Limey
I take it you were aware of the regulations in Thailand.
But you decided to take the chance and buy land, all investments are a risk and some more than others.
As long as your real estate agent explained the situation here then to be honest what you do with your money is up to you.
Remember your agent will not want to allow you to wriggle off the hook, there is a glut of houses at present.
Mike.
Foreigners can no longer buy houses in Thailand via company.
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Limey711
- Specialist
- Posts: 199
- Joined: Sat Jan 08, 2005 11:05 pm
- Location: Hua Hin loving it.
- Contact:
Thanks Mike
I have no intention of wriggling off the hook my friend, I just want to get out there, relax, settle down and spend a lot of quality time, playing golf, fishing and sight seeing.
It is just that some of the replies within this post, seem to contradict each other.
Russ
I have no intention of wriggling off the hook my friend, I just want to get out there, relax, settle down and spend a lot of quality time, playing golf, fishing and sight seeing.
It is just that some of the replies within this post, seem to contradict each other.
Russ
The sweetest girl that I ever kissed was another man's wife.....My Mother
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Wanderlust
- Legend
- Posts: 2862
- Joined: Wed Aug 04, 2004 12:27 pm
- Location: Hua Hin
Limey,
I have no vested interests; I am not an estate agent, builder, developer, kitchen company, furniture shop owner etc nor do I own a property in Hua Hin, although I once did in Bangkok (bought in my then wife's name). From what you have already said it sounds like your company has already been formed, the land bought and construction is nearing completion on your house, so it sounds like everything has already been registered with the relevant authorities. If that is so then I do not think you have anything to worry about as it is highly unlikely that the authorities will take action on what has already happened. The main thing you should ensure is that from now on the company is 'seen' to be trading by the taxman, and that the annual accounts/tax payments are done properly. From everything that I have read, and from my experience in Thailand, you need not worry. The recent furore was about foriegn developers making money from land purchases/ sales and the fact that the money wasn't benefitting Thailand; I don't think any Thai official wants to prevent 'rich' farang coming here and spending their money on a house for them to live in, and staying here spending more money. The bare fact is that it is against Thai law for farang to own land except in some very few exceptions, but then again prostitution and gambling are also against Thai law, but the powers that be turn a blind eye to it, most of the time; every so often there is a 'crackdown' which lasts for about 2 weeks to a month maximum, before the attention is focused elsewhere, everyone breathes a sigh of relief, and things go back to how they were. I can't guarantee this is how things will shape up regarding property, but normally when it is in the interests of those in charge for things to resume as before, then they will. I hope that helps.
I have no vested interests; I am not an estate agent, builder, developer, kitchen company, furniture shop owner etc nor do I own a property in Hua Hin, although I once did in Bangkok (bought in my then wife's name). From what you have already said it sounds like your company has already been formed, the land bought and construction is nearing completion on your house, so it sounds like everything has already been registered with the relevant authorities. If that is so then I do not think you have anything to worry about as it is highly unlikely that the authorities will take action on what has already happened. The main thing you should ensure is that from now on the company is 'seen' to be trading by the taxman, and that the annual accounts/tax payments are done properly. From everything that I have read, and from my experience in Thailand, you need not worry. The recent furore was about foriegn developers making money from land purchases/ sales and the fact that the money wasn't benefitting Thailand; I don't think any Thai official wants to prevent 'rich' farang coming here and spending their money on a house for them to live in, and staying here spending more money. The bare fact is that it is against Thai law for farang to own land except in some very few exceptions, but then again prostitution and gambling are also against Thai law, but the powers that be turn a blind eye to it, most of the time; every so often there is a 'crackdown' which lasts for about 2 weeks to a month maximum, before the attention is focused elsewhere, everyone breathes a sigh of relief, and things go back to how they were. I can't guarantee this is how things will shape up regarding property, but normally when it is in the interests of those in charge for things to resume as before, then they will. I hope that helps.
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karenjuice
- Rookie
- Posts: 15
- Joined: Mon Mar 20, 2006 4:09 pm
- Location: spain
Concerning foreign ownership
I recently put a reservation on a house in a new development just starting in HH. Just before the purchase contract was signed with 20% our lawyer contacted us to tell us the breaking news. We managed to get our money sent back while we waited to see what would happen as we would still like to purchase. I just received this email from the developer I was purchasing from. I am waiting for a response from my lawyer. Has anyone else heard about this. It doesn´t seem very clear to me.
