Koh samui: thailand’s ‘rising star’

The island of Koh Samui is the shining light in Thailand’s tourism industry, according to David Stanley Redfern…

Thailand is one of the best countries in Asia for a foreign property investment: there is no inheritance or gift tax, capital gains are treated as income tax charged at the standard rate, and foreigners can buy condominiums freehold.

Foreigners can invest in property other ways, but purchasing a condominium is the easiest by far. Even with the political turmoil; rental yields still hit the 8% mark in Bangkok.

The gorgeous Island of Koh Samui has barely been affected by the political turmoil on the mainland - if at all, and potential investors would be wise to investigate the burgeoning resort property market.

As tourism grows on the island, and it begins to attract the higher end of the tourism market, as oppose to mainly back-packers, the villa resort properties can attain rental yields of 10-12% relatively easily, and a conservative estimate on capital appreciation is 15%-20%.

Round trip transaction costs are a reasonable 10% - 12.3% in Thailand, but both parties must have their own solicitor, and there is slight confusion over the calculation of buying costs; specific business tax and stamp duty are paid on whatever is higher between the assessed and declared value.