Thailand Considers 99-Year Leaseholds. What It Means for Phuket Property Buyers?

In a major move that could reshape foreign investment in Thailand’s real estate market, the Thai government is considering a new law that would allow property leaseholds of up to 99 years—a big jump from the current 30-year limit.

This proposal, which is now under public consultation, is part of a broader strategy to attract foreign investors, professionals, and high-net-worth individuals to live, work, and invest in Thailand. For buyers considering Phuket, this could be a game changer.

✅ What’s Changing?

Under current Thai law, foreigners cannot directly own land. Instead, most foreign buyers purchase condominiums (which are freehold) or lease villas and land for a maximum of 30 years, often with a renewable clause.

The new proposal aims to extend leasehold rights up to 99 years, giving foreign investors longer control, better legal protection, and a more secure return on investment.

This change would apply to residential, commercial, and industrial developments — including housing estates, hotels, offices, and energy projects — but not agricultural land.

🌴 Why It Matters to Phuket Buyers

Phuket continues to be one of the top destinations for foreigners buying second homes, retirement villas, or investment properties in Thailand. The main challenge has always been the short lease term — 30 years is often seen as too short for serious long-term investors.

Here’s how the proposed 99-year lease law would benefit buyers in Phuket:

🔹 Long-Term Security

A 99-year lease allows you to plan for generations, whether you're buying a holiday home, planning to retire in Thailand, or renting the property for income.

🔹 Better Resale Value

Longer leases increase the attractiveness of properties to future buyers — especially other foreigners who want peace of mind.

🔹 More Investment Confidence

With lease terms closer to what’s available in places like Dubai or Singapore, more international investors may feel confident entering the Thai property market.

🛑 Not Land Ownership — But a Big Step Forward

It’s important to note that the government is not allowing foreigners to buy land outright. At the end of the lease, the land will still return to the state. But 99 years is effectively a lifetime lease — long enough to make it functionally similar to ownership for most practical purposes.

This is also seen as a way to reduce risky ownership structures, such as nominee companies, which are technically illegal but still used in many villa purchases. With longer lease options, foreign buyers can stay compliant and protected.

📅 When Will This Happen?

The law is currently in the consultation stage. If it receives public and parliamentary approval, it could be passed as early as late 2025.

If this happens, developers and agents in Phuket will quickly adapt to offer new 99-year leasehold options, especially for luxury villas and branded residences that already attract global interest.

🌍 Phuket’s Position: Already Popular, Now Even Stronger

Phuket is already a leading destination for property buyers due to its international schools, top hospitals, great infrastructure, and lifestyle. With a 99-year lease option, the market will likely become even more competitive and attractive to serious investors.

🔄 Is the 99-Year Lease Law Approved Yet?

As of July 2025, the 99-year lease proposal has not yet been approved. The Thai government is still reviewing the draft law, and it is currently going through a public consultation process. Officials aim to submit it to Parliament within 2025, but no official law has been passed at this time.

This means the current legal lease term remains at 30 years, with optional—but not guaranteed—renewals. In fact, a recent ruling by Thailand’s Supreme Court confirmed that automatic renewals beyond 30 years are not legally enforceable, making this proposed reform even more important for long-term investors.

If passed, the new law would allow up to 99-year leases for residential and commercial projects, offering much stronger protection and peace of mind for foreign property buyers. Until then, buyers should continue using existing legal structures (such as leasehold, company ownership, or foreign freehold for condos) with guidance from professional advisors.

The government’s goal is to finalize the law by late 2025, as part of its plan to attract global talent, high-net-worth investors, and long-term residents to Thailand.

💬 Final Thoughts

This proposed law is a positive step forward for foreign buyers in Thailand. While we still await final confirmation, it's clear that the Thai government is serious about making the country more attractive for long-term international residents.

As a buyer, it’s smart to start planning early. If the law passes, demand for 99-year lease properties — especially in Phuket’s prime areas like Bang Tao, Kamala, Layan, and Rawai — is expected to surge.