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Buying property in Koh Samui involves navigating Thai property laws that restrict foreign land ownership but provide several legal alternatives.
As of September 2025, foreigners can own condos directly in their name, hold property through Thai Limited Companies, or enter long-term lease agreements for land and villas. Each ownership structure requires specific legal procedures, from title deed verification to proper money transfers that comply with Bank of Thailand regulations. The buying process typically takes 4-8 weeks when all documentation is prepared correctly.
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Foreigners cannot own land directly in Koh Samui but can purchase condos in their name or hold property through Thai companies or leasehold agreements.
The purchase process requires legal due diligence, title deed verification, and proper money transfers that comply with Thai regulations.
| Ownership Type | Legal Structure | Key Requirements |
|---|---|---|
| Condominium Freehold | Direct foreign ownership | Maximum 49% foreign ownership in building |
| Leasehold | 30-year lease with renewals | Lease registration at Land Office required |
| Thai Limited Company | Company owns property | 51% Thai shareholders minimum |
| Thai Spouse Ownership | Land registered to Thai spouse | Foreign spouse must waive property rights |
| Transfer Fees | 2% of registered value | Typically split between buyer and seller |
| Legal Due Diligence | Title verification process | Local lawyer essential for all transactions |
| Money Transfer | Through Thai bank | Must specify "property purchase" purpose |
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CEO & Co-Founder at Villa Finder
How do I check if foreigners can legally own land or property in Koh Samui?
Foreigners cannot legally own land directly in Koh Samui under Thai law.
The Thai Land Code strictly prohibits foreign nationals from owning land in their personal name. This restriction applies to all types of land throughout Thailand, including Koh Samui. However, foreigners can legally own condominiums in their name, provided the foreign ownership quota in the building does not exceed 49%.
As of September 2025, the Condominium Act allows foreigners to purchase and own condo units with full freehold rights. This means you can buy, sell, rent, and pass the property to your heirs without additional legal structures. The Land Office maintains records of foreign ownership percentages in each condominium building to ensure compliance with the 49% limit.
For land and villa ownership, foreigners must use alternative legal structures such as long-term leasehold agreements (up to 30 years with renewal options) or establishing a Thai Limited Company where Thai nationals hold at least 51% of the shares. These methods provide legal pathways to control property while respecting Thai ownership laws.
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What are the main ownership options available, like leasehold, freehold through a company, or condo ownership?
Four main ownership structures are available for foreign property buyers in Koh Samui.
| Ownership Type | Structure Details | Best For |
|---|---|---|
| Condominium Freehold | Direct ownership in personal name, maximum 49% foreign ownership per building | Investors seeking simple ownership, part-time residents |
| Leasehold Agreement | 30-year lease with two 30-year renewal options, can own structure on leased land | Villa buyers, long-term residents seeking privacy |
| Thai Limited Company | Company owns land with 51% Thai shareholders, foreigner controls company | Business-oriented buyers, commercial property investors |
| Thai Spouse Ownership | Property registered to Thai spouse, foreign spouse waives rights | Married couples with full trust relationship |
| Usufruct Rights | Right to use and benefit from property for lifetime or specific period | Retirement planning, long-term personal use |
How do I choose the right type of property—villa, condo, or land—depending on my situation?
Your choice depends on your budget, lifestyle preferences, investment goals, and legal comfort level.
Condominiums offer the simplest ownership structure for foreigners, requiring no additional legal entities or complex arrangements. Koh Samui condo prices range from 3.5 million THB for older units to 25 million THB for luxury beachfront properties as of September 2025. Condos work best for investors seeking rental income, part-time residents, or buyers who prefer low-maintenance ownership.
Villas provide more privacy, space, and customization options but require leasehold or company structures. Villa prices start around 8 million THB for inland properties and can exceed 100 million THB for beachfront estates. Villa ownership suits families seeking permanent or extended residency, buyers wanting privacy and garden space, or investors targeting the luxury rental market.
