| Koh Samui, Thailand | | | | **Remark** |
| Koh Samui, Thailand has long been the locale of | | | | If the money receiver is an individual but wants to |
| choice for paradise seeking foreigners from all parts | | | | put the unit in the names of two people, the sender |
| of the globe. Its shimmering turquoise waters and | | | | has to instruct the gateway bank to specify the |
| sun bleached, white sandy bays are lined with | | | | names of two people together with the purpose of |
| bungalows, villas and resorts. Its happening night life | | | | buying condominium. |
| with a plethora of restaurants feeds the epicureans | | | | For example: |
| and provides a magnificent back drop to beautiful | | | | Mr. Smith transferred money to Mr. John and would |
| sunsets and starry nights. It's no wonder that so | | | | like to put down the names of two people, Mr. Smith |
| many foreigners want to own property in Koh Samui, | | | | must also instruct his bank to specify the purpose as |
| but like any other property market in the world, it's | | | | being to buy the condominium by both Mr. Smith and |
| important to know the legal implications, visa | | | | Mr. John. In this case, the land department can |
| requirements, and tax guidelines before deciding | | | | accept this and permit the transfer. |
| which property you are going to invest in. | | | | The Land Department also can accept the transfer |
| Getting There | | | | even if the sender's name of the receiver's name is |
| Before investing in Koh Samui property, you must | | | | not the purchaser's name but the sender should |
| first feel confident that traveling to and from the | | | | instruct the gateway bank to put the purpose as |
| island has been made easy and convenient for | | | | being to buy the condominium by (Purchaser's name). |
| tourists. After all, they play a major part in helping | | | | The amount of money must be equal to or higher |
| Samui's economy grow and helping tourists get to | | | | than the selling price declared to the Land |
| the island should be top priority. The most | | | | Department. |
| convenient way to get to Samui is by flying with | | | | Alternatives To Transferring Money To Purchase Koh |
| Bangkok Airways from Bangkok, Singapore, Phuket, | | | | Samui Property |
| Pattaya, and Chiang Mai. There are 15 daily 80 minute | | | | For the avoidance of any doubt, we recommend |
| flights between Koh Samui and Bangkok and 4 | | | | wherever possible that amui property buyers arrange |
| weekly 90 minute flights between Koh Samui and | | | | for their local bank to issue the Foreign Exchange |
| Singapore. Alternatively, several ferries and | | | | Transaction Form for all remittances. |
| catamarans run from Surat Thani or Don Sak on the | | | | In this case you would transfer the funds directly to |
| Thai mainland. There are almost 10 daily departures | | | | the Developer's bank account in the prescribed |
| between Samui and Ko Pha-Ngan. | | | | format, and the Developer will arrange for the |
| The Samui airport is a unique and highly successful | | | | Foreign Exchange Transaction Form to be issued by |
| experiment in building an airport that is kind to both | | | | the Developer's Bank. |
| the cultural and natural environments of a tropical | | | | For the buyers convenience, we strongly recommend |
| island resort. Flying in, you get brief glimpses of | | | | that you should transfer the funds directly to the |
| outlying islands, streaks of surf, the wakes of small | | | | Developer's bank account, but ONLY do so if you |
| fishing craft sketched across the calm aquamarine | | | | trust the developers and know exactly where your |
| sea. Smudges of coral reef dapple the water as you | | | | money is going. |
| come in closer still. Then the coast of Samui appears. | | | | Why does the developer need to use Foreign |
| Two hundred and fifty kilometers of tropical | | | | Exchange Transaction Form? |
| hideaway scalloped by dozens of bays rimmed in | | | | 1. Because the Bank of Thailand controls the flow |
| white sand, carpeted in lush textures of forested hill | | | | of foreign currency, every single baht must have a |
| and coconut grove, Koh Samui is the centerpiece in a | | | | source and a reason. The Land Department must |
| group of 80 other islands set in the Gulf of Thailand. | | | | perform in accordance with this regulation. By this |
| Located 2km north of the main village Chaweng, Koh | | | | restriction, every foreign buyer must transfer money |
| Samui Airport serves both domestic and international | | | | from abroad. |
| flights including Bangkok Airways, Thai Airways | | | | 2. Non-residents who sell the condominium and |
| International, Berjaya Air, and Firefly. | | | | transfer the money out of country do not have to |
| Koh Samui Property Tax Guidelines | | | | pay the remittance tax (normally the tax is around |
| If you've already done your research and you are | | | | 30%) |
| looking to invest in Koh Samui property, you really | | | | 3. In case of transferring money out of the country, |
| should understand how the tax liability can effect | | | | the tax-free amount is determined by the initial |
| your overall return. | | | | amount transferred. |
| All Koh Samui property owners in Thailand are liable | | | | Transfer of title deed Documents needed: For |
