How Does a Foreigner Buy a Villa in Thailand (Koh Samui) in 2026?

Can a foreigner own land in Thailand?

No, except in the rarest cases: Section 86 of the Land Code (B.E. 2497) provides that aliens may acquire land only by virtue of a treaty, and no such treaty is in force (Terms.Law, 2026). The only route the Code offers, Section 96 bis, requires an investment in Thailand of at least THB 40 million, limits the land to one rai (1,600 m²) for residential use and requires the permission of the Minister of the Interior (Tilleke & Gibbins); practitioners describe it as rarely applied for and rarely granted (ThaiLawOnline; SamuiForSale).

Circumventing the ban carries criminal penalties: Section 111 of the Land Code punishes a foreigner who acquires land in breach of Section 86 with up to 2 years' imprisonment and a fine of up to THB 20,000, and Section 113 applies the same penalties to a Thai who acquires land on behalf of a foreigner, i.e. a nominee (Terms.Law, 2026).

The building, on the other hand, can belong to a foreigner separately from the land. Three rights registrable at the Land Office make this possible: the lease, limited to 30 years; the right of superficies, which confers ownership of a structure on someone else's land for up to 30 years or for the holder's lifetime; and the usufruct, a right of use for the holder's lifetime or up to 30 years (ThaiLawOnline; SamuiForSale). When a superficies expires, the structure reverts to the landowner unless otherwise agreed.

What is a "renewable" 30-year lease in Thailand really worth?

Under Thai law, a lease of immovable property cannot exceed 30 years: Section 540 of the Civil and Commercial Code reduces any longer lease to 30 years, and a renewal may not itself exceed 30 years from the date of renewal (Addleshaw Goddard, 2025). A lease of more than 3 years must also be registered at the Land Office; otherwise it is enforceable only for the first 3 years (ThaiLawOnline, 2026). The proposal to extend leases to 99 years did not go ahead: on 16 September 2025 the new government announced it would not pursue it (Nation Thailand). The 30-year cap therefore remains the rule in 2026.

The so-called "30+30+30" structure was undermined by Supreme Court judgment No. 4655/2566 (numbered by Buddhist year 2566, i.e. 2023), widely reported from March 2025 onwards — sources differ on the exact date of the decision. In that case, a 30-year lease signed in 1990 provided for two 30-year renewals on the same terms, with all rent (THB 2.7 million) paid upfront; the Court held that these pre-agreed renewals circumvented Section 540 and could not be enforced beyond the first 30 years (Addleshaw Goddard; ThaiLawOnline). An earlier judgment, No. 6763/2541, had already held that a promise to renew does not bind a new owner of the land (ThaiLawOnline).

Commentators do not all read the judgment the same way. For Addleshaw Goddard, the Court was particularly sceptical of renewals on terms identical to the first period, which leaves room for genuine options that reflect future circumstances (a revised rent, for example). For ThaiLawOnline, the renewal promise is not enforceable even as a mere personal obligation between the original parties. What every analysis agrees on: only the first, registered 30-year term is certain; each renewal requires a new lease, registered at the time with the landowner's cooperation.

To protect themselves, buyers should have their lawyer confirm that the lessor is the owner named on the title deed, insist that the lease be registered for its full term and obtain express assignment and sublease clauses — without them, the lessee cannot transfer the lease without the lessor's consent. What happens to the lease on the lessee's death must be settled in writing: ThaiLawOnline points out that a lease, being a personal right, ends on the lessee's death and that a succession clause often only obliges the lessor to negotiate with the heirs, while other practitioners consider that a contract can provide for the rights to pass on; a lawyer's advice is essential here. Addleshaw Goddard also recommends optional rather than automatic renewals, rent-review clauses for future terms, provisions on the fate of structures and compensation for them, and a clause providing for a longer lease should the law allow it. Finally, it is prudent to price the purchase as a certain 30-year right, without prepaying any renewal periods.

Can you buy a villa freehold through a Thai company?

A Thai company may own land only if it is genuinely Thai: under Section 97 of the Land Code, it is treated as foreign when more than 49% of its shares are held by foreigners, and the Land Office may investigate even below that threshold to detect circumvention (Tilleke & Gibbins). The Thai shareholders must therefore be genuine investors: a Thai shareholder holding shares on behalf of a foreigner is a nominee, punishable under Section 36 of the Foreign Business Act by up to 3 years' imprisonment and a fine of up to THB 1,000,000 (Benoit & Partners, 2025; Terms.Law, 2026).

