Foreigners can no longer buy houses in Thailand via company.

[johnrxx99]

We hear a lot from people who have or are in the process of buying.

For a balanced view, can we hear from a few who have sold recently?

[hogus]

Burger,

that was exactly the article I meant!

As I also could read in the letter posted by Malcom (your link), companies with 40% - 49%, or less than 40% foreign shareholders but which are authorized to act on behalf, are/could be affected, right?
May be I'm wrong, but in my eyes this are nearly all founded companies with foreign shareholders, isn’t it?

It would be also very interesting to know, how many normal buyers of land & house (by company-route) have Thai-shareholders, which are able to show the required documents.
(Seems a lot of work will have to be done - afterwards!? )

By the way, were my suggestions so bad, to make all easier for us by changing the business policy (leasing, gifts for spouses), because I can't see any reply????
Or is it too complicated/not gainful enough to make offers, which are more fair and transparent?

Not just Happy Days, but especially a Happy Weekend to all!

[Burger]

Hogus wrote:

that was exactly the article I meant!
As I also could read in the letter posted by Malcom (your link), companies with 40% - 49%, or less than 40% foreign shareholders but which are authorized to act on behalf, are/could be affected, right?
May be I'm wrong, but in my eyes this are nearly all founded companies with foreign shareholders, isn’t it?

Yes you have the right article.
Read Malcolm's post of the government's actual new regulation.
It requires all Thai shareholders to confirm they have the funds neccessary to purchase the shares, copies of their bank statements are required for this. That is all, no more, no less.

Now ask your solicitor, or believe me, that solicitors already take copies of bank statements and file them in our company files. If a solicitor did not do that, he did not act properly when setting your company up.

To summarise this new regulation requires nothing more of us than is already standard practice in a correctly set up company.
So where is all the concern or confusion Hogus ?

Burger

[caller]

Well, its as clear as mud to me!

Are we talking about three different things here?

If you're in real estate, you have to show its a legitimate Thai company and a full investigation will take place to establish the facts?

If you buy some land for your house, but that is a part of a legitimate business, nothing to do with real estate, irrespective of the fact the Thai shareholders can show they have the funds, are they legitimate or just the "nominated" solicitors employees? Even so, such companies won't be investigated?

If you are buying the land via a Thai company, same scenario as above, but just to circumnavigate the land rules as before the clampdown i.e. there is no business in reality, thats now okay again - until the next scare at least!

As for getting hold of the UK embassy, I have emailed them on other matters repeatedly, can't even get an acknowledgement!!!

[Jaime]

I have completely lost track of the debate now but nothing I have read makes me think anything other than that Thai law prohibits all ownership of land by foreigners. There might be a loophole if a majority Thai company is set up to control land for a single house purchase but even that route does not seem secure, since the implementation and interpretation of Thai company and property laws by the Thai authorities seem subject to change on a whim at any given moment. It seems that the intention of the law itself is not clear and it probably needs the passing of a new Act to clear the whole thing up but I don't think I would hold my breath for that.

[tuktukmike]

So if i buy a house through the company route for example 10mill all my lawyer has to do is show they have 5.1mill in the bank.

Just how many thais locally have these funds?.

Caller, why dont you just give them a call and ask for the consulate section.

Burger,

I think the official letter printed in the BKK Post said it all.

But where is this new directive?.

Mike.

[Jaime]

So if i buy a house through the company route for example 10mill all my lawyer has to do is show they have 5.1mill in the bank.

Just how many thais locally have these funds?.

Not many I imagine Mike but it now means little to me anyway because as I mentioned above I have lost track of the details of this debate!

[James61]

So not a good time for people to sell their house. Are their some good bargains now or have the prices come down any is what a lot of people would like to know.
Nobody is commenting on house prices.

I know them mean yeller people selling wouldn't lower the price 25 satang but rather sit on them 20 years but other houses from real thais or farang.

[Burger]

tuktukmike wrote:

So if i buy a house through the company route for example 10mill all my lawyer has to do is show they have 5.1mill in the bank. Just how many thais locally have these funds?

No Mike that is incorrect, speak to your lawyer and they will clarify it. The foreigner in the company can loan the company the deficit, he only has to show bank statements or transfers from UK to show they are his funds.

Burger,
I think the official letter printed in the BKK Post said it all.
But where is this new directive?.

Jesus give me strength, the letter in the Bangkok post was an article.
Malcolm posted the official government directive regarding shareholders on the same thread, just 3 posts below the 'Bangkok Post' post, go read it (I even posted a link above).
It states the required documentation for registering a new company with foreign shareholder. Let me spell it out IT ONLY REQUIRES PROOF OF FUNDS FROM THAI SHAREHOLDERS IN THE FORM OF BANK BOOK COPIES. THIS INFORMATION IS ALREADY RECORDED BY YOUR LAWYER IF HE SET YOUR COMPANY UP CORRRECTLY.
No other documents required, no stringent scrutiny. This aligns with the directive to the land offices to allow normal home buyers as before May letter, but to stop the developers.
Is the penny not dropping with anyone yet ? They do want your business just not the developers.

