Over the last two decades, Thailand has established itself as one of the rare examples of a country that not only welcomes tourism and foreign capital – it protects them, develops them, and gives them room to grow. This is not a result of chance, but of a well-considered and implemented development strategy. In a world where political instability and heavy regulations often scare away investors, Thailand stands out as a haven not only for travelers, but also for capital and tranquility.
Transformational vision and strategic plans
The key framework that made this transformation possible is the overall ProvincialDevelopmentPlan 2023–2027 For Phuket - an ambitious plan, similar in spirit to Dubai's famous D33 nationthailand.comThis five-year plan aims not only at the post-pandemic recovery of tourism, but also a comprehensive rethinking and diversification of the island's economy, with a vision to transform Phuket into a "global city" and a high-tech investment hub. Before COVID-19, Phuket relied almost entirely on tourism (97% of revenue), reaching in 2019. 14.5 million foreign tourists and 422 billion ฿ revenue – second place after Bangkok nationthailand.comHowever, the lessons from the pandemic suggested a new approach. The five-year plan outlines seven key priorities for generating new sources of growth nationthailand.com:
- Global Culinary Center – positioning Phuket as a city of gastronomy nationthailand.com.
- Medical and wellness hub attracting health and spa tourism at a world level nationthailand.com.
- Sports tourism – development of infrastructure for events and activities, such as surfing, golf, etc. nationthailand.com.
- International Educational Center – attracting universities and training programs nationthailand.com.
- Smart city and digital technologies – creating value through digitalization and smart city initiatives nationthailand.com.
- Sea tourism and marinas – establishing oneself as marine hub in the region nationthailand.com.
- Trade and MICE – construction of a tuna processing center (ASEAN) and attracting international conferences and exhibitions nationthailand.com.
An example of real actions according to the plan is the approved project Andaman International Health andWellnessCentre – an international wellness center with a budget of 5.1 billion ฿, the financing of which the government accelerated in 2022. nationthailand.comSuch initiatives demonstrate the determination The lessons from COVID to turn into new opportunities, instead of Phuket returning to the old model of mass tourism.
Infrastructure development plays a crucial role in this vision. Prime Minister Srettha Thavisin is personally overseeing an accelerated plan of 7 major projects worth a total of 148 billion ฿, focused on transport and connectivity in the Andaman region nationthailand.comAmong the urgent projects is the New City - Ko Kaeo - Patong tunnel (14.7 billion ฿), which will connect the interior of the island with the key tourist area of Patong and will ease traffic nationthailand.comAirports are also being built and expanded in parallel: Phuket International Airport (second phase) will increase the capacity from 12.5 to 18 million passengers annually by 2027. nationthailand.com, Krabi Airport – from 5 to 17 million nationthailand.com, and a completely new one is also planned Pangya Airport on the nearby continent with a capacity of 40 million passengers annually (investment ~80 billion ฿) nationthailand.comThese upgrades don't just open new air routes; they build a sustainable infrastructure to accommodate future double-digit growth in tourists and transform Phuket into a global economic center.
Urban development and sustainability
Parallel to the economic projects, Thailand strategically approaches the urban development of Phuket – The property is not treated simply as the sum of square meters, but as an organic part of the living structure of the city. The vision for "New Phuket" weaving sustainability, ecology, and culture into urban planning phuketbuyhouse.comGreen spaces are being expanded, a high standard of mobility is being introduced (new roads, tunnels, public transport), and cultural and educational hubs are being built - all this in harmony, which guarantees convenience and a long-term vision. phuketbuyhouse.com. Thus the island preserves its natural beauty and cultural heritage, while growing economically, ensuring future generations can enjoy the crystal beaches and rich ecosystems of Phuket phuketbuyhouse.comThe home or resort here ceases to be just a shelter or an investment, and becomes strategic asset of the network of the future – integrated into a vision for a smart, green, and culturally rich city.
Tax and investment environment
The tax environment in Thailand is not a random relief – it is a categorical political decision in the service of growth. The country applies a practical territorial tax system: Foreign income of residents is not taxed if not remitted to Thailand in the year earned taxsummaries.pwc.comFurthermore, since 2022, the government has introduced a special regime that exempts from income tax entire groups of foreign investors – high-income individuals, pensioners, and remote workers who meet the requirements for the new LTR visa investmentpolicy.unctad.orgThis effectively means a 0% tax on their global income if they choose to settle in Thailand – an advantage that few other countries offer so openly.
In the country there is no separate "capital gains" tax – capital gains are treated under the general income tax law and are exempt if they come from abroad and are not transferred to the country in the same year taxsummaries.pwc.comUpon the sale of real estate, instead of the classic capital gains tax, the following apply symbolic fees – for example, a 2% transfer of ownership fee, a small stamp duty or a one-time business tax (~3.3%), depending on the case. Corporate tax is fixed at 10%, but investors benefit from numerous incentives: in priority sectors and special economic zones are given tax holidays and discountsFor example, in certain southern special zones, the corporate tax is halved, and for some activities it is only 10%, or even 3%, with a personal income tax of a symbolic 0% lexnovapartners.comIn most cases, there is no requirement for a high minimum capital when registering a company - establishing a new business can be done quickly and with low barriers. In short, Thailand intentionally maintains a 'light' tax and regulatory framework – to enable lightning-fast business launches and maximize the preservation of generated value in the hands of investors.
