Short answer: renting a property to paying guests for less than a month is treated as running a hotel. Without a hotel licence or a valid exemption, it breaks the Hotel Act. Lets of a month or more are ordinary leases and don't need a licence.
The rule
The Hotel Act B.E. 2547 (2004) covers any business offering paid accommodation for stays of under one month. That applies to villas and condos alike, and it doesn't matter whether the booking came through Airbnb, Booking.com or a direct message.
The small-accommodation exemption
Small places can register for an exemption instead of a full licence. Since 29 October 2023 the limit has been up to 8 rooms and no more than 30 guests (it used to be 4 rooms and 20 guests). The exemption is applied for at the local district office, and the building still has to meet building-control requirements for that use.
Condos: a firm no
In November 2023 the Interior Ministry told every provincial governor that condominium units cannot be used for hotel operations, even with the other owners' consent. In practice, a condo unit can't get a hotel licence, and the small-accommodation route is doubtful for condos too.
On top of that, most condo buildings' own by-laws ban stays of under 30 days, and the juristic person can enforce those rules against owners.
What happens if you're caught
The fines usually reported are up to 20,000 baht plus 10,000 baht for each day the offence continues, with prison possible for serious cases. When the issue reached court in Hua Hin in 2018, unit owners letting by the night were fined, and the court confirmed that without a licence they could only let for 30 days or more.
Is it changing?
Two draft laws were in progress in 2026 to bring home-sharing into a registration system. In July 2026 the House accepted the hotel law amendment in principle and set up a study committee. Nothing has been enacted yet, so the current Hotel Act still applies.
Enforcement in Phuket has visibly tightened in 2026, with inspections of unlicensed nightly rentals. Some widely shared figures on inspections come from single, unofficial sources, so we haven't repeated them here.
What owners can do
- Let for a month or more. Monthly and long-term lets sit outside the Hotel Act. You still have to file TM30 for foreign tenants.
- For a villa, look at the small-accommodation exemption or a full licence if the property and zoning allow it.
- For a condo, read the by-laws and assume nightly letting is not allowed.
- Keep records. Rental income is taxable however it is earned; see our rental tax guide.
Want someone to handle this?
If you own a villa or condo in Phuket, Pearl Property's management team takes care of the day-to-day paperwork for owners, from TM30 reports to tenant contracts and rental records for your accountant.
General information, not legal or tax advice. Figures were correct on the date shown above; rules change, so confirm with a Thai lawyer, accountant or the relevant office before you act.