Authored by the expert who managed and guided the team behind the Thailand Property Pack
Yes, the analysis of Koh Samui's property market is included in our pack
Foreigners cannot directly own land in Koh Samui but can own condominiums freehold or lease land through structured arrangements. The island offers attractive investment opportunities with rental yields ranging from 8-16% in key areas, though buyers must navigate complex legal frameworks and understand significant restrictions compared to Thai nationals.
If you want to go deeper, you can check our pack of documents related to the real estate market in Thailand, based on reliable facts and data, not opinions or rumors.
Foreigners can own condos freehold (49% building quota) or lease land for up to 90 years, but cannot directly own land.
Property purchase requires no Thai residency, though legal representation and proper fund transfers from overseas are essential for compliance.
| Ownership Type | Legal Structure | Key Restrictions |
|---|---|---|
| Condominium Freehold | Direct ownership in foreign name | Maximum 49% of building floor area |
| Land Leasehold | 30-year renewable lease | Cannot own land, only buildings |
| Thai Company Structure | 51% Thai ownership required | Complex compliance, ongoing oversight |
| Average Investment (Plai Laem) | $490,000+ | 12-16% rental yield potential |
| Average Investment (Bophut) | $300,000+ | 8-12% rental yield potential |
| Transfer Costs | 2% + 0.5% stamp duty | Plus legal and admin fees |
| Financing Options | Limited bank mortgages | 5-7% interest, large down payments |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What types of property can foreigners legally buy in Koh Samui, and what are the restrictions?
Foreigners can legally own condominiums freehold in Koh Samui, but face a 49% quota restriction per building project.
The most straightforward option is condominium ownership, where foreigners can hold direct freehold title as long as foreign ownership doesn't exceed 49% of the total floor area in any single building. This means if a condo project has 100 units, only 49 can be foreign-owned. You must also prove that funds were transferred from overseas with proper Foreign Exchange Transaction Forms.
Land ownership is completely prohibited for non-Thai nationals. Instead, foreigners can lease land for up to 30 years with two possible renewals, creating a maximum 90-year lease term. This structure allows you to own any buildings or villas constructed on the leased land, but never the land itself.
A Thai company structure offers another pathway, requiring minimum 51% Thai ownership and 49% foreign ownership. However, this involves complex legal compliance, ongoing reporting requirements, and the risk that Thai nominees actually control the company. Many lawyers now advise against this structure due to increased government scrutiny.
It's something we develop in our Thailand property pack.
Do foreigners need specific legal structures to own land in Koh Samui?
Foreigners cannot own land directly and must use leasehold arrangements or Thai company structures, with leasehold being the safer legal framework.
The 30-year renewable lease structure is generally considered the most secure option for accessing land-based properties like villas. Under this arrangement, you lease the land and own the buildings constructed on it. The lease can theoretically be renewed twice for additional 30-year periods, though renewals depend on the lessor's agreement and aren't automatically guaranteed.
Thai company formation requires at least seven shareholders with 51% Thai ownership. The foreign shareholder typically provides most capital while Thai nominees hold the majority shares. This structure faces increasing legal scrutiny, with authorities examining whether Thai shareholders are genuine partners or merely nominees for foreign control.
Long-term leases offer more predictable legal standing. The lease agreement should include clear terms for renewals, construction rights, and transfer provisions. Many developers now offer 90-year leases upfront, structured as three consecutive 30-year periods with automatic renewal clauses where legally permissible.
What residency or visa requirements exist for property ownership?
No Thai residency or specific visa is required to buy property in Koh Samui as a foreigner.
Property ownership rights are completely separate from residency status. You can purchase a condominium or enter a lease agreement regardless of whether you hold a tourist visa, work permit, or any long-term visa. Non-residents living abroad can buy property without ever establishing Thai residency.
However, if you plan to live in your Koh Samui property, you'll need appropriate visas for extended stays. Tourist visas allow 60-day stays with possible extensions. Retirement visas require age 50+ and proof of 800,000 baht in Thai bank accounts or 65,000 baht monthly income. Elite visas offer 5-20 year stays for substantial fees ranging from 600,000 to 2 million baht.
Property ownership doesn't grant any residency rights or visa advantages. Each visa category has specific requirements unrelated to property assets, though having Thai property can demonstrate ties to the country when applying for certain long-term visas.
Can property purchase be completed remotely without physical presence?
Yes, property purchase can be completed remotely using Power of Attorney, though physical presence offers better control over the process.
Remote purchases require appointing a reliable lawyer in Koh Samui with Power of Attorney to act on your behalf. This legal representative can sign contracts, transfer funds, and complete ownership registration at the Land Department. The Power of Attorney must be properly notarized and authenticated through Thai consulates in your home country.
Key documents like passport copies, fund transfer evidence, and marriage certificates (if applicable) can be submitted electronically or by mail. Video calls allow remote property inspections, though many buyers prefer final physical inspections before completion.
