Foreign property ownership in SEA

Freehold vs leasehold — what's the difference?

Freehold means you own the property outright, indefinitely. Your name is on the title deed. You can sell, rent, transfer or bequeath the property without restriction.

Leasehold means you have the right to use the property for a fixed term — typically 30 years in Thailand, renewable by agreement. At the end of the lease, ownership reverts to the freeholder unless renewed. Leasehold offers less security than freehold and can complicate resale.

For condominium purchases in both Thailand and the Philippines, freehold title is available to foreign buyers within the applicable quota. This is the ownership structure used across all SeaLux Property developments.

The condominium quota — Thailand

Under the Thai Condominium Act, foreigners can own up to 49% of the total floor area of any condominium building on a freehold basis. The remaining 51% must be held by Thai nationals or Thai entities.

In practice this means that in a building with 100 units, up to 49 can be foreign-owned. Once the foreign quota is filled, additional foreign buyers can only purchase on a leasehold basis or wait for an existing foreign owner to sell.

When purchasing off-plan, confirm with your agent that the foreign quota is available for your chosen unit. Reputable developers track this carefully.

The condominium quota — Philippines

Under the Philippine Condominium Act, foreigners can own up to 40% of the units in any condominium project. The remaining 60% must be held by Filipino citizens or Philippine corporations.

The Philippines quota applies per project rather than per building, so in a multi-tower development the 40% limit applies across all towers combined. As with Thailand, confirm quota availability with your agent before reserving.

What about land ownership?

Neither Thailand nor the Philippines permits foreigners to own land outright in their own name. This is a constitutional restriction in both countries and is unlikely to change in the near term.

For buyers who want a house rather than a condominium, the options are:

• Long-term leasehold — typically 30 years in Thailand, renewable by agreement. Gives the right to use the land and any structure on it for the lease term. Less secure than freehold.
• Ownership through a Thai or Philippine company — a company majority-owned by local nationals can hold land. However this approach carries legal risk if structured primarily to circumvent foreign ownership restrictions, and requires ongoing corporate compliance.
• Spouse ownership — if married to a Thai or Filipino national, land can be held in the spouse's name. This offers no legal protection for the foreign spouse if the relationship ends.

For the vast majority of foreign buyers, freehold condominium ownership is the simplest, safest and most legally secure option available.

Nominee structures — a warning

Some buyers have historically used Thai or Filipino nominee shareholders to hold land on their behalf — effectively using locals as paper owners while the foreigner retains beneficial control. This practice is illegal in both countries and carries serious risk, including potential loss of the property and criminal liability.

We do not recommend or facilitate nominee structures. All developments on this site are available for legitimate foreign freehold condominium ownership.

Title deeds — what to look for

In Thailand, the strongest form of title is the Chanote (Nor Sor 4 Jor) — a full title deed with GPS-surveyed boundaries. For condominium units, ownership is recorded on the Chanote for the building, with your unit's ownership shown on a separate condominium title document.

In the Philippines, condominium ownership is recorded on a Condominium Certificate of Title (CCT) issued by the Registry of Deeds. This is the document that should be in your name on completion.

Always verify title with your lawyer before completing a purchase. Your lawyer should conduct a title search to confirm there are no encumbrances, mortgages or liens on the property.

Inheritance and estate planning

Foreign-owned condominium units can be bequeathed to heirs in both Thailand and the Philippines, though the rules around inheritance differ between countries and may depend on the nationality of the heir. If estate planning is a consideration, raise this with your lawyer when structuring your purchase.