| for tax on rental income, which is based on either | | | | Individual Purchaser |
| standard personal income tax (PIT) rates for | | | | - Passport (copy if applicable, marriage/divorce |
| "resident" tax payers and a at 15% PIT rate on | | | | certificate including a letter of consent |
| assessable income for non-resident tax payers. A | | | | - from your spouse if married [Thai Language]). |
| person becomes a "resident" tax payer if he or she | | | | - Foreign Exchange Transaction Form or credit note. |
| spends more than 180 days in any tax year in | | | | - Power of attorney, if anyone but yourself is |
| Thailand. Thailand does not charge a separate capital | | | | representing you, in Thai script with a |
| gains tax for foreign buyers. All earned income from | | | | - notarization by Notary Public or if overseas by the |
| capital gains is taxed the same as regular income. The | | | | Thai Consul. |
| highest rate of income tax is currently 37% per year. | | | | Documents needed: For Company Purchaser |
| When purchasing property in Koh Samui, it is quite | | | | - Corporate documents: |
| standard for the purchaser to be solely responsible | | | | - Certified copy of the certificate of incorporation |
| for the payment of all transfer fees as well as taxes | | | | - Certified copy of the memorandum of association |
| duly charged by the competent land office in | | | | - Notaries certificate |
| connection with the registration of transfer of | | | | - List of shareholders (in English, but must be |
| ownership of the property. This includes the | | | | accompanied by a Thai translation) |
| government transfer fee, withholding tax and specific | | | | - Minutes of directors' meetings, which have a |
| business tax as well as stamp duty and other costs | | | | resolution to sell/purchase the property |
| and expenses arising out of the registration of the | | | | - (specifying name and number and agenda dealing |
| transfer of ownership to the purchaser. | | | | with the finance of the purchase if the |
| Transfer fees are typically 2% of the registered | | | | - company's registered capital is less than the |
| value, Stamp Duty is .5% of registered value, | | | | purchase price) |
| withholding tax is 1% of the appraised value, business | | | | - Letter of advice regarding specific signature |
| tax is 3.3% of appraised value. Income tax is usually | | | | - Power of attorney, if the authorized directors do |
| between 1-3% on Koh Samui property. There are | | | | not make the transaction by themselves |
| no established rules regarding who pays the income | | | | - (Land Department form) |
| tax while this is simply another part of the bargaining | | | | - Free debt letter |
| process during property purchase as are all other | | | | - Foreign co-owner letter |
| costs relating to the transfer of ownership. Tax on | | | | - The certified copy of the I.D. Card of the |
| Rental Income is 10-30% of rental income depending | | | | authorized directors |
| on the type of property. Lease Registration Fee is | | | | - The certified copy of the house registration of |
| 1.1.% | | | | the authorized directors |
| Transferring Money To Purchase Samui Property | | | | - Title deed of the condominium unit |
| Unlike most developed economies where transferring | | | | Thai Visa Requirements |
| money to and from bank accounts is relatively | | | | Please note that whilst we believe the below |
| straight forward and easy, this is NOT the case in | | | | information is accurate, it is recommended to verify |
| emerging markets like Thailand. Before purchasing | | | | requirements with the Royal Thai Embassy before |
| property in Koh Samui, it is very important to | | | | travel. |
| understand exactly how to transact and what needs | | | | Many Non-Thai residents require a visa to stay in the |
| to be done prior to purchase. Reason for the | | | | country for more than 30 days. However, most |
| complexity of this issue is because of the Thai laws | | | | African countries require a visa to enter Thailand |
| concerning Foreign ownership of Condominium | | | | – Cyprus, Czech Republic, India, Maldives, Oman, |
| Property. According to Thai Law, foreigners may | | | | Poland, Russia, Saudi Arabia, Taiwan, Ukraine are |
| own 49 percent of the aggregate sale-able unit | | | | allowed 15 days under the visa exemption. A |
| space of a condominium building while the remaining | | | | Non-Immigrant Visa is valid for up to 90 days, but |
| 51 percent must be owned by either Thai nationals or | | | | can be extended for up to a year at a time, |
| majority owned Thai Companies. Below is a step by | | | | depending on eligibility criteria. Retirement visas for |
| step guide on how to transfer money when dealing | | | | individuals over 50 years old are readily available, |
| with Koh Samui properties. | | | | subject to certain other criteria, tourist visas for |
| 1. A Thai bank account must be set up in your name | | | | stays of more than 30 days and less than 60 days |
| in order to transfer money to yourself before | | | | and work permits for those with specific skills can be |
| exchanging your currency to Thai Baht. Any foreign | | | | applied for via the Thai Embassy or consulate in your |
| currency can be used to purchase a condominium | | | | home country. |
