1. Can foreigners own commercial property in Phuket?

Foreigners cannot directly own land in Thailand, but they can legally own commercial buildings or invest via a Thai-registered company, long-term lease, or BOI-approved structures.

2. How do I get a Thai business visa as a property investor?

Investors can apply for a Non-Immigrant “B” Visa by setting up a Thai company or investing in a BOI-approved business. Proper documentation, capital investment, and company registration are required.

3. What’s the difference between leasehold and freehold commercial property in Thailand?

Freehold ownership gives permanent rights to the building (and sometimes land for Thai entities), while leasehold offers long-term rights (up to 30 years, renewable). Leasehold is often used by foreign investors.

4. Do I need a Thai partner to open a business in Phuket?

Yes, in most cases, a Thai company must be majority-owned (at least 51%) by Thai nationals unless it qualifies for Board of Investment (BOI) promotion or is in specific sectors under international treaties.

5. What types of commercial property are most popular in Phuket?

Hotels, bars, restaurants, retail shops, wellness centres, co-working spaces, and dive/tour companies are among the most sought-after business types by foreign investors in Phuket.

6. Is buying a business in Phuket profitable?

Yes, Phuket’s tourism-driven economy offers high potential ROI (6–15%) in hospitality and service sectors, especially in prime beach areas like Patong, Kamala, Kata, and Rawai.

7. Can I buy an existing business in Phuket?

Absolutely. Many turnkey businesses are for sale, including licensed hotels, bars, cafés, and shops. Due diligence is critical before purchasing to verify licenses, taxes, and lease agreements.

8. How much does it cost to start a business in Phuket?

Start-up costs vary by sector. Small cafés or retail shops may require $20,000–$50,000, while boutique hotels or restaurants can exceed $250,000+. Thai company setup and licensing fees are additional.

9. What are the most profitable commercial sectors in Phuket right now?

Tourism-related businesses like boutique hotels, beach clubs, dive shops, spas, and upscale restaurants continue to be high-yield, especially in recovery years post-pandemic.

10. Are commercial leases in Phuket long-term?

Yes. Lease terms are typically 3, 5, or 10 years, with many offering 30-year renewable structures. Legal advice is essential to ensure renewal clauses and registration are properly handled.

11. What taxes are involved in buying a commercial property in Phuket?

Expect transfer fees, withholding tax, business tax, stamp duty, and ongoing income tax or VAT, depending on your business model. Accurate planning with a legal advisor is recommended.

12. How do I set up a Thai company for investing in commercial property?

You’ll need at least three shareholders (one being Thai), a registered business address, paid-up capital (minimum THB 2 million for visa/work permit purposes), and proper accounting.

13. Is due diligence important before buying a business in Phuket?

Yes. Always conduct thorough due diligence, including reviewing licenses, balance sheets, customer contracts, staff liabilities, and lease terms before making a purchase.

14. Can I get financing or a mortgage as a foreign investor in Phuket?

Local banks rarely offer financing to foreigners. Most commercial property investments in Phuket are cash deals or privately financed through international lenders or partnerships.

15. Are commercial properties in Phuket zoned by usage?

Yes. Phuket’s zoning laws dictate where commercial activities can operate. Certain districts are tourism/commercial approved, while others are residential or restricted. Always check zoning compliance.

16. Can I own a hotel or resort as a foreigner in Phuket?

Yes, through a Thai company or leasehold. Hotel licenses are required, and compliance with the Hotel Act is mandatory. Many foreign investors buy existing licensed operations.

17. What business licenses are required in Phuket?

It depends on the business type. Common licenses include food & beverage permits, alcohol licenses, music/entertainment licenses, and hotel licenses. BOI businesses may get exemptions.

18. Is Phuket still a good place to invest post-COVID?

Yes. Phuket is rebounding strongly with new infrastructure, international tourism growth, and increased investor interest. Commercial occupancy and property values are rising in key zones.

19. What are the risks of buying a business in Phuket?

Risks include legal misunderstandings, overpaying, poor lease terms, hidden debts, or underperforming sectors. Always consult legal and financial experts during your purchase process.

20. Can I live in Phuket permanently if I own a business there?

Owning a business allows you to obtain a Non-B visa and work permit, which can be renewed annually. Long-term stay options also include the Thailand Elite Visa and investment-related residence programs.

Here are four key data visualizations for Phuket’s commercial property market:

1. Tourism Statistics: Showing a strong rebound post-2020, indicating rising footfall and business potential.
2. Commercial Yield Trends: Stable yields with signs of upward movement in 2024, favourable for investors.
3. Retail Sector Price Trends: Retail prices recovering to pre-pandemic levels, a signal of confidence returning to the market.
4. Hospitality Sector Price Trends: Consistent growth, reflecting Phuket’s strong tourism-led demand.

Phuket Commercial Real Estate Trends & Market Recovery

Understanding the real estate investment landscape in Phuket means looking at the real data that supports strong returns. From pandemic disruption to present-day tourism resurgence and infrastructure investment, Phuket’s commercial property market has entered a compelling new phase of growth. Here’s what the numbers show.

Tourism Recovery: Visitor Trends 2019–2024

Tourism is the backbone of Phuket’s commercial property demand. Below is a year-by-year breakdown of international arrivals:

✅ SEO Notes: Phrases like Phuket tourism recovery, visitor growth Phuket, COVID rebound Thailand travel, and Phuket Sandbox success are key for investors evaluating macroeconomic resilience.

Commercial Sector Performance: 2019–2024

Each sector of the Phuket commercial property market tells a different recovery story:

Hospitality Sector (Hotels, Guesthouses)

Demand has rebounded sharply, leading to renewed interest in hotel acquisitions and boutique resort conversions.

Retail & Food Sectors (Restaurants, Cafés, Shops)

Recovery is nearly complete. Prime beachfront and high-footfall retail spaces now face increased demand from international tenants and franchise operators.

Commercial Investment Yield Trends: Phuket (2019–2024)

Here’s how rental yields across key commercial asset classes have performed in recent years:

Yields have returned to (and in some cases exceeded) pre-pandemic levels, especially in areas such as Patong, Kata, Cherng Talay, and Boat Avenue.

 Infrastructure Development Boosting Commercial Appeal

Ongoing government and private-sector projects have greatly improved Phuket’s long-term investment outlook:

• Phuket International Airport Expansion– Increasing capacity to 18 million passengers/year by 2026.
• Light Rail Transit System (LRT)– Greenlit by the Transport Ministry, enhancing north–south mobility.
• Digital Infrastructure Upgrades– Part of the “Phuket Smart City” initiative, attracting tech-focused businesses.
• Chalong Marina Expansion– Boosting high-end nautical tourism and waterfront commercial space value.

Infrastructure keywords: Phuket light rail project, airport expansion Phuket, Smart City Phuket, commercial zones near Chalong Marina.

Summary: Clear Signals for Commercial Investment Growth

• Tourism has returned to pre-pandemic levels
• Rental yields are climbingacross most commercial sectors
• Retail, food & hospitality businesses are in high demand
• Infrastructure growth is driving up land and business values

Phuket is no longer in recovery mode it’s in growth mode. Now is the time for savvy investors to secure well-located commercial property before prices climb further.