How Villa Leasehold Works in Phuket, Thailand (2025 Guide for Investors)
Introduction: The Allure and the Barrier
For many overseas buyers, the Phuket property market represents the dream: modern villas with private pools, lush gardens, and the lifestyle that defines Thailand’s most desirable island. Yet this dream sits against one of Thailand’s most significant property laws, foreigners cannot own land freehold.
That does not mean villa ownership is off the table. Instead, it means foreign buyers must structure their purchase differently, most commonly through a leasehold property arrangement in Thailand or a Thai company structure. Both methods are perfectly legal when set up correctly, but each carries nuances and risks that investors need to understand.
The Basics: What Leasehold Really Means
Leasehold in Thailand gives you the right to occupy and use land for a fixed period. The maximum term is 30 years, and the lease must be formally registered at the Land Office to be enforceable.
During that lease period, you can live in the property, rent it out, or sell the lease to another buyer. What you do not have is perpetuity. At the end of 30 years, unless renewed, the land and villa normally revert to the landowner.
This “time limit” is the key difference between buying a villa on leasehold and buying a freehold condo in Phuket, where ownership is perpetual. If you’re weighing the advantages of each property type, our guide Phuket Villas vs Condos in 2025, compares returns, ownership structures, and lifestyle factors in detail.
Renewals: 30+30+30 and Beyond
Developers often advertise “30+30+30” leaseholds, one registered 30-year lease plus two promised renewals.
The first 30 years are secure if the lease is registered. Beyond that, renewals are contractual obligations, not property rights. If the landowner honours the contract, you can extend your lease. But if the land changes hands, successors are not automatically bound unless they explicitly agree to take on the obligation.
Some projects use staggered leases, multiple overlapping agreements starting at different times. These structures extend effective control, but again, their strength lies in enforceability, not in statute.
In short, lease renewals have value, but they cannot be equated with the certainty of freehold.
Managed Estates vs. Stand-Alone Villas
Not all villas carry the same level of risk.
Buying in a managed villa estate, such as Mouana Serenity or Mouana Grande, reduces risk compared to leasing an individual plot. Developers with multiple units, rental programs, and long-term reputations to protect are far more motivated to honour renewals. Their future sales depend on past buyers feeling secure.
By contrast, buying a stand-alone villa from a private landowner introduces greater risk. A single landlord has less incentive to maintain goodwill with foreign investors, and heirs or buyers of the land may choose not to extend the lease.
This is why estates managed by reputable developers are often viewed as “safer” leasehold investments. The legal structure is the same, but the incentives of the counterparty make all the difference.
What Really Happens at Year 30
At the end of a registered lease, the land unquestionably returns to the landowner. The villa structure is a separate matter. Legally, if you funded and built it, you retain ownership of the building. But without rights to the land, your practical control is lost.
In most cases, unless there is a separate compensation or removal clause, the villa reverts to the landowner along with the land.
When the initial 30-year lease term ends, the land and villa rights must be renewed under the terms of the agreement. Well-established developers typically include clear renewal clauses and have a strong track record of extending leases for existing owners, ensuring continuity and protecting long-term value.
Company Structures: Another Path
Some investors take a different route, using a Thai company to hold the land. This can be legitimate if the company is a real business with majority Thai shareholders. The foreigner holds up to 49% of shares and usually controls the company through directorships and voting agreements.
Problems arise when companies are created purely as shells, with Thai shareholders who are only “names on paper.” These nominee arrangements are illegal under Thai property law and carry serious risks, including forfeiture.
A properly structured company, with genuine shareholders and compliance costs factored in, can legally hold land. But it is a more complex route, better suited to high-net-worth buyers who want additional control and are comfortable managing annual audits and tax filings.
How to Protect Yourself
Because leasehold carries inherent limitations, the smartest investors negotiate protections from the start. A strong contract doesn’t eliminate risk, but it reduces exposure and makes renewals more realistic.
Essential steps include:
Registering the lease at the Land Office.
Ensuring clear renewal clauses with capped or CPI-linked pricing.
Including rights to assign or resell the lease.
Securing a right of first refusal if the land is sold.
Obtaining developer warranties on clean title.
Having all documents reviewed by an independent lawyer experienced in foreign property ownership in Thailand.
These measures transform a weak lease into a defensible contract. They don’t turn leasehold into freehold, but they create a practical level of security most investors can live with.
Case Study: Mouana Serenity & Mouana Grande
Projects like Mouana Serenity Cherngtalay and Mouana Grande Chalong Bay show how this plays out in reality. Both are structured as leasehold villas but come with professional management services: cleaning, pool care, and rental programs.
That management layer makes them more appealing for overseas buyers. It also signals that the developer has an ongoing business model, aligning their interests with yours. If renewals were denied en masse, the brand’s reputation and future sales would collapse.
This does not eliminate risk, but it does reduce it compared to buying an individual villa on leased land from a private owner.
Conclusion: Risk Managed, Not Risk Free
Villa leasehold in Thailand is not a trick or a loophole, it is a legal tool that gives foreigners access to properties they could not otherwise buy. But it is not equivalent to freehold. Renewals carry uncertainty, company structures demand careful compliance, and resale is always influenced by how much time is left on the clock.
The risks are real. Yet buying through a managed estate with a reputable developer, supported by experienced legal partners, can tilt the odds significantly in your favour. At Alestria, we believe the right way to approach Thai leasehold property is with eyes open: enjoy the space and privacy it offers, but plan with contracts, due diligence, and long-term strategy in mind.
Before you start comparing projects, download our FREE Thai Property Investment Toolkit, it covers ownership options, yields, and legal essentials in one guide.
Phuket Villa Leasehold FAQs
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Leasehold grants the right to occupy land for up to 30 years. Foreign buyers use this structure to legally hold villa property while the land remains owned by a Thai entity or individual.
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Foreigners cannot own land freehold but may own buildings and lease the land beneath them, or invest through a legitimate Thai company with majority Thai shareholders.
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Yes, when properly registered at the Land Office and managed by reputable developers. Renewals depend on the terms agreed, and credible developers typically include clear renewal provisions and honour them to protect long-term buyer value.
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When the initial 30-year lease term ends, the land and villa rights must be renewed under the terms of the agreement. Well-established developers typically include clear renewal clauses and have a strong track record of extending leases for existing owners, ensuring continuity and protecting long-term value.
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Generally yes. Developers operating large estates have stronger incentives to renew leases and maintain investor confidence because their reputation and future projects depend on it.
