Buying Property in Phuket: What Australians Must Know

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Paradise has a funny way of hiding its paperwork.

Ask anyone stepping off a plane in Phuket — the island feels like a postcard you can walk into. Salt on the air, hills draped in jungle, villas perched on cliffs like they’re daring gravity to argue. It’s easy to imagine staying forever.

But stay long enough, talk to a few lawyers, and Thailand reveals its other face: a calm, smiling bureaucracy that quietly reminds you, almost politely, that foreigners don’t own the ground here. Not the soil, not the sand, not even the patch of grass under your veranda.

This guide is for Australians who’ve looked at Phuket and thought, “Maybe this could be home.” It’s the version no developer brochure ever prints — the version that tells the truth clearly and without theatrics.

1. The First Hard Answer: Can Foreigners Own Land in Thailand?

Short answer: no.

Thai law, specifically the Land Code of 1954, says so outright. No ambiguity, no soft edges. Foreigners can’t own land. It’s one of the few laws in the region written without wiggle room.

But Thailand is also a country of exceptions — narrow, bureaucratic, sometimes ceremonial. Two of them matter, mostly for context rather than practical use.

Exception #1: The 40 Million THB “Maybe”

If you invest 40 million baht (roughly AUD 1.7M) in approved Thai assets, the Ministry of Interior may grant permission to buy up to one rai of land (1,600 m²).

“May” is doing a lot of heavy lifting. Even lawyers joke this scheme is more ritual than reality.

Exception #2: Company Ownership Through the BOI

If you run a BOI-approved business — say, a factory — the company can own the land it operates on.

Lose the business and you lose the land. For a family villa in Phuket, this road leads nowhere.

2. The Real Ways Australians Actually Buy in Phuket

Thailand’s workaround to the land-ownership ban is oddly elegant. Instead of land, you buy rights, buildings, or long-term access. And millions of expats have done exactly that without drama.

Option A: Freehold Condos — The Cleanest Path

This is the one method fully open to foreigners and blessed by law.

Under the Condominium Act, up to 49% of a building’s total saleable area can be foreign-owned. If you buy within that quota, you get:

a genuine title deed (Chanote),

your name on it,

rights to resell, rent out, or pass it to your kids.

It’s not a workaround. It’s true ownership.

One non-negotiable rule:

The money must arrive from overseas, in foreign currency.

That’s where the Foreign Exchange Transaction Form (FET/FETF) enters — a document so important it deserves its own pedestal. It proves your funds came from abroad. Lose it, and registering ownership or repatriating money later becomes a nightmare no one deserves.

Think of the FET as the golden receipt of your Thai property journey.

Option B: Leasehold Villas — A Long Dance, Not Ownership

When you picture Phuket — the private pool, the palms, the glass walls opening to the sea — you’re usually picturing a villa.

Foreigners can’t own the land under those villas.

But they can lease it.

The model:

30-year land lease, the maximum allowed by law

optional two renewals (30 + 30 + 30 = 90 years), though only the first term is guaranteed

foreigner owns the building, registered separately

A solid leasehold is stable and widely used. A poorly drafted one is a ticking bomb with a view. The difference often comes down to the quality of the agreement, not the idea itself.

Option C: Setting Up a Thai Company (Increasingly Risky)

Once upon a time, foreigners created companies with Thai “nominee” shareholders to buy land.

Everyone pretended it was legitimate.

Today, authorities aren’t pretending. Crackdowns are real, and using nominee shareholders is treated as an attempt to dodge the Land Code — which it is.

Only consider this structure if you’re running a real Thai business that actually needs the land.

3. The Buying Process, Seen Through an Australian’s Eyes

The process isn’t difficult, but it rewards preparation. Here’s how it really unfolds.

Step 1: Due Diligence

Hire an independent lawyer — not someone introduced with, “my cousin can help.”

They will:

verify the Chanote

check mortgages and liens,

confirm the foreign quota,

inspect permits and zoning.

This is where most disasters are avoided.

Step 2: Reservation Agreement

You put down a small deposit to hold the unit.

It’s simple, binding, and usually not refundable.

Welcome to the game.

Step 3: Sales & Purchase Agreement

The SPA is the spine of the deal. It spells out:

payment schedule

penalties

handover conditions

foreign quota guarantees

lease terms for villas

If a clause feels “off,” assume it’ll matter later.

Step 4: Transfer of Funds + FET

You send money from Australia.

The Thai bank converts it.

You collect the FET like your future depends on it — because legally, it does.

Step 5: Land Department Transfer

The final scene is never glamorous.

A government office. Fluorescent lights. Papers stamped with the bluntness of a hammer.

But when the officer slides the documents back to you, you’ve just acquired your corner of the tropics.

4. Taxes in 2024–2025: Surprisingly Friendly

Thailand’s property taxes often surprise Australians because they feel… almost gentle.

One-Time Purchase Costs

Transfer fee: 2%

Withholding tax: ~1%

SBT: 3.3% (if seller owned less than 5 years)

Stamp duty: 0.5% (if SBT doesn’t apply)

Buyers typically pay 1–1.5% of the price, sometimes less with developer incentives.

Annual Taxes

For most condos, the yearly property tax lands somewhere between 1,000–5,000 THB.

About the price of a few cocktails in Patong.

5. Visas, Residency, and What’s Ahead

Thailand is reshaping its visa system — the new 5-year Digital Nomad (DTV) visa is one sign. Another is the government’s quiet exploration of 50-year leaseholds.

The country is trying to protect its land while still welcoming global newcomers.

For Australians, it means the door is open — but someone’s definitely watching who walks through it.

Paradise Has Rules — But It Doesn’t Push You Away

Buying property here isn’t just a legal exercise. It’s emotional. It asks patience. It sometimes tests you.

But when you’re finally sitting on your balcony in the Phuket dusk, sea breeze sliding past your glass doors, the bureaucracy fades into background noise.

You didn’t beat the system.

You learned how to walk through it.

And for many Australians, that’s enough — a slice of freedom framed by the Andaman Sea.

How an Australian Can Buy Property in Phuket