Buying a Condominium in Thailand

Buying in Koh Samui

How foreigners buy a condo freehold in Thailand, step by step: the foreign quota, moving your money, the juristic person, costs and fees, letting rules and what to check on Koh Samui.

By Samui Real Estate, Property ConsultantLast reviewed November 20269 min read

For many international buyers, a condominium is the most straightforward way to own property in Thailand: a freehold title in your own name, with no end date, that you can sell, let or leave to your family. On Koh Samui, condos have changed a lot in recent years. Most are low-rise, resort-style buildings with pools, gyms and on-site management, a short walk from the beach in Lamai, Bophut, Chaweng and Bangrak. This guide covers everything a foreign buyer needs to know, from the law to the paperwork. To see what’s available, browse condos for sale in Koh Samui or our Koh Samui condos overview.

General information, not legal advice. Have your purchase checked by an independent property lawyer.

How freehold condo ownership works

When you buy a condo unit, you own three things:

• The unit itself, registered on a condominium title deed (Or Chor 2) in your name.
• A share of the common property (the land, structure, pool and shared facilities), in proportion to your unit’s area.
• Voting rights in the building’s owners’ association, the juristic person.

The foreign quota, in practice

• The quota is measured by floor area, across the whole building, not by number of units.
• Popular buildings fill up. Resort-style projects marketed abroad often reach their foreign quota quickly, especially for the best units.
• The juristic person confirms quota. Before you reserve a resale unit, ask for a letter from the building’s juristic person confirming that foreign quota is available for that unit. For off-plan, the developer allocates quota; make sure your contract confirms it.
• If the quota is full, a foreigner can only hold the unit on a lease. A leasehold condo is cheaper but generally harder to resell, so price it accordingly.

Moving your money: the FET form

The Land Office will only register a foreign buyer as owner if the money trail is right.

1. Send the funds from your own overseas account, in foreign currency, to a Thai bank account in your name or directly to the seller’s or developer’s account.
2. State the purpose on the transfer: purchase of a condominium unit, with the unit and project name.
3. Let the Thai bank convert the currency. Don’t convert abroad and send baht.
4. Get the paperwork. For larger transfers, the bank issues a Foreign Exchange Transaction form (FET, often called a Tor Tor 3). For smaller ones, a credit advice may be issued instead. Ask your bank which applies before you send.
5. Keep every document. You’ll need them at transfer, and again when you sell and send the proceeds abroad.

Resale, off-plan or leasehold?

	Resale	Off-plan	Leasehold unit
What you see	The finished unit and the running building	Plans, a show unit, the developer’s record	The finished unit
Price	Market price, sometimes negotiable	Launch prices and payment plans	Lower
Risk	Building condition and management	Delays, changes, developer failure	Weaker ownership, harder resale
Rental history	You can see it	Projections only	You can see it
Quota	Must be checked unit by unit	Allocated by the developer	Not needed

For new projects, read buying off-plan property in Koh Samui and compare current developments.

The buying process

1. Choose the unit and agree terms, including who pays which transfer costs.
2. Reserve with a deposit under a reservation agreement that is refundable if due diligence fails.
3. Due diligence. Your lawyer checks the title, the building’s registration, quota, the juristic person’s records and any unpaid fees. See property due diligence.
4. Sign the sale and purchase agreement. For resale, usually with a larger deposit; for off-plan, with a payment schedule.
5. Transfer the funds from abroad and collect the FET documents.
6. Obtain the debt-free letter from the juristic person, confirming no common-area fees are owed on the unit.
7. Transfer at the Land Office. Fees are paid, the title is registered in your name, and you receive the Or Chor 2.

A resale condo can often transfer within four to six weeks of reservation.

What it costs

Cost	Typical amount	Paid by
Transfer fee	2% of the appraised value	Negotiable; often shared 50/50
Specific Business Tax or stamp duty	3.3% or 0.5%	Seller
Withholding tax	Varies	Seller
Sinking fund	A one-off amount per square metre, set by the building	Buyer, on a new unit
Common-area fees	Per square metre per month, usually billed yearly in advance	Owner
Legal fees	Fixed fee or a percentage	Buyer

See worked examples in property taxes and transfer fees.