Legal regime of the land: restrictions, leasehold и freehold
One of the most important aspects of real estate investments in Thailand is the difference between leasehold (long-term lease) and freehold (full ownership). According to the Land Act of the Kingdom of Thailand, foreigners are not allowed to own land directly in their own name (Land Code, Thai Government). They can become direct owners only of apartments in condominiums, provided that foreign participation in the building does not exceed 49% of the total area (Thailand Condominium Act).
The most common option for houses and villas is leasehold — Leasehold on land for a term of up to 30 years, with the possibility of renewal. With leasehold, a registration fee is paid to the Land Department, which amounts to 1% of the total value of the contract, plus 0.1% stamp duty, totaling about 1.1% (Land Office Fees – LAFS Legal). This structure allows a foreigner to own the building on the leased land, but the land itself remains the property of a Thai citizen or a local legal entity.
At freeholdcommonly applicable to condominiums or through a Thai company, full ownership of the property (or a share of the building) is acquired without time limitations. In such a case, the transfer costs are significantly higher: 2% transfer registration fee, 0.5% stamp duty, 3.3% specific business tax, as well as withholding tax, which varies according to the seller's status. The total burden reaches approximately 6–6.8% of the property value (Land Department Thailand – Transfer Fees, Samui Island Realty).
Additionally, some projects offer long-term leasehold schemes with a renewal option of up to 90 years (30+30+30), but each additional term is subject to negotiation and is not automatically guaranteed by law. For foreign investors who want to structure a purchase through a Thai company, it is important to know that control over such a company is subject to strict regulatory oversight and in case of abuse, the land can be confiscated (Thailand Board of Investment).
Important practical detail: in Thailand, the notary has a limited function and the main legal role in transactions is performed by a lawyer, who conducts the legal check (due diligence), prepares the contracts and coordinates the registration in the Land Department. When buying a condominium or using a leasehold, it is usually required Foreign Exchange Certificate For payments over ฿50,000 — a document issued by the bank for international transfers, without which the registration cannot be completed. Also, the inheritance of property by a foreigner is allowed provided that the heir complies with the requirements for foreign ownership; otherwise, the property must be sold within one year. In condominiums, the annual maintenance fee for the common areas (around 30–80 ฿/sq.m per month) should also be taken into account, which covers security, cleaning, and management of the common facilities.
Therefore, before proceeding with the purchase of a house, plot of land, or villa, it is necessary to consult with an experienced lawyer specializing in Thai property laws. Ultimately, the choice between leasehold and freehold is not just a legal decision, but a strategic move that determines how the investment will be managed and protected for years to come.
When purchasing property directly from a developer, the buyer does not owe a commission to an agency or intermediary - this is standard practice in the Thai market. However, all notary fees and legal expenses for the preparation and registration of the transaction remain entirely at the buyer's expense, and are paid immediately before or upon the finalization of the transfer at the Land Department.
Security and order
There is no other tourist destination where the absence of crime to be such a tangible and important part of the economic ecosystem, as in Thailand. In the country, violent crimes against foreigners are relatively rare. countryreports.org, and Thailand is considered one of the safest countries in Southeast Asia for travelers bhtp.com. Of course, petty thefts are not unseen, but the culture of hospitality and respect for the guest significantly reduces the risk for tourists. This culture of order it's not a myth, but a result of targeted policies: an active tourist police, strict penalties for offenses and social contract, where rule-breaking is a rare exception. It was said in Dubai that you could leave a bag of money on the street and find it untouched an hour later – in Phuket, although to a lesser extent, there is also a feeling that The people and property are safe. This is not always emphasized in financial brochures, but it is key foundation to the flourishing tourist and investment environment – the peace of mind and confidence that you can invest and live freely, without fear for your personal safety.
Protection of property investors
One of the strongest protections for real estate investors is the introduced escrow mechanism – special escrow account, which protects the buyer's funds until certain conditions are met. Thailand officially adopted the Escrow Act in 2007 to protect homebuyers from the risk of the developer not completing the project siam-legal.comAlthough the law did not make escrow accounts absolutely mandatory (it met resistance from builders relying on 10-20% deposits from the price to finance the construction) siam-legal.com), the market adapts itselfToday, most large and reputable investors voluntarily use escrow servicesoffered by banks and law firms to ensure the safety of clients' funds siam-legal.comTypically, when buying 'off-plan', the buyer deposits a 10-30% deposit, which is held in a protected account until a certain stage of construction is reached; this is followed by several installment payments (totaling ~50% of the value) according to progress, and the remainder is paid upon completion and transfer of ownership. Therefore, at every premiere of a new vacation complex, properties are often 'snapped up' for a few hours – for example, a major project this year filled its foreign quota (49% of the housing) in just 3 hours, with over 2000 people on the waiting list khaosodenglish.comTrust here is not a promise, but a practice, backed by regulation and professionalism. Apart from the selling price, each buyer also pays ~4% of the value in state fees (e.g. 2% upon registration of the transaction with the Department of Lands) - this amount is mandatory and guarantees the official registration of the property in the name of the new owner. As a result, the risk of unfinished projects or fraud is minimized, and transparency attracts even more capital to the market.
