Property Ownership in Koh Samui for Foreigners
Typical Samui Pool Villa
Leasehold vs Freehold in Koh Samui – What Foreign Buyers Need to Know
If you are considering buying property in Koh Samui, the first serious question is simple:
How can a foreigner legally own property here?
The answer is yes, you can — but the structure matters. A lot.
There are three primary ownership routes foreigners use in Koh Samui:
• Leasehold
• Freehold Condominium (within foreign quota)
• Thai Company ownership
Each has a different legal foundation, different risk profile, and different long-term implications.
Let’s walk through them clearly.
1️⃣ Leasehold – The 30 Year Legal Limit
For villas and land in Koh Samui, leasehold is the most common structure.
Under Thai law, a land lease can be registered for a maximum term of 30 years.
That is the legal cap.
You may hear phrases such as:
“30 + 30 + 30”
“Guaranteed renewal”
“Automatic extensions”
The key legal point is this:
Only the first 30-year lease can be registered at the Land Office.
Any future extensions are contractual promises. They are not a registered property right that automatically carries the same legal protection as ownership.
At the end of 30 years, renewal depends on cooperation and contract — not automatic legal entitlement.
That does not make leasehold unsuitable.
Leasehold is not inherently problematic — it simply has a defined legal limit. Many lifestyle buyers are comfortable with that structure, particularly when the 30-year term aligns with their personal time horizon.
However, it is important to understand that it is a long-term use right, not perpetual ownership.
2️⃣ Freehold Condominium – The Strongest Foreign Ownership Option
Thailand’s Condominium Act allows foreigners to own condominium units in their own name — freehold — provided that foreign ownership within the building does not exceed 49% of total unit floor area.
This is known as the “foreign quota.”
If a unit is within the foreign quota and funds are transferred from overseas with the correct documentation, the title deed is registered directly in your name.
No lease.
No Thai shareholder structure.
No nominee arrangement.
You own the apartment unit outright and hold a proportional share of common areas.
It is important to note:
You own the unit, not the land beneath the building.
From a legal security perspective, foreign freehold condominium ownership is the cleanest structure available to non-Thai nationals.
The limitation is simply that it applies only to approved condominium developments.
3️⃣ Thai Company Ownership – Legal in Structure, Sensitive in Execution
Another route historically used in Koh Samui is purchasing land through a Thai limited company.
A Thai company can legally own land.
However, Thai law prohibits foreigners from using nominee shareholders to circumvent land ownership restrictions.
In the past, some structures relied on Thai shareholders with minimal financial participation, with control retained entirely by the foreign buyer.
Authorities have, at various times, increased scrutiny around nominee arrangements — particularly where a company exists purely to hold land and Thai shareholders have no genuine economic interest.
Company ownership itself is not illegal.
Poorly structured nominee arrangements carry legal risk.
If considering this route, it is important to:
• Ensure Thai shareholders are legitimate and properly capitalised
• Ensure the company operates lawfully
• Obtain independent legal advice
• Avoid generic template structures
For certain investment projects, a properly structured company may be appropriate. It simply needs to be built correctly.
Resale, Time Horizon and Succession
Ownership structure also affects resale value and long-term planning.
With leasehold, market value typically reflects the remaining term. A property with 25 years remaining on a lease will generally command stronger resale pricing than one with 10 years remaining.
With freehold condominium ownership, transferability is simpler, provided foreign quota remains available.
For inheritance planning, structures differ again. Leasehold rights can pass according to contract terms, while freehold ownership forms part of your estate.
These are practical considerations worth thinking about at the beginning — not at the end.
So Which Structure Is “Best”?
There is no universal answer.
It depends on:
• Your time horizon
• Whether this is lifestyle or investment
• Your appetite for structural complexity
• Your succession planning priorities
What matters is not choosing the “most popular” method.
What matters is understanding the structure before you commit.
Koh Samui remains an exceptional place to live and invest. But decisions should be made with clarity rather than assumption.
If you would like to discuss which structure best aligns with your goals, feel free to contact me. I am always happy to explain the practical realities before you sign anything.
