Property registration under a Thai legal entity

How to Register Property in Phuket Under a Thai Legal Entity

There are several ways to purchase property in Phuket. Different ownership structures offer varying degrees of control, each with its own pros and cons. In this article, we’ll go into detail about how to register property under a Thai legal entity and why it might be necessary.

Foreign Ownership Rights in Thailand

Any foreign national has the right to purchase property in Phuket, but not all purchases grant full ownership rights. There are two main types of property ownership in Thailand:

Freehold – Full and perpetual ownership of the property. The owner has absolute rights to use, rent out, sell, or bequeath the property.

Leasehold – Ownership for a limited time, usually through a long-term lease. The leaseholder rents the property for a long period but does not fully own it. Standard lease terms are 30 years, with the possibility to renew twice, totaling a maximum of 90 years. Inheritance rights for leasehold properties may be restricted by the lease agreement.

Based on these regulations, foreigners can freely purchase:

  • Condominiums – Foreigners can fully own a condominium unit, with up to 49% of the total condominium space registered as Freehold.
  • Houses (but not the land) – Foreigners can own the structure, but the land it’s built on must either be leased or owned by a Thai national.

Foreigners cannot directly purchase:

  • Land – Thai law prohibits foreigners from owning land outright. Typically, land is acquired through long-term Leasehold agreements. However, there are legal structures that allow for indirect land control.

To acquire full ownership of land, it must be registered under a Thai legal entity. This method is not suitable for everyone, and such transactions are closely monitored by the authorities. Therefore, it’s important to research thoroughly and consider whether you plan to purchase property using this approach.

Ways to Purchase Property Under a Thai Legal Entity

  1. Registering a New Company

According to Thai law, a foreigner cannot own more than 49% of the shares in a company that acquires property. The remaining 51% must be held by Thai shareholders.

Through a series of legal mechanisms, the foreign shareholder can become the controlling party in the company and have the final say, despite holding a minority share. We’ll explain how this structure can be implemented at the end of the article.

  1. Purchasing an Existing Company with Property in Thailand

An alternative way to acquire property is to buy an already-registered Thai company that owns the desired asset. In this case, the transaction involves a change of shareholders, while the property remains under the company’s ownership.

Key points:

  • Simplified process – No need to register a new company, just a transfer of shares.
  • Ownership continuity – The property stays with the company; only the shareholders change.

How to Mitigate Risks

Make sure there are no outstanding debts, lawsuits, or encumbrances on the property. Check the company’s tax history and the reputation of previous owners to avoid any links to questionable activity. A thorough legal audit is strongly recommended before the purchase.

Important Note: Lawyers advise registering property under a Thai legal entity only if you genuinely plan to conduct business in Phuket. Thai authorities actively monitor companies that own property but do not operate. These “shell” companies may face fines, and nominee directors could be subject to penalties, including imprisonment.

Registering a New Legal Entity in Thailand: What to Pay Attention To

Thai laws create an interesting paradox: officially, land and houses must belong to local citizens, but control over them can still remain in foreign hands. Let’s take a closer look at how this works in practice.

A Thai company acts as a kind of “container” for owning property. While 51% of the shares are officially held by Thai nationals, the real control often belongs to the foreigner with 49%, who pulls all the strings behind the scenes. This is made possible through clever legal structuring.

A key element is the position of director. The company’s founding documents state that the foreign shareholder is appointed as the director, giving them full signing authority on all documents and transactions. Bank accounts, real estate deals – everything is under their control. The registering authority issues a certificate listing all directors, but it’s important to understand that the Thai shareholders are just “paper shadows.”

The director role offers the foreigner legal protection. This is further reinforced by blank share transfer agreements (endorsements) signed in advance by Thai shareholders, allowing the foreigner to reassign shares to themselves or new nominee owners at any time. In practice, this means the “shadows” can be replaced at will without touching the company or its assets.

