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Doctor Property considers itself a responsible and reputable real estate agency. We do not wish to withhold information from you, nor will we embellish things simply to make a quick sale. We are committed to maintaining high standards and building long-term trust with our clients. For this reason, we believe it is important to explain not only the benefits of purchasing property in Thailand, but also some of the potential risks and legal considerations involved. As with any major investment, having accurate information and obtaining appropriate professional advice is essential.

Property ownership and purchasing procedures in Thailand can differ considerably from those in Europe and other countries, particularly for foreign nationals. We would therefore like to provide some general information to help you better understand the process when considering a house, villa, land interest or condominium. The information provided here is intended as a general guide only and should not be regarded as legal advice. We strongly recommend instructing an independent Thai lawyer experienced in property transactions before entering into any agreement. If required, we can introduce you to independent legal professionals familiar with property transactions in Koh Samui.

Foreign nationals considering property in Thailand should be aware that Thai law places restrictions on direct foreign ownership of land. Different rules apply depending on the type of property and the legal rights being acquired. Foreign investment in Thailand is common, but every transaction should be structured in accordance with Thai law and the circumstances of the individual property. You should always seek independent legal advice and verify important legal information before making a purchase decision.

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The guide for your real estate purchase in Koh Samui – Thailand!

Here Doctor Property presents some of the important matters that foreign nationals should consider when buying property in Thailand. We also invite you to visit our Koh Samui property blog regularly, where we publish information about the local property market, new developments and other subjects relevant to property buyers.

Basic considerations before you buy a property in Koh Samui – Thailand!

A property purchase should always be carefully considered. It is particularly important to understand the current legal position and obtain independent legal advice before entering into a transaction. Doctor Property can introduce you to established law firms if required. The purchasing process in Thailand may differ considerably from the process in your home country, but many of the same commercial considerations still apply. Is the location suitable? Is the asking price reasonable? Is the property appropriate for your intended use? Will you live there yourself, use it as a holiday home or operate it as a rental property? What ongoing maintenance and management costs should be expected?

Once you have a clear understanding of your requirements, Doctor Property can assist you in identifying suitable properties. We operate as an independent real estate agency and have extensive experience of the Koh Samui property market. We can assist with property selection, location considerations, market comparisons and negotiations, while legal matters should always be reviewed by your appointed lawyer.

Is financing through a Thai bank possible?

Obtaining mortgage finance from a Thai bank can be difficult for foreign nationals, particularly where the applicant has no substantial financial history or qualifying income in Thailand. Lending criteria vary considerably between banks and individual applicants.

Some developers may offer staged payment plans or other forms of developer financing for particular projects. The terms, costs and legal implications of any such arrangement should be carefully reviewed before proceeding. Buyers should generally establish their available budget and financing arrangements before beginning a serious property search.

Would you like to buy your property in Koh Samui – Thailand as a pure investment?

If you are purchasing primarily as an investment, it is important to consider which type of property best suits your objectives. This may include villas, townhouses, apartments or registered condominium units. The title, legal rights being acquired, location, maintenance costs, management fees and likely resale market should all be considered.

Rental demand can also vary significantly depending on property size, location, design, facilities and target market. A realistic assessment of expected occupancy, rental income and ongoing costs should therefore be made before calculating a projected return. Some developers also offer rental management programmes or guaranteed-return arrangements. Any such guarantee should be carefully examined, including the identity and financial strength of the party providing it and the conditions attached.

It is worthwhile studying the local rental market and comparing similar properties on major accommodation platforms. This can help provide a clearer picture of demand, achievable rental rates, guest expectations and competition within a particular area of Koh Samui.

Property types: individual property, community facilities, or apartment complexes?

Koh Samui offers a broad range of property types, from private hillside villas and beachfront homes to managed villa developments and apartment or condominium projects. Each type has its own advantages and disadvantages.

Managed developments may provide services such as security, common-area maintenance, cleaning, rental management and guest services. Buyers seeking a private residence may instead prefer a standalone property offering greater privacy and independence. Doctor Property can show you different property types and locations so that you can compare the options available.

Deposit / Reservation of the property in Koh Samui – Thailand

Once you have selected a property, it is common for a reservation deposit to be requested in order to remove the property from the market while contracts and due diligence are prepared. The amount and conditions vary considerably between transactions.

