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Is a Phuket short-term rental legal? What the Hotel Act says about daily condo lets, the 8-room exemption for houses, fines and the new draft law.

A Phuket short-term rental of less than a month is legal only if the property holds a hotel licence or qualifies for the small-accommodation exemption under Thailand's Hotel Act. Letting a condominium unit by the night or week on Airbnb or similar platforms is, in practice, not permitted, and Phuket officials have raided buildings over it this year. Leases of one month or longer fall outside the Hotel Act.
For anyone running a Phuket short-term rental, the question matters because the province is enforcing the rules more actively, and because the government has a new accommodation law in the pipeline that has not yet been passed.
The Hotel Act B.E. 2547 (2004) treats any place offering paid temporary accommodation to travellers as a hotel. Thai authorities and lawyers generally read "temporary" as stays of less than one month, which is why monthly leases are the standard way to rent a property out legally without a licence.
Section 15 of the act bans operating a hotel without a licence. Under Section 59, the penalty is up to one year in prison, a fine of up to 20,000 baht, or both, plus a further fine of up to 10,000 baht for every day the offence continues.
Almost never. A condominium is registered as residential property, and a hotel licence requires a building approved for hotel use. In November 2023 the Land Department issued a circular stating that condominium units cannot be used for hotel operations, law firm Tilleke & Gibbins reported, unless the building's condominium registration is cancelled. Many buildings' own regulations also ban daily rentals.
That is why condos have been the main target in Phuket. On July 29, on orders from Phuket Governor Chotinarin Kerdsom, officials inspected condos in Wichit and Kamala that were being rented by the day, The Phuket News reported. In Kamala, 17 units were found in daily rental use; the operator admitted the activity, evidence was seized, and a case was prepared under Section 15.
On October 21, Vice Governor Romdon Hayiawae led inspections of a residence in Phuket Town and a property in Patong that had been advertised online for short stays, according to The Phuket News and The Thaiger. Officials cited building-use violations, though no charges had been announced at the time of reporting.
Owners of houses and villas have one legal route without a full hotel licence. A Ministerial Regulation issued in 2023 raised the threshold for small accommodation from four rooms and 20 guests to no more than eight rooms and 30 guests. Such a property is not treated as a hotel if the owner notifies the local registrar, the building is inspected, and a written acknowledgement is issued. Officials have 40 days to respond.
| Type of letting | Under current rules |
|---|---|
| Condo unit, under 1 month | Not permitted in practice |
| House or villa, up to 8 rooms / 30 guests, under 1 month | Allowed after notification and acknowledgement |
| Larger property, under 1 month | Hotel licence required |
| Any property, 1 month or longer | Outside the Hotel Act; a normal lease |
Foreign owners face extra limits. Running a hotel business remains restricted for foreigners under List 3 of the Foreign Business Act, so a foreign-controlled company usually cannot simply apply for a licence. Rules on whether foreigners can buy property in Phuket are a separate question from whether they can operate it as a business.
The cabinet is working on a new Accommodation Establishment Act. Deputy government spokeswoman Lalida Persvivatana outlined the 98-section draft on October 1, the Bangkok Post reported. It would create three tiers:
The draft also includes a "super licence" covering up to 10 related activities, an electronic system run by the Department of Provincial Administration, guest records filed every 24 hours with details of foreign guests passed to Immigration, and refund rights for guests. Law firm Formichella & Sritawat has noted that the bill is not yet law, has no confirmed start date and does not appear to lift the restriction on hotel use of condos. The Thai Hotels Association has raised concerns about an earlier version, as covered in our report on the new hotel law.
Rental income is also taxable in Thailand, so declare it. If you plan to sell, our guide to the condo title transfer process explains the steps.
The platform itself is not banned, but renting a property for less than a month without a hotel licence or the small-accommodation exemption breaches the Hotel Act. Condo units are the hardest case.
Up to one year in prison, a fine of up to 20,000 baht, or both, plus up to 10,000 baht for each day the offence continues.
Yes. A lease of one month or longer is outside the Hotel Act, though building regulations still apply.
No. As of early November 2026 the Accommodation Establishment Act is still a draft, and no effective date has been announced.
Photo: Patong, Phuket, with a condominium tower, by Thorfinn Stainforth / Wikimedia Commons, CC BY-SA 3.0.