Buying Leasehold or BVI Property in Thailand: Step-by-Step Guide for Foreigners

Buying Leasehold or BVI Property in Thailand: Step-by-Step Guide for Foreigners

Buying a property in Thailand as a foreigner can be confusing, especially when it comes to villas or land-based properties. Since Thai law does not allow foreigners to directly own land, many property purchases are structured as leasehold agreements or through a BVI (British Virgin Islands) company structure.

Both are legal and commonly used — but they function differently than freehold condo purchases. This guide will walk you through how these ownership structures work, how to buy them, and what to keep in mind along the way.

Why Foreigners Cannot Own Land in Thailand

By law, foreigners are prohibited from owning land in Thailand under their personal name. This means foreign buyers cannot own villas or land outright, unless they use a workaround like:

• A leasehold agreement

• Purchasing through a Thai company (must be legally structured and majority Thai-owned)

• Entering into a long-term lease via a BVI or offshore company that controls the land-owning entity

What Is Leasehold Ownership?

In a leasehold structure, the buyer does not own the land, but leases it for a long period — typically 30 years, with options to renew for two more 30-year periods, often written as 30+30+30. This gives up to 90 years of use, and while it’s not ownership in the strictest sense, it can offer long-term security when properly structured. In most cases, the building (villa or home) may be owned separately as a structure, while the land it sits on is leased.

What Is a BVI Structure?

Some developers offer ownership through a BVI company, where the land is owned by a Thai company, and the shares of that company are held by a foreign-owned offshore entity, such as one registered in the British Virgin Islands. This method gives control of the property without directly owning the land.

BVI structures are often referred to as “corporate leasehold” or “nominee-free”, and they are sometimes marketed as “perpetual lease” models, because you can reissue a new lease every 90 years through the company you control.

This setup is legal when done properly and is popular in high-end villa developments across Phuket and Samui.

Step-by-Step Guide to Buying a Leasehold or BVI Property

Step 1: Understand Your Goals

Before you begin, be clear on why you are buying:

• Do you want a vacation home or a permanent residence?

• Are you planning to resell later or pass it to your children?

• Is rental income part of your plan?

This helps determine which structure (leasehold or BVI) fits you best. For example, leasehold is often simpler and easier to understand, while BVI gives more long-term flexibility.

Step 2: Choose the Right Property and Structure

Some developers offer both freehold (for condos) and leasehold (for villas). When it comes to villas or land-based homes, foreign buyers typically have to choose:

• Standard leasehold (30+30+30)

• Guaranteed Leasehold - Given by few developers only

• BVI-controlled villa or land plot

Make sure the structure is transparent, with renewal terms and exit options clearly written in the contract. If it’s BVI, ask who controls the offshore company, how ownership transfer works, and whether you’ll have full access to reissue leases in the future.

Step 3: Sign the Reservation Agreement and Pay Deposit

Once you’ve chosen a property, you’ll sign a Reservation Agreement and pay a deposit to take the unit off the market. This is typically around 100,000 to 300,000 THB.

Ensure the agreement includes details about the lease term, renewal rights, and how the structure will be set up (including mention of company names, lease registration, etc.).

Step 4: Legal Due Diligence

This is one of the most important steps — and must be done by a qualified property lawyer. The lawyer will:

• Review the lease agreement (length, renewal clauses, inheritance)

• Check the land title (Chanote) and confirm it’s legally leasable

• Examine the BVI or Thai company documents (if applicable)

• Ensure the lease or structure is legally registered and compliant

If the lease will be registered at the Land Office, make sure you have proof it will be officially recorded, giving you legal enforceability.

Step 5: Sign the Lease Agreement (and Share Transfer if BVI)

Once everything is reviewed and cleared, you’ll sign the official Lease Agreement (or receive share certificates if buying through BVI). Depending on the deal, the remaining payment is made at this point.

For leasehold, the agreement is typically registered at the local Land Office. If it’s through a BVI company, you may be provided with shareholding documents, legal rights over the Thai land-owning company, and a reissuable lease agreement.

Step 6: Move In or Start Rental Management

After the legal transfer is done, you now have legal usage rights of the property. Whether you're living in it or renting it out, your rights are tied to the lease or the company structure.

If the villa is part of a managed estate, you’ll also begin paying monthly or yearly maintenance fees.

What to Keep in Mind

• Leasehold is not ownership, but with proper contracts, it’s secure and renewable

• BVI structure offers more control, but comes with complexity and higher setup/legal costs

• Work with a trusted lawyer to review everything — especially land title and lease terms

• Always register the lease at the Land Office for legal protection

• Resale value may vary depending on how the structure is perceived by future buyers

• Understand who controls the land-holding company if you're entering a BVI setup

Final Thoughts

Leasehold and BVI structures are the most common legal ways for foreigners to purchase villas and land-based properties in Thailand. While they may seem complex at first, they are widely used, legally valid, and — when structured correctly — offer a high level of security and long-term control.

If you’re considering buying a leasehold villa or a property under a BVI setup in Thailand and want someone to help you navigate the process step by step, I’m here to guide you. From explaining the differences to helping with legal coordination and ownership transfer, I provide clear support throughout.