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Congratulations on considering your next home. The idea of owning a home is attractive and exciting, and building a home from scratch even more so! In this guide we’ll tackle some of the reasons to consider buying or building within the confines, safety and beauty of an estate, vs. stand-alone property. We’ll also touch on some of the big topics we always get asked when international residents buy or build real estate in Thailand.

Urban life has made us cynical and suspicious. Neighbors don’t share more than a few glances and constructed smiles. Children are warned about conversing with strangers, and we live with an underlying level of fear. Which brings us to the question – Why have we lost our sense of community?

There is no greater improvement to your quality of life than being part of a wholesome island community. Gated Estates are the perfect example of how these communities develop, function and live in harmony with one another. Inside a safer and protected surrounding, you no longer need to be worried about the well-being of your family.

Ensure your children’s wholesome development, by allowing them to grow and interact with their peers in a safe and healthy environment, teaching them to become independent and self-thinking in a responsible manner.

Koh Samui is a fascinating and beguiling island, full of lush landscapes and coconut infringed beaches. The island is unique in many ways, manages to offer all the requirements of a developed destination with recent infrastructure upgrades, yet still retain the traditional feel of a tiny tropical island. Unlike the larger island Phuket, which is linked to the mainland by a bridge, Samui is secluded and sheltered by the oceans that surround it, and you’re never far from the sea. The strict local building laws, which require a maximum of 12 meters in height, has prevented the island from a becoming a high-rise city like Pattaya or Phuket. This has had a very positive effect on constraining development and protecting the environment. The island has an award-winning airport and western standards in infrastructure such as first-class international schools, hospitals & shopping. All of these improvements have made it a more viable and appealing place to live. Samui is a preferred choice for many investors, which has had a positive impact on property prices. From an investment standpoint, Samui also remains relatively inexpensive compared to the likes of Spain and Portugal. This value is even more apparent when you compare Samui to Singapore and Hong Kong, where the land prices are significantly more expensive. The island has longer high season periods than most other islands in Thailand and can deliver some excellent returns in the property market.

The first thing to remember if you are planning to purchase a property in Thailand, is that under Thai law, foreigners are not allowed to own land directly in their name. However, foreign nationals can legitimately secure property with the help of legal support to control the ownership of the land. There are two ways for foreigners to purchase land:

• Long-Term Leasehold Agreements

This is altogether a more approving, hassle free process for foreigners to own property in Thailand. Long term leasehold contracts are secure and straightforward in Thailand. An initial leasehold is made for a period of 30 years, further to expiration there is the option to renew it for an added two times for a 90-year lease term with the land owner. The lessor cannot take possession of the property upon expiration of the lease.

• Limited Liability Company

The other alternative is to set up a company, i.e a Majority Thai owned company, which simply involves having a local lawyer or accountant who can easily arrange the provisions after which you can legally purchase land within the company name. We can offer you a free consultation service on this or recommend you reliable real estate accountant to assist your purchase.

Whenever a property in Thailand is purchased or sold there are several potential taxes to be paid. It is also significant to note that most of the fees are calculated relative to the government’s “tax assessment value” of the property and this value is usually well below market value.

Transfer Fee (2%) is based on the appraised value of the property and is normally shared equally between both buyer and seller, although this needs to be agreed by both parties.

Lease Registration Fee (1%) is based on the total rent payable over the lease term, and is normally shared equally between the lessor and lessee, although this must be agreed on.

Specific Business Tax (3.3%) is payable by those have owned the property for less than five years. It is based on the official appraised value or the contracted price, whichever is highest.

Stamp Duty (0.5%) is only paid when SBT is not applicable and is based on the official appraised value or the contracted price, whichever is highest.

Withholding Tax on the sale of the property is calculated at 1% of the official appraised value or the contracted price, whichever is higher if the seller is a company (5% to 35%).

Land Tax is an annual tax levied on land ownership equivalent to just a few Baht per rai for properties held as private residences. For properties held by companies the tax can be significantly higher.

Structures Usage Tax only applies to properties used for commercial purposes.