Can Foreigners Buy Land in Thailand? Honest Advice
Summary
TLDRIn this video, Joe Remax discusses foreign ownership of landed property in Thailand, explaining that while it's illegal for foreigners to own land directly, there are ways around it, such as setting up a Thai-majority owned company to hold the land title. He outlines the pros and cons of this approach, including potential legal risks and additional costs of company maintenance. Joe advises consulting a lawyer and being aware of the inherent risks involved in bypassing the law.
Takeaways
- 🏢 In Thailand, foreigners are generally not allowed to own landed properties such as townhouses, single homes, or land.
- 🏘️ The most popular method to circumvent this is by forming a Thai company to hold the land title, with certain legal precautions.
- 📝 Another legal option is leasing land for up to 60 years through a long-term lease agreement.
- 🤝 The advantage of using a company is that it allows foreigners to own land indirectly, and selling shares avoids land transfer taxes.
- ⚖️ There are risks involved with using a company, as the law requires at least 51% Thai ownership, which might lead to loss of control.
- 💼 Setting up and maintaining a company involves ongoing costs, such as monthly accounting fees and annual audits.
- 🔍 The Thai government occasionally audits shell companies, and those not generating income may be forced to shut down.
- 👮♂️ It's crucial to work with a competent lawyer to ensure the company is set up correctly and to mitigate legal risks.
- 💡 Condos are an exception where foreign ownership is straightforward and allowed under Thai law.
- ⚠️ The video host emphasizes that while it's possible to own landed property as a foreigner, it comes with inherent risks and should be approached with caution.
Q & A
What is the primary topic discussed in Joe Remax's video?
-The primary topic discussed in Joe Remax's video is foreign ownership of landed properties in Thailand, which includes townhouses, single homes, and pieces of land.
According to Thai law, can foreigners own landed properties?
-No, according to Thai law, foreigners are not allowed to own landed properties.
What are the two main options Joe Remax mentions for foreigners to own land in Thailand?
-The two main options mentioned are forming a company to buy the land and leasing the land for a long term.
What is the advantage of owning land through a company in Thailand?
-The advantage is that it allows foreigners to own a villa, townhouse, or piece of land under the company's name, and when selling, there are no land transfer taxes as it involves selling shares in the company.
What are the potential risks of setting up a company to own land in Thailand?
-The potential risks include the requirement for the company to be 51% Thai-owned, which means foreigners cannot legally control the company, and there's a risk of proxy shareholders potentially selling off the asset.
What are the ongoing costs associated with owning a company in Thailand for land ownership?
-The ongoing costs include monthly tax returns, government form filings, annual audits, and hiring an accountant, which can amount to approximately two hundred dollars a month.
What does Joe Remax suggest regarding the legal structure of a company for land ownership?
-Joe Remax suggests that the legal structure should be carefully set up with proxy shareholders and signing back their voting rights to ensure the foreign owner retains control and to avoid fraud.
How does the Thai government sometimes respond to foreign-owned companies that own land?
-The Thai government may audit these companies, and if they are not creating an income or running a profit within a reasonable time, they may be ordered to shut down and liquidate their assets.
What is the '30 plus 30' lease arrangement mentioned in the video?
-The '30 plus 30' lease arrangement refers to the legal maximum lease term in Thailand, which is 30 years with the option to renew for another 30 years, allowing foreigners to lease land for a long term.
What advice does Joe Remax give to foreigners looking to buy property in Thailand?
-Joe Remax advises foreigners to involve a lawyer, ensure the legal process is correctly followed, and understand the risks and extra costs involved in owning a company for land ownership.
What is the difference between owning a condo and owning a landed property in Thailand for foreigners?
-Owning a condo is straightforward and allowed under certain criteria, while owning landed property is more complex and typically involves setting up a company or leasing.
Outlines
🏡 Foreign Ownership of Landed Properties in Thailand
Joe Remax discusses the intricacies of foreign ownership of landed properties in Thailand, such as townhouses and single homes, which are not allowed for foreigners under Thai law. He explains alternative methods, like setting up a Thai company with 51% Thai ownership to hold land title, and the concept of leasing land for up to 60 years. He warns of the legal risks involved, such as the necessity for proper structuring with proxy shareholders to maintain control and avoid potential asset loss. He also mentions the financial implications, including the costs of maintaining a company and the legal and administrative expenses involved.
📚 Navigating the Legalities of Foreign Land Ownership
In the second paragraph, Joe Remax emphasizes the importance of understanding the risks and legal requirements when foreigners attempt to acquire landed properties in Thailand. He advises consulting a lawyer to ensure all legal formalities are correctly handled to avoid complications. He outlines the potential issues that can arise from government scrutiny of companies set up for land ownership, including the risk of forced liquidation if the company does not generate income. He concludes by reiterating the need for caution, proper legal guidance, and awareness of the ongoing costs associated with owning a company as a means to own land.
Mindmap
Keywords
💡Foreign Ownership
💡Landed Properties
💡Condos
💡Leasing Land
💡Company Formation
💡Proxy Shareholders
💡Land Transfer Taxes
💡Accounting and Audit
💡Government Audits
💡Risk Mitigation
💡Legal Counsel
Highlights
Foreign ownership of land in Thailand is restricted by law.
Anyone can own a condo in Thailand as long as certain criteria are met.