A reservation agreement should clearly state the agreed price, deposit amount, due-diligence period, circumstances under which the deposit is refundable or non-refundable, and any important conditions of the proposed purchase. Buyers should understand these terms before making payment and should obtain legal advice where appropriate.

Perform due diligence/risk assessment of the property

Before signing the main purchase agreement or completing the transaction, your legal representative should review the property and relevant documentation. Important matters may include:

Is there a legally enforceable right of access to the property?
Does the seller have the legal right and authority to sell or transfer the property?
Are there any registered mortgages, liens, leases or other encumbrances?
Does the property comply with applicable planning, construction and building regulations?
Are the building permits and other relevant approvals in order?
If a company is involved in the ownership or transaction, your lawyer should examine its legal status, ownership, liabilities, tax position and any other matters relevant to the transaction.

New construction projects (off-plan real estate) on Koh Samui – Thailand

Doctor Property offers a selection of new-build and off-plan developments on Koh Samui. Buyers considering an off-plan property should assess the developer’s experience, previous projects, construction programme, permits, contractual obligations and payment schedule.

One attraction of off-plan property is that payments are commonly made in stages as construction progresses rather than the entire purchase price being paid at the beginning. Some developments also allow buyers to select certain finishes, materials, colours or interior options during construction.

However, every development is different. Buyers should understand exactly what is included in the purchase price, the expected completion date, the remedies available if construction is delayed and the legal rights being acquired. Independent legal due diligence remains important before entering into an off-plan purchase agreement.

Important considerations regarding building codes and environmental regulations in Koh Samui – Thailand

Building restrictions in Koh Samui can depend on several factors, including distance from the coastline, elevation, land gradient, zoning and the type and scale of development. Planning and construction regulations may also change over time. Before purchasing land for development or relying on development potential, buyers should have the relevant title, planning restrictions and proposed construction independently reviewed by an architect and lawyer familiar with local regulations.

Coastal setback restrictions may limit or prohibit construction close to the shoreline.
Building height and total building area may be restricted depending on distance from the coastline.
Additional restrictions may apply to larger developments, hotels and multi-villa projects.
Properties at higher elevations may be subject to stricter limits on building height, building footprint and total developed area.
Steeply sloping land may be subject to substantial development restrictions or may not be suitable for new construction.
Environmental, drainage, access and landscape considerations may also affect whether and how a property can be developed.

Guarantees from the developer for your villa or apartment in Koh Samui – Thailand

Warranty and defect-liability periods vary between developments and developers. Buyers should carefully review the contractual warranty provisions covering the building structure, waterproofing, mechanical and electrical systems, swimming pools, fixtures, finishes and supplied equipment.

Any warranty should clearly identify its duration, the party responsible for carrying out remedial work and any exclusions or limitations. These terms should be reviewed before signing the purchase agreement.

Differences in the different land titles

Thailand has several categories of land documentation and title. The rights attached to them and the accuracy of the surveyed boundaries can differ considerably. Three commonly encountered forms are Chanote, Nor Sor Sam Kor and Nor Sor Sam. The legal status of any particular title should be confirmed by your lawyer before purchase.

Title “Chanote” (Chanote Ti Din):

Chanote is generally regarded as the strongest form of land title in Thailand and provides surveyed boundaries recorded with the Land Department. Boundary markers are normally placed on the land, and transactions involving the title are registered with the relevant Land Office.

Title: “Nor Sor Sam Kor”:

Nor Sor Sam Kor provides recognised possessory rights and surveyed boundaries, although the surveying and documentation differ from a Chanote title. Transfers and other dealings should be checked with the relevant Land Office and reviewed by your lawyer.

Title: “Nor Sor Sam”:

Nor Sor Sam land may have less precisely surveyed boundaries than higher forms of title and additional procedures can apply when transferring or dealing with the property. Particular care should therefore be taken to verify the land boundaries, neighbouring claims and legal status before proceeding.

Buy an apartment or a condominium

Foreign nationals may be able to acquire registered condominium units in their own name as freehold property, subject to the requirements of Thai condominium law and the applicable foreign ownership quota within the condominium development.

If the permitted foreign ownership quota has already been reached, foreign freehold ownership of an additional unit may not be available. Depending on the particular property, a leasehold arrangement may sometimes be offered instead. The legal position and documentation should be independently reviewed before proceeding.

Which visa is required for a purchase of real estate in Koh Samui – Thailand?