Remote purchases work best for off-plan developments or properties from established developers with strong reputations. For resale properties or complex transactions involving leasehold structures, physical presence provides better due diligence opportunities and direct communication with all parties involved.
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What are the exact steps and required documents for buying property?
The property purchase process involves five main steps: reservation, contract signing, fund transfer, inspection, and ownership transfer.
| Step | Action Required | Key Documents |
|---|---|---|
| 1. Property Reservation | Pay reservation deposit (typically 50,000-100,000 baht) | Passport copy, reservation agreement |
| 2. Contract Signing | Review and sign sales & purchase agreement | Sales contract, payment schedule |
| 3. Fund Transfer | Transfer purchase funds from overseas | Foreign Exchange Transaction Form (FET) |
| 4. Final Inspection | Property walkthrough and snagging | Inspection checklist, defect reports |
| 5. Ownership Transfer | Complete at Land Department with all parties | Title deed, tax payments, final settlement |
For condominium purchases, the Foreign Exchange Transaction Form is mandatory, proving funds originated overseas. Banks issue this form when you transfer foreign currency into Thailand for property purchase. The form must show the exact amount matching your purchase price.
Additional documents include marriage certificates for married buyers, proof of funds source (bank statements, salary certificates), and translated/notarized versions of all foreign documents. Lease arrangements require additional lease agreements, land titles, and construction permits for any buildings.
It's something we develop in our Thailand property pack.
Is a lawyer necessary and what should you look for when hiring one?
A qualified Thai property lawyer is essential for due diligence, contract review, and ensuring legal compliance throughout the purchase process.
Property lawyers conduct title searches, verify ownership history, check for encumbrances or liens, and ensure all permits and approvals are valid. They review sales contracts, lease agreements, and company documents to protect your interests and identify potential legal issues before they become expensive problems.
Essential lawyer qualifications include specialization in Thai property law, proven experience with foreign clients, fluent English communication, and transparent fee structures. Look for lawyers registered with the Law Society of Thailand who can provide references from previous foreign property buyers.
Key warning signs include lawyers who guarantee outcomes, charge unusually low fees, have conflicts of interest with developers or sellers, or pressure quick decisions without proper due diligence. Quality legal representation typically costs 30,000-80,000 baht depending on transaction complexity, but saves significantly more in prevented problems.
What are all the costs involved in buying and owning property?
Total buying costs typically range from 6-10% of property value, including transfer fees, taxes, legal costs, and ongoing ownership expenses.
Transfer fees are 2% of the government-assessed value, usually split equally between buyer and seller. Stamp duty costs 0.5% of the assessed value, while specific business tax may apply at 3.3% if the seller owned the property less than five years. Withholding tax on sellers varies based on ownership duration and property type.
Legal fees range from 30,000-80,000 baht for standard transactions, while property inspection services cost 10,000-25,000 baht. Developer or agent commissions are typically paid by sellers, though this cost is often reflected in property prices.
Ongoing ownership costs for condominiums include Common Area Maintenance (CAM) fees ranging from 30-80 baht per square meter monthly, sinking funds for major repairs, and utility connections. Property taxes are minimal for residential use but increase for rental properties. Insurance, property management, and regular maintenance create additional annual costs typically totaling 2-4% of property value.
Are mortgages available to foreigners and how can you secure financing?
Mortgages for foreigners are extremely limited, with only select banks offering financing at higher interest rates and stricter conditions than Thai nationals receive.
Bangkok Bank, Kasikorn Bank, and UOB occasionally provide mortgages to foreigners, typically requiring 40-50% down payments compared to 20-30% for Thai buyers. Interest rates range from 5-7% annually, significantly higher than the 3-4% rates available to Thai nationals. Loan terms are usually limited to 15-20 years rather than the 30-year terms offered locally.
Qualification requirements include proof of stable overseas income, Thai credit history establishment, work permits or long-term visas, and substantial Thai bank deposits. International banks with Thai operations like HSBC or Citibank may offer better terms for their existing customers with strong banking relationships.
Alternative financing strategies include developer payment plans allowing installments during construction, personal loans from home countries secured against existing assets, or partnerships with Thai nationals who can access better mortgage terms. Most foreign buyers complete cash purchases, making strong liquidity essential for Koh Samui property investment.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Thailand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How does property taxation work for foreign owners?
Foreign property owners pay rental income tax at progressive rates of 5-35% for residents, while capital gains tax applies at sale based on ownership duration.
Rental income taxation depends on your Thai tax residency status. Residents (those staying 180+ days annually) pay progressive income tax rates from 5% on income up to 150,000 baht to 35% on income exceeding 5 million baht. Non-residents typically pay flat rates or may qualify for exemptions depending on tax treaty provisions with their home countries.