Landed properties include townhouses, single homes, and pieces of land.
Foreigners are not allowed to own landed properties under Thai law.
There are ways to circumvent the law, but it's not recommended without legal advice.
Leasing land is a legal option for foreigners, with a 30+30 year lease possible.
Forming a company is a popular method to own land, but it comes with risks.
When selling land through a company, there are no land transfer taxes.
The company must be 51% Thai-owned to comply with Thai law.
Proxy shareholders and signing back voting rights are common practices to maintain control.
There are risks involved with setting up a company to own land.
It's crucial to do it correctly to avoid losing control of the asset.
There are ongoing expenses associated with owning and maintaining a company.
The government may audit shell companies that do not generate income.
Legal counsel is essential to set up a company correctly and understand the risks.
The worst-case scenario could be being forced to sell the property.
Condo ownership is straightforward and legally provided for foreigners.
For landed property, it's advised to work with a lawyer to understand the costs and risks.
The video offers insights into common advice on owning property in Thailand.
There are potential pitfalls to be aware of when considering property ownership.
Transcripts
hi it's joe remax coming to you from my
office in bangkok thailand
in this video we're going to talk about
foreign ownership
of land in thailand so i have another
video
about ownership of condos
and that is pretty well straightforward
anyone can own a condo in thailand
as long as it falls under certain
criteria and certain criteria are met
not really complicated today i'm going
to talk about foreign ownership of
landed property and what do i need mean
by landed is anything attached to land
such as a townhouse a single home
a piece of land these are what i call
landed properties
under thai law foreigners are not
allowed
to own landed properties the law in
thailand
is enforced however there are
ways around it so what i'm telling you
here
is not as a lawyer it's from my
experience
in in what i've seen done in the
industry so
please my caveat is i'm not a lawyer you
should talk to a lawyer about
these things the question today is i
want i don't want a condo
or there's no condos where i want to
live i want to buy a piece of land and i
want to have a little bungalow or
something like that how do i do it
you have a couple options the most
popular
is to form a company and buy
your land in that company and i'll talk
to you about that in a second
another one is leasing land and this is
legal
if the title of the land stays with the
thai citizen
then that's fine and you can lease for
30 years plus another 30 years
you can get a long-term lease and you
can build on it
the easy case is 30 30. so
now we go back to option number one that
i talked about that
a lot of people do is setting up a
company and in that company you will
hold the title for the land it sounds
good
but there's some pitfalls so let's look
at a few pros and cons on this
one is that you can own a villa
or a townhouse or a piece of land
in the name of that company so that's
great you found a way to own the land
another pro is that when you go to sell
rather than selling the title
of the land and the associated taxes
associated with that
you can sell the shares in the company
and of course there are
no land transfer taxes when you ship
exchange shares so
that is a benefit the cons are that you
really are skirting the law the
um the law is that foreigners are not
supposed to
own land in thailand
under thai law when you set up a company
it has to be 51
thai owned so this is to say that you
actually don't
cannot control a company that's the way
the law is designed
now lawyers will structure it with proxy
shareholders and so forth and
signing back their voting rights to
avoid any fraud
that no one can sell your land from
under you
so you can you can do something like
this
and a lot of people have
okay so if you set up a company
there are a couple risks one is that
it needs to be done correctly if it's
not done correctly
and there's 51 percent
held by proxy
shareholders and they do have voting
rights
they do have the ability to to sell off
your asset
so that has to be done very carefully
and make sure that that you know
you you keep control of the voting the
another thing is expense
when you own a company it has to
submit tax returns every month it has to
fill in government forms it has to
do an audit once a year and by
so you have to factor in that extra cost
of ownership it's not
free so typically you're talking
accounting on something like that would
be about
100 150 dollars a month that you need to
factor in
and then an additional about i'm trying
to think what the number is it's
it's about fifteen thousand baht which
would be about seven hundred dollars a
year
to get your audit done so think about
that you're talking maybe two hundred
dollars a month uh to maintain the
company to hire
an accountant to do all the forms and
submission the other thing is that com
once in a while the government will kind
of focus on these kind of shell
companies and audit them and if they're
not
creating an income and running a profit
within a reasonable
amount of time they will say that you
need to shut down this company
and liquidate its assets hence
you need to be careful a little bit that
whatever advice you get for
establishing a company that your
your legal counsel helps you
and sets things up correctly
so those are the pros and cons i
i know quite a few people that do manage
to acquire a fixed asset
on on land and but you have to go in
with the eyes open you have to
understand what the risks are
it can be done understanding that
there's an inherent risk by
skirting the law i guess the worst case
scenario would be that you are forced to
sell
at some point in time so i hope that
gave you some insight to some of the
kind of um you know advice you get from
from uh chat groups and facebook
and social media and all these experts
on owning
property there are some gotchas
so be careful and if you're a foreigner
looking to buy property
you know certainly i would advise
getting a lawyer involved
i would be careful
that you select a good one if they don't
do the job correctly if the job's not
done correctly you
you you run the risk of losing your
asset
which can be significant amount of money
so
backing up condos there's no problem the
law provides for that
if you want to do some kind of landed
property wrap it up very tightly with a
lawyer
making sure that you've got everything
under control and understand that
there'll be some extra costs
involved to keep that company
operational and running
and yeah if you need any help
we're here so thank you for listening
and hope to catch you guys later
tune in next week for another video
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