Koh Samui, Thailand

Koh Samui, Thailand has long been the choice destination for foreigners seeking haven from across the globe. Its shimmering turquoise waters and sun bleached, white sandy bays are lined with bungalows, villas and hotels. Its nightlife is happening with a plethora of restaurants supplying food lovers and provides a magnificent backdrop for beautiful sunsets starry nights. It is not surprising that so many foreigners want to own property in Koh Samui, but like any real estate market in the world, it is important to understand the legal implications, the visa requirement, and the lines guidelines relevant tax before deciding what assets you are investing in.

Getting to the island

Before investing in property Koh Samui, you must first confidence that travel to and from the island was made easy and convenient for tourists. After all, they play a major role in helping the economy grow and help tourists to Samui to visit the island should be the priority. The most convenient way to travel is by flying to Samui with Bangkok Airways from Bangkok, Singapore, Phuket, Pattaya, Chiang and May There are 15 flights daily 80 minute between Bangkok and Samui and 4 flights per week 90 minute between Koh Samui and Singapore. In addition, several ferries and catamarans run from Surat Thani or Don Sak on the mainland of Thailand. There are nearly 10 daily departures between Samui and Ko Pha-Ngan.

Samui Airport is a unique and successful in building an airport that is somehow both cultural and natural environments of a tropical island resort. Flying, you get a brief overview of the outer islands, trails, surf the wakes of small fishing boats to sketch through the turquoise sea calm. Patches of coral reefs dappled water you just as close again. Then the coast of Samui appears. Two hundred miles of tropical paradise festooned with dozens of bays lined with white sand, lush carpeting in the textures of the wooded hill and coconut plantation, Samui is the centerpiece of a group of 80 other islands in the Gulf of Thailand.

Located 2 km north of the main village Chaweng, Koh Samui Airport serves domestic and international flights, including Bangkok Airways, Thai Airways International Berjaya Air and Firefly.

Koh Samui Guidelines for Property Tax

If you’ve already done your research and you are looking to invest in Koh Samui property, you should really understand how the tax debt can affect your overall performance.

All owners of property in Koh Samui Thailand are subject to tax on rental income, based either on standard personal income tax (PIT) rates for people paying “resident” and a PIT tax rate 15% of taxable income for non-resident taxpayers. A person becomes a paying “resident” for tax if he or she spends more than 180 days in a tax year in Thailand. Thailand does not charge a separate capital gains tax for foreign buyers. All income from capital gains are taxed the same as ordinary income. The highest rate of income tax is currently 37% per year.

When buying property in Koh Samui, it is pretty standard for the buyer to be solely responsible for paying all transfer fees and taxes duly charged by the competent Land Office under the registration of transfer of ownership property. This includes government transfer fees, withholding tax and specific business tax and stamp duties and other fees and expenses resulting from registering the transfer of ownership to the buyer.

Transfer fees are typically 2% of registered value, stamp duty is.5% of the recording, withholding tax is 1% of the appraised value, and business tax is 3.3% of the appraised value. Income tax is generally between 1-3% on Koh Samui property. There are no set rules on who pays income tax but this is just another part of the negotiating process when buying property as well as all other costs relating to the transfer of property. Tax on rental income is 10-30% of the rental revenue by type of property. Registration fee contract is 1.1%

Transfer money to buy goods Samui

Unlike most developed economies, where money transfers to and from bank accounts is relatively simple and easy, this is not the case in emerging markets like Thailand. Before buying property in Koh Samui, it is very important to understand exactly how to perform transactions and what must be done before purchasing. Reason for the complexity of this issue due to Thai law regarding foreign ownership of condominiums. Under Thai law, foreigners may own 49 percent of space-unit sale of an aggregate measure condominium building while the other 51 percent must be owned by either Thai nationals or majority Thai companies. Here is a step by step guide on how to transfer money when property Koh Samui.

1. A Thai bank account must be established for you to transfer money for yourself before you exchange your currency to Thai Baht. Any currency can be used to purchase a condominium. Foreign currency must be transferred Thailand as foreign currency and then exchanged into Thai Baht by a local bank in Thailand. In many cases, the developer may offer to help you establish a bank account in Thailand because of the complexity of creating an account for yourself. This may come at an additional cost, but developers are still willing to negotiate or waive the cost if it helps get the deal.
2. Foreigners are required to pay at least USD 20,000.00 in Thailand by transferring receive a transfer form FOREX. (Transfers must be made in FOREIGN CURRENCY not in Thai Baht, for example, if you work in U.S. dollars and then pay in U.S. dollars. Do not give in Thai Baht. This form will be necessary for the transfer of the unit in foreign ownership and also putting money in Thailand, if needed in the future.
3. Documents needed when buying a condo: For foreigners to be eligible to purchase a condominium in Thailand they must present evidence to the Department of Lands that the funds were transferred from the foreign currency currency. Without this evidence, the Department of Lands will not register the transfer of ownership to the foreign buyer.
4. Payments must be sent in exactly (“to the letter) the same name as shown on the purchase agreement, (ie if Tom Smith is the buyer, then the name of Tom Smith to appear on notice of payment. T. Smith or Smith Enterprises unacceptable.) If the buyers are two individuals, then both names must appear on the contract and two separate remittances should be taken by these two persons, in equal amounts.
5. The buyer must include the transfer instruction indicating that the objective of this money is to buy a condo. A bank that receives money in foreign currencies of the question paper (Foreign Exchange Transaction Form) which contains the following information:

• The transferred amount in foreign currency
• The transferred amount in Thai Baht
• The name of the sender of the money
• The name of the receiver of the money
• The purpose of transferring

Normally, throughout the transfer process, the buyer should ask the bank gateway to identify the name of the sender to be the same as the receiver. The Lands Department will accept the buyer’s name to be either sender or recipient of funds transferred.

