Financial Trading Product Reports

The important information you need to know before investing in Koh Samui properties

Koh Samui, Thailand

Koh Samui, Thailand has always been the location of choice for foreigners seeking haven from all over the globe. Its turquoise waters and sun bleached beaches of white sand lined with bungalows, villas and resorts. His life is spent the night with a plethora of restaurants feeding the Epicurean and provides great fall back to beautiful sunsets and starry nights. No wonder that for many foreigners want to own property in Koh Samui, but like any real estate market the world is important to know the legal implications, visa requirements and guidelines before taxes decide that the property is to invest in

Directions

Before investing in title = "Koh Samui Property"> Koh Samui property, first must be sure that travel to and from the island has become easy and convenient for tourists. After all, play an important role in helping the economy grow Samui and help the tourists reach the island should be the priority. The most convenient way to get to Samui with Bangkok Airways is to fly from Bangkok, Singapore, Phuket, Pattaya, and Chiang Mai. There are 15 minutes 80 daily flights between Koh Samui and Bangkok and four weekly 90-minute flights between Koh Samui and Singapore. On the other hand, several ferries and catamarans run from Surat Thani or Don Sak on the mainland of Thailand. There are nearly 10 daily flights from Samui and Ko Pha Ngan.

The Samui airport is a unique experiment and successful in the construction of an airport that is kind to the environment, both cultural and natural a tropical island resort. Flying in, you get brief glimpses of the islands peripheral rays of the waves, the wakes of small fishing vessels outlined through the calm aquamarine sea. Patches of gray coral reef water as it is in close yet. Then the coast of Samui appears. Two hundred and fifty kilometers of tropical hideaway scalloped bays bordered by dozens of white sand, carpeting in the textures of the lush forested hills and coconut trees, Koh Samui is the centerpiece of a group of 80 other islands in the Gulf of Thailand.

Located north of 2 km from the main village Chaweng, Koh Samui Airport serves both domestic and international flights, including Bangkok Airways, Thai Airways International, Berjaya Air and Firefly.

Koh Samui Property Tax Guidelines

If you have already done your research and you are looking to invest in Koh Samui property, you should really understand how the tax debt can affect your overall performance.

All property owners Koh Samui in Thailand are subject to tax on rental income, which is based on any personal income tax standard (PIT) rates for "resident taxpayers tax "and a 15% PIT rate on taxable income for non-resident taxpayers. A person becomes a" resident "of the taxpayer, if he or She spends over 180 days in any fiscal year in Thailand. Thailand does not charge a separate capital gains tax for foreign buyers. All proceeds from of capital gains is taxed the same as ordinary income. The highest rate of income tax is currently 37% annually.

When buying property Koh Samui, is pretty standard for the buyer is solely responsible for paying all transfer fees and taxes due charged by the competent land office in connection with registration of transfer of ownership of the property. This includes the share of government transfer, withholding tax and specific business tax and stamp duty and other costs and expenses arising from the registration of the transfer of ownership the buyer.

Transfer fees are typically 2% of the value of the stamp tax is 0.5% of the value, the retention is 1% of valuation, business tax is 3.3% of appraised value. Income tax is usually between 1-3% of Koh Samui property. Not There are established rules about who pays income tax, whereas this is just another part of the negotiating process when buying property as all other costs relating to the transfer of ownership. Tax on rental income is 10-30% of rental income depending on the type of ownership. Registration Fee lease is 1.1.%

The transfer of money to buy the property Samui

Unlike most economies developed, where the transfer of money from bank accounts and to forward a relatively simple and easy, this is NOT the case in emerging markets like Thailand. Before buying property in Koh Samui, it is very important to understand exactly how to transact and what must be done before the purchase. Reason for the complexity of this problem is because of the Thai laws on foreign ownership in Horizontal Property. Under Thai law, foreigners may own 49 percent of the total space unit sale and possession of a condominium building, while the remaining 51 percent must be owned by either Thai or majority owned by Thai companies. Below is a step by step guide on how to transfer money when it comes to Koh Samui properties.

