land in samui

[klause]

is it possible to buy : for example a half rai ( 800sqm) Land as farang in samui island and build a house or bungalow inside & build wall around ? IF YES ! HOW ?

open a company first to my name and after buy a land and build house? something like that?

is there any other examples like that in the island at all ?

How much might be the cost to me total with a "reasonable" price at all same as my plan?

is it possible half rai land and with other cost 2.500.000 THB around.?. the land might be also 500sqm "anywhere" in the island. doesnt matter.

Thank.

[khunPer]

There are a number of treads about buying land as a foreigner. There is a webpage at site SamuiForSale (http://www.samuiforsale.com/knowledge/land-property-ownership-thailand.html) with some informative answers, and also an Isaan lawyer has written some read worthy articles about property at ThaiLawOnline (http://thailawonline.com/en/property/buying-a-house-in-thailand.html).

Yes, it is possible to buy ½ rai, build a wall around the land, and build a house inside – but as foreigner you have some limitations.

Land prices are, as everywhere, dependent of location. Furthermore, you may in same area (location) find quite different prices. Samui land prices have gone up during the last two decades, and not only what a foreigner may consider as a good plot, is “expensive”. Thais may think different, so land that for a foreigner seems like not too attractive can be “very expensive”. Where a foreigner often thinks a flat plot with no vegetation near a trafficked street is unattractive, Thais find that very attractive – well for business, and no trees and palms in the way.

The best thing is to check with some real estate agents, check adverts – including billboards at Shopping Centers – and look around and ask locals; often the mouth-to-mouth method works well for finding reasonable priced plots. You will most likely be able to find land priced around 4 million baht a rai, or your suggested 2½ million baht for ½ rai or 125 talang wah (500 square meter); especially at the southern and western part of Samui, but also up the sois (roads) going inland, you may find reasonable priced land for sale.

Another possibility is to look for land + house – which sometimes are sold as “a limited company” – and here you can also check in the banks, as they sometimes have taken property back and resell it for a very reasonable price. Kasikorn Bank (K-Bank) normally has a color flyer available, unfortunately only in Thai language.

The limited company method was often used to hold land for a foreigner, when I say “was”, it’s because it has been more complicated the later years; however a local lawyer with experience in property and foreign clients, shall be able to enlighten you about present conditions and how to make it. Normally the first informative consultation with a lawyer is free of charge, and it’s worth spending the fees for the right information and company set-up.

To my knowledge the complications are that a foreigner can only hold 49 percent of the shares, which mean 51 percent need to be held by Thai citizens. Before a law firm often just put some names in for so-called “proxy shareholders”, but today the shareholders have to prove means of fund for “buying” their shares, making the former method impossible. You need minimum 3 shareholders. Another thing is, that the authorities are looking into companies with foreign shareholders, having no other activities than holding land plot(s) – presumably it’s more the larger set-up’s that is looked at, rather than a small plot with a private bungalow; but that can change.

A possible way is to use preferred shares, where the foreign shareholder holds a majority of voting rights with shares each having 10 votes, whilst the Thai shareholders has ordinary shares with one vote only – it’s questioned if this method legally can hold in court. Another thing is to have the limited company performing some other activity than holding a plot of land; perhaps that can be “on paper” only. An experienced lawyer can inform you about various possibilities. Expect to pay in the area of 35,000 to 50,000 baht in various fees to open a limited company.

Setting up a company to hold land means, that you will need an agreement with an accountant; make an annual audited balance; expect to pay some semi-annually company tax. Do expect some 40,000 baht and up for that service per year.

When reading other threads and postings, you cannot compare prices up Isaan with Samui-prices; also various Land Offices may have little different rules, so you need advisers with local experience. Also expect construction prices at Samui to be slightly higher, it’s an island and the construction workers come down here in teams, they are not local people like up Isaan.

You may wish the limited company to make a 30-year Lease Agreement with you; that has to be declared at the Land Office and tax paid for the full length of the leasing period. Any lease longer than 3 years is illegal and void, if not registered at the Land Office. A long-term registered lease agreement also gives you some level of protection. You will need to pay a lease to the limited company, that also need some income to pay accountant, auditor and tax.

