Buying Land & Property in Thailand

General Information

Title Deeds

Land Measurements

Taxes on land / property purchases

Foreign ownership of land

How to buy land/property (Koh Chang specific)

How to lease land/property ( Koh Chang specific)

Useful links

Thaivisa Discussion Forum  - Information and news from Thailand's largest online expat community.

Sunbeltasia.com - Visit the site or email Sunbelt's legal team direct with questions regarding setting up a company in Thailand.

How to buy real estate on Koh Chang

Click here for information on purchasing fisherman's houses.

Click here for information on purchasing Chanote and Nor Sor 3 land.

Agricultural land ('Por Bor Tor 5' etc)

Both the local government and the Land Office don’t hold any records relating to the ownership of farmland.  Details of the actual owners and their plots of land are the responsibility of the 'Pu Yai' – an elected local official whose job is to assist the 'Kamnan' (Headman) in a specific area of the island.  Therefore, all contracts relating to the sale/purchase of agricultural land should be signed in the presence of the Pu Yai.

The procedure for this type of land purchase is very straightforward and none of taxes levied by the Land Office are applicable to purchases of agricultural land.

Having found a plot of land and agreed a price with the agent/seller the local Pu Yai will need to be informed.  (It’s important to remember that in Thailand any discussions regarding discounting the price take place after you’ve agreed to buy.) All parties will then arrange to visit the land in order to confirm the land boundaries and the area. The Pu Yai should be aware of the boundaries and also know who owns neighbouring land. If there is any doubt about land boundaries, the owners of neighbouring land should be consulted and should also witness the measuring of the land. 

Whilst the boundaries are being confirmed it is a good idea to take photos of the assembled participants as this could be used as future evidence, if needed, that all parties agreed where the boundaries lie.  Having the seller mark the boundary with concrete poles, if there are no obvious clear markings already, is also worthwhile at this stage.

Now you are certain of the land's price and boundaries it's time to sign a contract.  The contract signing will probably take place at the Pu Yai's house or other convenient location. 

If you do not have the immediately accessible funds in place, this initial contract will be the equivalent of a 'Letter of Intent' which will state that you agree to pay 'X' baht for this plot of land and as such you will pay a non-refundable deposit of 'Y' baht with the balance to be paid at an agreed future date (Usually not more than 3 months in the future.) In return, the seller agrees not to sell the land to anyone else - even if they offer a higher price and to sell you the land at the specified future date at the agreed price.  Should you be unable to pay the balance by the agreed date you would lose your deposit.  This is fair, as you shouldn't enter this type of contract if you have any doubts regarding the purchase.  The seller will often ask for a large deposit, however this should be able to be bargained down to 50 – 100,000 baht for, say a 2 million baht deal for a small plot for a house. 

Presuming you have funds for the purchase on hand, the seller will almost always accept a banker's draft in lieu of a bag full of cash, a contract for the sale of land can be completed. You can either have a lawyer draw up the contract, which is recommended, or use a standard contract ,which the majority of Thais use when buying land.  The contract will state all the expected, important details and will be witnessed by the Pu Yai.  

As mentioned before, the only documentation that relates to Por Bor Tor 5 agricultural land is the tax receipt.  You will be given the original tax receipt and from now on the payment of tax on this land is your responsibility.  The name on the tax receipt can only get updated every four years.  The Pu Yai is responsible for making sure that this is done, another important reason to make sure that he knows about, and witnesses, any land deal being done in areas under his jurisdiction. Therefore, you may well find yourself in the position of having a legal contract that states you are the owner but waiting a while for the change of name on the tax receipt. (No, there’s nothing you can do to speed the process up.)

Regarding the actual contract signing, as foreigners can’t own land, you will not be able to sign the contract in your name.  The simplest way is for a Thai spouse or trusted partner to sign the contract.  If you require the land to be bought in the name of a Thai registered company, you should make sure you have certified copies of the Memorandum & Articles of Association, showing you have power to make decisions on behalf of the company, List of Shareholders, List of Company Directors and Company Registration Certificate on hand.  You will also need to give a Thai citizen Power of Attorney to sign the contract on behalf of your company. The Power of Attorney will state the reason why you are giving it and it will be used solely for this purpose.  The Thai will need to have copies of their national ID card and house registration with them as proof of their identity. 

So, to sum up, the contract will be between your Thai registered company and the seller.  The buyer's signature will be that of a Thai acting on behalf of your company - you having given them power of attorney to sign on your (i.e. your company's) behalf.  Foreigners can act as witnesses - so your signature can also be on the document as a witness.

With the contract signed and the cashier ’s check handed over, you are now in possession of your own plot of land on Koh Chang.

Annual tax payment:  Tax, at the rate of 5 (Yes, five) baht per rai, is paid annually at the local government office.  in Koh Chang's case this office is at Dan Mai on the east coast.  Tax should be paid at the end of each calendar year.  The process is simple, you or your representative, simply shows the previous year's tax receipt and hands over the required mount of money.  No record of where the land is is written down by the official.  Your name and the amount paid is simply entered into a dusty ledger.  An official receipt will then be issued.  Technically, if tax isn't paid on the land by the year-end, the government can repossess the land.  In practice, this doesn’t  happen and land owners are given some leeway with late payments.  Paying on time avoids any potential pitfalls.