Koh Samui Property for Expats: What You Need to Know

June 13, 2024

Koh Samui (Coconut Island) is Thailand’s second largest island, right behind the largest island of Phuket. Thus, it has lately turned into Thailand’s upcoming beachside tourist destination on the level of Phuket, Hawaii, Acapulco, or even one of the Caribbean islands.

It has truly transformed into a major property sale and investment source for Thailand. Besides which, it’s only a few hours of travel to and from Phuket to boot.

On that note, this guide provides you with everything you need to know as an expatriate who’s interested in investing in Thailand by purchasing a piece of the realty pie from the so-called Coconut Island.

Buying Land vs. Buying Property in Koh Samui

When you’re able to buy or lease land, you can build whatever building you wish depending on which zone in Koh Samui the land belongs to.

In contrast, it’s much easier to buy real estate since the property is already built on your behalf. You can even go “land-less” and just buy a condo or apartment, such that you own the unit but not necessarily the land its building is standing on.

Also keep in mind the different land measurement units in Thailand as well as their metric equivalents.

• Talang Ngan: 4 square meters.

• Ngan: 400 square meters or 100 talang ngan.

• Rai: 1,600 meters or 4 ngan or 400 talang ngan.

Expatriate foreigners can’t own land in Thailand or Koh Samui directly. They have to play by the rules and avail of the land through a 30-year leasehold that’s renewable twice (for a maximum of 90 years).

They can also get it by starting a Thailand Limited Company with a majority of shareholders being local to have the company buy the property on his behalf.

They can also become naturalized citizens of Thailand and get the privilege of buying the land legally as a Thailand local. In light of this, there are loads of land for sale in Coconut Island with land prices that only increase yearly. More on this later.

Learning the Property Buyer’s Market in Koh Samui

There’s an amazing variety of properties for sale in Coconut Island to choose from for expats, truth be told. You can separate them in terms of villas, condominiums, and land investments.

These houses, apartments, and land properties cater to all sorts of budgets and tastes. For example, you can buy a 30 square meter studio condo for $30,000. It’s also possible to invest in multi-million-dollar luxury retreats and villas with complete amenities.

The northeast part of Koh Samui is where all the villas and condos are located since, they’re central tourist hubs and the most developed parts of the island.

• Buying Villas and Houses: Koh Samui offers a wide range of villas and houses to choose from. They include small bungalows (one-story houses) to multi-story garden homes that start around ฿2 to ฿3 million ($50,000 to $80,000).

  You’ll obviously need to pay extra for more than a garden view, like a mountainside view or even a seaside view.

  Garden-view villas with swimming pools included can be bought at around ฿5 to ฿6 million ($130,000 to $160,000) depending on the size of the pools. As for sea-view villas, they usually start at around ฿10 to ฿12 million ($200,000 to $300,000).

  In regard to beachfront villas or villas with direct beach and shore access, their sales prices begin at around a whopping ฿30 to ฿40 million ($800,000 to $1 million) because beachfront land demands high prices by default.

  Meanwhile, the most popular beachfront property type in the island that are in-demand are sea-view properties with three or more bedrooms located on the island’s northeastern quadrant with prices ranging from ฿12 to ฿16 million.

• Buying Apartments and Condominiums: First off, let’s differentiate what apartments and condominiums are so that we’re not confused. An apartment is just the unit for sale found inside any given building.

  A condominium, on the other hand, is the unit inside the building plus the right to use shared amenities and utilities by everyone renting or owning their own condo, such as a shared recreational room or swimming pool.

  There aren’t many high-rise structures in Koh Samui due to building and zoning laws, so there are also fewer condos and apartments available.

  The apartment and condo market in Koh Samui is more limited compared to other Thailand destinations such as Bangkok, Pattaya, Hua Hin, and Phuket because of stricter height and building regulations.

  If you’re a foreigner, every building allocates about 49 percent of units to you while the rest of the 51 percent units are reserved for locals only.

  You can also avail yourself of many apartment and condo options on the island’s northeastern portion, with the cheaper units measuring 30 square meters or so being worth around $30,000.

  Keep in mind that direct freehold ownership of condo units by foreigners necessitates higher prices compared to freehold units bought by Thai holding companies.

