One of the most common questions we receive from international buyers is whether foreigners can own property in Thailand. The short answer is: it depends on the type of property and the ownership structure you choose.
The Legal Framework
Under Thai law, foreigners cannot directly own land. However, there are several well-established and legally sound structures that allow foreign nationals to control and benefit from property in Koh Samui.
Condominium Freehold
Foreigners can own condominium units outright in freehold, provided that foreign ownership in any single condominium project does not exceed 49% of the total unit space. This is the simplest path to property ownership in Thailand.
Leasehold Agreements
The most common structure for land and villa ownership is a 30-year registered lease, renewable for two additional 30-year terms (90 years total). The lease is registered at the Land Department and provides strong legal protection for the lessee. This is the structure most expats in Koh Samui use.
Thai Company Structure
Some buyers choose to purchase land through a Thai limited company. While this allows the company to hold freehold title, it requires Thai majority shareholders and must operate as a genuine business. Recent regulations have tightened scrutiny on nominee structures, so professional legal advice is essential.
Which Structure Is Right for You?
The best ownership structure depends on your goals, budget, and risk tolerance. For most international buyers in Koh Samui, a properly drafted leasehold agreement offers the best balance of security, simplicity, and cost-effectiveness.
We work with experienced local lawyers who specialize in foreign property transactions and can guide you through every step of the process. Contact us for a confidential discussion about your plans.
Key Costs to Budget For
Beyond the purchase price, buyers should budget for transfer fees (2% of appraised value), stamp duty (0.5%), specific business tax (3.3% if applicable), and legal fees. Our complete buying guide breaks down all transaction costs in detail.
