Investing in Phuket: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Phuket.
Who can buy in Phuket
Under Thailand's Condominium Act 1979, foreigners can own condo units freehold provided total foreign ownership in a building does not exceed 49% of floor area. Foreigners cannot own land. A Foreign Exchange Transaction (FET) form proving foreign currency inflow is required.
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Thai Citizen | Yes | Freehold | UnrestrictedApproval: Land registry |
| Foreign National (condo within 49% quota) | Yes | Freehold | Condo units only; within 49% building foreign quotaApproval: FET form + Land Office registration |
| Foreign National (land or quota full) | Conditional | Leasehold | Leasehold up to 30 years renewable; no direct land ownershipApproval: Land Office registration |
Thailand rule, applies in Phuket.
Stamp duty and registration in Phuket
Property transactions in Phuket involve several fees, including a transfer fee and stamp duty. The applicability and rates of these charges depend on factors such as the property's holding period and the type of transaction.
| Property value | Stamp duty | Registration |
|---|---|---|
| All | 0.5% (if SBT not applicable) | 2% (Transfer Fee, often split 50/50) |
| Property held < 5 years | N/A (Specific Business Tax applies) | 3.3% (Specific Business Tax) |
Capital gains on a sale
Thailand does not have a standalone capital gains tax. Instead, profits from property sales are subject to Personal Income Tax (PIT) and other transfer-related levies.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| < 5 years | Specific Business Tax (SBT) | 3.3% of appraised or sale price (whichever is higher) | N/A |
| >= 5 years | Stamp Duty | 0.5% of appraised or sale price (whichever is higher) | N/A |
| Individual Seller | Withholding Tax (WHT) | Progressive PIT scale (0-35%) after deductions | Based on years of ownership |
| Corporate Seller | Withholding Tax (WHT) | 1% of sale price or appraised value (whichever is higher) | N/A |
Thailand rule, applies in Phuket.
Always consult a licensed real estate attorney before purchase. Rules change; verify current law. Always confirm with a qualified tax professional. Rules change; verify with a professional before you transact.
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Frequently asked questions about Phuket
Yes. Condo units only; within 49% building foreign quota
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