Koh Samui Leasehold Villas Explained: 30-Year Terms, Renewals and Land Office Registration

October 7, 2026

 

By Conrad Properties, active in the Koh Samui market since 2014. Last updated 7 October 2026.

Foreign individuals cannot own land in Thailand, so a villa sold to a foreign buyer on Koh Samui is usually structured as a registered land lease combined with ownership of the building. This guide explains how a leasehold villa works, what the Civil and Commercial Code allows, what is registered at the Land Office, what the "30+30+30" clause does and does not guarantee, and what to check before you sign.

This article is general information based on Thai statutes and published legal and government sources. It is not legal advice. Have an independent Thai lawyer review any lease before you sign it.
 

Why most foreign villa buyers use leasehold

Thailand's Land Code does not allow foreign individuals to own land. The same restriction applies to a foreign entity, and to a Thai company in which foreigners hold more than 49% of the shares, apart from narrow exceptions under investment promotion laws.

Foreign buyers have three lawful routes to a home in Thailand:

- Freehold condominium unit within the foreign quota
- Registered lease over land, plus building ownership
- Usufruct or superficies, registered separately

A villa buyer usually takes the second route. The land stays in the name of the Thai landowner. The buyer holds a long lease over the plot and owns the villa on it. Thai law treats the building as separate from the land, and building ownership can be recorded with the local authorities.

Some buyers are offered a different structure, in which a Thai company holds the land and the foreign buyer controls the company through side agreements. Thai authorities have increased scrutiny of these arrangements in 2026, including stronger beneficial ownership and source-of-funds checks for companies buying land. A lease does not involve holding land through shareholders, which is the arrangement under review.
 

What the law says: Sections 538 and 540

Two sections of the Civil and Commercial Code, in the book on hire of property, set the rules for every land lease in Thailand.

Section 540 sets the maximum term. A lease of immovable property cannot exceed 30 years. If a contract states a longer period, the term is reduced to 30 years by operation of law.

Section 538 sets the formalities. A lease of immovable property for more than three years must be in writing and registered with the competent official, which in practice means the Land Office. An unregistered lease is enforceable for three years only, even if a 30-year term is written in the contract and the rent has been paid in advance.

A separate statute, the Lease of Immovable Property for Commercial and Industrial Purposes Act B.E. 2542 (1999), allows longer terms for genuine commercial or industrial use. It does not apply to a private residential villa.
 

The "30+30+30" clause: what it does and does not do

Many villa leases include a clause promising two further 30-year terms, and the result is sometimes marketed as a 90-year lease. In law, no single lease can run beyond 30 years. A "30+30+30" clause is an undertaking about future leases, not one long lease.

Legal commentators note the following points:

- Each renewal is a new lease
- Each renewal needs separate registration
- Registration fees apply again on renewal
- Registered protection covers only the current term
- Advance renewals beyond 30 years may be void

Thai Supreme Court decisions reported by legal commentators have treated automatic or prepaid renewals that create an effective term beyond 30 years as an attempt to avoid Section 540. The case law is still developing, and published accounts differ on dates, so buyers should ask their lawyer for the current position.

The practical advice is to value the villa on the initial 30 years. Treat the renewal clause as a contractual option that is useful but not guaranteed, and make sure it binds the landowner's heirs and any future owner of the land.

What is registered at the Land Office

Lease registration takes place at the Land Office in the district where the land is located. Once registered, the lease is endorsed on the land title deed (chanote), and a registered lease is not extinguished when the land is later sold. Under Section 569, it continues to bind the new owner for the remaining registered term.

The registration costs are set by reference to the rent stated in the lease:

Item	Rate	Basis
Lease registration fee	1%	Total rent over the lease term
Stamp duty on the lease	0.1%	Total rent over the lease term

As an illustration, a lease with total stated rent of THB 3,000,000 over 30 years would carry a registration fee of THB 30,000 and stamp duty of THB 3,000, a combined THB 33,000. The Land Office calculates the exact amounts, and each renewal is charged again on its own stated rent.

The documents normally needed include the land title deed, the signed lease, identification for both parties and, where someone attends on a party's behalf, the Land Department's power of attorney form.

Owning the villa building

Land and building are treated separately in Thai law. A foreign buyer can own the villa and record that ownership with the district authorities, while the land is held under the lease. Ask for these documents before you sign:

​- Building permit
- Completion or occupancy documents
- Approved plans and any amendments
- Utility connection records

The Civil and Commercial Code also provides for usufruct and superficies, which can be registered at the Land Office. Their terms and costs differ from a lease, and lawyers sometimes combine them with one. Whether either suits a particular villa is a legal question for your adviser.

