WHAT A SAMUI CONDO AD IS REALLY TELLING YOU
Freehold Thai quota, freehold foreigner quota, or leasehold?
In Koh Samui most condos are found on Facebook Marketplace, Google, or an agency website. There isn’t much TV, radio, or newspaper here. You scroll the photos, the size and price look right. But the most important words are usually the small ones: “freehold Thai quota,” “freehold foreigner quota,” or “leasehold.” Same looking apartment, three very different deals.
FREEHOLD, THAI QUOTA
The unit can be owned forever, not just leased, but only by a Thai national or a Thai company. A foreigner cannot register this unit in their own personal name. A foreigner can only reach a Thai quota unit indirectly, through a Thai majority company in which they hold no more than 49% of the shares. That’s a separate structure with its own rules, and a topic for its own post.
FREEHOLD, FOREIGNER QUOTA
This is the one a foreigner can own outright, in their own name. Do it correctly, money sent from abroad, FET issued by your Thai bank, unit registered at the Land Office, and you become the legitimate lifetime owner of that unit, on its own Or Chor 2 title. (Full details in the previous post.)
One thing worth checking: even if a unit is advertised as foreign freehold, the buyer or their lawyer should confirm that foreign quota space is still available in the building. Once the foreign quota is full, additional foreign buyers cannot register ownership in their own name.
LEASEHOLD
Here you don’t get the title in your name, you get a registered lease, usually up to 30 years. It comes in two forms: a lease of a real condo unit (the unit has an Or Chor 2, but it stays in the owner’s name), or a unit in a building that was never registered as a condominium at all, often called an “apartment”, with no Or Chor 2.
Either way there’s no foreign quota, so anyone can hold it, and the money does NOT have to come from overseas. That last point is the quiet advantage. Freehold foreigner quota purchases must be funded from abroad with an FET, but leasehold isn’t tied to that rule. If your money is already in Thailand and you’d rather not wire it in from abroad, leasehold keeps it simple.
One honest note: a renewal beyond the registered term isn’t automatically guaranteed, so have your lawyer check the wording.
Quick comparison:
FREEHOLD, FOREIGNER QUOTA
✓ Yours forever, in your own name, on an Or Chor 2 title
✓ Easiest to resell and to pass to heirs
✗ Only 49% of the building (by area) is open to foreigners
✗ Money must come from abroad, with an FET
FREEHOLD, THAI QUOTA
✓ Yours forever
✗ A foreigner can’t hold it in their own name, only indirectly via a Thai majority company
LEASEHOLD
✓ Open to anyone, no quota
✓ Money can come from inside Thailand
✓ Often a lower entry price
✗ Up to 30 years, not outright ownership
✗ You hold a registered lease, not the title in your name
I’m not a lawyer, so this isn’t legal advice, but before you fall for the photos, read the three words and ask which one this unit really is.
𝑺𝒂𝒎𝒆 𝒃𝒖𝒊𝒍𝒅𝒊𝒏𝒈, 𝒕𝒉𝒓𝒆𝒆 𝒗𝒆𝒓𝒚 𝒅𝒊𝒇𝒇𝒆𝒓𝒆𝒏𝒕 𝒅𝒆𝒂𝒍𝒔. 𝑻𝒉𝒆 𝒘𝒐𝒓𝒅𝒔 𝒊𝒏 𝒕𝒉𝒆 𝒂𝒅 𝒂𝒍𝒓𝒆𝒂𝒅𝒚 𝒕𝒆𝒍𝒍 𝒚𝒐𝒖 𝒘𝒉𝒊𝒄𝒉.
If you’re curious about what types of villas currently offer the strongest investment potential on the island, you can browse Jane’s latest Koh Samui property listings here.