Land plots offer maximum development flexibility but involve the highest legal complexity and risk. Raw land prices vary from 500,000 THB per rai (1,600 sqm) for inland plots to 50 million THB per rai for beachfront land. Land ownership makes sense for developers, buyers planning custom construction, or long-term investors with strong legal support.
Consider maintenance costs, which average 3,000-8,000 THB monthly for condos versus 15,000-40,000 THB monthly for villas, plus potential company maintenance costs of 30,000-60,000 THB annually for corporate ownership structures.
What legal checks and due diligence should I do before signing anything?
Comprehensive legal due diligence requires verification of title documents, ownership history, permits, and regulatory compliance.
1. **Title Deed Verification**: Your lawyer must inspect the original title deed at the Land Office to confirm authenticity and ownership. Chanote title deeds provide the highest security, while Nor Sor 3 Kor titles offer good protection. Avoid properties with Nor Sor 2 or lower title levels.2. **Ownership Chain Investigation**: Review the property's ownership history for the past 10-15 years to identify any irregularities, disputes, or questionable transfers that could affect your future ownership rights.3. **Encumbrance Check**: Verify that no mortgages, liens, or legal claims exist against the property. This search must be conducted at the Land Office where the property is registered.4. **Building Permits and Licenses**: Confirm all construction permits, occupancy certificates, and regulatory approvals are valid and complete. This is especially critical for new developments or recently constructed properties.5. **Physical Survey**: Conduct a professional land survey to verify actual boundaries match the title deed measurements and identify any encroachments or boundary disputes with neighboring properties.It's something we develop in our Thailand property pack.
How do I verify that the land title deed is clean and has no disputes or encumbrances?
Title deed verification requires physical inspection at the Land Office and comprehensive background checks.
Your lawyer must visit the Land Office where the property is registered to examine the original title deed documents. The Land Office maintains official records showing the current owner, property boundaries, size measurements, and any registered encumbrances such as mortgages or liens. This inspection cannot be done online or through copies - original documents must be physically reviewed.
The lawyer will check for red flags including multiple ownership transfers within short time periods, unusual price patterns in previous sales, outstanding debts registered against the property, or active legal disputes. Properties involved in inheritance disputes, divorce proceedings, or business bankruptcies carry higher risks and require additional investigation.
For condominium purchases, additional verification includes checking the building's juristic person status, outstanding common area fees, building debt levels, and foreign ownership quota compliance. The developer or building management must provide these records, and your lawyer should verify their accuracy with the Land Office registration.
Professional land surveys cost 15,000-35,000 THB but provide essential verification that actual property boundaries match the title deed specifications and identify any neighbor encroachments or boundary disputes that could complicate ownership.
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What's the role of a local lawyer in the buying process, and how do I find a trustworthy one in Samui?
A local lawyer handles all legal due diligence, contract negotiations, and transaction oversight to protect your interests throughout the purchase process.
Thai property lawyers perform title deed verification at the Land Office, review all contracts and legal documents, conduct encumbrance searches, verify building permits and zoning compliance, and oversee the final property transfer process. For company or leasehold structures, lawyers also handle entity formation, shareholder agreements, and ongoing compliance requirements.
Reputable property lawyers in Koh Samui typically charge 50,000-150,000 THB for standard condo purchases and 100,000-300,000 THB for complex villa or company structure transactions. These fees cover all legal work from initial due diligence through final transfer registration.
Finding trustworthy lawyers requires checking credentials with the Thai Bar Association, reviewing client testimonials and case histories, and verifying specialization in property law and foreign ownership regulations. Established law firms in Koh Samui include Samui Law Firm, Benoit & Associates, and Conrad Properties Legal Services, all of which specialize in foreign property transactions.
Avoid using lawyers recommended by sellers or developers, as this creates potential conflicts of interest. Independent legal representation ensures your lawyer's loyalty remains with your interests throughout the transaction process.
How does the buying process actually work step by step, from reservation deposit to final transfer?