** Note **

If the receiver of the money is an individual, but wants to put the device in the names of two persons, the sender should ask the bank gateway to specify the names of two persons with the purpose of buying condominiums.

For example:

Mr. Smith transferred money to Mr. John and I would put the names of two individuals, Mr. Smith must also ask the bank to specify the object as being to buy the condominium by Mr and Mrs Smith . John. In this case, the Lands Department may accept that and allow the transfer.

The Ministry of Land may also accept transfer even if the sender name of the recipient name is not the name of the buyer, but the sender should ask the bank gateway to the object as to purchase condominium by ( buyer’s name). The amount of money must be equal to or above the selling price stated the Department of Lands.

Alternatives to transfer the money to buy Koh Samui Property

To avoid any doubt, we recommend wherever possible that buyers of property Samui ask their local bank to issue currency transaction form for all remittances. In this case, you transfer the funds directly to the developer’s bank account in the prescribed form and the sponsor will arrange for the form of exchange transaction to be published Bank of the developer.

For the convenience of buyers, we strongly recommend that you transfer the funds directly to the developer’s bank account, but do so only if you trust the developers and know exactly where your money goes. In most cases, developers use an escrow arrangement with a third party generally established by a local lawyer. This always the safest way to exchange markets, the developers are not allowed to access your funds until the title to the property was transferred to you.

Why does the developer need to use the exchange transaction form?

1. Because the Bank of Thailand controls the flow of foreign currency, baht all must have a single source and a reason. The Land Department must perform in accordance with these regulations. With this restriction, all foreign buyers must transfer money from abroad.
2. Non-residents who sell the condominium and transfer money out of the country do not pay tax payment (usually the fee is about 30%)
3. In case of transfer of money from the country, the tax-free amount is determined by the initial amount transferred.

Transfer of Title Documents Required: For individual buyer

• Passport (copy if any, marriage or divorce certificate, including a letter of consent
• From your spouse if married [Thai language]).
• Exchange Transaction Form or credit note.
• Attorney, if any, but you is in Thai script with a
• Authentication by a notary or abroad by Thai Consulate.

Corporate Documents required: For the business buyer

• Certified copy of certificate of incorporation
• Certified copy of the memorandum of association
• Notary Certificate
• List of shareholders (in English, but must be accompanied by a translation in Thai)
• Minutes of meetings of directors, which have a resolution to sell / buy property
• (Stating the name and number and the agenda on financing of the purchase if the
• capital of the company is less than the purchase price)
• Letter of advice on specific signature
• Attorney, whether directors are not authorized operation by themselves
• (State Department form)
• credentials free
• Foreign letter co-owner
• The certified copy of identity card of Directors authorized
• The certified copy of the recording home of Directors authorized
• Title to the condominium

Thai Visa Requirements

Please note that if we believe that the information below is correct, it is recommended to verify the requirements of the Royal Thai Embassy before you travel.

Many non-Thai residents need a visa to stay in the country for more than 30 days. However, most African countries need a visa to enter Thailand – Cyprus, Czech Republic, India, Maldives, Oman, Poland, Russia, Saudi Arabia, Taiwan, Ukraine are allowed 15 days under the visa waiver. A non-immigrant visa is valid for a maximum of 90 days but can be extended up to one year at a time, depending on eligibility criteria. Retirement visas for persons over 50 years are available, subject to certain other criteria, the tourist visas for stays over 30 days and less than 60 days and work permits for people with specific expertise can be sought through the Thai embassy or consulate in your country of origin.

Use a business investment or development relevant to help you purchase your property in Koh Samui

Well you can not say we did not warn you that the purchase Samui property would be extremely complicated and therefore we strongly suggest you use a real estate agent or an investment firm to help you purchase your property Samui. Often the developer or the agent that you buy the property from the will to do everything they can to make this process as affordable and convenient as possible. After all, it is in their interest to get this real estate transaction done, and they should be more than happy to help you through it. Another reason it is advantageous to use the promoter or a registered agent, because they already have experience and connections to get through this. Because they have treated several times before on the properties Koh Samui they know exactly where to go and for what circumstances. It is very likely they have already set up escrow arrangements in place and banks to manage all the paperwork for you. In many cases they can even use their company as the “buyer” and issue shares in the company then gives you legal ownership. This purchase method avoids the problem of not being able to buy 49% of a unit due to Thai law.