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Costs 5 min read

The true cost of owning property in Koh Phangan

The purchase price is the headline. The real question buyers should ask is what it costs to own and run the home year after year. Here are the real numbers, with nothing hidden.

Cost summary · Gaia Residence · 2026
CAM / maintenance fee
฿5,000 / mo
Sinking fund
None
Real estate (land & building) tax
≤ 0.3%
Annual land tax (leaseholder)
฿0
Building insurance
~$250 / yr
Pool / repair fund
~$250 / yr
Internet
฿500 / mo
Electricity (metered)
฿1,500 to 3,000 / mo
Rental management
20% of gross
Lease registration (one-off)
~฿100,000

One of the most reassuring things about owning property in Thailand is how low the ongoing costs are compared with Europe, the US or Australia. There is generally no annual land tax for a leaseholder, and the running costs are modest and predictable. Here is the full picture for a Gaia residence, from the one-off costs at purchase to the year-on-year bills.

One-off costs at purchase

Beyond the price of the residence itself, the main one-off cost is registering your lease at the Land Office, which comes to roughly THB 100,000 in total for all the paperwork. You should also budget for your own independent lawyer. The home is delivered fully finished and furnished as standard, with the furniture pack included in the price, so the only extras are optional packages.

One-off costTypical amount
Land Office lease registration~THB 100,000
Independent legal feesVaries by firm
Kitchen appliances (optional)Quoted separately
Decorative lighting & artwork (optional)Quoted separately

The ongoing costs, itemised

This is the list buyers really want, so here it is in full. These are the only recurring costs of owning a Gaia residence:

Ongoing costAmountNotes
Maintenance feeTHB 5,000 / monthShared facilities, security, gardens, common-area cleaning. Capped for 5 years, then linked to Thai CPI (historically 1 to 3% a year)
Insurance~USD 250 / yearComprehensive rebuild coverage
Pool / repair fund~USD 250 / yearCollective fund for repairs and a 5-year paint refresh
InternetTHB 500 / monthManaged cable internet, plus Wi-Fi at pool and sauna
Electricity~THB 1,500 to 3,000 / monthYour own meter; depends on air-conditioning use
WaterIncluded for ownersCharged on usage only when guests stay
Rental management20% of gross rentalOnly if you choose to rent
"No sinking fund, no surprise surcharges. The list above is the whole list."

What about property taxes?

Thailand has famously low property taxes. Under the Land and Building Tax Act, residential property is taxed at very low rates, capped at 0.3% of appraised value, and in practice this is a small annual house-and-land tax of a few thousand Baht. As a leaseholder you generally do not carry the annual land tax, which sits with the landowner, though the liable party under the Act is whoever owns or possesses the property, so it is worth confirming the position for your specific unit. Either way, the numbers are tiny by international standards.

Rental income tax, briefly

If you rent the home out, that income is taxable in Thailand. Thai-source rental income is taxed at progressive rates after a standard deduction, and you become a Thai tax resident if you spend 180 days or more in the country in a calendar year. Since 2024, residents are also taxed on certain foreign income when it is remitted to Thailand. How your rental income is best structured depends on your personal residency, so we recommend every owner speaks with a tax advisor who knows the Thai system. We can connect you with specialists who work with our buyers.

A finished Gaia residence bedroom opening to sea and jungle views
Low, predictable running costs are part of what makes island ownership relaxing.

The numbers that offset the costs

Running costs are only one side of the ledger. A managed Gaia residence is projected to return on average around 15% a year, and the rental programme is designed so the income covers the running costs and then some, while you still keep your own nights to use the home.

฿5k
Monthly maintenance
~15%
Projected annual ROI
฿0
Annual land tax (leaseholder)

Costs are current 2026 figures and may change over time. The ROI figure is an average projection for a managed residence, not a guarantee of returns; actual performance depends on occupancy, rates, seasonality and operating costs. Tax treatment depends on your personal residency. We are happy to share detailed, unit-specific projections on request.

A simple annual example

To make it concrete, imagine a one or two-bedroom residence you use yourself and do not rent out. Your fixed annual costs would be roughly THB 60,000 in maintenance, about USD 500 for insurance and the pool fund combined, THB 6,000 for internet, plus your own electricity and a small house-and-land tax. That is a genuinely low cost to hold a finished, furnished, sea-view home in the tropics. Put it into the rental programme and the income is designed to cover those costs and produce a return on top. For the full investment picture, see the numbers behind a Gaia residence.

The honest bottom line

For most owners, a sea-view home on Koh Phangan is genuinely inexpensive to hold, and when rented through the management programme it is designed to pay for itself. The goal is a home that earns quietly in the background while you enjoy owning it, not a second job with a stack of bills.

Frequently asked questions

What are the ongoing costs of owning property in Koh Phangan?
At Gaia: about THB 5,000 a month maintenance, roughly USD 250 a year each for insurance and a pool fund, THB 500 a month internet, metered electricity around THB 1,500 to 3,000, and a 20% rental-management fee only if you rent.

Do you pay property tax as a foreigner?
Very little. As a leaseholder you generally do not pay the annual land tax, only a small house-and-land tax of a few thousand Baht (residential rates are capped at 0.3%). Rental income is taxable depending on your residency.

How much is lease registration?
Around THB 100,000 in total for the Land Office paperwork, separate from the purchase price.

Is rental income taxable?
Yes. Thai-source rental income is taxed at progressive rates, and you are a tax resident at 180+ days a year. Consult a tax advisor for your situation.

Is it expensive to maintain?
No. Costs are low and predictable, and a residence rented through the management programme is designed to cover its running costs and more.

Want the full cost sheet for a specific unit? Just ask. The Gaia team.

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