Quick answer: Thailand is debating a Foreign Land Ownership Act that, if passed, would for the first time since 1999 give foreigners direct freehold land ownership - up to 1 rai (1,600 m²) with investment from 40 million baht. The law has not been passed, but the debate alone is shaping expectations among Phuket's premium buyers.
What the bill proposes
Currently a foreigner cannot own land in Thailand directly: only through leasehold (long-term lease of up to 30+30+30 years) or through a Thai company with local control (≥51% of shares held by Thai citizens). Direct freehold for non-residents on land has been unavailable since 1999, when a brief ownership window was closed.
The draft of the new law - being debated at government level and published in Nation Thailand - revisits this principle. Key conditions in the current version:
- Up to 1 rai of land (≈ 1,600 m²) - enough for a single villa plot with a garden.
- Minimum investment of 40 million baht (~$1.1M) into the Thai economy.
- The target profile is wealthy long-term residents, not the mass-market foreign buyer.
- The land must be used in line with zoning and programme conditions.
Context: why this is a historic shift
Since 1999, the Thai legal system has consistently held the line that land is a national asset and foreigners do not own it. All forms of participation go through leasehold, corporate structures or Thai-spouse status. Every time the government discusses easing, the conversation stalls at the political level.
The current draft is the most serious revision attempt in two decades. The reason is macroeconomic: the country is losing ground in the regional competition for capital (Malaysia, Vietnam and Cambodia offer clearer terms for long-stay foreigners). For a detailed analysis of why the Phuket market is growing even without this law, see the pillar piece on the Phuket market paradox 2026.
Why this matters especially for Phuket
Phuket is a villa market. According to AREA, villas account for only 7% of the island's units but 31% of total market value. It is precisely the villa segment that historically runs into the land constraint and has to work through leasehold or a Thai company.
If the Foreign Land Ownership Act is passed in its current form:
- Premium villas will gain a direct freehold option - removing legal uncertainty for buyers with a 20+ year horizon.
- The 40+ million baht ticket is the natural level for the luxury segment in Layan, Cape Yamu and Kamala.
- Regulation is catching up with the sales trend - which is already running ahead. The visa side is moving too: the Investment Visa from 3 million baht is already operational.
For additional market context, see Phuket Property Market Outlook 2026 by MORE Group.
What this means for buyers and investors
If you are considering a villa as a purchase, browse the available projects: Phuket projects and the broader catalogue buy property in Phuket. For those who want to live the location first - villa rentals.
Sources
- Nation Thailand - Foreign Land Ownership Act (draft)
- MORE Group - Phuket Property Market Outlook 2026
- The Nation Thailand - Property market downturn / AREA
This material is informational and is not legal advice. The law is under discussion; before making decisions, verify the current legal status and consult a qualified lawyer.