Enforcement tightened markedly in 2026. Since 1 January 2026, Department of Business Development (DBD) Order No. 2/2568 has required proof of the source of funds when any new company is incorporated, and since 1 April 2026 Order No. 1/2569 has extended this requirement to amendment filings (Global Law Experts, May 2026). The DBD has screened 125,622 companies, including 36,277 foreign-invested companies holding 305,838 land plots (Nation Thailand, 8 September 2026). A company is therefore not a way for a private foreign buyer to hold a holiday villa "freehold": it is a business structure, with real activity, accounts and shareholders.

Can a foreigner buy a condo freehold?

Yes: the Condominium Act allows a foreigner to acquire a condominium unit freehold, provided that the share held by all foreigners together does not exceed 49% of the total floor area of the units in the building (Tilleke & Gibbins). Section 19 requires the price to be paid with foreign currency brought into Thailand; the FET (Foreign Exchange Transaction Form), issued by the bank and mandatory for any transaction of USD 50,000 or more, must show the buyer's name as sender or recipient for the Land Office to register the unit in their name (SamuiForSale).

Proposals to raise the quota to 75% discussed in recent years have not been adopted: as of February 2026, no amendment to the Condominium Act had been passed and the 49% quota remained the law (Terms.Law). This regime applies to buildings registered as condominiums; a villa built on leased land falls under the lease, not condominium freehold.

How much are the purchase costs and taxes on a villa in Thailand?

The costs of a freehold transfer usually amount to between 2.5% and more than 6.3% of the official appraised value, depending on how buyer and seller split them (Forbes & Partners, 2026). They consist of a transfer fee of 2% of the appraised value, which custom often splits equally although the law does not require it; a Specific Business Tax of 3.3% if the seller has held the property for less than 5 years, or otherwise a stamp duty of 0.5%, the two being mutually exclusive and legally payable by the seller; and a withholding tax payable by the seller, set at 1% for a company and progressive for an individual (Forbes & Partners; Closer CSS Law). In a sale by a developer, the developer normally bears the Specific Business Tax, the withholding tax and at least half of the transfer fee (Closer CSS Law).

For a lease, the Land Office charges on registration a fee of 1% and a stamp duty of 0.1%, calculated on the total rent payable over the entire registered term (ThaiLawOnline; Closer CSS Law). Theoretical example: a 30-year lease at THB 10,000 per month represents THB 3,600,000 in cumulative rent, i.e. THB 36,000 in registration fee and THB 3,600 in stamp duty; which party pays is set by the contract.

The temporary reduction of transfer and mortgage fees to 0.01% does not apply to foreigners. Extended by the Cabinet on 30 June 2026 until 30 June 2027, it is reserved for Thai individuals buying their home, for a price and appraised value not exceeding THB 7 million (Nation Thailand, 30 June 2026).

After the purchase, the Land and Building Tax applies to residential property other than a primary residence at 0.02% up to THB 50 million of value, then 0.03%, 0.05% and 0.10% above THB 100 million; it is payable each year by the owner or possessor of the property (Benoit & Partners, 2025). Thai-source rental income is taxable in Thailand on a progressive scale of up to 35%, with the first THB 150,000 exempt (PwC, August 2026); how this interacts with tax in your country of residence is a matter for a tax adviser.

What are the steps to buy an off-plan villa in Thailand?

Buying an off-plan villa in Thailand follows eight practical steps, from reservation to registration of rights at the Land Office, and independent legal checks must take place before any significant payment. The table below summarises the order of operations and the document to obtain at each stage; timings vary by project and are set out in the contract.

Payments should preferably come from abroad by bank transfer in your name, keeping every receipt: this is mandatory for a condominium (FET form) and useful in all cases to prove the source of funds.

What precautions should you take when buying a villa off-plan?

