A Guide to Koh Samui's Property Laws and Regulations for Foreigners

November 22, 2024

When buying property in Koh Samui or even Thailand in general, foreigners face a major restriction—they cannot own land in their name or have the deed containing their name.

There are ways around this, but as far as outright or direct land ownership is concerned, it’s not allowed in Koh Samui. You also must take into consideration zoning laws and laws related to avoiding overdevelopment in the second-largest island of the country.

Foreigner Options for Buying Koh Samui Property and Land

Here are the options you have for buying property and land in accordance with current Koh Samui and Thailand property laws, such as leasing land and owning buildings on leased land. Otherwise, you can have a company buy land on your behalf.

• Ownership of Land in Leasehold: According to Thai property laws, you can lease the land for up to 30 years with the option of twice renewal. You can also legally own the building you’ve built on the land you’re leasing for good measure.

• Ownership of a Thai Limited Company: The establishment of a Thai Limited Company allows foreigners to purchase land by proxy through said company. However, the majority of shareholders of the company should be locals.

• Ownership of a Condominium Unit: According to Thai property law (more on this below), foreigners can own up to 49 percent of the total floor space of freehold condominium developments.

• Naturalization: Instead of going through the rigmarole of owning land by company proxy and by leasing land and owning buildings, you can become a naturalized Thai citizen and legally buy land in Koh Samui.

You also need the title deed, tax documents, and sales agreements. As for additional costs, expect to document payment of brokerage fees, transfer tax, and legal fees (for legal assistance).

What are the Thai Laws Pertaining to Foreigners Buying Koh Samui Property?

The following laws and regulations govern what can or cannot be done when a foreigner buys property in Koh Samui or even Thailand at large.

• The Land Code Act of 1954: This code is composed of policies that manage land ownership of foreigners in Thailand, particularly regarding what’s allowed and what isn’t (such as direct purchase is not allowed but leasehold is fine).

• The Investment Promotion Act of 1977: This includes all the rules and regulations that help define how foreign investment in Thailand should be done in a legal manner.

• The Foreign Business Act of 1999: This specific act restricts ownership by foreigners in several key industries and markets in Thailand (including Koh Samui).

• Thai Condominium Act of 2008: These rules help define foreign ownership of condominiums in Thailand (including Koh Samui), particularly to provide protection over the people purchasing the units for dwelling purpose.

• The Civil and Commercial Code (Part II): This code covers the rules and regulations for Thailand property ownership (property law) along with family law, inheritance law, contract law, corporate law, and commercial law.

Can You Own Koh Samui Villas as a Foreigner?

Foreigners can’t own land in Koh Samui or Thailand. However, in practice, it’s possible for foreigners to buy properties like beachfront or sea-view villas in Koh Samui without needing to own the land.

• Buying Koh Samui Villas and Houses: Koh Samui has many villas and houses for sale available. They range from garden-view bungalows and homes that cost about ฿2 to ฿3 million ($58,000 to $87,000).

  In contrast, garden-view villas with their own private swimming pools cost around ฿5 to ฿6 million ($145,000 to $173,000). Sea-view villas with pools cost double at ฿10 to ฿12 million ($249,000 to $347,000).

  The most expensive villas are beachfront or beach-accessible villas. Their prices normally start at around ฿30 to ฿40 million ($867,000 to $1.1 million) due to the high prices and value brought upon by beachfront land.

• 30-Year Leasehold Ownership of Villas: You can instead lease land for 30-year increments while getting ownership of the building or structure built on the leased land.

  Although you can renew the lease twice, in practice most renew it once for 60-year leasehold ownership since most lessors don’t get to live up to the second renewal for the maximum term 90-year leasehold.

  It’s also wise to renew twice because this ownership cannot be transferred to others by inheritance. It’s meant to last the lifetime of the lessor in question.

• Buying Villas by Proxy Care of a Thai Limited Company: A Thai Limited Company controlled by you, the foreigner, can buy Koh Samui villas and the like on your behalf as long as the majority of shareholders are Thai citizens.

  This method is the only way for a foreigner to control their land investment in Thailand and Samui Island.

  It’s not enough that a majority of Thai citizens hold the percentage of shares. The Thai shareholders should outnumber the foreign shareholders as well.

  Though it’s not illegal for a partly foreign-owned Thai company to own land under Thailand property laws, its legality remains controversial.

