Buying a Villa vs. Condo in Thailand: Key Differences, Costs & Legal Aspects
Buying a Villa vs. an Apartment in Thailand: Key Differences
Short answer. If you’re a foreigner, you can buy a condominium unit in full freehold ownership (within the 49% quota of the total building area), but you cannot do the same with a villa: both the house and the land are acquired through leasehold (usually 30 years with contractual renewal options). A villa means more space and prestige, but also a higher budget and more responsibilities; an apartment is an easier entry point, simpler to rent out and sell.
How to Understand What You Really Need
Imagine a regular day.
Apartment: you take the elevator down to the lobby, grab a coffee on your way to the pool, the gym is behind a glass door, security is at the entrance, a message from the management company pops up in the app. Zero maintenance, predictable utility bills, everything is close by.
Villa: you open the gate, check the pool (someone has to maintain it), the gardener walks by sweeping leaves, there’s a sun lounger and silence on the terrace. Space and privacy, but someone needs to take care of it all—either you or a property manager.
Both formats are good, they just serve different purposes and “cost” differently—in terms of both money and time.
Apartment: you take the elevator down to the lobby, grab a coffee on your way to the pool, the gym is behind a glass door, security is at the entrance, a message from the management company pops up in the app. Zero maintenance, predictable utility bills, everything is close by.
Villa: you open the gate, check the pool (someone has to maintain it), the gardener walks by sweeping leaves, there’s a sun lounger and silence on the terrace. Space and privacy, but someone needs to take care of it all—either you or a property manager.
Both formats are good, they just serve different purposes and “cost” differently—in terms of both money and time.
Legally: What’s Possible (and What’s Not)
Apartment (condo). A foreigner can buy a freehold unit as long as foreigners own no more than 49% of the total building area. The transaction is registered with the Land Department, and you receive a Chanote/Condo Title. You can sell at any time.
Villa. The typical model for foreigners is leasehold: both land and house come as a long-term lease package (30 years + options to extend for another 30/30 years, specified in the contract and often reinforced by pre-signed addendums). A “house freehold” is not the norm in the mainstream market: villas are almost always sold as leasehold for the duration of the lease. So, think of a villa as a long, well-protected usage agreement rather than “perpetual ownership.”
Lease renewals. These are not a “state-backed automatic guarantee,” but a contractual mechanism with the landowner/developer. The market has long developed ways to minimize risks (renewal clauses, corporate structures on the developer’s side), but reading the contract carefully is a must.
Villa. The typical model for foreigners is leasehold: both land and house come as a long-term lease package (30 years + options to extend for another 30/30 years, specified in the contract and often reinforced by pre-signed addendums). A “house freehold” is not the norm in the mainstream market: villas are almost always sold as leasehold for the duration of the lease. So, think of a villa as a long, well-protected usage agreement rather than “perpetual ownership.”
Lease renewals. These are not a “state-backed automatic guarantee,” but a contractual mechanism with the landowner/developer. The market has long developed ways to minimize risks (renewal clauses, corporate structures on the developer’s side), but reading the contract carefully is a must.
Budgets: What to Expect (THB ≈ 2.7 RUB)
Apartments
Villas
Upfront costs: money transfer from abroad, Land Department fees, lawyer’s fee (usually 1–2% of transaction), for condos—sinking fund (one-time payment 500–1,000 THB/m²).
- Pattaya resale: from ~1.04M THB (≈2.8M RUB) for a studio.
- New projects: from ~1.85M THB (≈5M RUB).
- Phuket: city center from ~2.22M THB (≈6M RUB); Layan/Kata from ~2.96M THB (≈8M RUB); Bang Tao from ~3.70M THB (≈10M RUB).
Villas
- Entry point: ~3.7M THB (≈10M RUB) for a house away from the sea.
- Phuket, Layan/Bang Tao: 11–15M THB (≈30–40M RUB) for a pool villa; “magazine-style” beachfront villas cost significantly more.
Upfront costs: money transfer from abroad, Land Department fees, lawyer’s fee (usually 1–2% of transaction), for condos—sinking fund (one-time payment 500–1,000 THB/m²).
Monthly Expenses and Maintenance
Apartment:
Villa:
Higher electricity bills (AC, pool pumps).
- CAM fee (common areas): 45–80 THB/m² per month.
- Electricity, water by meters.
- Rental management: 10–20% of rental income (if used).
Villa:
- Pool maintenance: 2,500–4,000 THB/month.
- Garden: 2,000–5,000 THB/month.
- Pest control: 1,000–1,500 THB/quarter.
