In Thailand, to buy a house, one must use a property lawyer to navigate Thai property law, which can be complicated and unregulated. When it comes to real estate transactions in Thailand, the main focus is the land and house. However, foreign ownership of land is restricted under the Land Code of Thailand with exceptions.
Two ways for foreigners to buy a house on Koh Phangan are:
- Leasehold - Foreigners can enter into a 30-year lease contract with the option to renew or extend twice. This protects the foreigner as an owner for a period of 90 years. However, they will not own the property after the contract ends.
- Limited Liability Company - Creating a limited liability company in Thailand with a maximum of 49% foreign ownership is a costlier option. The company's freehold land is registered under the company's name, with the international managing director having full control of the land.
The leasehold option is more stress-free, due to lesser fees and legal aid. Koh Phangan's real estate market has grown in popularity with more tourists and investors. Before buying, one should consider hiring experienced lawyers and estate agents, researching regulations, determining their needs, checking internet organizations and asking friends for help. Building one's own house is also a cost-effective option with control over design and materials, and a good investment as property prices will rise.