1. A Thai bank account must be set to the name in order to transfer the money to yourself before you change your currency for Thai baht. Any foreign currency can be used to buy a unit condominium. Foreign currency must be transferred into Thailand as foreign currency and the change in the Thai baht by a local bank in Thailand. In many cases, the developer can offer to help establish a bank account in Thailand due to the complexity of establishing an account for yourself. This may come at additional cost, however, developers always willing to negotiate on point of sale.
2. Foreigners are required to submit at least USD 20,000.00 transfer to Thailand to receive an application currency transfer. (funds transfers must be made in Foreign Currency and NO in the Thai baht, that is, only if you are working on U.S. Below U.S. Dollars skills Dollars. Do not send in the Thai baht. This form is required for the transfer of the unit in foreign ownership as well as sending money out of Thailand, if so needed in the future.
3. Documents needed when buying a condo: For foreigners to be eligible for buy a condominium unit in Thailand they must present evidence to the Department of Lands that the funds have been remitted from abroad in foreign currency. Without such proof, the Department of Lands will not register the transfer of ownership to the foreign buyer.
4. Remittances must be sent in exactly ("a la carte) the same name that appears in the purchase contract (that is, if Tom Smith is the buyer then the name of Tom Smith must appear on the payment notice. T. Smith or Business Smith is unacceptable.) If the buyers are two individuals, then both names should appear in the contract and two consignments should be different from those two people, in quantities equal.
5. The buyer must include the transfer instruction indicating that the purpose of this money is to buy a condominium unit. The bank that receives money in foreign currency will issue the document (Foreign Exchange Transaction Form), containing the following information:

• The amount transferred in foreign currency
• The amount transferred to the Thai baht
• The name of the sender of money
• The name of receiving money
• The purpose of transfer

Normally throughout the transfer process, the buyer has to give instructions to Gateway Bank to identify the name of the sender to be the same as the receiver. The Land Department will accept the buyer's name to be transmitting or receiving the transfer money.

** Note **

If the recipient is an individual money, but wants to put the unit in the names of two people, sender has to give instructions to the Bank of gateway to specify the names of two people together in order to buy condos.

For example:

Mr. Smith transferred money to Mr. John and I would put the names of two individuals, Mr. Smith also should instruct your bank to specify the purpose to buy the condominium by both Mr. Smith and Mr. John. In this case, the Land Department can accept this and allow the transfer.

The Department of soil may accept the transfer, even if the sender name of the recipient name is not the buyer's name, but the sender should instruct the bank door to put the object link to buy the condominium by (name of purchaser). The amount of money must be equal to or higher than the sale price declared to the Department of land.

Alternatives to the transfer of money to buy the property Koh Samui

For the avoidance of doubt, we recommend whenever possible that buyers of property available amui your local bank to issue the form of foreign exchange transactions for all shipments.

In this case would be to transfer the funds directly to the developer's bank account in the established format, and the developer will arrange for Transaction Form Currency to be issued by the Bank of the developer.

For the convenience of buyers, we strongly recommend that you must transfer the funds directly to the bank account of the developer, but they only do if you trust the developers and know exactly where your money goes.

Why the developer needs to use foreign currency transaction form?

1. Because the Bank of Thailand controls the flow of foreign currency, baht each one must have a source and a reason. The Land Department must perform in accordance with this Regulation. For this restriction, all foreign buyers must transfer money from abroad.
2. Non-residents who sell the condominiums and transfer money abroad do not have to pay the tax remittance (Usually the tax is 30%)
3. In case of transfer of money outside the country, the tax-free amount is determined by the initial amount transferred.

Writing Transfer Documents required: For individual buyer

• Passport (copy in your case, the marriage or divorce certificate including a letter of consent
• your spouse if married [Thai language]).
• Foreign Exchange Transaction form or credit note.
• Power of attorney, if anyone other than you are representing, in Thai script with a
• notarization by a notary foreign government, or whether the consul of Thailand.