I recommend always to use a lawyer and check due diligence of land or property or limited company (if buying an established company owing land/house); furthermore road access is very important to check and clear, as well as water supply (public or well or truck/rain), and electric supply (any power lines nearby).

For your info, I’m Samui resident for more than a decade and have a house here, and I’m shareholder in a limited company. Feel free to ask; if you have further questions you think I can help answering.

Wish you good luck with your plan...

Edited May 15, 2015 by khunPer

[khunPer]

I shall add that it's worth reading the book "How To Buy Land and Build a House in Thailand" by Philip Bruce, Paiboon ISBN 1-887521-71-2, paiboonpublishing.com. Philip Bruce lives at neighboring Koh Phangan and writes about how he bought land and build his house there.

[ksamuiguy]

A foreigner can not own land in Thailand.

[klause]

There are a number of treads about buying land as a foreigner. There is a webpage at site SamuiForSale (http://www.samuiforsale.com/knowledge/land-property-ownership-thailand.html) with some informative answers, and also an Isaan lawyer has written some read worthy articles about property at ThaiLawOnline (http://thailawonline.com/en/property/buying-a-house-in-thailand.html).

Yes, it is possible to buy ½ rai, build a wall around the land, and build a house inside – but as foreigner you have some limitations.

Land prices are, as everywhere, dependent of location. Furthermore, you may in same area (location) find quite different prices. Samui land prices have gone up during the last two decades, and not only what a foreigner may consider as a good plot, is “expensive”. Thais may think different, so land that for a foreigner seems like not too attractive can be “very expensive”. Where a foreigner often thinks a flat plot with no vegetation near a trafficked street is unattractive, Thais find that very attractive – well for business, and no trees and palms in the way.

The best thing is to check with some real estate agents, check adverts – including billboards at Shopping Centers – and look around and ask locals; often the mouth-to-mouth method works well for finding reasonable priced plots. You will most likely be able to find land priced around 4 million baht a rai, or your suggested 2½ million baht for ½ rai or 125 talang wah (500 square meter); especially at the southern and western part of Samui, but also up the sois (roads) going inland, you may find reasonable priced land for sale.

Another possibility is to look for land + house – which sometimes are sold as “a limited company” – and here you can also check in the banks, as they sometimes have taken property back and resell it for a very reasonable price. Kasikorn Bank (K-Bank) normally has a color flyer available, unfortunately only in Thai language.

The limited company method was often used to hold land for a foreigner, when I say “was”, it’s because it has been more complicated the later years; however a local lawyer with experience in property and foreign clients, shall be able to enlighten you about present conditions and how to make it. Normally the first informative consultation with a lawyer is free of charge, and it’s worth spending the fees for the right information and company set-up.

To my knowledge the complications are that a foreigner can only hold 49 percent of the shares, which mean 51 percent need to be held by Thai citizens. Before a law firm often just put some names in for so-called “proxy shareholders”, but today the shareholders have to prove means of fund for “buying” their shares, making the former method impossible. You need minimum 3 shareholders. Another thing is, that the authorities are looking into companies with foreign shareholders, having no other activities than holding land plot(s) – presumably it’s more the larger set-up’s that is looked at, rather than a small plot with a private bungalow; but that can change.

A possible way is to use preferred shares, where the foreign shareholder holds a majority of voting rights with shares each having 10 votes, whilst the Thai shareholders has ordinary shares with one vote only – it’s questioned if this method legally can hold in court. Another thing is to have the limited company performing some other activity than holding a plot of land; perhaps that can be “on paper” only. An experienced lawyer can inform you about various possibilities. Expect to pay in the area of 35,000 to 50,000 baht in various fees to open a limited company.

Setting up a company to hold land means, that you will need an agreement with an accountant; make an annual audited balance; expect to pay some semi-annually company tax. Do expect some 40,000 baht and up for that service per year.

When reading other threads and postings, you cannot compare prices up Isaan with Samui-prices; also various Land Offices may have little different rules, so you need advisers with local experience. Also expect construction prices at Samui to be slightly higher, it’s an island and the construction workers come down here in teams, they are not local people like up Isaan.

