Koh Tao is an island in Thailand with one of the country’s best property markets. However, buying property in Koh Tao can be challenging for foreigners unfamiliar with the area. Knowing the location and what it can offer are essential key points that must be determined when buying a property, especially for business purposes. This article will discuss crucial information about buying property in Koh Tao to assist foreigners in finding the best property.
Koh Tao real estate market
Koh Tao’s real estate market has attracted numerous buyers throughout the years as contributed by the island’s vital tourism. Its reputation as a diving and backpacker destination attracts over 500,000 tourists annually. This island provides budget-friendly properties at relatively lower prices, with houses for sale in Koh Tao valued at an average of ฿ 12.68 million ($377,737). In comparison, houses in nearby islands are valued at ฿ 38.97 million ($1.16 million) in Koh Samui and ฿ 20.85 million ($621,097) in Koh Phangan.
The residential properties in Koh Tao dominate the market, focusing on rental properties in demand during the peak tourist season. Although property prices are lower in Koh Tao, supply is restricted due to the island’s size and environmental regulations, which should be considered when buying real estate in Koh Tao.
Can foreigners buy property in Koh Tao?
Thailand has strict regulations regarding property purchases by foreigners. The Land Code Act restricts foreigners from registering land under their names and prohibits them from owning land outright. Even with foreign ownership restrictions, avenues where foreigners can buy property in Koh Tao exist, such as:
- Condominiums: In 2024, Thailand raised the ownership percentage of foreigners in condominium buildings from 49% to 75%. Before this, foreign ownership was limited to 49% of the total floor area of all units in a condo building, limiting the number of units foreigners could own. The change from 49% to 75% enables foreigners to purchase more condominium units for residential or rental purposes.
- Thai limited company: A foreigner can purchase land under the name of a Thai limited company, but the company retains land ownership. Foreigners can own up to 49% of Thai limited companies, while Thai nationals own the remaining 51%.
- Leasehold agreements: Foreigners can enter a leasehold agreement to rent a property in Koh Tao for up to 90 years. The initial agreement can last up to 30 years and be renewed twice. It allows the lessee to use the land and introduce developments to the property.
- Marrying a Thai national: Since foreigners are restricted from owning land, buying property for sale in Koh Tao and registering it under your Thai spouse’s name is viable.
Buying property in Koh Tao as a foreigner in 6 steps
Follow these five steps to buy property for sale in Koh Tao.
Step 1. Assess your needs and finances
The first step to purchasing a property in Koh Tao is efficiently assessing your needs and finances. This will streamline your choices to properties that fit your budget and requirements, reducing the time you spend searching for a property.
Step 2. Connect to a real estate agent
The best way to look for property for sale in Koh Tao is to connect with a real estate agent. They are professionals who can provide valuable information for your search and recommend the best locations. Using a real estate agent can assist you with the buying process and price negotiation, especially with an experienced local real estate agent who speaks the Thai language. Own Property Abroad specializes in assisting foreigners in buying properties in Thailand, and our experts can help you find properties in Koh Tao.
Step 3. Conduct due diligence
When you find a property in Koh Tao, conduct due diligence to verify the validity of the title deed and check the property’s condition by conducting an inspection. Thorough due diligence is crucial to protecting your investment and avoiding legal and financial issues, especially since real estate scams exist in Thailand.
Step 4. Make an offer
Make an offer and discuss the purchase price of the property with the seller.
Step 5. Sign the legal documents
Once you have negotiated terms with the seller and are ready to formalize your intent to complete the transaction, you should sign the contract of sale. Pay the deposit, which can vary but is usually around 10% of the purchase price, and the 2% transfer fee based on the appraised value. Pay the transfer fee at the Land Department and arrange for the transfer of ownership. The Land Department is the government agency responsible for registering property ownership and collecting related fees.
Step 6. Complete the transaction
To complete the transaction of buying real estate in Koh Tao, pay the remaining balance of the purchase price. Then, obtain the property documents from the Land Department, including the title deed and other relevant documents.
How to find a house in Koh Tao?
Finding a house for sale in Koh Tao can be done with a real estate agent. They can provide various options and suggest the best locations to buy a property. Their extensive connections and property listings allow them to provide valuable suggestions to buyers. You can also search online if you cannot connect with a real estate agent or if you want to explore different options. However, this can take time due to the number of websites you must visit. In this regard, you can find a house for sale in Koh Tao on our property listings.
Property prices in Koh Tao
Foreigners looking for residential property in Koh Tao can buy at relatively lower prices than in other regions in Thailand. Moreover, land and beachfront properties are available.
