Investing & renting out
When renting out a villa or condo counts as running a hotel in Thailand, the small-property exemption, what a licence involves, condo rules, guest reporting, tax and the practical options for owners on Koh Samui.
In short
- Renting accommodation to paying guests for short stays is regulated as a hotel business under the Hotel Act.
- In practice, lets of 30 days or more are treated as ordinary tenancies; shorter lets need a licence or an exemption.
- Small properties with a limited number of rooms and guests can use a simpler notification route instead of a full licence.
- Most condo buildings ban daily lets, and unlicensed condo letting has been prosecuted.
- Foreign guests must be reported to Immigration within 24 hours, and rental income is taxable.
If you plan to rent your villa or condo to holiday guests, the rules on short-term letting are one of the most important things to understand before you buy. They affect what you can earn, how you can let, and the risk you take on. Buyers ask us about this more than almost anything else. This guide explains the law in plain English and the options that work in practice on Koh Samui. For the wider investment picture, see our Koh Samui property investment guide.
General information, not legal advice. The rules and how they are enforced change. Confirm the position for your property with an independent property lawyer.
What counts as a hotel
The law
A hotel is any establishment providing accommodation, for payment, to travellers or other people for temporary stays. Operating a hotel requires a licence from the registrar. Operating without one is an offence, with fines, possible imprisonment and a daily fine while it continues.
Hotel Act B.E. 2547 (2004)
The Act doesn’t set a number of days, but in practice:
- Lets of 30 days or more are generally treated as residential tenancies, outside the Hotel Act.
- Lets of less than 30 days to paying guests are treated as hotel business, which needs a licence or must fit an exemption.
The small-property exemption
Ministerial regulations exclude very small accommodation from the full licensing regime when it is run as a source of supplementary income and notified to the local registrar. The limit is a small number of rooms and guests; it was raised in recent years, to around 8 rooms and 30 guests under the current rules. A typical three- to five-bedroom villa can fall within it.
To use the notification route, the property must still:
- be legally built, with the right building permit and house registration;
- meet basic safety standards, such as fire safety and safe access;
- be in a location where the use is allowed; and
- be notified to the registrar, with the required documents.
Check the current limits and process with your lawyer: they are set by regulation and can change.
Registering a small villa: what’s typically involved
The exact documents vary by local office, but owners can expect to provide:
- Proof of the right to use the property: the title deed, or the lease and superficies, and the owner’s consent where needed.
- Building documents: the building permit, house registration and plans showing the rooms.
- Identity documents for the operator, or company documents if a company runs the letting.
- The notification form to the local registrar, with the number of rooms and maximum guests.
- An inspection or check of basic safety: fire extinguishers, smoke detection, exits and safe access.
Your lawyer or manager can prepare the file. Keep the confirmation with your rental records.
What a full hotel licence involves
For larger properties, or several villas run as one business:
- A building permitted for hotel use, which can mean a change-of-use approval for a building designed as a house.
- Zoning that allows accommodation on that plot.
- Fire safety, access and sanitation standards, inspected before the licence is issued.
- An Environmental Impact Assessment for larger projects.
- An application to the registrar and an inspection.
On many Samui villa estates, the developer or a management company holds the licence and owners let through its programme. Ask who holds the licence, what it covers, and what happens if you leave the programme.
Condos and short-term letting
Watch out
Short-term letting in condos is the area of most risk:
- Most condo house rules ban daily or weekly letting.
- A unit in a residential condo can’t normally be licensed as a hotel on its own.
- Thai courts have upheld penalties against owners running unlicensed daily rentals in condos.
- Neighbours and the juristic person can complain, and buildings increasingly enforce their rules.
If you want to let a condo short-term, buy in a building designed with a licensed hotel or rental programme, and check the licence before you buy. Otherwise, plan for monthly lets. See buying a condominium.
Guest registration: TM30
Every foreign guest must be reported to Immigration, usually within 24 hours of arrival, by the owner or manager of the accommodation. Hotels report through their own system; private owners and managers usually report online. Failing to report can lead to fines.
Tax and VAT
- Rental income is taxable in Thailand. Individuals pay personal income tax; companies pay corporate tax. See property taxes and transfer fees.
- VAT applies once accommodation income passes the VAT registration threshold.
- Booking platforms report and may withhold tax on payouts, depending on the platform and arrangements.
Foreign owners: income, but not work
A foreign owner can own the property and receive rental income. Working in the business, such as checking guests in, cleaning or marketing on Samui, requires a work permit, and some hotel activities are restricted for foreign-owned companies. In practice, most owners use a licensed local management company.
Insurance for rental use
Standard home insurance often excludes paying guests. If you let the property, make sure your policy covers:
- Rental use, explicitly.
- Public liability for injuries to guests, especially around pools.
- Loss of rental income after an insured event.
- Contents used by guests.
Running a compliant holiday rental
- Licence or small-property notification in place, or a licensed programme.
- TM30 reported for every foreign guest.
- Fire extinguishers, smoke detectors and clear exits.
- Pool safety: depth markings, lighting and rules.
- House rules on noise and parties, given to every guest.
- Rental income recorded and declared for tax.
- Insurance that covers paying guests.
Your options as an owner
| Option | How it works | Best for |
|---|---|---|
| Long-term letting | Lets of 30 days or more, under a tenancy agreement | Simplicity; condos; family homes |
| Small-property notification | Register the villa as small accommodation | Individual villas within the limits |
| Licensed rental programme | Let through a developer or manager that holds the licence | Villa estates and resort condos |
| Full hotel licence | Your own licence, usually through a company | Several villas or a resort business |
What to ask before you buy
- Does the property, or the estate, already hold a hotel licence or notification?
- If not, could it qualify, and what would it cost?
- Do the house rules or estate rules allow short-term letting?
- Who will manage guests, report TM30 and handle tax?
- Is any rental figure a contractual guarantee or a projection?
- What happens to your income and use if you leave the rental programme?
Frequently asked questions
For lets under 30 days, generally yes, unless the villa qualifies for the small-property notification route or is let through a licensed programme.
Usually not for stays under 30 days, unless the building has a licensed programme. Most house rules ban it, and it can breach the Hotel Act.
The Hotel Act provides for fines, possible imprisonment and a daily fine while the offence continues, plus potential claims from the condo or neighbours.
Lets of 30 days or more are generally treated as ordinary tenancies, not hotel business.
The notification to Immigration of a foreign guest’s address, required within 24 hours of arrival.
A foreigner can own the property and receive the income. Working in the business needs a work permit, and some hotel activities are restricted for foreign companies. Most owners use a manager.
If you plan to let a villa by the night, our property management service covers bookings, guests, housekeeping and routine administration, including TM30 reporting.
Planning to let your property?
We’ll tell you how any property you’re considering can legally be let.
General information only, not legal or tax advice. Licensing rules change; confirm the current position for your property.