You may wish the limited company to make a 30-year Lease Agreement with you; that has to be declared at the Land Office and tax paid for the full length of the leasing period. Any lease longer than 3 years is illegal and void, if not registered at the Land Office. A long-term registered lease agreement also gives you some level of protection. You will need to pay a lease to the limited company, that also need some income to pay accountant, auditor and tax.

I recommend always to use a lawyer and check due diligence of land or property or limited company (if buying an established company owing land/house); furthermore road access is very important to check and clear, as well as water supply (public or well or truck/rain), and electric supply (any power lines nearby).

For your info, I’m Samui resident for more than a decade and have a house here, and I’m shareholder in a limited company. Feel free to ask; if you have further questions you think I can help answering.

Wish you good luck with your plan...

Thank you ; very kinf of you ; for the "very" usefull informations with many details)

well ; i would never pay lots of money like 4 million baht anyway ;

but i could spend easy around 2 million baht and might be a little bit more than this.

but never 4 million)

doesnt matter the area where might be the house in the island;

i will buy a truck anyway.

i just need a "Garden House" possible build wall around;

possible minimum 10 fruit tress can planting inside; dogs ;cat;chickens ;

vegetables ; flowers a hammock like that.)

i guess around 500m2 or 1/2 rai might be enough to make my dream come true )

just need large Garden house with some fruit trees inside. can be also a ready house on had

if not overr prieced. actually for me The "garden" is much more important than a house for me

if i have a garden the size i need ; like 500m2

i can also let build inside a cheap nice bungalow with 2 rooms and kitchen. aircon ;bathroom ; basta.

actually i live in Thailand but i want to move to south; where more european female

visitors are too ; not only men and sex touristsaround)

i think samui is the right place for me .

thats why i want move there.

Thank you

p.s. "When reading other threads and postings, you cannot compare prices up Isaan with Samui-prices" "but i can compare with pattaya" i live very long years in Thailand. but never been only in south thailand ;

as it said:The price depence THE AREA actually all around.

you can write to my email address:

---Email removed +++ Please PM the OP ------

Edited May 17, 2015 by PoorSucker
Email removed

[Tropicalevo]

Very good advice from KhunPer.

Just a few things to add (from a course that I attended in Bangkok).

A law professor said that whilst the preference share method is totally legal. In a conflict - the foreigner would probably loose as the structure suggests that one foreigner is equal to ten Thais and this is against the spirit of Thai law.

It is legal for a foreigner to have a 30 year lease - plus it is also possible to have a 30 year extension (60 years in all), but any more is illegal. You should avoid anyone offering 90 year or 99 year leases.

If you go for the lease option, only the names on the lease can have possession of the property. ie if yours is the only name on the lease, when you die the lease is cancelled immediately. Make sure that your successors are also on the lease. (Wife, children etc)

Definitely talk to a good lawyer or accountant before you spend money or sign anything. There are a few rogues on Samui. I can provide some contact numbers if you wish.

Good luck and welcome to Samui.

[klause]

Very good advice from KhunPer.

Just a few things to add (from a course that I attended in Bangkok).

A law professor said that whilst the preference share method is totally legal. In a conflict - the foreigner would probably loose as the structure suggests that one foreigner is equal to ten Thais and this is against the spirit of Thai law.

It is legal for a foreigner to have a 30 year lease - plus it is also possible to have a 30 year extension (60 years in all), but any more is illegal. You should avoid anyone offering 90 year or 99 year leases.

If you go for the lease option, only the names on the lease can have possession of the property. ie if yours is the only name on the lease, when you die the lease is cancelled immediately. Make sure that your successors are also on the lease. (Wife, children etc)

Definitely talk to a good lawyer or accountant before you spend money or sign anything. There are a few rogues on Samui. I can provide some contact numbers if you wish.

Good luck and welcome to Samui.