 

Costs and taxes on a leasehold villa

Purchase costs depend on how the transaction is structured, so ask for a written breakdown before you commit. The main items are below.

Item	Rate	Notes
Lease registration	1% plus 0.1%	On total rent, see above
Land and building tax	0.02% to 0.1%	Annual, on appraised value, residential use
Specific business tax	3.3%	Seller, if sold within five years
Stamp duty on sale	0.5%	Seller, where specific business tax does not apply

The reduced Land Office transfer fee of 0.01%, extended to 30 June 2027, applies only to a Thai individual buyer of residential property up to THB 7 million. Foreign buyers do not qualify.

The appraised value used for land and building tax is set by the Treasury Department. On resale, the Revenue Department rules apply specific business tax to certain sales made within five years of acquisition, with exceptions such as a principal residence. Confirm the tax position on any sale with a Thai tax adviser.
 

Due diligence checklist before signing

Use the list below as a starting point and give it to your lawyer.

1. Verify chanote title at the Land Office
2. Confirm the lessor is the registered owner
3. Check for mortgages or other registered encumbrances
4. Confirm lease term is 30 years maximum
5. Require registration, not just signing
6. Review renewal clause with an independent lawyer
7. Confirm renewal obligations bind successors and heirs
8. Check consent rules for assigning or subletting
9. Confirm access road rights and utility easements
10. Verify building permit and completion documents
11. Check zoning and any height restrictions
12. Confirm building ownership at lease end
     

Risks buyers often overlook

An unregistered lease. A signed 30-year lease that is never registered gives enforceable rights for three years only. The lease should be registered on the day of completion.

Remaining term on a resale. The 30 years run from the date of the original lease, not from the date you buy. A resale villa with 14 years remaining is worth less than the same villa with 28 years remaining, and the price should reflect that.

Assignment and subletting. Unless the lease expressly allows it, a lessee may not sublet the property or assign the lease to someone else. If you plan to sell, check what the lease says about the landowner's consent.

The end of the term. Ask what happens to the villa when the lease ends and no renewal is agreed. The answer should be written into the contract.
 

Renting out a leasehold villa

Rental income is a common reason to buy on Koh Samui, and licensing is part of that decision. Under Thailand's Hotel Act, renting accommodation for fewer than 30 days is generally treated as operating a hotel and requires a licence. Legal commentators report exemptions for small, owner-operated properties that notify the local authorities, and enforcement activity has increased since 2025. Rentals of 30 days or more fall outside the Act.

C9 Hotelworks recorded 3,055 villa rental properties on Samui in 2025, most of them managed by third-party operators. Confirm the licensing position with a Thai lawyer and check local district requirements before you list a villa for short stays.
 

Leasehold compared with other structures

Structure	Land	Term	Main point
Leasehold villa	Owned by lessor	30 years per lease	Registered lease plus building
Freehold condominium	Common property share	Freehold	Limited by 49% foreign quota
Thai company holding land	Company	No fixed term	Under increased scrutiny

 

Frequently asked questions:

 

Can a foreigner own a villa in Koh Samui?

A foreigner can own the villa building but not the land under it. The usual structure is a registered lease over the land, combined with ownership of the building. A foreigner can also buy a freehold condominium unit within the building's foreign quota.

Is a 90-year lease possible in Thailand?

Not as a single lease. Section 540 of the Civil and Commercial Code limits each lease to 30 years. A "30+30+30" clause is an undertaking to grant further leases, and each one must be agreed and registered separately.

What happens after 30 years?

The lease ends unless the parties agree and register a renewal. Fees are payable again on the new term. What happens to the villa at the end depends on the contract, so confirm it before you sign.

How much does it cost to register a lease?

The Land Office charges 1% of the total rent over the lease term, plus 0.1% stamp duty, for a combined 1.1%.

Can I sell a leasehold villa?

Yes, if the lease allows assignment. Many leases require the landowner's consent. The value of the villa depends on the remaining term, and the transfer is registered at the Land Office.

Is a lease safer than holding land through a company?

A lease does not rely on holding land through Thai shareholders, which is the arrangement drawing increased scrutiny in 2026. The right structure depends on your circumstances, so take independent legal advice.

Speak with Conrad Properties

Conrad Properties has worked with buyers on Koh Samui since 2014. If you are considering a leasehold villa, our team can show you current listings in Bophut, Maenam, Choeng Mon and other areas, and explain how each one is structured. Contact us through the website or by email.