Leasehold or a Thai Company: How Foreigners Hold a Villa in Phuket

Foreigners generally cannot own land outright in Thailand, so a villa purchase needs a legal structure. The two routes most buyers hear about are a registered long lease and a Thai company. They are very different in risk and cost, and the wrong choice — especially a nominee company — can be a serious problem. This is an explainer, not legal advice.

Quick answer

A registered leasehold gives you a long, registered right to use the land for a fixed term (commonly up to 30 years), with the building often owned by you. A Thai company structure has the company own the land, with you involved in the company. Leasehold is simpler and lower-risk for most lifestyle buyers; company structures are more complex and carry specific legal risks that must be assessed by a qualified lawyer.

Registered leasehold

• A lease of the land registered at the Land Office for a fixed term.
• You can often own the house/building separately.
• Simpler, transparent, widely used by foreign buyers.
• Key things to check: the term, any renewal wording, transfer/inheritance rights and what happens at the end of the term.

Thai company

• A Thai company owns the land; the foreigner participates in the company.
• Can suit genuine, active businesses — but is complex, with ongoing accounting, reporting and compliance.
• Critical caution: using a Thai company purely as a nominee to hold land for a foreigner, with Thai shareholders who are not genuine, is against Thai law and carries real risk. Never treat a "company structure" as a casual workaround — it must be a genuine, properly advised arrangement.

How to choose

• For a lifestyle villa, a registered leasehold is usually the simpler, lower-risk route.
• A company structure should only be considered with independent legal advice and a legitimate rationale — never as a shortcut around the land-ownership rules.
• A condominium freehold (within the foreign quota) avoids the land question entirely — see how foreigners can buy property in Phuket.

What to verify before you commit

• The exact structure proposed and its legal robustness, reviewed by an independent lawyer.
• Term, renewal, transfer and inheritance implications.
• Ongoing costs and obligations (especially for a company).
• How the structure affects future resale.

For the villa-purchase process, see the villa buyer checklist and buying property step by step.

Conclusion

The structure is part of the purchase, not a formality. Most lifestyle buyers are best served by a registered leasehold or a freehold condo; company structures demand genuine justification and expert advice. Get independent legal counsel before you sign anything.

PhuketStayPro can help you understand the options and coordinate independent legal review. Browse listings or ask us.

Notes / fact-check flags

Lease terms, company law, nominee rules, tax and enforcement change over time and have serious legal consequences. This is general educational information, not legal advice — every structure must be confirmed with an independent qualified Thai lawyer before you commit.