Capital gains tax is withheld during property transfer, calculated on the assessed value rather than actual sale price. Withholding rates decrease with longer ownership periods: 2% for properties held over 5 years, 1% for properties held over 10 years. Actual tax liability may differ and require filing annual returns to claim refunds or pay additional amounts.
Property taxes in Thailand are minimal for residential properties but increase for rental income generation. Annual land and building taxes typically cost 0.02-0.1% of assessed value for residential use, rising to 0.3-0.7% for commercial rental properties. Professional tax advice is essential for optimizing structures and ensuring compliance with both Thai and home country tax obligations.
Which areas in Koh Samui offer the best investment opportunities?
Plai Laem offers the highest rental yields at 12-16% with luxury villa averages of $490,000+, while Bophut provides balanced lifestyle and investment returns for expat buyers.
Plai Laem has emerged as the premium investment location with the strongest rental demand from high-end tourists. Properties here command premium rental rates and maintain high occupancy levels year-round. The area features modern luxury developments, excellent infrastructure, and proximity to Samui's best beaches and amenities.
Bophut attracts both lifestyle buyers and investors with average property prices around $300,000+ and rental yields of 8-12%. The area offers a perfect balance of local charm and modern conveniences, making it popular with families and expat residents who also generate rental income.
Chaweng remains the most active rental market with average villa prices starting around $230,000+ and yields of 10-12%. However, this area faces oversupply issues and intense competition among rental properties. While tourist traffic is highest here, property appreciation has been slower due to market saturation.
Bangrak provides a more affordable entry point with cosmopolitan appeal and consistent rental demand. The area offers a mix of luxury and mid-range properties, attracting diverse tenant profiles and maintaining stable occupancy rates throughout seasonal fluctuations.
How do Koh Samui property prices compare across neighborhoods?
| Area | Average Price (USD) | Property Type | Rental Yield | Market Characteristics |
|---|---|---|---|---|
| Plai Laem | $490,000+ | Luxury villas | 12-16% | Premium location, highest ROI |
| Bophut | $300,000+ | Mixed developments | 8-12% | Expat favorite, balanced market |
| Chaweng | $230,000+ | Condos and villas | 10-12% | High tourism, oversupplied |
| Bangrak | $200,000+ | Diverse range | 8-10% | Affordable entry point |
| Lamai | $180,000+ | Budget to mid-range | 7-9% | Value-oriented market |
Koh Samui property prices significantly exceed mainland Thai cities like Chiang Mai ($80,000-150,000 average) or Hua Hin ($120,000-250,000 average) due to island premium and limited land supply. However, rental yields often compensate for higher entry costs through strong tourist demand.
Bangkok condominium prices in prime areas ($200,000-500,000+) offer lower rental yields (3-6%) but better capital appreciation prospects. Phuket presents similar dynamics to Koh Samui with comparable prices but different seasonal rental patterns and tourist demographics.
It's something we develop in our Thailand property pack.
What mistakes should foreigners avoid when buying in Koh Samui?
The most critical mistakes include attempting direct land ownership, skipping legal due diligence, and underestimating total ownership costs.
1. **Illegal land ownership attempts**: Foreigners sometimes believe they can circumvent land ownership laws through questionable company structures or nominee arrangements, risking complete loss of investment when authorities investigate.2. **Inadequate legal representation**: Choosing cheap lawyers or skipping legal advice entirely leads to problems with title defects, undisclosed encumbrances, illegal constructions, or invalid permits that become expensive to resolve.3. **Ignoring foreign ownership quotas**: Buying condos without verifying foreign ownership percentages can result in being unable to complete purchases or forced to sell at losses when quota limits are exceeded.4. **Poor lease agreement terms**: Accepting unfavorable lease conditions, unclear renewal terms, or inadequate construction rights creates long-term problems for villa buyers using leasehold structures.5. **Insufficient financial planning**: Underestimating ongoing costs, tax obligations, maintenance requirements, and CAM fees results in cash flow problems and forced sales at inappropriate times.Additional pitfalls include buying in oversupplied areas with poor rental prospects, relying solely on Thai bank financing without backup plans, failing to verify developer credentials and construction permits, and making emotional purchasing decisions without proper market analysis and comparative research.
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.
Koh Samui presents attractive investment opportunities for foreign buyers willing to navigate complex legal frameworks and understand ownership restrictions.
Success requires careful planning, professional legal guidance, and realistic expectations about both opportunities and limitations in the Thai property market.
Sources
- Conrad Properties - Koh Samui Property Laws Guide
- Conrad Properties - Foreign Ownership Guide
- Estate Samui Properties - Buyers Guide
- Your Koh Samui Villas - Foreign Property Ownership
- Sukhothai Interlaw - Foreign Ownership Laws 2025
- MQDC - Buyer Guide
- BambooRoutes - Thailand Real Estate for Foreigners
- Origin Property - Foreign Buyers Guide
- Samui For Sale - Property Ownership Guide
- Soho Residence - Best Investment Areas Koh Samui