Thailand · Risks · 4 min
Thailand: Is Short-Term Rental Legal (Hotel Act and the 30-Day Rule)?
Renting out accommodation in Thailand for less than a month is considered hotel business. Operating without a license is a criminal offense, and a condominium unit cannot be used for hotel business at all. Rental yield calculations for a condo should be based on rentals of one month or longer.
Key figures
Where the 30-day rule comes from
The 2004 Hotel Act defines a hotel as a business providing temporary accommodation for a fee. Accommodation rented by the month or longer is not covered by this definition. This is the basis of the market's “30-day rule” (AustCham Thailand). The substance of the arrangement matters: if a listing quotes a nightly rate and accepts short bookings, adding “minimum 30 nights” does not make it compliant. The booking platform used does not change the legal position.
That is why monthly rental agreements have become standard in the market. This is not a workaround, but a lawful long-term rental format. Income from this type of rental is lower than the figures advertised for nightly rentals, but it does not carry the risk of fines or disputes with the building management.
Penalties
Operating a hotel without a license violates Section 15. Under Section 59, the penalty is a fine of up to 20,000 baht plus 10,000 baht for each day the violation continues (Library of Congress); according to FRANK Legal & Tax, imprisonment for up to one year is also possible (FRANK Legal & Tax). In February 2025, the government publicly warned foreign buyers that renting condo units to tourists by the night is illegal and ordered inspections of condominiums (Library of Congress).
Condominiums: a separate prohibition
In November 2023, the Land Department confirmed that condominium units cannot be used for hotel business. Therefore, renting out a condo unit by the night is illegal regardless of any licenses (AustCham Thailand). In addition, many buildings prohibit this type of rental under their management rules.
A building can be used as a hotel only after its condominium registration is canceled and hotel permits are obtained. In practice, this is possible only before units are sold or with the unanimous consent of all owners (AustCham Thailand). If a seller promises nightly rentals in a building registered as a condominium, ask for a written explanation of the legal basis.
Check the building rules separately: they apply to all owners, and the management company may restrict access for short-term guests, require resident registration, and impose fines provided for in the bylaws. A dispute with the management company is the quickest way to lose rental income.
Simplified regime for small properties
Since 2023, a property with up to 8 rooms and up to 30 guests can operate as non-hotel accommodation. This is not automatic: the operator must notify the registrar, undergo an inspection, and meet safety requirements (AustCham Thailand). Foreign operators are also subject to the Foreign Business Act: hotel business is on List 3, and a company with a foreign majority ownership needs a license or BOI certificate.
The new law has not yet been passed
On 29 September 2026, the government presented a draft Accommodation Places Act with three categories: up to 8 rooms - notification, 9-40 - registration, and more than 40 - a license. It has not been passed, no commencement date has been set, and it does not lift the condominium prohibition (AustCham Thailand).
The draft also provides for an electronic notification system and the transfer of information about foreign guests to the Immigration Bureau. Industry commentators say booking platforms may be required to verify property registration. This would strengthen enforcement, not ease restrictions (AustCham Thailand).
Takeaway for buyers: keep track of changes to accommodation laws, but do not buy a condo on the assumption that nightly rentals will be legalized in the future.
What this means for your calculations
This article is for general information only and is not legal or tax advice. The terms should be checked for the specific property before completing a transaction.
- calculate condo yield based on rentals of one month or longer;
- nightly rentals are viable only for a villa with a licensed operator or as part of a hotel project;
- if the seller's income projections are based on nightly rentals in a condominium, that is a legal risk, not a yield assumption;
- for a villa intended for nightly rentals, establish in advance who the operator will be, whether they have a notification or license, and whose name will be on the guest agreement.
What this means for buyers
- Rentals of less than a month constitute hotel business, and operating without a license is a violation.
- Condominium units cannot be rented out by the night.
- The realistic baseline for a condo is a rental term of at least 1 month.
- The new accommodation law is still a draft and will not legalize Airbnb rentals in condominiums.
Current as of . This is general information, not legal or tax advice.
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