Preferred shares provide additional control. One preferred share can carry more voting power than multiple regular ones. This mathematical trick allows the minority 49% stake to turn into a majority decision-making power – for example, 10 votes from the foreigner versus 2 votes from the Thai nominee shareholders.

In the end, the foreign shareholder, acting as the director, has the exclusive right to use the company’s property. Each case is unique, so the structure for registering property under a Thai legal entity may vary.

That said, this is not the easiest method and requires considerable effort. Owning property through a Thai company means additional expenses for company registration and ongoing accounting services. We strongly recommend consulting with qualified legal professionals and treating every step of the process with care.

Popular posts

    5 Best Cafes with a Petting Zoo in Phuket 🐶🐱🐇🦜🐢🐓🐭🐰🐠

    Rabbit Hole 🐇Location: Pa Klok Located in the Pa Khlok area, Rabbit Hole offers a large and beautiful area where you’ll find adorable rabbits, goats, cows, and horses. You can feed them, go horseback riding around the lake, and cross a rope bridge. Afterwards, enjoy a delicious lunch at the...

    Where to go with kids in Phuket

    Many tourists come to the island with children. While some parents are content with activities like trips to the beach, the pool, and the night market, children with boundless energy often need more. We’ve prepared a selection of places in Phuket where you can go with kids so that everyone...

    The best cafes for sunset dinner

    Where to have dinner at sunset? Dinner with a view of the sunset is a unique pleasure. Phuket has many beachfront spots offering breathtaking panoramic views of the sun setting beyond the horizon. We’re sharing a selection of cafes and restaurants across different areas of the island so you can...

    Five unusual bars in Phuket Town

    Compiled a selection of the most interesting places in Phuket Town where you can enjoy delicious drinks with interesting serving: 🤫 shhh. Phuket A secret bar where the main challenge is finding the door🗝️🔑🚪 Inside, you’ll find a DJ, unique cocktails, and immersive experiences📽️ 💉🌈 Zimplex Mixology Laboratory This place...

    8 Top Photo Locations in Phuket

    Made a list of the best spots on the island for the coolest photos: Rock Beach Swing🪽 Stunning ocean views and unique decorations that will spark your creativity. Rabbit Hole🐇 A petting zoo with adorable animals and great photo spots, including a pond with artificial mist and a waterfall. Beyond...

    Top 5 cafes in the Kata area

    Kata is one of the most popular areas in Phuket. It has a well-developed tourist infrastructure, and of course, there are many cafes and restaurants worth visiting — offering both authentic Thai food and dishes from other world cuisines. If you’re staying in the Kata area or planning to stay...

    Kata or Patong: which to choose?

    Patong and Kata beaches are the most popular beaches in Phuket. They both have a gentle entrance to the sea, a good selection of hotels, restaurants and a variety of activities. However, there are differences between these beaches that can play an important role in choosing a vacation spot. In...

    5 Shows in Phuket to visit with kids

    Phuket is not just a paradise for beach lovers but also a fantastic destination for families with children. The island offers plenty of attractions and activities that will delight young travelers. Here are 5 spectacular places and shows in Phuket that are perfect for visiting with kids — and adults...

    The best photo locations in Phuket

    Here you’ll find stunning sea views, original sets, beautiful corners and an atmosphere that inspires creativity. Beautiful locations here are simply made for stunning photos. A walk across the glass bridge with a breathtaking view of the whimsical islands and bays of Phang Nga Province will be an unforgettable experience...

    What different flags on Phuket beaches mean

    You’ve probably noticed that there are flags of different colors on the tourist beaches of Phuket. It’s essential to know what each of them means, primarily for your own safety. So, what do the colors of the flags on Phuket’s beaches signify? 🟥 Red Flag. Just like a red traffic...
Join Insider on Social Media
We share the best places in Phuket and provide useful tips to make your stay on the island brighter and your life more comfortable. Subscribe to stay updated.