Thank you all for information ;

very kind of you .

most people say that i should better lease a Land not buy ;

but i will spend alot money inside garden

build a house ; buy & planting many fruit trees inside ; and and and

it will be pity all about my effort in the end for my hard work at all for the garden;

i would like that somebody from my successors will heritage this nice garden house

when i am gone.

we will see ; what way i will decide. i have time to think .

i own a condo in Thailand closer to bkk already ; i know all about rogues here ; tricks and etc.

will never do anything without a good laywer ;

without check title owner from land registry office.

i know the case .

thank anyway to warn me ) very kind of you .

you can provide me some contacts ;will be glad;

my email : Email removed +++ Please PM the OP

Thanks

Edited May 17, 2015 by PoorSucker
Email removed

[khunPer]

Thank you ; very kinf of you ; for the "very" usefull informations with many details)

well ; i would never pay lots of money like 4 million baht anyway ;

but i could spend easy around 2 million baht and might be a little bit more than this.

but never 4 million)

doesnt matter the area where might be the house in the island;

i will buy a truck anyway.

i just need a "Garden House" possible build wall around;

possible minimum 10 fruit tress can planting inside; dogs ;cat;chickens ;

vegetables ; flowers a hammock like that.)

i guess around 500m2 or 1/2 rai might be enough to make my dream come true )

just need large Garden house with some fruit trees inside. can be also a ready house on had

if not overr prieced. actually for me The "garden" is much more important than a house for me

if i have a garden the size i need ; like 500m2

i can also let build inside a cheap nice bungalow with 2 rooms and kitchen. aircon ;bathroom ; basta.

actually i live in Thailand but i want to move to south; where more european female

visitors are too ; not only men and sex touristsaround)

i think samui is the right place for me .

thats why i want move there.

Thank you

p.s. "When reading other threads and postings, you cannot compare prices up Isaan with Samui-prices" "but i can compare with pattaya" i live very long years in Thailand. but never been only in south thailand ;

as it said:The price depence THE AREA actually all around.

you can write to my email address:

---Email removed +++ Please PM the OP ------

»actually i live in Thailand but i want to move to south; where more european female

visitors are too ; not only men and sex touristsaround)

i think samui is the right place for me .

thats why i want move there.«

In that case I think you will find Samui and Phangan as very right places, probably the best in Thailand for that purpose...

Best advice is to come down here for a couple of weeks or a month and check the location, before you decide anything.

Southwest on Samui, probably between the Namuang (1 & 2) waterfalls and the Lipa Noi intersection, perhaps all way up to Nathon, is the old fruit plantation area; probably to do with water or water supply. Sometimes I see fruit plantation land with grown up fruit trees for sale there. It’s also an area with more affordable land prices.

In general I think you will find Samui land prices slightly higher than in Pattaya – apart from the urban Pattaya area, of course – but around 2 to 2½ million baht for ½ rai or 125 square wah should be possible.

[Mole]

Land prices on Samui are surely higher than in Pattaya. Prime locations in Chaweng will probably even rival prices in Pattaya. This may be due to the local laws which won't allow buildings to be higher than coconut trees, so there's limitation how high you can build maximizing the value of the land.

[Rooo]

Land prices on Samui are surely higher than in Pattaya. Prime locations in Chaweng will probably even rival prices in Pattaya. This may be due to the local laws which won't allow buildings to be higher than coconut trees, so there's limitation how high you can build maximizing the value of the land.

Coconut trees ? Mole there is a building code available for samui & it's available from local authorities. The days of cocnut trees are long gone, especially when they used to import real tall ones , same as the cart & buffalo, they now cars & motorcycles.

[Mole]

So, what is the current building code regarding the height of buildings?

There surely aren't any high rises here on Samui like those condotels in Pattaya.

Since there are still loads and loads of coconut trees all over the island, so I disagree that the days of the coconut trees are long gone...

Edited May 18, 2015 by Mole

[khunPer]

So, what is the current building code regarding the height of buildings?

There surely aren't any high rises here on Samui like those condotels in Pattaya.

Since there are still loads and loads of coconut trees all over the island, so I disagree that the days of the coconut trees are long gone...

Mole, the island is now divided into a number of zones with various rules, instead of the palm height.

