot.or.th. Typical mistakes, such as paying in baht from an in-country account or wiring to a personal account, leave you with papers that cannot be used for registration. See FET and foreign currency in Thailand. For leasehold the FET is generally not required, but keep proof of the source of funds. Payment options are collected in ways to pay for property in Phuket, and transfer routes in how to transfer money to Thailand.
Payment schedule. With a developer it is tied to construction stages. Layan Verde has two instalment schemes in its price list:
| Scheme | First payment | Then | Total |
|---|---|---|---|
| 35% instalment plan | 35% | 5 payments of 13% every 6 months | 100% |
| 50% instalment plan | 50% | 5 payments of 10% every 6 months | 100% |
| Full payment | 100% within 14 days | — | 100% |
For illustration, take a studio at the 1 September 2026 price list: 7,833,125 THB. On the 35% plan the first payment is about 2.74 million THB and each of the five following payments about 1.02 million THB. On the 50% plan the first payment is about 3.92 million THB, followed by five payments of about 783 thousand THB. This is arithmetic, not an offer: check the current price list and terms on the project page, and ask whether the 200,000 THB reservation counts toward the first payment. In Layan Green Park phase 1 is sold as resale and paid in full, with no instalments, and the phase 2 schedule is provided on request. If you are looking at post-handover plans, read post-handover payment plans.
Fees. Orientation from open data: freehold transfer fee about 2% of appraised value (split by contract), leasehold registration 1.1% of value every 30 years, and the seller pays specific business tax of 3.3% or stamp duty of 0.5% plus withholding tax. The Land Department’s appraised value can differ from the contract price, so a lawyer should calculate the figures for your deal. If funds come via crypto, separate limits apply: buying with crypto. Holding money safely until registration is easier through a clear mechanism, covered in escrow in Thailand.
7. Step 6. Registration and handover
Registration. Ownership or lease rights take effect once registered at the Land Department (dol.go.th). On the appointed day the parties (or their attorneys) attend the land office with a document package. For a freehold condo this is usually the passport, the FET for the amount of the deal, the condominium juristic person’s certificate on quota and no arrears, the contract and a power of attorney if needed. For a leasehold, the 30-year lease is registered, without the FET or quota certificate. Confirm the exact list with the office in advance, because practice varies between districts.
What you end up with:
- Freehold condo: a chanote for the unit in your name.
- Leasehold: a registered lease agreement.
- Villa on leased land: a registered land lease and documents for the house.
Write down exactly what was registered and keep copies in two places.
Handover. If the property was built, or is transferred by a seller, accept it against a record with a list of defects, not verbally. Check the area, finishes, plumbing, electrics, pool, keys and documents. The principles are in our handover checklist for apartments and villas. The rule: do not sign the handover record without reservations until your remarks are written into it. Time limits for fixing defects belong in the contract.
8. Traps
Typical mistakes of foreign villa buyers, in descending order of cost.
- Paying before checks. A reservation “so as not to lose the lot” often makes the buyer a hostage. Better to lose the lot than the money.
- Mistaking a land lease for ownership. Many call a villa on leased land “mine”, but legally you hold a lease right with a term and renewal conditions. Find out who the lessor is and what happens after 30 years.
- A nominee Thai company. A structure where Thai shareholders appear as owners only on paper breaches the law and leaves you without protection. Do not accept it for a discount.
- Transfer without an FET. The money is gone, while the papers for registration and repatriation on sale are wrong. Fixing that afterwards is hard.
- The seller’s lawyer as a “shared” lawyer. One lawyer for both sides does not protect the buyer.
- A contract without a specification. Advertising and renders are not a document. Everything important belongs in the schedules.
- Treating a yield as a commitment. A yield is a forecast and operator data until it is written as an obligation with a party liable for it. More in promised rental yield in Phuket: how to read it.
- Ignoring recurring costs. CAM fees, tax and utilities reduce net income. Budget for them in advance.
- A broad power of attorney with no end date. Grant it for specific actions.
- Not planning the exit. Ask in advance how you will sell, to whom and by what procedure: exit strategies and how to resell property in Phuket.
A general overview of investor errors is in common investor mistakes in Phuket.
9. Mini-case: a deal from a distance
This is a generalised illustration, not a specific client story.
A buyer lives abroad and comes to Phuket for one week. Two weeks before the trip he picks two options: an apartment in an off-plan project and a resale villa. He hires an independent lawyer and asks for a copy of the chanote, an extract on the seller’s legal entity, the permits and a certificate of no encumbrances.
The result: on the resale villa, the plot is registered to a company, while the seller presents himself as an individual without a power of attorney, and the permit for an extension is missing. The buyer walks away and avoids a future dispute. On the off-plan option the documents are clean, and the developer shows the specification, the payment schedule and the reservation refund terms.
Then the buyer does what is always worth doing:
- Reads the contract with the lawyer and asks for areas and finishes to be written into a schedule.
- Arranges the transfer so the bank issues an FET (if freehold is chosen).
- Grants a limited power of attorney for registration.
- Does not pay the next stage until the previous one is confirmed by documents.
- Plans a trip for handover or books a separate inspector in advance.
The whole path from checks to signing takes him several weeks, not days. That is normal: hurrying a remote deal almost always costs more.
10. After the keys and a final checklist
The deal does not end at registration. The property has to be maintained, rented out or used.
| Question | What to decide |
|---|---|
| Management | Self-managed, via a management company or through the developer’s programme: rental management in Phuket, direct rental vs pool |
| Taxes | Land and building tax, rental income: property taxes in Thailand, rental income tax |
| Visa | Buying property does not by itself give a right of residence: visas for property owners |
| Inheritance | Inheriting Thai property |
| Seasonality | Occupancy depends on the season: rental seasonality in Phuket |
Final buyer’s checklist:
- Goal, horizon and the full budget with a reserve are defined.
- The format is chosen: freehold condo, leasehold, or a villa on leased land or via a company.
- An independent lawyer with no ties to the seller is hired.
- Title, encumbrances, seller, permits, quota and debts are checked.
- The reservation is paid only after checks, and the refund terms are read.
- The contract has a specification, payment schedule, completion date and handover terms.
- Money is transferred in a way that yields an FET, if one is needed.
- The power of attorney is limited in actions and in time.
- The right is registered at the Land Department and copies are stored.
- The property is accepted against a record listing defects.
- A plan for management, taxes and exit is in place.
If you want to check an offer against the market or see open price lists and terms before you pay, write to us. Layan Real Estate is an independent real estate agency covering all of Phuket: we publish the prices developers don’t, select options across the island’s projects, and the purchase contract is concluded directly with the developer at its price list. Commission at market rates, terms at a meeting. To compare two projects whose open data is on the site, open Layan Verde and Layan Green Park, and for the overall sequence of a deal read the Phuket property buying process.
This material is for information only and is not legal advice. Laws, fee rates and Land Department practice change; before any transaction, confirm current terms with an independent licensed lawyer in Thailand.