• Buying Land for Sale: In 2006, the government of Thailand submitted Koh Samui zoning regulations with different designations for each zone, essentially dictating what can or can’t be built per zone.

  For instance, some zones are reserved for agricultural use. Other zones allow you to build those sought-after villas but not hotels. Other places allow for hotels and resorts.

  The zoning laws help the island avoid the pitfall of overdevelopment that results in high traffic and price inflation of all the surrounding land, with no land left for other uses like agriculture.

  Avail yourself of a lawyer or law firm to assist you in buying land in Koh Samui, especially if you’re a foreigner who’s unfamiliar with the rules and regulations of a non-local purchasing island real estate.

  The lawyer is also there to check zone designations of the land you’re purchasing so that you know what can or cannot be built there. Better yet, he can help find you the right land zone based on what you wish to build, like a commercial building or villa.

  You can also consult with the lawyer in regard to building and environmental regulations in zones where villas are allowed to get built as well.

  These regulations help dictate the design and size of any property being constructed. It might even encourage you to buy an already built villa instead.

Types of Land Deed Titles to Remember

Thailand features several types of land deed title documents you won’t see anywhere else in the world. For the purposes of this guide, the Chanote—or Nor Sor 4 Jor (NS4J)—and Nor Sor 3 Gor/Kor (NS3G/NS3K) land title deeds will be the ones discussed.

It’s because they’re the only ones suitable for purchasing building property, subdividing property, or selling property with the least amount of legal hassle.

• The Chanote Land Title (Nor Sor 4 Jor): Chanote titles are the only Thailand documents for land ownership that offer expats full private ownership of the land.

  They offer unique numbered concrete markets on the ground on top of accurately surveyed GPS coordinates of the plotted land linked directly to the national survey grid.

• Nor Sor 3 Gor or Nor Sor 3 Kor Land Titles: These documents depend on aerial survey techniques to ensure the land’s perimeter or border survey accuracy. They can also be updated to full Chanote titles as well as subdivided if required.

• Nor Sor 3 Land Title (without Gor or Kor extension): Avoid getting Nor Sor 3 titles if they lack the Gor/Kor extension because this means the land lacks accurate surveying.

This means only the surrounding land plots can confirm the borders of the land. This is dangerous because neighbors can move the land plots and encroach on your property without the borders being accurately surveyed in writing.

Unsurprisingly, ownership and border disputes are commonplace when you have this land deed type on hand.

Types of Property Ownership for Thailand Expatriates

Expatriates who wish to buy Koh Samui property have several distinct purchasing options available to them. According to Thailand laws, foreigners can’t directly own land with their name on the deed. However, they can own structures under a leasehold deal.

You can find all sorts of worthwhile property in Koh Samui if you know where to look. You can contact Conrad Properties for help.

As an expat, you can also buy structures like villas, resorts, apartments, or condo units built upon land they can’t own in a more straightforward manner.

If you do wish to buy land, you can own and control it by a 30-year lease or through a Thai Limited Company. Both options serve as viable and successful methods for foreign expatriates or non-locals to own a piece of Koh Samui land for many years.

Your third option is getting a condominium that’s part of the 49 percent of total units in a building reserved for foreigners while the rest of the 51 percent are left for locals in accordance with Thailand laws.

• Land Ownership Through 30-Year Leasehold: As an expat, you can also purchase Koh Samui property (an apartment, house, or villa) while having control of the land upon which it rests through a 30-year lease.

  By the way 30 years is the maximum leasehold term allowable by Thai law that can be registered at the Thailand Land Office.

  There is a myriad of methods available when it comes to structuring your land leases. Some cannot be renewed. Others allow the lease to be renewable upon its date of expiration. There are even some who allow you to renew a full 30-year term at any time until lease expiry.

  There are also lease structures to allow change to freehold ownership by buying the land via the Thai holding company.

  A personal contract between lessee and lessor is required if you wish to avail of the last three options (renewable upon expiration, renewable anytime, and change to freehold ownership)

  Just remember that you can only renew a maximum of two times. This means an expat can own (lease) land for a full 90-year term, which is longer than most lifetimes.