  Since 2006, the Thailand Government has been discouraging and restricting the misuse of Thai Limited Companies for the purpose of circumventing Thai property ownership restrictions for foreigners.

• Less Popular Methods of Koh Samui Villa Ownership: If you have a Thai spouse, you can have your spouse buy the property for you by proxy so that you can co-own the property, but their name is on the deed.

  This isn’t recommended because the spouse retains all the rights to the property and in case of divorce, you won’t be able to split the asset between yourselves because of foreigner restrictions of land ownership.

  You can also have a Thai partner buy the property for you, but this is even riskier since they’ll have the property in their name, and you’re only tied to them by partnership agreements instead of marriage.

  When all else fails, a foreigner becoming a Thai citizen is the most legal way for the person to purchase land in Thailand without breaking Thai property laws.

Types of Land Title Deeds for Koh Samui Properties

There are three types of freehold land title deeds in Thailand and Koh Samui.

Freehold means you own the property, including the land it's built on, with no fixed time limit. This is in contrast to leasehold, where you lease the land from the owner at a set time (30 years at a time).

• Nor Sor 4 Jor (Chanote Title): In the Koh Samui real estate market, there are several distinct Land Title Options. For Thai properties, the “Chanote,” “Chanod,” “Nor Sor 4 Jor” or “J” titles are the preferred titles for villa purchases. This is the official title deed for freehold land.

• Certificate of True Ownership: A Chanote Title is Thailand’s version of a land ownership certificate. It contains your full name, contact info, and the GPS coordinates of your property. It’s also the only title deed for land giving actual ownership.

• Garuda Stamp: This is another uniquely Thai feature of genuine Chanote Titles. It’s a red rubber stamp that should be placed atop the title deed. It confirms its authenticity. The mark should be colored red, and it should always be there.

• Why is GPS used? GPS, unlike markers, is a more accurate method of verifying the location, perimeter, boundaries, and limits of your Koh Samui property on top of total square meters.

  You’re less likely to get into disputes with neighbors or get cheated by bad actors who build their own fences that could encroach upon the limits of your property.

• Nor Sor 3 Gor: While waiting for a full Chanote Title, you’ll be given this document first. It indicates that the Land Department has measured the land, thus giving you an idea of the exact boundaries of your property.

  Owners with this document can mortgage, transfer, or sell the land. They can also request for a Chanote Title upgrade, provided there are no pending issues.

  You get more benefits and rights from the Nor Sor 3 Gor compared to the Nor Sor 3, but it’s still a level below the full authority granted by a Chanote title.

• Nor Sor 3: This title is issued by district land officers. It’s the document you get when the land hasn’t been measured by the Land Department yet, so perimeter or boundaries of the land are only approximate or ballpark figures.

  To get more benefits, rights, and accurate measurement of the freehold property under your care, upgrade your Nor Sor 3 to a Nor Sor 3 Gor or Chanote Title.

  With this deed, you risk problems with neighboring properties and future deals with your real estate. You can possess the land, but you can’t sell or transfer the property until it’s been publicized for at least 30 days.

  The foreigner options for freehold ownership include naturalization (citizenship) and proxy buying through a Thai Limited Company with a majority Thai shareholder percentage.

Can You Own Koh Samui Condominiums as a Foreigner?

Yes. The Foreign Business Act of 1999 establishes that the total floor area of apartments and condominiums owned by foreigners are limited to 49 percent of the total area of the building in question.

Unlike land, foreigners can buy condo and apartment units outright and have their name on the deed.

• Easy Way to Own Property: One of the easiest ways for non-citizens like expatriates and retirees who aren’t naturalized to purchase Koh Samui property for asset-building, vacation, or residential purposes is by buying a condo unit.

• The Affordable Option: Many expatriates and foreigners prefer this option for owning property in Koh Samui because it’s more affordable for them and not everyone has millions of dollars available to buy villas in the island.

• 49 Percent for Foreigners: Like with a Thailand Limited Company and its amount and percentage of shareholders, a foreigner can own the units designated in 49 percent of the property space.

• 49 Percent of Property Space: If 49 percent of the building space is composed of foreign-owned units, then you can’t buy condominiums there as a foreigner. If there are units still available in that given space, then you can buy such units.

There’s also a limit to a number of condo units that can be fully owned by any individual foreigner in any given building. Such rules were passed to entice foreign investment in such condo units.

