Phuket Authorities Warn Foreign Buyers About Misleading Property Ads

Officials in Phuket have issued a warning to foreign property investors, urging them to be cautious of overly optimistic or misleading real estate promotions circulating online.

The advisory was released on April 28 by the provincial public relations office, citing findings from the Anti-Fake News Center Thailand (AFNC), which operates under the Ministry of Digital Economy and Society. The review focused on promotional content targeting Phuket’s property market that may not fully reflect Thai legal realities.

Authorities highlighted a case involving an unnamed influencer who advertised a property in the Bang Tao area, claiming benefits such as “zero taxes” and the possibility of lifelong residence in Thailand. According to officials, such statements can misrepresent legal conditions, particularly regarding foreign ownership rights and taxation.

The clarification references guidance from the Land Department on what foreign buyers are actually allowed to own:

• Condominiums: Foreigners can legally own condominium units, but only within the 49% foreign ownership quota established under Thai condominium law.

• Land: Direct land ownership is generally prohibited for foreigners, with only limited exceptions under specific investment-related provisions of the Land Code.

• Buildings: Ownership of structures is permitted under the Civil and Commercial Code, but this does not automatically include ownership of the land beneath them.

Officials stressed that any claim about “freehold house ownership” must clearly specify whether it refers only to the building or includes land rights, as the latter is usually not allowed.

Regarding taxation, authorities emphasized that foreign property owners are subject to the same obligations as Thai nationals. Under the Land and Building Tax Act of 2019, anyone who owns or possesses property as of January 1 of a given year must pay the applicable taxes—without exceptions based on nationality.

The statement also referenced local administrative guidance from the Cherng Talay area, where the advertised villa was reportedly located, reinforcing that tax liabilities apply equally to all property holders.

In conclusion, officials reiterated that while foreigners can invest in certain types of real estate and reside in Thailand under specific visa schemes, all such activities must comply strictly with existing laws. Buyers are encouraged to verify claims carefully and seek reliable legal advice before making any investment decisions.