- Estate fee (if in gated community): 2,000–6,000 THB/month.
- Property manager (if rented out): 15–25% of revenue.
Higher electricity bills (AC, pool pumps).
Rental Income and Yield
Apartment. Guests are couples, friends, digital nomads. Basic needs: pool, gym, walking distance to sea/center. High occupancy, nearly full in peak season. Real yield: 6–8% annually without much hassle.
Villa. Guests are families and wealthy travelers looking for “private pool only for us” and “no neighbors in sight.” Higher rates, shorter and pricier bookings, seasonality matters more. Yields of 7–10% are achievable but depend heavily on management and service.
Note: short-term rentals are regulated. Condos—check building rules; villas—comply with licensing/operating requirements.
Villa. Guests are families and wealthy travelers looking for “private pool only for us” and “no neighbors in sight.” Higher rates, shorter and pricier bookings, seasonality matters more. Yields of 7–10% are achievable but depend heavily on management and service.
Note: short-term rentals are regulated. Condos—check building rules; villas—comply with licensing/operating requirements.
Liquidity and Exit
Apartment. Liquidity is always there: high demand in central and beachside locations, many sales channels, transparent price per m². Easy to exit, especially from well-known projects.
Villa. Fewer buyers, higher price tag, longer deal cycle. But villas in prime locations (Bang Tao, Layan, Kamala) often show better long-term appreciation (5–7 years) than mass condos. Limitation: higher entry budget and management effort.
Villa. Fewer buyers, higher price tag, longer deal cycle. But villas in prime locations (Bang Tao, Layan, Kamala) often show better long-term appreciation (5–7 years) than mass condos. Limitation: higher entry budget and management effort.
Sample Calculations
1. Apartment in Central Pattaya — 5.5M THB (~14.85M RUB). Rent: 30,000 THB/month.
2. Villa in Layan — 12M THB (~32.4M RUB). Rent: 180,000 THB/month in season; average yearly revenue ~1.8M THB.
- Annual: 360,000 THB.
- Tax: first 150,000 exempt; 5% on remaining 210,000 = 10,500 THB (~28,000 RUB).
- Net before CAM/management: ~349,500 THB. Yield ~6.3%. After CAM (60 THB/m² for 35 m² = 2,100 THB/month): ~5.9%.
2. Villa in Layan — 12M THB (~32.4M RUB). Rent: 180,000 THB/month in season; average yearly revenue ~1.8M THB.
- Operating costs (garden, pool, estate, cleaning, 20% management): ~450K–600K THB/year.
- Tax base ~1.2–1.35M THB. Progressive tax: ~200K–230K THB (~540K–620K RUB).
Risks and Nuances
- Leasehold extensions: must be clearly written in the contract, with mechanisms for enforcement (often pre-signed addenda + corporate structures with the developer/landowner).
- Short-term rental rules: not every condo or villa allows daily rentals—check local and building regulations.
- Utilities and tariffs: some condos apply “commercial” electricity rates—check before buying.
- Taxation: personal income tax is progressive; many managers withhold 15% at source, which is convenient but should be clarified to avoid double taxation.
- Insurance: essential for villas (building + liability); for apartments—at least contents insurance.
Honest Checklist
Choose an apartment if…
Choose a villa if…
- Budget is under ~8–10M RUB.
- You want easy rental income and liquidity.
- You value in-house amenities: pool, gym, security.
- You plan to live part-time without maintenance worries.
Choose a villa if…
- Budget starts from ~30M RUB.
- You want space, privacy, and a private pool/garden.
- You’re ready (or have a manager) to handle maintenance.
- You target higher-end guests and accept seasonality.
- You’re playing long-term capital appreciation.
Bottom Line
Apartment = “plug and play”: easy to buy, rent out, and sell. Perfect entry point into the Thai property market.
Villa = “next level”: peace, space, your own pool and garden. Higher costs and logistics, but greater potential.
Legally the picture is clear: for foreigners, a villa means leasehold, while a condo can be freehold (within the 49% quota). Beyond that, it’s all about your budget, lifestyle, and willingness to manage the asset.
Villa = “next level”: peace, space, your own pool and garden. Higher costs and logistics, but greater potential.
Legally the picture is clear: for foreigners, a villa means leasehold, while a condo can be freehold (within the 49% quota). Beyond that, it’s all about your budget, lifestyle, and willingness to manage the asset.
If you’d like, we can select properties tailored to your goals: high-liquidity apartments with rental yield from day one, or villas in prime locations with strong demand and clear exit strategies in 3–5 years.
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