The juristic person and the house rules

Every registered condominium has a juristic person: the legal body that owns and manages the common property on behalf of all owners. It’s run by a manager and a committee elected by the owners, with votes weighted by unit size.

What this means for you:

• Common-area fees are compulsory. They pay for security, cleaning, pool and garden care, insurance and repairs. Unpaid fees can carry penalties, and you can’t transfer a unit without a debt-free letter.
• The sinking fund is a reserve for major repairs. A healthy sinking fund means fewer surprise levies later.
• The house rules (regulations) bind every owner, including rules on renovations, pets, noise and letting.
• The annual meeting approves the budget and elects the committee. Owners can attend or vote by proxy.

Renting out your condo

• Long-term letting (30 days or more) is generally allowed, subject to the house rules.
• Daily and weekly letting is restricted in most buildings, and short stays without a hotel licence can breach the Hotel Act. Thai courts have upheld action against unlicensed short-term letting in condos.
• Rental programmes: some newer Samui projects are designed with a licensed hotel or managed rental programme. Ask who holds the licence and how income is shared.

Read hotel licences and short-term rentals before you buy to let.

Condos on Koh Samui

Koh Samui’s building rules keep most condos low-rise, with resort-style facilities rather than towers. Current examples from our listings:

• Lamai: the widest choice, from one-bedroom units from around ฿3.6 million to three-bedroom corner units around ฿16 million.
• Bophut: studios from around ฿2.8 million near Fisherman’s Village and the airport.
• Chaweng: studios from around ฿2.5 million, close to the beach and amenities.
• Bangrak: beachside condos from around ฿3.9 million.

Prices are asking prices from our current listings. See the Koh Samui property market for more.

How to compare condos: a consultant’s checklist

Factor	What to look for
Location	Walking distance to the beach, shops and restaurants; road noise; flight path near the airport
Developer	Completed buildings, how they’ve aged, and how quickly units resold
Building quality	Waterproofing, window and door quality, soundproofing, lifts and backup power
Management	Who manages the building, how well the pool and gardens are kept, response to repairs
Fees	Common-area fee per m², sinking fund balance, any planned levies
Foreign quota	Available for your unit, and for future buyers when you sell
Unit	Layout, light, ventilation, view and whether it can be built out
Letting	House rules, licensed programme, rental demand in that area

What drives resale value

• Location and view, which can’t be changed later.
• Freehold title with foreign quota available, which widens the pool of buyers.
• A well-run building with healthy finances and good upkeep.
• Unit type: one- and two-bedroom units in good locations tend to be the easiest to resell.

Mortgages and finance

Few Thai banks lend to foreigners without a Thai work permit and local income, so most buyers pay cash, use a developer’s payment plan during construction, or borrow at home against other property. If you do borrow in Thailand, mortgage registration costs 1% of the loan, capped by law.

Selling and inheritance

• Selling: a freehold condo is sold by transferring the title at the Land Office. Your FET records support sending the proceeds abroad. See selling property in Koh Samui.
• Inheritance: the unit passes under your will. A foreign heir can inherit it as long as the building’s foreign quota allows, so make a Thai will and ask your lawyer how it interacts with the quota.

Common mistakes

• Reserving a resale unit without written quota confirmation.
• Sending baht, or paying from a third party’s account, so there is no FET form.
• Buying to run daily lets in a building that bans them.
• Ignoring the juristic person’s accounts and sinking fund.
• Comparing prices on different measurements. Check whether balconies and walls are included in the stated area.

Before you reserve

• Foreign quota for this unit is confirmed in writing.
• Your money will come from abroad, in your name, in foreign currency.
• The house rules allow the way you plan to use or let the unit.
• The juristic person’s accounts and sinking fund look healthy.
• The fees at transfer, and who pays them, are agreed in writing.
• Your own lawyer will carry out due diligence before you sign the sale agreement.

Frequently asked questions

General information only, not legal or tax advice.