Buying Property in Koh Samui & Thailand: Understanding Legal Structures and 2025 Reforms

Current Legal Options for Foreign Buyers

Condominium Freehold Ownership
Foreigners may directly own condominium units, but only up to 49 % of the saleable area in any given building. Purchases must be funded with money transferred from abroad in foreign currency. Because title deeds are issued by the Land Department, this is widely regarded as the most secure and straightforward ownership route.

Leasehold Agreements
For villas and land, foreigners typically sign long-term leases of up to 30 years, often with renewal options. Leases longer than three years must be registered at the Land Department. While leaseholders can own structures built on the land, the land itself remains under Thai ownership.

Thai Limited Company Ownership
Some investors establish a Thai limited company (with majority Thai shareholders) to acquire freehold land. This method requires careful compliance with corporate law and reliable local partners, but it remains a common pathway for land ownership.

Board of Investment (BOI) Exceptions
In rare cases, the BOI may grant special privileges that allow a foreigner to own up to one rai (1,600 m²) of land if their investment provides clear benefits to the Thai economy. This path involves strict criteria and is seldom approved.

Proposed Reforms in 2025

Thailand’s government is reviewing reforms that could reshape the property market for international buyers.
Key proposals include:

• Extending leasehold terms from 30 to 99 years, providing much greater long-term stability for residential investors.

• Raising the foreign condominium quota from 49 % to 75 %, which would significantly expand freehold opportunities for non-Thai buyers.

These reforms are still under discussion, but they indicate a shift toward a more open and competitive investment environment.

Section 96 Bis of the Land Code

Thai law generally prohibits foreigners from owning freehold land. A narrow exception exists under Section 96 Bis
of the Land Code. This allows foreigners to purchase up to one rai of land for residential purposes if they:

• Invest at least 40 million THB into Thailand for a minimum of five years.

• Place those funds into government-approved assets such as bonds or BOI projects.

• Obtain approval from the Ministry of Interior.

• Use the land strictly for their own residence, within designated municipal areas.

Failure to meet these conditions can result in the authorities requiring the foreigner to dispose of the land.

Due Diligence and Taxes

Whether buying a condo, leasing land, or using a company, due diligence is essential:

• Verify land titles — the strongest being a Chanote.

• Check for encumbrances such as mortgages or disputes.

• Review zoning laws and building permits, as Koh Samui has strict coastal and hillside regulations.

• Engage independent legal counsel to review contracts and protect your interests.

• Understand taxes and fees — including transfer fees, lease registration fees, stamp duty, and annual land and building tax.

Conclusion

Foreigners can successfully invest in Koh Samui’s property market by choosing the right ownership structure and following the law. Condominiums offer straightforward freehold ownership; leaseholds grant long-term security.

Thai companies provide a route to land ownership with obligations; and Section 96 Bis allows direct ownership under strict investment conditions. With reforms such as 99-year leases and higher condominium quotas on the horizon, Thailand is showing signs of greater openness. By combining legal knowledge with careful due diligence, investors can secure both peace of mind and a piece of paradise.