Short-term rental rules in Thailand: the Hotel Act, condos and villas
Updated · ZODIAC Co., Ltd.
Renting out a Thai condominium for less than 30 days at a time is generally treated as running a hotel, which requires a licence under the Hotel Act B.E. 2547 (2004); most condominium buildings cannot obtain one. Small houses or villas with up to eight rooms and 30 guests can be exempt from the hotel licence if they are notified to the local registrar as non-hotel accommodation. Reforms were before Parliament in 2026 but are not yet law.
The 30-day line
The Hotel Act defines a hotel as a business providing temporary accommodation to travellers for payment. Letting a property by the night or week falls within that definition. Courts and practitioners draw the line at 30 days: tenancies of 30 days or more are residential leases governed by the Civil and Commercial Code, while shorter stays are accommodation business.
Running a hotel business without a licence is an offence under Section 59 of the Act, punishable by imprisonment of up to one year, a fine of up to THB 20,000, or both, plus a daily fine of up to THB 10,000 while the offence continues. Managers and agents who operate the rentals can also be liable.
Why most condominiums cannot be let nightly
A hotel licence requires a building that meets hotel standards for zoning, fire safety, building use and management. Condominiums are registered as residential buildings, so an individual unit generally cannot qualify, and the building as a whole rarely holds a hotel licence unless it was designed as one. In addition, the Condominium Act lets owners adopt building regulations, and many condominiums prohibit or restrict stays of under 30 days.
Some Phuket projects are built and licensed as hotels or condotels, with units sold to investors and let through a licensed operator. In those cases short stays are lawful because the operator holds the licence. If short-term letting is part of your plan, ask to see the hotel licence and the rental agreement with the operator, not a brochure.
Enforcement is increasing
Enforcement had been patchy for years, but it tightened in 2025. In February 2025, the then Interior Minister ordered the Department of Provincial Administration to investigate complaints from condominium owners about units being let to tourists by the day. Provincial officials, police and juristic persons have since acted against unlicensed short-term letting in several cities, and complaints from neighbours or building management are a common trigger.
The practical risk for an owner is not only a fine. A building's juristic person can enforce its regulations, platforms can remove listings, and insurance may not cover guests in an unlawful letting.
Owners sometimes assume that using a management company transfers the risk. It does not: the owner, the manager and anyone else operating the letting can all be liable, and a management contract cannot make an unlicensed hotel business lawful.
The small-accommodation exemption for houses and villas
A ministerial regulation under the Hotel Act exempts small accommodation from the definition of a hotel. Since the amending regulation of 2023 took effect on 29 October 2023, a property with no more than eight rooms and no more than 30 guests in total can operate without a hotel licence, provided it is notified to the local registrar as non-hotel accommodation and meets the prescribed conditions. The earlier limit was four rooms and 20 guests.
This route is relevant to villas and houses, which is why villa holiday letting is more common than condominium letting. It still requires notification, compliance with local rules and building permits appropriate for the use, and the land lease or estate rules may restrict it. Condominium units generally do not fit this route in practice because of building use and condominium regulations.
Monthly lets as a lawful middle ground
For many condominium owners, the practical solution is to let by the month. A tenancy of 30 days or more is a residential lease, not a hotel business, so it falls outside the Hotel Act. Phuket's seasonal visitors, remote workers and relocating families create demand for one-, three- and six-month stays, particularly in the high season from roughly November to April.
A monthly let still needs a written tenancy agreement, and landlords have obligations under immigration rules to report foreign guests staying at their property, usually through the TM30 notification. Rent should be declared for Thai income tax. Some buildings set a minimum tenancy period longer than 30 days in their regulations, so check the rules before advertising.
What changed in 2026: reform proposals
Thailand has accepted that a blanket ban on platform rentals is hard to enforce. In January 2026 law firms described draft legislation for non-hotel accommodation and a modernised hotel law, including a lighter registration route that could extend to some condominium letting. In July 2026, the House of Representatives accepted a Hotel Act amendment in principle and appointed a committee to examine it, with the Ministry of Tourism and Sports participating from 15 July.
None of this is law yet. Commentators also note that the proposed definitions could leave many condominium units outside the new framework unless secondary regulations say otherwise. Until reforms are enacted and published, the 30-day rule and the existing hotel licensing requirements apply. We will update this guide when the position changes.
Taxes on rental income
Whether you let long-term or through a licensed operator, rental income from Thai property is taxable in Thailand. Owners file a personal income tax return and can deduct a standard 30% of gross rent or actual documented expenses; rent paid by a Thai company is usually subject to withholding tax, 15% for non-residents. Property used for a commercial accommodation business may also be assessed for land and building tax at commercial rather than residential rates.
Keep invoices and receipts if you plan to claim actual expenses instead of the standard deduction.
Lawful letting options for owners
Owners who want income from a Phuket property without legal risk usually choose one of the following.
- Long-term tenancies of 30 days or more, including monthly lets to seasonal visitors.
- A unit in a licensed hotel or serviced-residence programme, with the operator holding the licence.
- A villa or house operated within the small-accommodation exemption, properly notified to the local registrar.
- A properly licensed accommodation business, which is a commercial undertaking with its own permits and tax position.
Questions to ask before you buy for rental
Ask the developer or seller whether the building or operator holds a hotel licence, what the condominium regulations say about stays under 30 days, and whether the rental programme's figures are based on nightly letting. For villas, ask whether the estate permits holiday letting and whether any existing rentals have been notified. Build your financial plan on the lawful model for that property. Our rental yield guide shows how to test the numbers.
If you already own a condominium that is being let nightly by a manager, review the arrangement now. Moving to monthly tenancies, or to a licensed operator, reduces legal exposure while the reform process continues, and protects your relationship with the building's juristic person and other owners. Keep records of every tenancy and its length, because they are your evidence that the letting was residential rather than a hotel business if questions are ever raised.