The Koh Samui property purchase process follows a structured sequence that typically takes 4-8 weeks from initial agreement to final transfer.
1. **Reservation Agreement**: Sign a reservation agreement and pay a refundable deposit of 50,000-200,000 THB to secure the property while legal due diligence is conducted. This agreement should include specific timelines and conditions for proceeding.2. **Legal Due Diligence**: Your lawyer conducts comprehensive title verification, encumbrance checks, permit reviews, and physical surveys over 2-3 weeks. This period determines whether to proceed with the purchase or withdraw.3. **Sale and Purchase Agreement**: Upon satisfactory due diligence results, sign a detailed purchase agreement specifying price, payment schedule, transfer timeline, and conditions. Pay an additional deposit of 10-30% of purchase price.4. **Company Formation or Lease Setup**: For non-condo purchases, establish the necessary legal structure (Thai Limited Company or leasehold registration) with proper documentation and regulatory filings.5. **Final Payment and Money Transfer**: Transfer remaining purchase funds through a Thai bank with proper documentation stating the money is for property purchase. This documentation is required for future remittance abroad.6. **Property Transfer**: Complete the transfer at the Land Office with buyer, seller, and lawyers present. Pay transfer taxes and fees, receive the new title deed or lease agreement, and complete the transaction.What are the typical fees, taxes, and ongoing costs that I need to budget for in Koh Samui?
Total transaction costs typically range from 6-12% of property value, depending on ownership structure and property type.
| Cost Category | Amount | Who Pays |
|---|---|---|
| Transfer Fee | 2% of registered value | Typically split buyer/seller |
| Stamp Duty | 0.5% of registered value | Buyer |
| Withholding Tax | 1% of registered value | Seller (but often negotiated) |
| Legal Fees | 50,000-300,000 THB | Buyer |
| Company Setup | 50,000-100,000 THB initial | Buyer (if needed) |
| Lease Registration | 1% of lease value | Lessee |
| Property Tax (Annual) | 0.02-0.1% of appraised value | Owner |
Ongoing costs include property taxes of 0.02-0.1% annually on appraised value, condominium common fees of 30-80 THB per square meter monthly, villa maintenance costs of 15,000-40,000 THB monthly, and company maintenance fees of 30,000-60,000 THB annually for corporate ownership structures.
How do I transfer money from abroad in a way that complies with Thai property laws?
Money transfers must be conducted through Thai banks with specific documentation to comply with foreign exchange regulations and property ownership requirements.
Use the Thai bank's international wire transfer service and clearly specify the purpose as "for purchase of property in Thailand" on all transfer documentation. This designation is crucial for legal compliance and enables future remittance of funds abroad when selling the property. The Bank of Thailand requires this documentation for all foreign property investments exceeding 2 million THB.
Transfer the full purchase amount in foreign currency and allow the Thai bank to convert to Thai Baht upon arrival. This process generates a Foreign Exchange Transaction Form (FET Form) or Credit Advice, which serves as legal proof that the funds originated from abroad. Keep all original transfer documents, as the Land Office requires them during property registration.
Bangkok Bank, Kasikorn Bank, and SCB all offer dedicated property purchase wire transfer services with proper documentation. Transfer fees typically range from 500-2,000 THB plus correspondent bank charges. Large transfers exceeding 20 million THB may require additional Bank of Thailand notifications and approvals.
Avoid using informal money transfer services, cryptocurrency, or cash payments, as these methods do not provide the required legal documentation and may violate Thai foreign exchange laws.
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What are the common mistakes foreigners make when buying property in Koh Samui, and how do I avoid them?
The most costly mistakes involve inadequate legal due diligence and improper ownership structures that fail to comply with Thai law.
