Large area seed crystals for ammonothermal GaN growth are fabricated by deposition or layer transfer of a GaN layer on a CTE-matched handle substrate. The sides and back of the handle substrate are protected from the ammonothermal growth environment by a coating comprising an adhesion layer, a diffusion barrier layer, and an inert layer. A patterned mask, also comprising an adhesion layer, a diffusion barrier layer, and an inert layer, may be provided over the GaN layer to allow for reduction of the dislocation density by lateral epitaxial growth.