BUY PROPERTY IN KOH SAMUI
Thailand’s unimaginably temperate weather, pristine beaches, lush jungles, vibrant cities, exotic foods, and amazing people are among the features making it a top travel destination in the world today.
But here comes the question, how i can buy a property on Koh Samui, that i can live my dream?
The Southeast Asian nation consists of a unique mix of remote tropical islands. Notably, Koh Samui which is the second largest after Phuket is beginning to get the recognition it deserves. Considered a tropical paradise by many, this island which is attracting a fast-growing number of tourists and investors is found on the South Gulf of Thailand.
Interesting Facts about Koh Samui
Koh Samui is also known as ‘Coconut Island’ thanks to its coconut infringed coastline. It’s green and gorgeous natural scenery is further spiced by a relatively short rainy season of just over one month in comparison with other islands in the area. This leaves holidaymakers and inhabitants with about 11 long months of perfect weather for sight-seeing adventures, sun-bathing, pampering, and other interesting activities at the island’s sandy palm beaches, gorgeous resorts, and luxury spas. The island also home to one of Thailand’s biggest and most charming International Airports, making this peaceful paradise super accessible with direct flights to Singapore, Hong Kong, Bangkok, China, and many other destinations.
You can be rest assured to be enticed by the charm of Koh Samui during your first visit and you’ll be forgiven if you choose to live here for the rest of your life. The popularity and many unique features of this gracious island which includes beautiful hotels, modern villas, and comfortable apartments are responsible for the increasing number of foreigners not only looking to visit but purchase property in Koh Samui.
In a bid to safeguard the beaches and natural beauty of the island, much of the land on Koh Samui is under the protection of the government with strict laws around construction. This contributes to the high demand for luxury villas and other beautiful places to live in these parts. But how to buy property on Koh Samui in Thailand?
The tricky property ownership laws of Thailand are aimed at limiting overdevelopment and understanding these regulations properly is an important step in purchasing your own Koh Samui residence. Whether it is for permanent residence, a holiday retreat, or a lifestyle investment,properties in these parts are generally hot and require proper research and planning to ensure your purchase is secure and satisfactory especially for foreigners.
How to Go About Your Purchase
Thailand’s property laws restrict foreigners from owning land but allow the purchase of buildings upon first floor. Cheer up, your dream of owning a Koh Samui property for spine-chilling vacation experiences or lucrative business proceeds is very achievable, though not quite in the same way it is done in your home country.
Note that, you will find the process much smoother with expert support from a Real Estate Agent who has valuable experience finding amazing homes for others in Koh Samui. The professional multi-lingual team of Properties-Away can assist you, competent and knowledgeable. All you need to legally qualify for a real estate purchase in this country is a visa.
Any Questions about your dream real estate?
The two basic ways foreigners utilize to acquire properties in Koh Samui are by leasehold or freehold. Leasehold Ownership is the cheapest, most common and most convenient option. Going around these available methods successfully requires that you are clear on; the type of property you are interested in, your ideal location, maintenance conditions, best price or range, reasons for the purchase, legal requirements, etc.
Foreigners are legally allowed to lease land for 30 years max in Thailand, and the lease can be extended or renewed depending on the agreement between the seller and the buyer. Foreign freehold ownership is another option which only applies to condominium units with a 49% cap on the total units that can be owned. Referred to as ‘Chanote’ in Thai, foreign condominium ownership is one of the easiest and safest ways to own a freehold title deed directly.
This type of ownership and other options for larger, detached properties with gardens and multiple bedrooms are broken down as follows;
Buying a Condominium
Legal entry into Thailand allows foreigners to buy condominiums freehold so far as the condo isn’t built on land bigger than 5 Rai. Also, at least 51% of the apartment complex must be owned by Thai natives, leaving a maximum of 49% which can be under foreign ownership.
Some basic requirements of the procedure include;
- A credential lawyer to verify the availability of the complex for foreign purchase
- Respect for overseas money transfer laws
- Retention of all money transfer records
- Issuance of a title deed with the condo
- Regular maintenance
No need to worry, condos in Koh Samui are easy to rent or sell tax-free, especially if it is located close to popular tourist attractions.
Purchasing a House or Villa
Buying a House or Villa in Thailand as a foreigner with the land as well can be done in two ways;
1. Long-term Leasehold contracts
Foreigners can strike lease contract deals which span 30 years during which they are similarly secure as freehold owners. The agreement can be renewed or extended twice and the foreigner can possess the land for a maximum of 90 years. However, he/she can’t take the possession of the property once the contract expires, as the material asset becomes separated from the land.
2. Limited Liability Company
This option which doesn’t quite suit people with limited financial power involves setting up a Limited Liability Company in Thailand. Every structured company carrying a foreigner’s name has its freehold land registered in the name of the company.
With this method, there will have to be two or more foreign shareholders since one person is eligible for 49% max. However, the company’s foreign managing director who controls voting and other shares gains total control of the land.
Between the two options above, the lease route seems much more stress-free especially because of smaller fees. This is in consideration of the fact that it involves proper legal assistance.
With the right support and security provisions, owning land or houses in Thailand in a native partner’s name might present the best option for foreigners.
Always remember that choosing the right Real Estate Agent is an important step in purchasing your dream property in the true paradise of Koh Samui. It’s just one of the steps towards choosing the perfect property for you and following the required procedure in utmost security and profitability.
Although it may last just 90 years, this is a pretty long time to enjoy the luxury, warm waters, and gracious palm breeze of this area. Moreover, renting out your condo or land guarantees cash flow with an endless stream of visitors prepared to pay for the unique experiences Koh Samui has to offer.