Koh Tao Property And Real Estate Guide

Some pool villas on Koh Tao boast sea views

Some pool villas on Koh Tao boast sea views

As the infrastructure, services and transport on Koh Tao has improved the real estate market has grown and demand for land and houses has increased and therefore so have the number of agents.

Koh Tao real estate agents have both land and houses for sale, rent and lease on their books and will advise clients on the laws covering ownership. Developers are also now investing in projects, which means more off plan investment opportunities are coming onto the market.

 

Turnkey business opportunities also arise from time to time, but it is important to research carefully. As with any tourist destination the reasons for success or failure of a business are vast and varied, legitimate and otherwise.

Whether considering a residential or commercial investment on Koh Tao it is important to undertake full due dilligence in order to ensure the land, property or business you are buying is fully legal with all the necessary paperwork in place. There are many new Koh Tao property developers who pride themselves on being open and honest, but a few cowboys offer shady deals with huge discounts which are nearly always a bad idea.

The island of Koh Tao is owned by the government of Thailand, who assigned lifelong land papers to the local community around 50 years ago. These land papers are called Por Bor Tor 5 and they give the Thai owner a lifelong title lease to either keep the land or sell it to any other Thai National.

It is possible for a Non-Thai national to obtain these land papers legally by registering a Thai Limited company. These companies must be 51 per cent Thai-owned, however, so you should al always be extremely certain who you are entering into agreement with. It is also strongly advised that an experienced local lawyer when buying property in Koh Tao as certain irregularities can sometimes arise.

Note: To find more the best rate Hotels in Koh Tao. We recommend you look online at Agoda.com. They seem to be the most competitively priced of the hotels sites.

Over time, it has been demonstrated that 95 per cent of locals holding their Por Bor Tor 5 land title consider that the land is their own do not accept the claim of government ownership.

But there is a solution to this issue. When any company purchases Koh Tao real estate and obtain the original Por Bor Tor 5 land-title paper, the owner can return it to the Thai government and receive an official updated lease from the Surat Thani Treasury Office.

A token fee and tax per rai (40m2) must then be paid annually, and when this is carried out correctly the lease is automatically renewable every 15 to 30 years – depending on the size and location of your land.

Due to the rapidly-increasing tourism industry of Koh Tao there is an ever increasing number of foreigners investing in the island. Most manage to do so without any real problems, but every so often someone is stung by a ‘too good to be true’ deal. Always investigate thoroughly before signing over any serious amount of cash.

Recommended Thai Gulf Villa Rentals

Samuiland: A family-run rental agency offering friendly service and a wide range of Koh Samui villas in Chaweng, Lamai, Choeng Mon, Lipa Noi and elsewhere.

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