| unit. The foreign currency MUST be transferred into | | | | Use An Investment Firm Or Developer To Assist |
| Thailand as foreign currency and exchanged into Thai | | | | You With The Purchase of Your Koh Samui Property |
| Baht by a local bank in Thailand. In many cases, the | | | | Well you can't say we didn't warn you that |
| developer may offer to help you establish a bank | | | | purchasing property in Samui would be extremely |
| account in Thailand due to the complexity of | | | | complicated which is why we strongly suggest that |
| establishing an account yourself. This may come at | | | | you use a real estate agent or investment firm to |
| an extra cost, however, developers are always willing | | | | assist you with the purchase of your Samui |
| to negotiate during point of sale. | | | | property. Often times the developer or agent that |
| 2. Foreigners are required to remit at least USD | | | | you are purchasing the property from will do |
| 20,000.00 into Thailand per transfer to receive a | | | | everything they can to make this process as |
| FOREX Transfer Form. (Transfers of funds MUST be | | | | affordable and convenient as possible. After all, it's |
| made in FOREIGN CURRENCY only and NOT in Thai | | | | in their interest to get this property deal done as |
| Baht, i.e. if you are working in US Dollars then remit in | | | | quickly as possible and they should be more than glad |
| US Dollars. Do not remit in Thai Baht. This form will be | | | | to help you through it. Another reason it is beneficial |
| needed to transfer the unit under foreign ownership | | | | to use the developer or registered agent, is because |
| and also remit money back out of Thailand if so | | | | they already have the experience and connections to |
| needed in the future. | | | | get you through this transaction. Because they've |
| 3. Documents needed when buying a condominium: | | | | transacted several times before on Koh Samui |
| For foreigners to be eligible to purchase a | | | | properties, they know exactly who to go to and for |
| condominium unit in Thailand they must present proof | | | | what circumstance. It is very likely that they |
| to the Department of Lands that the funds have | | | | already have escrow arrangements established and |
| been remitted from overseas in foreign currency. | | | | banks in place to handle all of the paper work for |
| Without such proof, the Department of Lands will | | | | you. In many instances, they may even use their |
| not register the transfer of ownership to the foreign | | | | company as the "buyer" and then issue shares in the |
| buyer. | | | | company which then gives you legal ownership. This |
| 4. Remittances must be sent in exactly ("to the | | | | method of purchase avoids the issue of only being |
| letter") the same name as appearing on the purchase | | | | able to purchase 49% of a unit due to Thai law. |
| contract, (i.e. if Tom Smith is the buyer then the | | | | One investment firm that has helped clients transact |
| name Tom Smith must appear on the remittance | | | | on numerous Koh Samui properties is Elite Global |
| advice. T. Smith or Smith Enterprises are | | | | Property, an investment property firm based in |
| unacceptable.) If the buyers are two individuals, then | | | | Shanghai, China. Because of their relationships with |
| two names should appear on the contract and two | | | | both the developers and local banks in the region, |
| separate remittances should be made by such two | | | | they will be able to walk you through step by step |
| persons, in equal amounts. | | | | on how to complete on purchasing property in Koh |
| 5. The purchaser has to include the transfer | | | | Samui. Elite Global Property does not own property |
| instruction indicating that the purpose of this money | | | | in Koh Samui which allows them to provide an |
| is to buy a condominium unit. The bank that | | | | unbiased opinion on which developers are safe to |
| receives money in foreign currency will issue the | | | | work with and will show you how to avoid |
| document (Foreign Exchange Transaction Form) | | | | complications that may occur throughout the |
| which contains the following information: | | | | process. It always helps when you have a familiar |
| - The transferred amount in foreign currency | | | | foreign face to get you through the process rather |
| - The transferred amount in Thai Baht | | | | then dealing with legal contracts and bank forms in a |
| - The name of money sender | | | | native language. |
| - The name of money receiver | | | | Although quite a complex process, once finished, |
| - The purpose of transferring | | | | owning property in Samui will prove to be one of the |
| Normally throughout the transfer process, the | | | | most exciting and beautiful investments you may |
| purchaser has to instruct the gateway bank to | | | | have ever purchased. This property purchase will be |
| identify the name of the sender to be the same as | | | | well worth the process it took to get through. |
| the receiver's. The Land Department will accept the | | | | Always remember, if you want to speed things up, |
| name of purchaser to be either sender or receiver of | | | | just have the developer or a reliable investment |
| the transferred money. | | | | property firm get you through it. |