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How to Buy Property in Phuket

A clear, practical guide for international buyers — ownership, costs, the buying process, taxes, rental income and where to buy.

Why Phuket

One of Asia’s most resilient property markets

Phuket combines a year-round resort economy, limited low-rise supply and steady demand from international buyers — a rare mix that supports both rental income and long-term capital growth.

12 months
year-round tourist flow (vs 4–6 months on many resorts)
8 floors
max building height — low-rise keeps the island exclusive
7–9%
typical gross rental yields for well-located property
~5 hrs
flight radius covering nearly half the world’s population
Ownership

Freehold vs Leasehold

The right structure depends on the property type and your goals. These are the two foundations every buyer should understand.

Freehold

Full ownership

  • Indefinite ownership in your name
  • For condos: within the 49% foreign quota of the building
  • Freely sell, rent, transfer or inherit
  • New-build from a developer: ~6.6% taxes + a freehold premium
Leasehold

Long-term lease

  • 30-year lease, commonly structured with renewals (30+30+30)
  • Lower upfront costs and ~1% registration tax
  • Often used for villas and land
  • Can be sold, sublet, transferred or inherited per contract

Owning a villa or land

Foreigners cannot own land outright. The common routes are a registered long-term Leasehold of the land (often combined with freehold of the building), or a properly incorporated Thai company that genuinely operates and keeps accounts. We structure the safest option for your situation with our lawyers.

Costs & fees

What goes into the budget

Indicative figures — exact amounts depend on the property, its age and the ownership structure. We prepare a full cost breakdown before you commit.

Transfer fee2% of appraised/sale value, usually split 50/50
Specific business tax3.3% (typically on resale within 5 years)
Stamp duty0.5% (when business tax does not apply)
Leasehold registration~1% of the lease value
Common-area / maintenance฿50–80 / m² per month (condos)
Sinking fund (new build)฿500–800 / m², one-time
Utility meter installation~฿20,000 (water + electricity)
Legal supportby agreement (due diligence, contracts)

Average new-build condo prices run roughly ฿100,000–160,000 / m². Furniture packages are often required to join a developer’s rental programme.

Financing

A cash market — with flexible off-plan terms

Thai banks generally do not lend to foreign buyers, so most purchases are cash. The practical alternative is buying off-plan: payments are spread over the construction period (often 2–3 years) at 0% interest, while the property can appreciate before completion.

The process

Step by step

Off-plan (new development)

1. Reservation

A reservation fee (≈ ฿100,000–200,000 or up to 5%) takes the unit off the market.

2. Contract & deposit

Sign the contract and pay ~35% within 30 days.

3. Stage payments

Remaining sum is paid against construction milestones over ~2 years, usually 0% interest.

4. Inspection & handover

Quality-control inspection, final payment, keys, and registration at the Land Department.

Resale / finished property

1. Reservation

A reservation deposit (≈ 10%) secures the property.

2. Due diligence & contract

Lawyer verifies clean title; down payment of 30–40% within ~30 days.

3. Transfer & keys

Final payment, transfer at the Land Department (fees usually split 50/50), keys handed over.

Taxes & rental income

How rental income is taxed

Residents (staying 180+ days a year) are taxed on worldwide income; non-residents on Thai-source income only. Rental income is taxed on a progressive scale:

Taxable income, THB / yearRate
0 – 150,000Exempt
150,001 – 300,0005%
300,001 – 500,00010%
500,001 – 750,00015%
750,001 – 1,000,00020%
1,000,001 – 2,000,00025%
2,000,001 – 5,000,00030%
5,000,001 +35%
Managing your investment

Three ways to earn from your property

Rental management

A company markets the unit and handles check-in, cleaning and maintenance (fee up to ~40% of yield). Flexible — ideal if you also use the property yourself.

Guaranteed returns

Developers often guarantee 6–8% for a set period. The unit is run hotel-style (e.g. by a branded operator); owner use is usually limited (~30 days/year).

Rental pool

Owners share income from the whole project, managed centrally. A simple, passive option for hands-off investors.

Where to buy

Choosing the right area

Each part of the island suits a different lifestyle and rental profile. A quick orientation:

West Coast
Patong, Kamala, Surin, Bang Tao — best beaches, luxury resorts, strongest short-term rental demand.
The “golden triangle”
Bang Tao–Laguna–Cherngtalay — the sweet spot for living, rentals and capital growth, near beaches, schools and the airport.
North
Layan, Nai Thon, Mai Khao, Nai Yang — serene beaches, nature and golf; quieter luxury.
South
Kata, Karon, Rawai, Nai Harn — active expat life, beaches, dining and wellness.
East & Centre
Marinas, international schools, hospitals and airport access — popular for long-term living.
Visas

Staying long-term

Short visits use a 30-day stamp on arrival or a 60-day tourist visa (extendable). For longer stays there are renewable one-year Retirement, Education, Business and Marriage visas, plus long-term options for investors. Requirements are case-by-case — we help arrange the right visa through our partners.

FAQ

Frequently asked

This guide is general information, not legal or tax advice. Terms and figures depend on current Thai law and the specific property. Phuket Property Sales & Rentals LB provides full legal and tax support for every transaction.

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