WHY INVEST IN KOH SAMUI

Before we get the details on how a foreigner legally buys in Thailand, lets note some of the reason WHY investing in Koh Samui is a profitable decision:

Tourism is growing every year, thus increasing the demand for apartments and houses. 

Koh Samui has one of the largest international airports in Thailand which means more tourism. 

There is currently a lack of hotels because the law which prohibits many buildings from being taller than 12 meters. This is also a cause to the increasing demand for apartments and hotels. Much of the natural land on the island is government protected where construction is forbidden. This further leads to a rise in value of existing land and housing.

Among other locations in Thailand, Koh Samui has a rain season which typically lasts about 1 month, allowing the tourist season to last for 11 months each year.   Koh Samui has less risk of natural disasters when compared to places like Phuket. 

Real estate brokers in Thailand are expecting that the prices of apartments and land in Koh Samui will increase significantly in coming years. 

In recent year, Koh Samui apartments and villas can have their value increase 15 – 20% annually

HOW TO BUY

For a foreigner to invest in Koh Samui there are two aspects of the law which must be understood:

1- It is legal for a foreigner to own a building such as an apartment or villa

2- It is illegal for a non-thai to own land

Since it is illegal for a non-thai to own land, the common way foreigners buy apartments in Thailand is by a 30 year lease agreement on the land.  This lease agreement can be extended to give you full control over the land for a period of 90 years. 

We will help arrange contact with a trusted lawyer and the contract for this only has to be established and recorded once.

This contract is established in such a way which allows you to convert the lease into “freehold” if Thailand law simplifies ownership for non Thais sometime in the future during these 90 years.

(This is expected to happen in the future. It was not long ago that is was very difficult for non Europeans to buy land in Europe and these rules have been relieved considerably the last couple of years.)

Possession of an apartment or house in Thailand by lease ownership is an established format. It's easy to own estates by lease and the taxes are very favorable. In Thailand, the taxes and charges to a signed lease at the land office is 1.1% of the price.

Another option is to do a “freehold” sale which requires you to create a Thai Limited Liability Company (LLC) which will cost up to 4 – 5% and requirements of having a Thai staff.  This process costs more, takes more time, and requires lots of legal fees.  Most individuals who buy a single apartment will follow the first method.