  Please take note that with villas and houses controlled by lease, it’s normally the land that’s leased. The structure will directly be under the name of the lessee, even if he’s a foreigner or expatriate.

• Land Ownership with a Thai Limited Company: When purchasing Koh Samui property for sale, expats like yourself can set up your own Thai Limited Company to buy the land on your behalf.

  It’s recommended that your vehicle of land ownership has a majority of local Thai shareholders and articles of association arranged by your lawyer in such a manner that it gives you full company control along with its purchased assets like property and land.

  You can then use the holding company as your method of owning Koh Samui properties and land, whether it’s a piece of undeveloped land, a villa for sale, or an apartment unit.

  The actual building or structure on the land can have deeds with you, the expat, being named as owner.

  However, the building can also be held through your Limited Company at the same time, which helps keep taxes or fees lower if you decide to do a property resale. Consult your real estate lawyer or realtor for more details.

  Some property owners offer villa and land resales along with the Thai Limited Company they set up as a holding company for property purchase. This means ownership is transferable by a simple company director change.

  Otherwise, a Thai lawyer can easily set up a new company to hold the property and land under a new holding company.

• Buying a Condominium Freehold: You can buy condominium units at condominium buildings like Horizon Condominium in Koh Samui by another freehold option made possible by the Thai Condominium Act.

  To be more specific, the Thai Condominium Act allows expats and other foreigners to purchase freehold condo units directly under their own name.

  As long as the condominium building developer ensures that only 49 percent of the total units or area of the development are available or sold to foreigners/expats with direct freehold ownership, then everything is legal.

  The other 51 percent of the space of the Koh Samui development is available to locals or foreign expatriates via ownership of the unit with a 30-year leasehold or via Thai Limited Company.

  Regardless of purchase method, the property must get registered at the Koh Samui Land Office. As an expat, you’ll need to also hold a property registration document known as a blue address book or “Tambien Baan”.

Further Tips for Expats to Consider in Buying Koh Samui Property

As an expat searching for the perfect real estate to purchase on Samui Island, the most important decision you have to make first is base your choice on the substance instead of the style of the property.

Instead of thinking about a villa’s façade or architectural design (usually modern or minimalist), refer to aspects of the property that can’t be changed upon its purchase.

• Zoning Laws: Take note that Koh Samui zoning laws dictate how large of a structure you can build and how many stories it could go.

• Convenience: For example, take into consideration the property’s view, accessibility to the beach or city (as well as school if you’re starting a family), and location. Ask your lawyer about zoning laws too in case you wish to do some “home improvement.”

• Prioritize Important Benefits: You can worry about the details later as long as you’re reassured you have a strong “foundation” or “base” for your villa or condo purchase.

• Unchangeable Aspects: Also consider the floor plans, number of floors, number of pools, and so forth before looking into details such as how well-maintained the lawn is or the color of the walls. Look at the past fixtures, tiling, furnishings, and paint colors for now.

• Northeastern Samui Realty: Most real estate for sale in Koh Samui are found in the more populated northeastern parts of the island, from the north’s Bophut to the eastern coast’s Chaweng Noi.

• Popular Beachfronts: The most highly in-demand land plots, as you can imagine, are the beachfront land such as northeastern land from Plai Laem and Chaweng (Chaweng Noi’s sister location known for its nightlife).

• Secluded Southwestern Options: You can still find other options aplenty on the more serene and provincial parts of Coconut Island, like its southern and western portions that ensure you of more seclusion without paying for the privilege of exclusivity.

In Conclusion

Investors and would-be expatriate residents can avail themselves of a variety of land for sale, condos for sale, and villas for sale to choose from in Koh Samui.

As an expat, you need to know the above information to purchase the right piece of land or property in accordance with your needs. Remember that villas are livable mansions with their own pools while condos have shared community utilities and amenities available.

Finally, get a lawyer to help you find the right real estate seller, especially if you’re buying land (this might require you to avail yourself of a leasehold deal or start a Thai Limited Company to buy the property on your behalf).

Start your search today to find the home or land of your dreams through Conrad Properties! Browse through our listings of Koh Samui real estate for sale in Thailand!