How to Properly Buy Property in Phuket in 2025
Phuket's property market continues attracting international investors seeking tropical lifestyles combined with solid investment returns. Whether you're planning a holiday home, retirement destination, or rental income property, understanding the buying process makes all the difference between a smooth transaction and costly mistakes.
Understanding the Phuket property market requires knowledge gained from years of observing successful transactions and costly mistakes. Experience shows what works and what doesn't, when navigating Thailand's property laws.
Understanding Foreign Property Ownership Rules in Phuket
Foreign property ownership in Thailand operates under specific legal frameworks that vary significantly between condominiums and land-based properties.
Condominium Ownership: Your Straightforward Path
The most direct route for foreigners involves purchasing condominium units. You can hold freehold title to condo units, provided the building's foreign ownership doesn't exceed 49% by floor area. This percentage applies building-wide, not floor-by-floor, making some units available even when others aren't.
This route offers the clearest legal ownership structure when you buy property in Phuket. You'll receive a proper title deed bearing your name, giving you full ownership rights including the ability to sell, rent, or transfer the property freely.
Land and Villa Options: More Complex but Possible
Villas and land-based properties require different approaches since foreigners cannot directly own Thai land. The most common legitimate option involves leasehold arrangements.
Residential leases can extend up to 30 years and must be registered at the Land Office for terms exceeding three years. Developers often offer 30+30+30 renewal schemes, but these must be structured carefully from a legal standpoint. Some buyers consider Thai company structures, but these involve significant complexity and scrutiny. Unless you're establishing a genuine business operation, this route often creates more problems than solutions.
Phuket Property FET Requirement Explained
For condominium purchases, the Foreign Exchange Transaction (FET) certificate represents your key to legal ownership. This document proves your purchase funds originated from overseas sources.
Here's what matters: you must transfer foreign currency from an overseas bank account to Thailand, specifically noting the transfer purpose as "purchase of condominium [property name]." Your Thai receiving bank then issues the FET form or equivalent documentation.
Many buyers make expensive mistakes here. Sending Thai baht from domestic accounts, unclear transfer purposes, or missing documentation can prevent freehold registration or complicate future property sales. Plan your fund transfer early and work with your bank to ensure proper documentation.
Understanding Phuket Property Costs Taxes and Fees
Property transfer costs in Phuket involve multiple taxes and fees calculated on official appraised values, which often differ from actual sale prices.
Standard Transfer Costs
Transfer registration fees run approximately 2% of the Land Department's appraised value, split equally between buyer and seller unless negotiated otherwise.
The Specific Business Tax (SBT) applies at 3.3% of the property price when sellers dispose of property within five years of purchase. Alternatively, stamp duty charges 0.5% when SBT doesn't apply. The payment of this tax, although it is a seller tax, is generally shared equally between buyer and seller too.Withholding tax obligations fall on sellers based on their status, companies pay 1% of registered value while individuals face progressive rates on calculated profits. Taxes are, in many transactions, also shared equally between the buyer and the seller.
Step by Step Guide to Buying Phuket Property
Successful property purchases follow a structured approach that protects your interests while ensuring legal compliance.
1. Initial Property Selection
Your search should focus on properties with clear legal status and proper documentation. Start by identifying properties from verified developers and sellers, screening for potential issues before committing.
Key preliminary checks include reviewing title deeds, building permits, condominium registration documents, and current foreign ownership quotas for condo projects.
2. Legal Due Diligence: Non-Negotiable
Never skip professional legal review. Your Thai lawyer should verify title deed authenticity at the local Land Office, confirm permitted land use, check for encumbrances or legal disputes, and validate building completion certificates.
For condominiums, verify available foreign quota, juristic person registration, and review project documentation including recent owners' meeting minutes that might reveal building issues or financial problems.
3. Securing Your Purchase
The Reservation Agreement (RA) is a short contract signed when concluding a deal and involving the payment of a small amount (typically 200,000 Thai Bahts) to reserve the property and take it out of the market. Structure this agreement to include due diligence conditions, allowing withdrawal if legal issues surface.
The Sale and Purchase Agreement (SPA) formalizes your transaction with negotiated deposit amounts, typically 10% of purchase price. It is signed after the due diligence has cleared all potential legal issues and includes all legal details of the acquisition.Simultaneously, arrange your FET documentation by initiating the foreign currency transfer with proper bank notifications. This process often requires several business days, so start early.
4. Final Transfer and Registration
The Land Office transfer concludes your purchase, requiring all parties' presence along with required documentation: passports, marriage certificates (if applicable), original FET forms, signed SPA, and seller identification documents.
You'll pay remaining transfer taxes and fees, receive your title documents, and officially become the registered owner. For condominiums, update your registration with the juristic person office and transfer utility accounts.
Financing Your Phuket Property Purchase
Foreign buyers can access Thai mortgages, particularly for condominium purchases, though conditions remain strict. Banks typically require 30-50% deposits, verified income documentation, and sometimes valid work permits or long-term visas.
Many international buyers find better terms through home-country banks or specialized international lenders familiar with Thai property markets. Compare options early and secure pre-approval to strengthen your negotiating position.
Avoiding Common Mistakes in Property in Phuket
The Foreign Quota Trap
Even developer-marketed projects can reach foreign ownership limits between your initial interest and final transfer. Always verify current quota availability immediately before signing agreements.
FET Documentation Mistakes
Incorrect transfer purposes, wrong recipient names, or domestic fund sources can derail freehold registration plans. Work closely with your bank to ensure proper FET documentation from the start.
Lease Registration Oversights
Leasehold properties over three years must be registered at the Land Office to ensure full legal protection. Verbal renewal promises or complex automatic extension clauses often prove unenforceable.
Your Next Steps in Buying a Property in Phuket
Buying property in Phuket can be one of the most rewarding decisions of your life, whether for a holiday escape, retirement plan, or long-term investment. But success here isn’t about rushing in; it’s about doing things properly: understanding ownership laws, preparing your finances, and completing due diligence. With the right guidance, you can avoid costly mistakes and enjoy the peace of mind that comes with a secure, well-planned purchase.
If you’re ready to take the next step toward owning your dream property in Phuket, our team at La Maison Coral Properties is here to help you every step of the way. From selecting the right villa to navigating the legal process, we’ll ensure your journey is smooth and stress-free.
📞 Phone: +66 (0)96-870-5360