The average house price in Koh Tao is ฿ 9.13 million ($272,048), while the average price per square meter is ฿ 50,902 ($1,516). Below is the table and the breakdown of property prices in Koh Tao.
| Type | Median price | Median price/m2 |
|---|---|---|
| House | ฿ 9.13 million ($272,048) | ฿ 50,902 ($1,516) |
| Land | ฿ 20.27 million ($603,728) | ฿ 12,120 ($361) |
The best places to buy property in Koh Tao
There are numerous properties for sale in Koh Tao, and it is only a matter of choosing the best location. To help you with your selection, we listed below the five best places you must consider when buying real estate in Koh Tao:
- Sairee Beach: This is the longest beach on the island, stretching 1.85 kilometers along the western coast of Koh Tao. This beach has access to resorts, massage salons, and restaurants. Beachfront vacation homes are available, and hotels are in demand due to the influx of tourists.
- Chalok Baan Kao: Located in the southern part of Koh Tao. Chalok Baan Kao is the third-largest beach on the island, ideal for first-time buyers buying property in Koh Tao. Resorts, bungalows, and vacation houses are accessible, and foreigners can invest in rental or Airbnb properties here.
- Mae Haad: Mae Haad Pier is Koh Tao’s main arrival point. This bustling area offers many amenities, from shops and restaurants to banking and healthcare services. Apartments and houses are available around this area.
- Tanote Bay: Located on the east side of Koh Tao, Tanote Bay provides a peaceful environment with beaches for those seeking a secluded retreat. Beachfront properties here are turned into resorts, villas, and vacation homes.
- Southwestern Coast: This area is known for its coral reefs and offers opportunities for those interested in diving and water sports. Sea-view villas and resorts are highly visited by tourists for diving. It is best to consider purchasing a beachfront property on the Southwestern Coast.
The demand for Airbnb rentals is increasing in Koh Tao mainly because of the numerous tourists visiting the island. There are family-friendly rentals, rentals with a pool, and rentals with dedicated working spaces available to visitors. Airbnb property in Koh Tao has nightly prices starting at ฿ 715 ($21.30) and can go up to ฿ 31,090 ($926) before taxes and fees. This shows great potential for rental businesses. Furthermore, property rentals will never lose customers due to over 500,000 tourists visiting Koh Tao annually.
Is buying property in Koh Tao a good investment?
Buying property in Koh Tao is a good investment for foreigners, especially since properties here have lower prices than nearby islands. Despite its lower prices, the island offers one of the best beachfront properties in Thailand, making it ideal for building vacation homes. Furthermore, Koh Tao is a famous tourist destination with in-demand accommodation. This opens an opportunity for foreigners who want to venture into resort, rental, or Airbnb businesses.
Expert assistance for buying property in Koh Tao, Thailand
Buying property in Koh Tao, Thailand, can be an exciting but complex process, especially for foreigners. Our experienced team is here to guide you through every step, from finding the perfect property to navigating legal requirements and completing the purchase. Whether you’re looking for a vacation home or an investment property, we provide personalized support tailored to your needs. You can also email us directly at [email protected] for more detailed inquiries and specialized assistance. Contact us today to ensure a smooth and successful property purchase in Koh Tao!
Frequently Asked Questions (FAQs)
Can foreigners buy land in Koh Tao?
No, foreigners are restricted from buying land in Koh Tao as mandated by the Land Code Act.
How much does land cost in Koh Tao?
Land in Koh Tao costs an average of ฿ 12,120 ($361) per square meter.
What are the requirements to buy property in Koh Tao?
The requirement for buying land in Koh Tao is Thai citizenship since only Thai citizens can register land under their name. However, buying apartments or condominiums as a foreigner is straightforward because there is no nationality or visa requirement.
Is it possible to buy Koh Tao property in installments?
Yes, buying property in Koh Tao in installments through bank loans or the in-house financing options offered by property developers is possible.
Where can I find cheap houses for sale in Koh Tao?
You can find cheap houses for sale in Koh Tao at Sairee Beach, Chalok Baan Kao, Mae Haad, Tanote Bay, and the southwestern coast.
Why is Koh Tao the most beautiful island in Thailand?
Koh Tao is the most beautiful island in Thailand because it offers world-class diving destinations. It is often referred to as “Turtle Island,” and it is renowned for its stunning underwater world. Koh Tao’s natural beauty and focus on water activities make it a unique and appealing destination for foreigners.
