Foreign Quota Sold Out? Your Options in Pattaya

You've found the right project, the budget is set, the location is perfect – and then comes the line from the seller: "Unfortunately, the foreign quota is sold out." This exact moment is happening more and more often in Pattaya and Jomtien, because in sought-after beachfront projects the 49% foreign quota is often exhausted months before completion. The good news: a sold-out quota does not automatically mean "no purchase possible".

This article covers the advanced case – what to do specifically when the freehold quota is gone. You'll find the legal fundamentals, how the 49% rule actually works, and how freehold and leasehold differ in principle, explained in detail in our article Foreign Quota, Freehold & Leasehold for DACH Buyers.

Why the quota fills up so quickly

The foreign quota is calculated by floor area, not by number of units: a maximum of 49% of a building's total saleable square metres may be held by foreigners as freehold, and at least 51% must remain in Thai hands. In popular off-plan projects, foreign demand exceeds this allowance – which is why the freehold quota is often exhausted early.

Important to know: during the sales phase, developers actively control which units fall under the foreign quota. High-priced units are frequently allocated to the quota first, in order to maximise revenue. But that also means there is movement in the system – and this is precisely where your options lie.

Option 1: Leasehold (30 years) in the same project

If the freehold quota is full, many developers offer the same or a comparable unit as a registered 30-year leasehold. The right of use is recorded on the back of the Chanote (title deed) and is therefore legally enforceable – not merely a tenancy agreement.

• Price: depending on the source and project, leasehold units cost roughly 10–25% less than comparable freehold units.
• Transaction costs: with leasehold, registration costs only around 1.1% of the assessed value – whereas with freehold the combined total is around 6.3% (transfer fee, business tax or stamp duty, withholding tax).
• Renewal: a renewal beyond the 30 years is not guaranteed by law – it depends solely on the terms contractually agreed with the lessor. Options for further periods are often agreed, but their later enforceability remains uncertain.

The catch lies in resale: leasehold is less liquid, its value falls as the remaining term shortens, and once the remaining term drops below about 20 years, selling becomes considerably harder. For pure personal use over a clearly foreseeable period, leasehold can nonetheless make sense.

Option 2: Waiting list for returned quota units

Quota isn't set in stone. Reservations fall through, financing fails, buyers drop out – and suddenly a freehold unit becomes available again. Ask the developer to put you on a binding waiting list and clarify in writing in what order and on what terms you will move up. This takes patience, but it is the cleanest route to genuine freehold in your preferred project.

Option 3: Buy a freehold unit from another foreigner

An often-overlooked route: buy an already existing freehold unit from another foreign owner on the secondary market. Their quota share transfers to you on sale – so no additional quota slot is used up. This way you obtain full freehold ownership, even when the project's initial sales are long since "sold out". In a completed project, this is frequently the most direct route to genuine ownership.

Option 4: Another project with available quota

Sometimes the most honest answer is: a different project. The quota applies per building – in a neighbouring project, or in a later construction phase by the same developer, there may be ample freehold capacity available. Anyone who stays flexible on location, floor or floor plan will almost always find an available freehold unit that meets nearly all their criteria.

Option 5: The Thai company – why we advise against it

The "solution" via a Thai company with majority Thai shareholders is often sold as a way out. For straightforward residential units it is unnecessary (freehold is, after all, possible via the quota) and, above all, risky: structures in which Thais merely hold shares pro forma for a foreign beneficial owner (nominee arrangements) violate Thai law.

• The authorities are cracking down harder on nominee structures in 2025/2026 – with audits, criminal proceedings and ordered forced sales.
• Since early 2026, Thai shareholders in companies with foreign participation must prove that the capital comes from their own funds (among other things, via bank statements).
• Possible consequences range from fines and forced sale through to criminal prosecution.

Note: this article is not legal or tax advice. Before taking any action, check the official sources (Land Office, Condominium Act) and consult an independent Thai specialist lawyer.

Options compared

Frequently asked questions

Can I switch from leasehold to freehold later on?

In principle yes – if freehold quota becomes available again in the project (e.g. through a returned unit) and the developer agrees to the switch. There is no guarantee of this. Have any potential switch option confirmed in writing before you sign a leasehold.

Do I lose my money with leasehold after 30 years?

The right of use ends with the term if no contractual renewal applies. A residual value can be preserved through agreed renewal options or through a resale during the term – but only the term actually registered can be reliably factored into your calculations.

How much cheaper is leasehold really?

Depending on the project and source, the price discount is around 10–25% compared with comparable freehold. On top of that comes the advantage of significantly lower transaction costs (approx. 1.1% instead of around 6.3%). Set against this advantage is the weaker resale value.

Will the 49% quota be raised soon?

Raising the foreign quota is being debated politically in Thailand, but as of 2026 nothing has been decided. For your purchase decision, rely on the prevailing 49% rule and not on announcements.

Is a Thai company really necessary for a condo?

No. For condominiums the company structure is superfluous, because freehold is possible via the quota or the secondary market – and it is legally risky given the current nominee crackdowns. For a condo, there is simply no good reason for it.

This is exactly where we come in: we know the current quota availability of ongoing off-plan projects in Pattaya and Jomtien, and we find freehold units before they're gone – including waiting-list places and suitable alternative projects. To learn what buying off-plan fundamentally means, read our guide Buying Off-Plan in Pattaya. If you'd like to know which genuine freehold options are currently available for your preferred profile, feel free to get in touch for a free initial consultation – and secure our free guide for DACH buyers in Thailand in advance.