1. **Using Seller's Lawyer**: Many buyers accept the developer's or seller's recommended lawyer to save costs, creating conflicts of interest. Always hire independent legal representation that works exclusively for your interests.2. **Skipping Title Verification**: Some buyers rely on photocopies or seller assurances without conducting proper Land Office title verification. This can result in purchasing disputed or encumbered properties with hidden legal problems.3. **Improper Company Structures**: Setting up Thai Limited Companies with nominee shareholders or inappropriate share distributions violates Thai law and can result in property loss. Use legitimate Thai partners with genuine investment or business relationships.4. **Inadequate Money Transfer Documentation**: Transferring funds through informal channels or without proper "property purchase" documentation prevents legal property registration and future fund repatriation.5. **Ignoring Zoning and Permit Issues**: Purchasing properties without proper building permits or in restricted zones can result in demolition orders or inability to renovate or expand.Avoid these issues by budgeting sufficient time and money for proper legal due diligence, using independent qualified lawyers, following proper money transfer procedures, and understanding all ownership structure requirements before committing to purchase.
How do I make sure the building permits and construction follow Thai regulations?
Verify all construction permits, occupancy certificates, and regulatory compliance before finalizing any property purchase in Koh Samui.
Your lawyer must obtain copies of the building permit (Anuyart Kor Sang), construction permit modifications, occupancy certificate (Anuyart Chai Gan), and any special permits required for the property's location. The Koh Samui Municipal Office and Provincial Public Works Department maintain these records and can confirm permit validity and compliance status.
For new construction or recent developments, verify that building work matches approved plans and that all required inspections have been completed and approved. Buildings constructed without proper permits face potential demolition orders or substantial fines that become the new owner's responsibility.
Beachfront and hillside properties require additional environmental permits and setback compliance verification. Many older properties in these locations have grandfathered status, but any renovations or expansions must comply with current regulations including 20-meter beach setbacks and slope stability requirements.
Condominium buildings must have juristic person registration, fire safety certificates, elevator permits (if applicable), and utility connection approvals. The building management should provide these documents, but your lawyer should independently verify their validity with the relevant government offices.
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What happens if I want to sell the property later or pass it on to my heirs?
Exit strategies depend on your ownership structure and require advance planning to ensure smooth transfers and tax optimization.
Condominium sales to other foreigners are straightforward, following the same process as your original purchase with title transfer at the Land Office. However, selling to Thai buyers may require additional considerations if the building approaches the 49% foreign ownership limit. Capital gains taxes apply based on holding period, ranging from 0% for properties held over 5 years to 35% for properties sold within one year.
Leasehold properties can be transferred by assigning the remaining lease term to new lessees, subject to landowner approval. Lease assignments typically require legal documentation and registration fees of 1% of the assigned lease value. The remaining lease term significantly affects property value, with properties having less than 10 years remaining lease often selling at substantial discounts.
Thai Limited Company properties require transferring company shares rather than the property directly. This process involves updating company registration, conducting shareholder meetings, and potentially restructuring shareholding arrangements to comply with foreign ownership regulations. Company transfers can be complex and may trigger business taxes in addition to property transfer costs.
Inheritance planning requires specific legal structures, as Thai inheritance law may not recognize foreign wills or inheritance arrangements. Establishing proper succession planning through Thai wills, family trusts, or corporate structures ensures smooth property transfers to heirs while minimizing tax burdens and legal complications.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Successfully purchasing property in Koh Samui requires understanding Thai ownership laws, conducting thorough legal due diligence, and using proper money transfer procedures that comply with foreign exchange regulations.
Working with qualified independent lawyers, verifying all permits and title documentation, and choosing the appropriate ownership structure for your situation ensures legal protection and smooth property transactions in this popular island destination.
Sources
- Conrad Properties - Foreign Ownership Guide
- Conrad Properties - Property Laws and Regulations
- Estate Samui Properties - Buyers Guide
- Benoit Partners - Investing in Koh Samui
- Lawzana - Real Estate Due Diligence Lawyers
- Benoit Partners - Real Estate Due Diligence
- Samui Law Firm - Property Purchase Guide
- Samujana - Property Purchase Process