Cheers,

Burger

[Jaime]

I know them mean yeller people selling wouldn't lower the price 25 satang but rather sit on them 20 years but other houses from real thais or farang.

Hi James. As you may know, one of your other similar comments inspired a separate thread. You seem to have strong opinions on the subject so I would be interested to read them, especially since most of the limited reponse so far has demonstrated a contrary position. You can add to the comments here:

http://www.huahinafterdark.com/forum/vi ... php?t=4127

[hogus]

Well, Burger, if I understand the new regulations correctly, the Thai-shareholders have to proof their funds from 15th of August by

1. Copy of the bank statement of the most recent record of the last 6 months or;
2. any document which issued by the Bank to certify the financial status of the shareholder or;
3. Copy of the evidence that shows the source of the investment that the Thai shareholder invested in the partnership or company limited.

Let's imagine I found a registered 1 mio. Baht-Company, Thai-shareholders have to proof not less than 510,000 Baht by the different ways shown above, correctly?
Presumably my Thai-shareholders can’t dispose such a sum; therefore I can circumvent this again by giving them a loan.
If my company buys a house & land now, I won’t be the owner, but my company, right?

Question 1: Where is written, that an inactive Company Ltd (just funded for the purpose of buying a house & land), with foreigner shareholders, can do so?

Question 2: Where is written, that there isn't to pay any rent for the house my company owned (taxable income for my company), even if I live in this house by myself?

Question 3: Is there no proof necessary that a monthly/annual payment for my Thai-shareholders must be done, as it would be normal for a legal Company Ltd., because of any company-income/profit (i.e. paying rent, as I wanted to know above)?

Now it will be really time to start into weekend!

Cheers, mates

[tuktukmike]

But you wrote,It requires all Thai shareholders to confirm they have the funds neccessary to purchase the shares, copies of their bank statements are required for this. That is all, no more, no less.

Yet you say,

No Mike that is incorrect, speak to your lawyer and they will clarify it. The foreigner in the company can loan the company the deficit, he only has to show bank statements or transfers from UK to show they are his funds.

So does the thai have to show the required funds or not?.

My understanding is that i can not be in the form of a loan?.

And it was also posted that if you want a 5-10mill house the company should have a simular structure.

Mike.

[Burger]

hogus wrote:

Well, Burger, if I understand the new regulations correctly, the Thai-shareholders have to proof their funds from 15th of August by
1. Copy of the bank statement of the most recent record of the last 6 months or;
2. any document which issued by the Bank to certify the financial status of the shareholder or;
3. Copy of the evidence that shows the source of the investment that the Thai shareholder invested in the partnership or company limited.

Let's imagine I found a registered 1 mio. Baht-Company, Thai-shareholders have to proof not less than 510,000 Baht by the different ways shown above, correctly?

Yes that is correct. That is 85,000 Baht's worth of shares per 6 Thai shareholders. Your Thai shareholders will be proffessional people (not your wife's sister, brother and 4 no. buffaloes). This amount is not a problem therefore.

Presumably my Thai-shareholders can’t dispose such a sum; therefore I can circumvent this again by giving them a loan.

Why do you have shareholders on your company who can not afford the shares ? Your lawyer done a bad job IMO. (Remember the part everyone says about seeing a 'proper' lawyer).

If my company buys a house & land now, I won’t be the owner, but my company, right?

Yes, it is an asset of the company that you have majority voting rights over. Only you can decide when to sell it, how much for and where the money shall be transfered to.

For your other detailed questions of the functioning of your company, please see your lawyer and/or accountant. I am neither and can not comment.

Cheers,

Burger

[Burger]

tuktukmike wrote:

But you wrote,It requires all Thai shareholders to confirm they have the funds neccessary to purchase the shares, copies of their bank statements are required for this. That is all, no more, no less.
Yet you say,
No Mike that is incorrect, speak to your lawyer and they will clarify it. The foreigner in the company can loan the company the deficit, he only has to show bank statements or transfers from UK to show they are his funds.
So does the thai have to show the required funds or not?.

You are confusing value of capital shares and loans to the comapny for a specifit purchase AFTER formation of company. The Thais have to prove source of funds for purchase of shares into a 1M company, but you the foreigner can loan the company funds to make a certain investment (as can a bank etc). That loan presumably then becomes a liability of the company.
Remember shares are bought during company formation, the investment of say an office/home may be made a year later. Not the same thing. Think of it as Spurs borrowing 100M Euros from a bank to build a new ground.

My understanding is that i can not be in the form of a loan?.

I believe that to be loan for the shareholder to buy the shares, not for the company to make an investment thereafter. See above.

Please please please don't quote me on all this as I'm not 100%, you should be asking your laywers not me, to be fair.

Burger

[caller]

As I said, to me its as clear as mud. I read one thing and am being told another. Thats how I view it.

Whats the chance of this all being turned on its head again after the election?