Here is the solution, Thailand Longstay Company Ltd. (www.thailongstay.co.th) is the state owned company limited establishing to promote the longstay of the foreigner in Thailand. For foreigner who wants to buy the property in Thailand, they wiil be the legal entity to register the new conpany with 55% /45% foreign buyer to buy the property with the land department. Everything will be legitimate with the accomodation of longstay visa and money transfering to thailand. I am still waiting for the document they are sending me and will forware to you
Here is the solution, Thailand Longstay Company Ltd. (www.thailongstay.co.th) is the state owned company limited establishing to promote the longstay of the foreigner in Thailand. For foreigner who wants to buy the property in Thailand, they wiil be the legal entity to register the new conpany with 55% /45% foreign buyer to buy the property with the land department. Everything will be legitimate with the accomodation of longstay visa and money transfering to thailand. I am still waiting for the document they are sending me and will forware to you
For your information,
Have a look on this, on the Stickman Bangkok readers submissions:
http://www.stickmanbangkok.com/Reader20 ... er2751.htm
Start your reading here:
There is a legal contract called an “USUFRUCTâ€
Have a look on this, on the Stickman Bangkok readers submissions:
http://www.stickmanbangkok.com/Reader20 ... er2751.htm
Start your reading here:
There is a legal contract called an “USUFRUCTâ€
With A Name Like Bas, It Has To Be Good.
[quote="Bas"]For your information,
Have a look on this, on the Stickman Bangkok readers submissions:
http://www.stickmanbangkok.com/Reader20 ... er2751.htm
Start your reading here:
There is a legal contract called an “USUFRUCTâ€
Have a look on this, on the Stickman Bangkok readers submissions:
http://www.stickmanbangkok.com/Reader20 ... er2751.htm
Start your reading here:
There is a legal contract called an “USUFRUCTâ€
Talk is cheap
Another article extacted today from the BKK Post. Written by another lawyer, but a Thai lawyer this time. Perhaps not much new but maybe of interest. Pete
_______________________________
Targeting property purchases by proxies
Thailand, with its rich culture and beautiful sites, presents a very attractive destination to foreigners from many countries - for visit, travel, or even retirement purposes. Some of these foreigners wish to own property in Thailand, either as an investment or as personal residence.
Thai laws are quite explicit concerning foreign ownership of property, stating that a foreign individual, foreign entity or a Thai company with more than 49% of its shares held by foreigners cannot own land in Thailand, except for particular investment purposes under certain laws such as the Investment Promotion Act, Industrial Estate Authority of Thailand Act, and property fund regulations.
These exceptions, providing benefits to foreign direct investment in Thailand, were intended mainly to promote the country's economy. To enjoy the benefits of these exceptions, foreign investors must meet multiple requirements set out by the relevant legislation and undergo strict scrutiny from authorities.
To date, foreigners wishing to own land in Thailand have attempted to circumvent Thai laws through a legal arrangement establishing a Thai entity where they own part of the shares and induce Thai nationals to act as nominees holding more than 51% or more of the company's shares without true control. This practice has become common in Thailand, with land officials accepting this type of arrangement and creating no impediments to the transfer of land to such companies.
On May 15 2006, the Interior Ministry issued a policy addressed to all provincial governors regarding the avoidance of law in the acquisition of land by an entity with foreign shareholders. The policy seeks to prevent the purchase of land for the benefit of a foreigner in accordance with Section 74 of the Land Code.
It directs officials to be more vigilant in scrutinising the purchases of land by an entity with a foreign shareholder or director, or where reasonable grounds exist to believe that a Thai is a nominee shareholder on behalf of a foreigner. The policy requires the competent official to carefully scrutinise the supporting evidence submitted for consideration, while paying particular attention to the occupation, duration of work and the monthly income of the Thai shareholder.
If, following the investigation, it is the opinion of the competent official that the registration of transfer represents an avoidance of law or that a Thai is trying to purchase land for the benefit of a foreigner, he should conduct further investigation and submit the case to the Land Department for ministerial advice.
As each competent official has discretion in the implementation of the policy, the method of investigation by land offices could vary from province to province. The Ministry of Interior has yet to relay a clear procedure on how to conduct the investigation or define what officials should consider as "believably acting for the benefit of a foreigner".
Without a clear procedure, some land offices have ceased to transfer land to entities with foreign shareholders, partners or directors. Others continue to transfer land, but with the condition that the entity's objectives do not include engaging in real estate business. The different standards could be potentially misleading and confusing to the public.
In a further proactive step, the ministry made clear its concern that some companies were avoiding the Land Code by accepting a land transfer when foreigner shareholders do not hold more than 49% of a company's shares, but foreign shareholders then acquire more shares in the company or increase their capital in the company after the transfer. This results in foreign shareholders holding more than 49% of the company, making the company a foreign entity under the Land Code subject to the requirement to sell the land within one year or a period specified by the Director-General.
Land offices have conducted investigations by cross-checking companies holding land in their jurisdiction with the relevant authorities of the Commerce Ministry to verify the shareholding structure of each company. If the search shows that the shareholding of foreigners amounts to more than 49%, the authority will force that company to sell the acquired land.
The property sector in Thailand, especially projects targeting foreign customers, has been somewhat affected by this policy. At the very least, the transfer of land to a company with foreign shareholders is not as simple or certain as before.
Nonetheless, at its core, this policy presents nothing new. This policy merely reasserts, adjusts and attempts to bring current practice in line with the already existing law relating to the transfer of property to companies with foreign shareholders.
Written by Dussadee Rattanopas, an attorney in the Commercial Department, Tilleke & Gibbins International Ltd.
