Thai property & tax laws
A practical guide for foreign nationals buying, selling, or investing in Koh Samui.
Thai property law is manageable for foreign buyers who understand the key structures. This guide covers the essentials clearly and without legal jargon.
This guide is for informational purposes only. Always consult a licensed Thai property lawyer before any transaction. Our team can recommend trusted legal partners in Koh Samui.
Ownership options for foreigners
Foreign nationals cannot directly own land in Thailand, but there are well-established legal structures that provide secure, long-term property rights.
The most common approach for villa purchases is freehold ownership of the building with a 30-year leasehold on the land, renewable for further terms. Alternatively, purchasing through a Thai limited company provides effective control of the land, though this carries ongoing compliance requirements.
Title deed types
The Chanote (Nor Sor 4 Jor) is the strongest title deed available in Thailand. It confirms full land ownership with precise GPS boundaries surveyed by the Land Department. All properties in our portfolio carry Chanote title unless explicitly stated otherwise.
Other common deed types include Nor Sor 3 Gor (a confirmed right of possession with aerial survey, upgradable to Chanote) and Nor Sor 3 (right of possession without precise boundaries). We recommend Chanote-titled property for any significant purchase.
For condominiums, foreign nationals may hold freehold title up to 49% of the building's total floor area. Always confirm the foreign quota status with the developer before signing.
Transfer fee
The transfer fee is 2% of the registered value of the property, typically the appraised value as assessed by the Land Department, not necessarily the agreed sale price. The fee is conventionally split equally between buyer and seller, though this is negotiable and should be agreed in writing before transfer.
Withholding tax
Withholding tax applies when the seller is an individual. It is calculated on a sliding scale based on the appraised value and the number of years the seller has held the property. The buyer is not liable. This is the seller's cost.
For properties held longer than five years, withholding tax is generally modest. For recently acquired properties, it can be higher. A qualified lawyer should model the exact figure before any contract is signed.
Business tax & stamp duty
If the seller is a company, or if the property has been held for fewer than five years, Specific Business Tax (SBT) of 3.3% applies in place of stamp duty. If SBT does not apply, stamp duty of 0.5% is levied instead. Only one of these applies to any given transaction.
Annual property tax
The Land and Building Tax Act took effect in 2020. Rates depend on the property's use and assessed value. For owner-occupied residential property under THB 50 million, rates are minimal. Investment, rental, and commercial properties carry slightly higher rates, with separate scales for unused or vacant land.
Fees breakdown
The total tax burden at transfer typically ranges between 3% and 6.5% of the registered value, depending on who is selling, how long they have held the property, and which taxes apply.
At-a-glance fee summary
| Transfer fee | 2% of appraised value · split between buyer and seller |
| Withholding tax | Sliding scale on appraised value · seller pays |
| Specific Business Tax | 3.3% if held under 5 years or sold by a company |
| Stamp duty | 0.5% if SBT does not apply |
| Annual land & building tax | Tiered by use and assessed value (since 2020) |
Legal representation
Engaging a qualified, independent Thai property lawyer before signing any agreement is strongly advised. Your lawyer conducts due diligence on title, encumbrances, planning permissions, and the seller's authority to sell.
We work with several established Koh Samui law firms and can recommend an independent firm appropriate to your transaction.
We guide you through the legal process.
From due diligence to title transfer. Our team navigates every step with you.