Long-term visa options for foreign investors
One of the most attractive "doors" to long-term presence in Thailand is the new program for 10-year Long-Term Resident (LTR) VisaIntroduced in 2022, it provides to wealthy and highly skilled foreigners 10-year residence permit (5+5 years) with simplified administration and significant tax incentives. The program is aimed at four "high potential" groups: wealthy foreigners, rich retirees, remote-working professionals, and highly qualified specialistsThe requirements for the first category, for example, include a net worth of at least $1 million, annual income over $80,000 (the last 2 years) and investment minimum 1,500,000 in Thai assets – real estate, government bonds, or a direct stake in companies investmentpolicy.unctad.orgFor pensioners, the requirements are age over 50 years old. income at least $40,000 annually or enough savings, and investment $250 000 in property or bonds investmentpolicy.unctad.orgFor investmentpolicy.unctad.orgThe common thing between all categories is that the state provides them not only with a long status, but also exemption from tax on income from abroad (and for the highly qualified – flat tax on local incomeIn other words, the LTR visa acts as a true "golden visa" – providing legal right of residence for 10 years and preserving the global financial freedom of its holder.
For a more moderate budget, Thailand also offers ThailandElite (ThailandPrivilege) Residence – a unique program, unofficially known as the Thai “golden visa” thaiembassy.com. It does not require investments in the economy, but a one-time membership fee, in exchange for which the foreigner receives a multiple-entry visa and a number of VIP benefits. The packages vary from 5-year visa for ~600,000 ฿ (around €16,000) henleyglobal.com, through 10-year-old for 1.5 million ฿, to 20-year option for 5 million ฿ (around €140,000) henleyglobal.com. The program allows family inclusion, and its privileges range from fast track at airports, through concierge services, to discounts at luxury resorts. The important thing is that income or asset criteria are missing – it is enough to pay the relevant fee and the applicant receives long-term status, bank access, a driver's license, and the right to own property (condominiums) in Thailand thaiembassy.com. For many foreigners, this is not just a visa, but a ticket to new way of life – tropical, financially advantageous and secured by the hospitable Thai state.
High yield and low risks
The yield from real estate investments in Phuket significantly exceeds European standards. Gross rental yields in Thailand are typically ~6–8%, and in popular resorts like Phuket and Koh Samui they can reach 10%+ annuallyLuxury villas on Phuket Island even average 7–12% annual incomeoutperforming many global markets awann.netIn the peak season of 2024, for example, the average monthly rent for a three-bedroom villa reached 100,000 ฿, and villa properties in areas like Bang Tao and Laguna achieved over 10% annual return. awann.netFurthermore, capital growth is impressive: the prices of prime properties in Phuket have increased by about 10.7% average annually over the last 20 yearswith some locations (e.g., the Rawai area) reporting a 14-fold increase in price over two decades awann.netIn 2023 alone, after the borders opened, housing prices on the island jumped by 10–15% – the highest growth recorded so far awann.net.
All this happens at strict regulation and minimal administrative pressureUnlike many Asian countries, foreigners in Thailand are entitled to direct ownership of real estate - although mainly of condominiums (up to 49% of the units in a building), this policy provides a clear legal status for the foreign investor. Transactions are recorded in the state land registry, ensuring the security of the titlePreliminary purchase agreements usually contain all key clauses, and government bodies (such as the Land Department) oversee the transactions. Thailand did not even participate in global schemes for automatic exchange of financial information for a long time – it only began a phased introduction of the Common Reporting Standard in 2023. taxsummaries.pwc.comThis discretion and financial privacy is an advantage that is rarely spoken about openly, but which global investors highly value in the Thai jurisdiction.
While many European economies are gasping under heavy regulations, rising taxes, and social tension, Thailand – and in particular the island of Phuket – is building a reality in which capital and freedom not only survive, but thrive. The conclusion is not just financial, but philosophical: If wealth and the opportunity to live the way we choose are an extension of our personal freedom, then Phuket is one of the last places where this freedom is not only respected, but encourages and celebrates.
Useful sources
- Phuket Provincial Development Plan 2023–2027 (Phuket Economic Diversification Strategy) – Nation Thailand nationthailand.com
- Infrastructure projects for Phuket (airport expansions, tunnels) – Nation Thailand nationthailand.com
- Thailand Department of Lands – Official Website: dol.go.th
- Thailand Long-Term Resident (LTR) Visa – Board of Investment: ltr.boi.go.th
- Thailand Privilege (Elite) Visa Program – Thailand Privilege Card Company: thailandprivilege.co.th
