Published on and written by Cyril Jarnias
Thailand, with its white sand beaches, turquoise waters, and relaxed lifestyle, attracts many foreign investors looking to acquire seaside property. Whether for year-round living, vacation purposes, or as a rental investment, the Land of Smiles offers excellent real estate opportunities along its coasts. Here is a comprehensive guide to help you realize your dream of buying seaside property in Thailand.
Thai Coastal Gems: Where to Invest?
Thailand boasts over 3000 km of coastline divided between the Andaman Sea to the west and the Gulf of Thailand to the east. Certain regions stand out particularly for seaside real estate investment:
Phuket: The Island of Many Facets
Nicknamed the “Pearl of the Andaman Sea,” Phuket is Thailand’s largest island and one of the most sought-after destinations for purchasing seaside property. The island offers a unique blend of dream beaches, vibrant nightlife, and modern infrastructure.
- Popular areas: Kata, Karon, Surin, Bang Tao
- Property types: luxury villas, sea-view apartments, condominiums
- Assets: international airport, quality hospitals, international schools
Koh Samui: Tropical Charm
Located in the Gulf of Thailand, Koh Samui captivates with its more intimate atmosphere and controlled development. The island attracts upscale clients seeking tranquility and authenticity.
- Popular areas: Chaweng, Lamai, Bophut, Maenam
- Property types: luxury villas, beachfront residences, bungalows
- Assets: international airport, private hospitals, numerous gourmet restaurants
Pattaya: The Dynamic Beach Resort
Just 2 hours from Bangkok, Pattaya offers excellent value for seaside real estate. The city is experiencing rapid development and attracts many expatriates.
- Popular areas: Jomtien, Pratumnak Hill, Na Jomtien
- Property types: sea-view apartments, condominiums, houses with pools
- Assets: proximity to Bangkok, vibrant nightlife, numerous activities
Hua Hin: Royal Elegance
A historic beach resort for the Thai royal family, Hua Hin charms with its refined atmosphere and pleasant living environment. The city attracts many foreign retirees.
- Popular areas: Khao Takiab, Khao Tao, Pranburi
- Property types: beach houses, waterfront apartments, golf villas
- Assets: pleasant climate, golf courses, night markets
Good to Know:
Each destination has its own characteristics and advantages. It’s important to clearly define your criteria (budget, lifestyle, environment) before choosing your investment location.
From Beach to Property: Key Steps in the Purchase Process
Buying seaside property in Thailand requires following certain important steps to secure your investment:
1. Define Your Project and Budget
Before starting, clarify your objectives: primary residence, rental investment, vacation home? Also determine your budget considering additional costs (taxes, maintenance, insurance).
2. Choose the Right Legal Structure
Foreigners cannot directly own land in Thailand. Several options are available to you:
- Purchase in condominium (up to 49% of a building’s shares)
- Creation of a Thai company (with local partners)
- Leasehold agreement (30 years renewable)
3. Engage Local Professionals
It’s highly recommended to surround yourself with experts for your purchase:
- A licensed real estate agent familiar with the local market
- A lawyer specialized in Thai real estate law
- An accountant for tax aspects
4. Conduct Thorough Due Diligence
Before signing, carefully verify:
- The property title and history
- Building permits and authorizations
- The developer’s financial situation (for new projects)
- Usage restrictions (zoning, maximum height, etc.)
5. Negotiate and Sign the Contract
Once the property is chosen, negotiate the purchase conditions and sign a reservation contract. Pay a deposit (typically 10-30%) to secure the property.
6. Finalize the Transaction
After signing the final contract, make the final payment and proceed with the property transfer with local authorities.
Good to Know:
The purchase process can take several months. Allow sufficient time and be patient to successfully complete your project.
Buying seaside property in Thailand is subject to certain specific rules that are important to know:
Land Ownership Restrictions
Foreigners cannot directly own land in Thailand. However, they can:
- Purchase a condominium unit (up to 49% of a building’s shares)
- Lease land long-term (30-year renewable leasehold)
- Create a Thai company to purchase land (with local partners)
Protected Areas and Environmental Regulations
Certain coastal areas are subject to construction restrictions to preserve the environment. Check local regulations before purchasing.
Building Permits and Authorizations
Ensure all necessary permits have been obtained for the construction or renovation of your property.
Real Estate Taxation
Familiarize yourself with applicable taxes:
- Transfer fees: 2% of the property’s appraised value
- Stamp duty: 0.5% of the appraised value or sale price (whichever is higher)
- Property tax: varies depending on location and property use
Good to Know:
Real estate regulations in Thailand can be complex. Don’t hesitate to consult a specialized lawyer to guide you through the process.
Diving into Opportunities: Market Trends
The seaside real estate market in Thailand offers excellent prospects for savvy investors:
A Growing Market
Despite the pandemic’s impact, the Thai real estate market remains dynamic, driven by sustained local and international demand.
Attractive Prices
Compared to other international beach destinations, Thai real estate still offers excellent value for money.
Infrastructure Development
Numerous infrastructure projects (airports, roads, hospitals) enhance the attractiveness of coastal areas.
Diversified Offerings
The market is adapting to new buyer expectations: eco-friendly residences, co-living spaces, integrated hotel services.
Good to Know:
Although the market is promising, it’s important to thoroughly study the location and long-term potential of your investment.
Fine Sand and Returns: Maximizing Your Investment
To optimize the profitability of your seaside property in Thailand, several options are available to you:
Seasonal Rental
Short-term rentals can generate interesting income, particularly in popular tourist areas.
Long-Term Rental
For more stable income, year-round rental to expatriates or locals is an option to consider.
Property Management
Engage a specialized agency to manage your property and maximize its occupancy.
Long-Term Capital Appreciation
Certain coastal areas experience strong real estate appreciation, offering interesting capital gain prospects.
Good to Know:
The profitability of your investment will largely depend on the location, quality of the property, and your management strategy.
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
