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Alex Guliaiev, founder of Legion Real Estate · Updated 14 October 2026
Phuket is Thailand's largest island and one of the leading resort property markets in Southeast Asia. A foreign investor earns here in two ways: rental income from tourists and expats, and growth in the property's value. Below: realistic yields, how a foreigner structures the purchase, freehold versus leasehold, areas by goal, and what to check before a deposit.
The market runs on tourism. Phuket earned USD 11 billion from tourism in 2024, Thailand offers visa-free entry to citizens of 93 countries, and its economy grew by 3.1% in 2025. The beach season lasts all 12 months, with over 300 sunny days a year.
Supply is limited: 80% of the island is off-limits to development, and most prime beachfront plots are already taken. The currency is stable: over 10 years the Thai baht has stayed within 29–36 to the US dollar.
The high season, November to April, can bring up to 70% of annual short-term rental income.
Gross yield on short-term rentals is 6–9% a year. That is income before costs. To reach the net figure, deduct:
Occupancy is the second variable. Good properties in popular areas run at 80–90% in high season and 30–40% in low season; over a year, well-managed prime properties average 60–70%. Calculate on the annual average, not the peak.
Capital growth comes on top: an off-plan unit gains 8–12% by handover, completed seafront property 6–10% a year. Test any high promised yield against the project's financial model and the manager's track record.
Income starts in the first season after management is set up. A condo in a tourist area is the usual pick: easy to let, with upkeep handled by the complex.
The price is locked in at the start, and the unit gains 8–12% by handover. A typical schedule is 25–30% on signing and the balance in construction stages. Rental income only begins after handover, so the build period belongs in the payback calculation.
A management company runs everything, from marketing to cleaning. Some projects offer a fixed return for the first 3–5 years. The guarantee is priced into the unit, so check the operator's model and income after it ends.
Foreigners cannot own land in Thailand directly. There are three legal routes.
Funds for a condo are transferred from a foreign bank in foreign currency, stating «for property purchase» as the purpose. The Thai bank issues a Foreign Exchange Transaction Form (FET), without which ownership cannot be registered. Daily rentals require a hotel licence; whether a specific project has one is checked before purchase.
The deal can be closed remotely via a notarised power of attorney, certified at a Thai consulate or apostilled. The contract is drawn up in Thai and English.
| Freehold | Leasehold | |
|---|---|---|
| What you buy | A condominium unit in your own name | A lease on a villa, house or apartment |
| Term | Perpetual | 30 years on the register, renewal by contract |
| Available to foreigners | Within the 49% floor-area quota | Yes, including when the condo quota is used up |
| Tax on registration | About 2% of the assessed value or sale price | 1% of total rent payable over the lease term |
| Annual ownership tax | Paid by the owner | Usually paid by the land or building owner |
| Price | Higher | Lower than a comparable freehold, declining towards the end of the term |
| Best for | Holding for more than 15 years | A 7–15 year horizon with resale well before the lease ends |
A reservation deposit is usually 50,000–100,000 baht, refundable on terms agreed in writing if checks reveal problems. The transfer tax on a freehold is about 2% of the assessed value; registering a leasehold costs 1% of the total rent, plus stamp duty in both cases. A lawyer typically charges 30,000–50,000 baht. Then come annual common-area (CAM) fees and furniture if not included. Budget 7–10% on top of the price for taxes, legal support, furnishing and contingencies.
Legion Real Estate is a licensed investment property agency in Bali and Phuket (PT LEGION REAL ESTATE). In Phuket we select apartments, villas, townhouses and land plots to match the client's goal: rental income, resale, relocation or capital preservation. We run legal and on-site checks, calculate the yield, give early access to developers' terms and help with resale.
How it works: we pin down your goal, budget and format; build a shortlist; check the documents, contract, completion dates and management model; then agree the reservation and support the transaction.
Contact us: WhatsApp +62 (895) 001-976-098, phone +62 (21) 5099-69-01.
Yes, if your goal is rental income and capital growth over several years. The market is driven by tourism: Phuket earned USD 11 billion from tourism in 2024, and 80% of the island is off-limits to development. Gross rental yield is 6–9% a year, and off-plan property gains 8–12% between the start of construction and handover. Results depend on the area, the developer and the management company, so the property is checked before any deposit.
Gross yield on short-term rentals is 6–9% a year. The net yield is lower after the management fee (usually 15–25%), maintenance fees, property tax and a repair reserve of 1–2% of the value a year. Well-managed properties in prime locations average 60–70% occupancy over the year. We calculate the net yield for each specific property.
Yes. A foreigner can buy a condominium unit freehold, provided foreigners own no more than 49% of the building's floor area. Foreigners cannot own land directly, so villas are bought through a registered 30-year lease (leasehold) or a Thai company. Funds for a condo must be transferred from abroad with an FET form.
It depends on your horizon and the property. Freehold is perpetual ownership of a condo unit, with about 2% tax on registration, and suits holding for more than 15 years. Leasehold costs less to enter, with 1% tax on the total rent, and suits a 7–15 year horizon with resale before the term ends. Renewal beyond 30 years is a contractual obligation, not a guaranteed right.
An investment condominium starts at about USD 110,000. Villas and west coast properties cost more; inland areas and the east are cheaper, with prices 30–50% below comparable homes in the west. On top of the price, budget 7–10% for taxes, a lawyer, furnishing and contingencies. We prepare a shortlist for your budget with a yield calculation on request.
A freehold transfer is taxed at about 2% of the assessed value, and a leasehold registration at 1% of the total rent, plus stamp duty. A lawyer usually costs 30,000–50,000 baht, and a reservation deposit is 50,000–100,000 baht. After purchase you pay maintenance fees of 30–50 baht per square metre per month and property tax of about 0.1% of the assessed value a year.
For short-term rentals, the west coast: Bang Tao and Laguna, Kamala and Surin, where high-season occupancy reaches 80–90%. Patong delivers high occupancy, but properties there wear out faster. Rawai and Nai Harn suit living and long-term rentals. For capital growth with a lower entry ticket, look at inland areas, the east coast and the north of the island.