Very short and general:

Beach area, not more than 6 meter to roof, only one floor (bungalow or single plan villa), maximum about 60 square meters (maybe 70, cannot remember by heart), distance from beach side land border to building 10 meters, distance between each building 6 or 10 meters, building may not be connected with for example covered walk ways, roof tiles only in specified natural colors (no blue tiles…!), some percentage (think it’s 70 percent) of roof shall be “Thai style” and not flat or terrace...

However, some beach areas are considered “city zone” – like for example Fisherman Village in Bo Phut and the area around Maenam pier – and you can build 12 meter high to roof top, any number of floors within the 12 meters (can do 3 and even 4), 3 meters from water font and 2 meter inside own land to beach and road, ½ meter from neighbors when no windows/openings, else 1 meter...

Some 50 meters inland from beach you can build larger and higher...

Some several hundred meters from beach you can make big buildings, like a shopping mall...

Sloping land may give you access to more than 3 to 4 floors, and there may be special zones where a resort – bringing currency to the island – is build.

There is a PDF with the regulations here (may be more specific and updated than my modest memory):

http://www.asia-consultants.com/koh-samui-building-regulations.pdf

[Rooo]

Koh Samui Building Regulations According To Distance From The Beach

Before building any property you need to hold a building permit which is obtained from the municipality office. There are certain restrictions on the structure that you can build depending on the distance of your property from the beach.

There are four defined areas which are as follows:

Area 1 - For land located up to 10 metres from the beach, no construction is permitted.

Area 2 - For land located up to 50 metres from the beach, you can only construct a single storey building with a maximum height of 6 metres (including the roof). Also, each building cannot exceed an area of 75 square metres.

Area 3 - For land located up to 200 metres from the beach, the maximum height allowed for any building is 12 metres (including the roof). Also, each building cannot exceed an area of 2,000 square metres.

Area 4 - For land located more than 200 metres from the beach, the maximum height allowed for any building is 12 metres.

Note: Property must now also be constructed with peaked roofs; flat roofs are no longer permitted.

Environmental Regulations On Samui According To Distances Above Sea Level

Level 1 Land less than 80 metres above sea level

In general, no extra rules apply here, subject to rules relating to hotels (50 percent of hotel land area must be left unbuilt on and green), residential projects consisting of 10+ units (must have water and waste treatment facilities), in addition to water dams, golf courses and airports.

Level 2 Land between 80 and 140 metres above sea level

At this level, a single family home can be constructed on land that is 100 square wah or greater (if the land is less than 100 square wah, construction is prohibited). Structures cannot exceed 6 metres in height and must leave 50 percent of the land unbuilt on and green; must have an architectural design based on traditional Thai, tropical or local aesthetics; must have a roof consisting of 80 percent of the total building area that matches the natural surroundings; and must include an approved water drainage system, to prevent flooding.

Level 3 Land greater than 140 metres above sea level

Within this range, the rules for Level 2 apply and also structures cannot exceed 90 square metres.

Environmental Regulations On Samui According To Gradient of Land

In all the levels above, where the slope of the land is between 35-50 degrees, only a single family home is permitted which cannot exceed 80 square metres in area and which must leave 75 percent of the land unbuilt (50 percent of the unbuilt land area must be green with native trees). In addition, the land area must be 120 square wah or greater, otherwise construction is prohibited. For any slope greater than 50 degrees, construction is also prohibited.

Source link:

http://www.real-samui-properties.com/koh-samui-real-estate-guide.html

[SamuiRes]

If you lease land make sure that the lease states quite clearly what happens to the buildings on the land, which you have paid for, at the end of the lease whether that ends by the passage of time or death.

Civil and Commercial Code Part 3

Section 1310. If a person has, in good faith, constructed a building upon another person's land, the owner of the land becomes the owner of the building, but he must pay the constructor for any increase of value accruing to the land by reason of the building.

Basically this means that the buildings revert to the land owner at the end of the lease but he must pay for them.

Many leases I have seen are silent on this point but I have also seen some which actually state that value must be paid. The issue of course will be determining the value at that time so the procedure for doing that must also be clear.