Purchasing property and obtaining permission to reside or work in Thailand are separate legal matters. Ownership of, or rights in, property do not automatically provide immigration or work rights. Visa categories, eligibility criteria and permitted periods of stay change from time to time, so buyers should obtain current immigration advice relevant to their individual circumstances.

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What taxes and fees do I have to pay for a property purchase in Koh Samui – Thailand?

Taxes and transfer fees depend on the type of property, the legal rights being transferred, the period for which the property has been held, the status of the seller and other factors. The parties should confirm the expected costs with their lawyer and the relevant Land Office before completing the transaction.

Transfer of property ownership:

A transfer of registered ownership may involve transfer fees, withholding tax, specific business tax and/or stamp duty depending on the circumstances of the transaction. The applicable taxes and the basis on which they are calculated should be confirmed for each individual transaction.

Leasehold property:

Registration of a lease may involve registration fees and stamp duty calculated according to the rental value and term of the lease. The agreement should state which party is responsible for these costs. Longer-term leases of immovable property should be properly documented and, where required, registered with the relevant Land Office.

Freehold property transfers:

Different taxes and fees may apply to a freehold property transfer depending on the circumstances of the seller and transaction. These can include transfer fees, withholding tax, specific business tax or stamp duty.

The Land Office uses an officially assessed value when calculating certain transfer costs. The assessed value may differ from the agreed purchase price. Current rates and the allocation of costs between buyer and seller should be confirmed before completion.

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Typical questions

Many interested buyers initially ask the following questions:

Can a Foreign National Ever Own Land in Thailand?

As a general rule, foreign nationals cannot directly own land in Thailand in their personal name. Limited statutory exceptions exist, while separate legal arrangements may allow a foreign national to obtain rights to use land or to own certain types of property. Independent legal advice should always be obtained for the circumstances of a particular transaction.

Option 1: Leasing.

The land remains owned by the registered landowner, while the foreign national may enter into a lease granting the right to use the land for an agreed period. A lease of immovable property exceeding three years generally needs to be registered with the Land Office in order to be enforceable for the longer period, and the maximum registered lease term is subject to Thai law.

Any future renewal is separate from the original lease and should not be regarded as automatically guaranteed. Depending on the circumstances, ownership of a building may also be legally separate from ownership of the land underneath it. The lease, building ownership and any related agreements should therefore be reviewed by an independent Thai lawyer before purchase.

Option 2: Usufruct.

A usufruct is a registered right that may allow a person to possess, use and enjoy another person’s immovable property subject to the terms of the arrangement and Thai law. A usufruct may, depending on how it is established, continue for a specified period or for the lifetime of the usufructuary. Its legal effect and suitability should be independently reviewed before it is relied upon as part of a property transaction.

Option 3: Statutory investment exception.

Thai law provides a limited route under which a qualifying foreign national making a substantial prescribed investment may, subject to government approval and other statutory conditions, be permitted to acquire a limited area of land for residential purposes. This is an exceptional route rather than the normal method of purchasing residential property and professional legal advice is essential.

Option 4: Thai citizenship.

A person who lawfully acquires Thai citizenship is no longer treated as a foreign national for the purposes of ordinary Thai land ownership restrictions. Obtaining Thai citizenship is a separate immigration and nationality process involving substantial eligibility requirements and should not be regarded as a normal property-investment strategy.

Can a Foreign National Purchase Condominiums?

Registered condominiums are one of the most straightforward forms of property ownership available to foreign nationals in Thailand. Foreign ownership is subject to the requirements of Thai condominium law and the applicable foreign ownership quota within the condominium development.

Where the permitted foreign ownership quota has already been reached, foreign freehold ownership of an additional unit may not be available. Some units may instead be offered on a leasehold basis, depending on the circumstances and the particular development. Buyers should have the ownership position and condominium documentation independently verified before making a purchase.

What Taxes are Incurred When Purchasing Real Estate?

Taxes and fees depend on the type of transaction and the circumstances of the buyer and seller. They may include:

Transfer fees payable upon registration of certain property transfers.
Stamp duty where applicable.
Specific business tax where applicable.
Withholding or income tax depending on the status of the seller and the circumstances of the transaction.
Other registration, legal or administrative costs depending on the property and transaction.

Current rates and the allocation of costs between the parties should be confirmed with your lawyer and the relevant authorities before completion.