Required Documents: In the buyer's company

• Corporate documents:
• Certified copy of certificate of incorporation
• Certified copy of the articles of association
• Notaries certificate
• List of shareholders (in English, but must be accompanied by a Thai translation)
• Minutes of the meetings of the directors, which have a resolution to sell or buy property
• (Specifying the name and number and agenda related to the financing of the purchase if the
• company capital is less than the purchase price)
• Letter of advice on specific signature
• Power, if the directors not authorized to make the transaction for themselves
• (Form Land Department)
• Debt free letter
• Foreign letter Foreign co-owner
• The certified copy of the identification card of authorized directors
• The certified copy of registration of the house Directors approved
• Title to the condominium unit

Thai Visa Requirements

Note that although we believe that the following information is accurate, it is recommended to verify the requirements with the Royal Thai Embassy before travel.

Many Thai residents do not need a visa to remain in the country for more than 30 days. However, most African countries need a visa to enter Thailand – Cyprus, Czech Republic, India, Maldives, Oman, Poland, Russia, Saudi Arabia, Taiwan, Ukraine 15 days allowed under the visa waiver. A Non-Immigrant Visa is valid for a maximum of 90 days, but can be extended up to one year at a time, depending on eligibility criteria. Retirement visas of persons over age 50 are readily available, subject to other criteria, tourist visas for stays longer than 30 days and less than 60 days and work permits for people with specific skills can be applied for through the Thai Embassy or consulate in their country of origin.

Use An investment firm or development to help with the purchase of your property Koh Samui

Well you can not say I warned you not to purchase property in Samui would be very complicated and therefore we recommend that you use a real estate agent or investment to help with the purchase of your property Samui. Often the developer or agent going to buy the property will do everything possible to make this process as affordable and convenient as possible. After all, it is in their interest to get this deal property held as quickly as possible, and should be more than happy to help you through it. Another reason is beneficial to use the promoter or agent registered, because they already have the experience and connections to get you through this transaction. Because they have handled several times before Koh Samui properties, they know exactly who to go and what circumstances. It is very likely to already have established escrow agreements in place and banks to handle all the paperwork for you. In many cases, can even use your company as the "buyer" then issued shares in the company which then gives you legal ownership. The purchase method avoids the issue of single capable of buying a 49% unit because Thai law.

An investment firm has helped clients make Koh Samui transactions are numerous properties title = "Global Elite Property"> World Elite Property, a real estate investment firm headquartered Shanghai, China. Because of their relations with both developers and local banks in the region, to be able to walk step by step on how to complete the purchase of property on Koh Samui. Global Elite Property does not own property in Koh Samui enabling them to offer an unbiased opinion on which developers are safe for work and show how to avoid complications that can occur throughout the process. It always helps when you have a familiar face to foreigners leaving the process in place to address legal contracts and bank forms a native language.

Despite a complex process, once completed, the possession of the property in Samui show be one of the most exciting and beautiful investment that may have ever purchased. This buys the property will be worth the process it took to pass. Always remember if you want to speed things up, only the developer or property of a reliable investment firm to get through it.

About the Author

Co-founder and Chief Operating Officer for Elite Investment Group, Matthew Clark has been recommending investment property and financial products to investors for nearly 6 years.  Based in Shanghai, China, Matthew´s primary focus within the division is to assist in the day to day management and business development for the investment firm.  Matthew contributes to both the sourcing of each investment recommended by its portfolio research and analysis committee as well as negotiating partnerships with the developers and financial institutions Elite Investment Group and its subsidiary companies select to work with.

Matthew takes training and professional skills improvement very seriously both for himself and for the teams he leads. He has studied and passed the Hong Kong CIB, Singapore MAS module 3 and 9 as well as the Hong Kong SFC Type 1,4,6, and 9 exams.

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