Owning Property in Thailand: A Guide to Koh Lanta Real Estate and Krabi Property Management
Buying property in Thailand may seem challenging, especially for foreigners, as they are generally not allowed to own land outright. However, there are several legal and secure ways to invest in Koh Lanta real estate or Krabi properties. Understanding the rules and options can help you safely purchase land or manage property on Koh Lanta Island while staying compliant with Thai laws.
Key Options for Foreign Investors to Owning Property in Thailand
1. Leasehold Agreements
One of the most popular ways for foreigners to own land in Koh Lanta and Krabi is through long-term leasehold agreements. These contracts are typically for 30 years and can often be renewed for two additional 30-year terms, giving you control of the property for up to 90 years.
Many lease agreements include special clauses allowing ownership transfer if Thai laws change in the future. The agreements also often allow the right to sublet, sell, or transfer the lease, making it a practical and secure choice for foreign investors.
2. Freehold Condominium Ownership
If you’re considering investing in Koh Lanta Island properties, condominiums are a great option. According to Thai laws, foreigners can own up to 49% of the units in a condominium project outright. This means you have full freehold ownership of the unit without needing a Thai partner or company.
3. Limited Liability Company (LLC)
Many foreign investors looking at Krabi or Koh Lanta real estate set up a Limited Liability Company (LLC). While Thai law requires that at least 51% of the company is owned by Thai nationals, foreigners can legally control the company by becoming its sole director. This gives you effective control over the land or property owned by the company, offering a secure way to invest in land on Koh Lanta Island.
4. Co Ownership in Developments
In some real estate developments, ownership is shared among all buyers once the project is complete. Each buyer owns a portion of the freehold, effectively becoming a co-landlord. This is a practical option for those interested in shared property ownership in Koh Lanta or Krabi.
Important Land Titles in Thailand
Before purchasing property in Koh Lanta or Krabi, it is vital to understand Thai land titles. Only two types of land titles are recommended for foreign investors:
- Nor Sor 3 kor: This title is based on an aerial survey and provides the right to build, sell, or lease the land.
- Chanote (Nor Sor 4): This is the most secure type of title deed, offering full ownership rights. Chanote titles are ideal for land purchases in Koh Lanta and Krabi, as they provide clear and legally recognized ownership.
Always conduct a land search at the Land Department to confirm the title and ensure there are no disputes or encumbrances on the property.
Zoning and Building Regulations on Koh Lanta Island
Koh Lanta Island and Krabi have specific zoning laws to protect the environment and ensure sustainable development. These regulations impact where and how you can build on your property.
- Zone 1 (0–50 meters from the shore): Construction is highly restricted within the first 20 meters. Buildings can only occupy 25% of the land area and cannot exceed 6 meters in height.
- Zone 2 (50–150 meters from the shore): Height is limited to 12 meters, and buildings can use up to 50% of the land area.
- Zone 3 (150–500 meters from the shore): Buildings can occupy up to 70% of the land, with a maximum height of 16 meters.
- Above 40 meters elevation: Height is limited to 6 meters, and buildings can occupy only 25% of the land.
No construction is allowed above 80 meters elevation on Koh Lanta Island, in line with Thai national regulations.
Land Sizes in Thailand
When purchasing Koh Lanta or Krabi real estate, understanding land measurements is crucial:
- 1 Tarang Wa = 4 sqm = 42.7 sq ft
- 100 Tarang Wa = 1 Ngan = 400 sqm
- 400 Tarang Wa = 1 Rai = 1,600 sqm
- 1,000 Tarang Wa = 2.529 Rai = 1 Acre
Working with Property Experts
If you’re planning to invest in Koh Lanta real estate or Krabi best property, it’s essential to work with experienced professionals. Reputable property management companies on Koh Lanta Island can help you navigate zoning laws, lease agreements, and land title verification. They can also assist with property maintenance, rental management, and legal compliance.
Owning Property in Thailand Conclusion
Koh Lanta Island and Krabi offer excellent opportunities for foreigners looking to own property in Thailand.
Whether through leasehold agreements, condominium ownership, or an LLC, there are multiple ways to secure your investment legally.
By understanding Thai property laws and working with knowledgeable professionals, you can enjoy the benefits of owning a piece of paradise on Koh Lanta or in Krabi.