Leasehold vs freehold on Koh Samui: what it means for a villa buyer
For a villa on Koh Samui, leasehold means you lease the land and own the house. Freehold land needs a Thai company. Here is how the two compare.
On Koh Samui, a foreign villa buyer usually chooses between two set-ups. With leasehold, you own the house and lease the land it stands on, usually for 30 years, on a lease registered at the Land Office. With freehold, the land is owned outright, with no end date, but a foreigner can only get there through a Thai company that is a genuine business.
Leasehold is simpler to set up and to hold. Freehold through a company gives longer control of the land, with more paperwork and more legal risk if it is done badly. For most people buying a holiday villa, a registered lease is the more common choice.
This is general information, not legal advice. Use your own independent Thai lawyer.
What the two words mean here
- Leasehold: the right to use land for a fixed period under a lease. For a villa, you lease the land and own the building on it.
- Freehold: owning something outright, with no end date. Foreign individuals cannot hold Thai land freehold. A Thai company can.
Most guides compare these for condos. A villa is different, because the house and the land are two separate things under Thai law. That is why the comparison below is about villas only.
For the wider picture, including condos and BOI (Board of Investment) promotion, read can foreigners own property in Thailand.
Leasehold and freehold, side by side
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What you own
- Leasehold: the villa itself, in your name, plus the right to use the land for the lease term.
- Freehold through a company: shares in a Thai company, and the company owns the land. You may own the villa personally or through the same company.
How long it lasts
- Leasehold: usually 30 years on the registered lease. Renewal options may be written into the contract, but a future landowner may not be bound by them.
- Freehold through a company: no end date on the land, for as long as the company exists and stays legal.
How it is recorded
- Leasehold: the lease is registered on the land's title deed at the Land Office. A superficies (a registered right to own a building on someone else's land) can be added for the villa.
- Freehold through a company: the company's name is on the title deed. Your protection depends on the company's shareholding and paperwork.
What it takes to keep
- Leasehold: little after registration. You pay your running costs and keep your documents safe.
- Freehold through a company: yearly accounts, tax filings and real business activity. Thai shareholders must hold the majority and must be genuine. Shareholders who exist only on paper, called nominees, are illegal.
Selling or passing it on
- Leasehold: you can usually sell the villa and transfer the remaining lease, if the lease allows it. Your lawyer should check the transfer and inheritance terms before you sign.
- Freehold through a company: you sell your shares, or the company sells the land. The buyer inherits the company's history, so clean records matter.
Where the risk sits
- Leasehold: the term runs down over time, and renewal promises may not hold. The main risk is relying on renewals that are not registered.
- Freehold through a company: the main risk is a company that does not meet the rules. If the structure is not genuine, the land can be lost.
What this means for a villa buyer
- You want a holiday home you also rent out: a registered lease, with the villa in your name, is usually the cleaner fit.
- You are running a genuine business from the land: a company may suit, with a lawyer and an accountant from the start.
- You care most about selling later: ask how easily the lease or the shares transfer, and how a future buyer will see them.
Before you choose, check the title deed. You want a chanote under the villa: the strongest kind of Thai title deed, with surveyed and registered land. Check that the name on it matches the seller.
Where this is true for us
We build villas at Portofino Village in Lipa Noi. Villa Emerald and the first Villa Pearl plot are completed, and another villa there is finished and let. Ask us what is available. If you look at a villa with us, ask how the land and the house are held, and have your own lawyer check the documents.
If you are buying before a villa is finished, read whether off-plan is safe on Koh Samui and how to vet a developer. For the full buy-or-build decision, start with how to buy or build property on Koh Samui as a foreigner.
Questions people ask
Is leasehold or freehold better on Koh Samui?
Neither is better for everyone. For a holiday villa, a registered lease with the house in your name is the more common choice because it is simpler to hold.
Freehold through a Thai company only suits a genuine business. Your lawyer should match the structure to your plans.
How long is a leasehold in Thailand?
A registered lease is usually 30 years. Some contracts offer renewals on top.
Those renewals are contract promises, and a future owner of the land may not be bound by them. Do not price a villa as if they are guaranteed.
Can a foreigner buy freehold land on Koh Samui?
Not in their own name. A Thai company can own land, and a foreigner can hold a minority of its shares.
The company must be a real business with genuine Thai shareholders. Using shareholders who exist only on paper is illegal.
Do I own the villa if I lease the land?
Yes. Thai law lets the building and the land have different owners.
You can own the villa in your name while you lease the land. A registered superficies can make that ownership clearer on the record.
What should my lawyer check?
The chanote and the name on it, the lease registration, the transfer and inheritance terms, and any renewal promises. If a company is involved, they should check its shareholders, accounts and business activity. Choose a lawyer who works for you, not for the seller.
Talk to us
If you want to see completed villas and talk through how a purchase works, ask about investing or read more on how we work with buyers.