How does the process of buying a condo as a foreigner differ from buying a leasehold property?

The process of buying a condo as a foreigner differs significantly from buying a leasehold property in Thailand:

Condo Purchase (Freehold)

1. Eligibility: Foreigners can purchase condos outright, but only up to 49% of the total saleable area of a condominium project.
2. Ownership: Full ownership rights are granted, with the foreigner’s name appearing on the title deed (chanote).
3. Duration: Ownership is permanent, with no expiration date.
4. Property types: Limited to condominium units only.
5. Registration: The purchase is registered at the Land Department, transferring full ownership rights.
6. Costs: Generally more expensive than leasehold properties, with higher transfer fees and taxes.

Leasehold Property Purchase

1. Eligibility: Foreigners can lease various types of properties, including villas, houses, and land.
2. Ownership: The foreigner acquires the right to occupy the property for a predetermined period, not full ownership.
3. Duration: Typically 30 years, with the possibility of two 30-year renewals (up to 90 years total).
4. Property types: More options available, including villas, townhouses, and apartments.
5. Registration: The lease agreement must be registered with the local land office.
6. Costs: Generally cheaper than freehold, with lower initial costs and registration fees.

The main differences lie in the extent of ownership rights, duration of possession, available property types, and associated costs. Freehold condo purchases offer more security and control but are limited to condominiums, while leasehold arrangements provide more property options at a lower cost but with time limitations.

See our properties for sale in Phuket here

Related articles:

• Can Foreigners Buy or Own Property in Phuket?
• What are the pros and cons of leasehold versus freehold ownership for foreigners in Phuket?
• Sala Hospitality Group enters Phuket condo market
• Sansiri confident in Phuket’s potential as economic driver
• Thai luxury properties dominate in Asia
• Foreigners drive Phuket condo segment
• A closer look at Phuket’s boom
• Guide to Buy a Property in Thailand