_______________________________
Targeting property purchases by proxies
Thailand, with its rich culture and beautiful sites, presents a very attractive destination to foreigners from many countries - for visit, travel, or even retirement purposes. Some of these foreigners wish to own property in Thailand, either as an investment or as personal residence.
Thai laws are quite explicit concerning foreign ownership of property, stating that a foreign individual, foreign entity or a Thai company with more than 49% of its shares held by foreigners cannot own land in Thailand, except for particular investment purposes under certain laws such as the Investment Promotion Act, Industrial Estate Authority of Thailand Act, and property fund regulations.
These exceptions, providing benefits to foreign direct investment in Thailand, were intended mainly to promote the country's economy. To enjoy the benefits of these exceptions, foreign investors must meet multiple requirements set out by the relevant legislation and undergo strict scrutiny from authorities.
To date, foreigners wishing to own land in Thailand have attempted to circumvent Thai laws through a legal arrangement establishing a Thai entity where they own part of the shares and induce Thai nationals to act as nominees holding more than 51% or more of the company's shares without true control. This practice has become common in Thailand, with land officials accepting this type of arrangement and creating no impediments to the transfer of land to such companies.
On May 15 2006, the Interior Ministry issued a policy addressed to all provincial governors regarding the avoidance of law in the acquisition of land by an entity with foreign shareholders. The policy seeks to prevent the purchase of land for the benefit of a foreigner in accordance with Section 74 of the Land Code.
It directs officials to be more vigilant in scrutinising the purchases of land by an entity with a foreign shareholder or director, or where reasonable grounds exist to believe that a Thai is a nominee shareholder on behalf of a foreigner. The policy requires the competent official to carefully scrutinise the supporting evidence submitted for consideration, while paying particular attention to the occupation, duration of work and the monthly income of the Thai shareholder.
If, following the investigation, it is the opinion of the competent official that the registration of transfer represents an avoidance of law or that a Thai is trying to purchase land for the benefit of a foreigner, he should conduct further investigation and submit the case to the Land Department for ministerial advice.
As each competent official has discretion in the implementation of the policy, the method of investigation by land offices could vary from province to province. The Ministry of Interior has yet to relay a clear procedure on how to conduct the investigation or define what officials should consider as "believably acting for the benefit of a foreigner".
Without a clear procedure, some land offices have ceased to transfer land to entities with foreign shareholders, partners or directors. Others continue to transfer land, but with the condition that the entity's objectives do not include engaging in real estate business. The different standards could be potentially misleading and confusing to the public.
In a further proactive step, the ministry made clear its concern that some companies were avoiding the Land Code by accepting a land transfer when foreigner shareholders do not hold more than 49% of a company's shares, but foreign shareholders then acquire more shares in the company or increase their capital in the company after the transfer. This results in foreign shareholders holding more than 49% of the company, making the company a foreign entity under the Land Code subject to the requirement to sell the land within one year or a period specified by the Director-General.
Land offices have conducted investigations by cross-checking companies holding land in their jurisdiction with the relevant authorities of the Commerce Ministry to verify the shareholding structure of each company. If the search shows that the shareholding of foreigners amounts to more than 49%, the authority will force that company to sell the acquired land.
The property sector in Thailand, especially projects targeting foreign customers, has been somewhat affected by this policy. At the very least, the transfer of land to a company with foreign shareholders is not as simple or certain as before.
Nonetheless, at its core, this policy presents nothing new. This policy merely reasserts, adjusts and attempts to bring current practice in line with the already existing law relating to the transfer of property to companies with foreign shareholders.
Written by Dussadee Rattanopas, an attorney in the Commercial Department, Tilleke & Gibbins International Ltd.
property
OK so we all know that we cannot buy land or use a company to get around the law, but from what I can gather from the posts here, there are other methods of buying selling leasing property in Thailand.
I have listed them below.
* Condo-leasehold
* Condo-chanote ownership
* A Thai woman/man married to Falang, buys the house and land, then leases to their partner
* USUFRUCT (see above)
* 30 year Lease from the seller.
* Lease the land and own the house it stands on.
Are there more?
I have listed them below.
* Condo-leasehold
* Condo-chanote ownership
* A Thai woman/man married to Falang, buys the house and land, then leases to their partner
* USUFRUCT (see above)
* 30 year Lease from the seller.
* Lease the land and own the house it stands on.
Are there more?
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Wanderlust
- Legend
- Posts: 2862
- Joined: Wed Aug 04, 2004 12:27 pm
- Location: Hua Hin
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tuktukmike
- Guru
- Posts: 728
- Joined: Mon Apr 18, 2005 1:02 am
Wanderlust
There is,
It has been reported in a German newspaper of the new super elite card.
Again invest 40mil bht and you can buy 1 rai of land, the upside is that you can use the VIP lounge at the new airport.
I suggest we all apply ASAP as there will of course be a long waiting list for this amazing new deal.
Mike.
There is,
It has been reported in a German newspaper of the new super elite card.
Again invest 40mil bht and you can buy 1 rai of land, the upside is that you can use the VIP lounge at the new airport.
I suggest we all apply ASAP as there will of course be a long waiting list for this amazing new deal.
Mike.