In Thailand, escrow is optional: the Escrow Act B.E. 2551 (2008) imposes it on neither developer nor buyer, only licensed financial institutions — mainly banks — may act as escrow agents, and in practice instalments most often go straight into the developer's account (ThaiLawOnline). The money paid then becomes the project's working capital; if the developer becomes insolvent or abandons the project, the buyer is merely an unsecured creditor.

The key safeguards are therefore contractual and documentary: an identifiable developer whose financial strength and completed projects can be verified; the original title deed checked at the Land Office, not a photocopy; building permits issued; a payment schedule tied to verified construction milestones; a clear penalty or refund clause in case of delay or non-completion; a lease granted by the registered owner of the land, registered, with assignment and succession clauses; and a complete list of future charges, including land-rent reviews. Have everything reviewed by a lawyer with no ties to the developer.

How does buying a Casa Una villa on Koh Samui work?

Casa Una Residence is a new development of pool villas in Chaweng, Koh Samui, developed by The Circle Samui and sold off-plan on leased land: each villa carries a monthly land lease rent of THB 7,000 (UNA Nest, 1 bedroom), THB 9,000 (UNA Horizon, 2 bedrooms) or THB 12,500 (UNA Signature, 4 bedrooms), an initial rate revised by 5% every 5 years. Prices start at THB 5,500,000 (≈ €145,000), THB 6,300,000 (≈ €166,000) and THB 9,900,000 (≈ €261,000) excluding the furniture pack (THB 370,000, 530,000 or 1,000,000), with co-ownership fees of THB 8,000 to 8,500 per month and water at THB 250 per month. Construction started in July 2026, with delivery scheduled for Q4 2027.

Payment is staged according to construction progress: 5% on reservation, 10% on signing the contract, 20% at construction start, 30% at phase 2, 30% at phase 3 and 5% at handover. The land lease terms are set out in the framework contract, and Casa Una states that all legal documents can be checked before signing. We recommend that every buyer have them reviewed by their own independent Thai lawyer, in particular the registration and term of the lease, the wording of any renewal options in light of judgment No. 4655/2566, ownership of the building, assignment and succession rights, the allocation of registration fees and the ten-year construction warranty announced by the developer.

Frequently asked questions

Can a foreigner buy land in Thailand?

No, save for an exception: Section 86 of the Land Code prohibits foreigners from acquiring land, and the Section 96 bis exemption (at least THB 40M invested, one rai maximum, ministerial permission) is rarely granted. A foreigner can, however, hold a registered lease, a superficies or a usufruct, and own the building.

Is a 30 + 30 + 30-year lease valid in Thailand?

Only the first 30-year term registered at the Land Office is certain. Section 540 of the Civil and Commercial Code caps a lease at 30 years, and Supreme Court judgment No. 4655/2566 held that 30-year renewals agreed in advance on the same terms were unenforceable. A renewal requires a new lease, registered when the time comes.

Are 99-year leases allowed in 2026?

No. The proposal to extend leases to 99 years was not adopted; on 16 September 2025 the government announced it would not pursue it (Nation Thailand). The 30-year cap in Section 540 remains in force.

Can you buy a villa through a Thai company?

Only if the company is genuinely Thai, with no more than 49% foreign shareholding and Thai shareholders investing on their own account. Using nominees is a criminal offence, and since 1 January 2026 the DBD has required proof of the source of funds when companies are incorporated.

What is the foreign quota in a condominium?

Foreigners may together own no more than 49% of the total unit floor area of a condominium building. The price must be paid in foreign currency remitted from abroad and documented by an FET form. The increase to 75% discussed in recent years has not been adopted.

How much are the purchase costs for a villa in Thailand?

For a freehold transfer, between 2.5% and more than 6.3% of the appraised value depending on the agreed split (Forbes & Partners, 2026), including a 2% transfer fee. For a lease, the Land Office charges 1% plus 0.1% stamp duty on the total rent over the registered term.

Do foreigners qualify for the reduced 0.01% transfer fee?

No. The reduction, extended until 30 June 2027, is reserved for Thai individuals, for properties whose price and appraised value do not exceed THB 7 million. Foreigners and companies are excluded.

Is money paid for an off-plan villa protected?

Not automatically: escrow under the 2008 Escrow Act is optional and rarely used. Protection rests on the contract (payments tied to construction, a refund clause in case of delay or non-completion), the developer's strength and review by an independent lawyer.