Zoning Rules and Regulations in Koh Samui

Koh Samui also has zoning regulations that control development. Each colored zone governs the type of property built there. Consult with us at Conrad or your legal representative for a more detailed look at Koh Samui’s zoning regulations.

• Green Zone: The green zones are primarily intended for properties like villas (the ones available for sale to foreigners).

• Yellow Zone: The yellow zones in Koh Samui allow both residential and condominium development there (many foreigners buy condos for ownership or rental).

• Orange Zone: The orange zones are designated for medium-density residential areas and even gated communities (expat retirees could invest in such areas).

• Red Zone: The red zones are reserved for high-density residential and commercial purposes (foreign investors looking for commercial property like resorts and hotels could go here).

  Aside from colored zones, here are the Koh Samui zoning rules and regulations to keep in mind when building something near the beachfront.

• Beachfront Construction Rules: To protect the integrity of the Koh Samui beachfront, construction is forbidden within 10 meters of the beach.

• 10-50 Meters from the Beach: Buildings located 10 to 50 meters near the beach should only have a single floor and should only be 6 meters high. Their total floor area should also be limited to 75 square meters and below.

• 50-200 Meters from the Beach: Buildings located 50 to 200 meters away from the beach can go up to 2,000 square meters in size and 12 meters in height with the roof included.

• Beyond 200 Meters from the Beach: These buildings could go beyond 2,000 square meters in size, but the height is still limited to 12 meters with the roof included.

  Here are the zoning rules and regulations for buildings and structures outside the beachfront.

• Residential Land: The surrounding space of the residence should compose 40 percent of the total area, so 60 percent of the space is for the structure.

• Non-Residential Land: The surrounding space of the property must be at least 20 percent of the total area, so there’s 60 percent of usable building space.

• Land Near Water Sources: As for land near public water sources or canals, the land 6 meters from the edge cannot be used except for water transportation facilities or public utilities.

Why Thailand Restricts Foreign Land Ownership

The property laws of Thailand for foreigners might feel restrictive, but they serve a protective purpose. They exist to protect the country’s real estate industry from the risks linked with overdevelopment of places like Koh Samui.

• Overdevelopment Prevention: Overdevelopment is when too many new houses, factories, and buildings are built on a piece of land. Thai foreign ownership laws help avoid Koh Samui overdevelopment on the level of Hong Kong or New York.

  Overdeveloped land tends to blow up property prices, such as only the wealthy elite (usually foreigners) could afford purchasing real estate in a given area given their pricey value while driving out local residents.

• Preserve Natural Beauty and Prices: The wilderness and natural beauty of Koh Samui will be preserved more through this ruling limiting foreign property purchase and overdevelopment.

  At the same time, the rules keep land and property values accessible so that foreigners could legally buy property in Koh Samui at relatively more affordable prices without the rich or foreign entities taking every last piece of land.

The Thai government devised the system to maintain justice and equity among their Thai people living in Koh Samui. At the same time, it provides avenues for foreigners to purchase real estate at fair prices without risking overdevelopment.

Exceptions to Foreign Land Ownership Restrictions

Individual foreigners can own up to 1,600 square meters (1 rai) of land in specific areas for residence through a regulation by the Board of Investment—Section 96 Bis Land Code Act.

This arrangement also includes a ฿40 million ($1.1 million) investment into Thailand (in government bonds or specific assets) along with a land purchase through leasehold, naturalized citizenship, or by proxy through a limited company.

If the arrangement is granted with approval of the Minister of Interior (a rarity), it’s usually under strict conditions and locations that might not necessarily be in Koh Samui.

This is a non-transferrable ownership by inheritance, so it’s limited to the lifespan of the person who’s been granted to own the land as a residence under this concession.

The Key Takeaways to Koh Samui Property Laws

The island of Koh Samui provides a huge range of property choices from apartments to condo units and gorgeous sea-view villas worth multi-millions of baht or hundreds of thousands to millions of dollars.

Many properties in Samui are found in the more populated northeast areas, such as Chaweng Noi in the east coast and Bophut up north. You can also enjoy pure seclusion in the western and southern sides of Samui Island.

We encourage you to explore the comprehensive offerings of Conrad Properties, where you will discover a captivating array of beachfront villas, duplexes, and buildings. We are absolutely certain that you’ll find your ideal beachfront property (or properties) in the stunning Koh Samui right here on our pages!