I Thought Foreigners Can Own Houses in Thai Companies?

Summary

In this video, American attorney Benjamin Hart discusses the complexities of foreign property ownership in Thailand. He clarifies that while Thai companies can own land, foreigners are prohibited from directly owning real estate in Thailand. Foreign nationals may hold a minority stake in a company that owns land, but this does not equate to ownership. Hart also warns of legal risks, noting that authorities often dissolve companies set up to bypass foreign ownership restrictions, potentially leading to loss of investment. Caution and compliance with Thai law are crucial when navigating such arrangements.

Takeaways

• 🌍 Foreigners cannot own land in Thailand according to Thai law.
• 🏢 A company, including one with foreign shareholders, can own land in Thailand, but this does not equate to foreign ownership.
• ⚖️ Foreigners can hold minority shares in Thai companies that own real estate, but this does not grant ownership rights over the property.
• 🚨 There are strict legal provisions in place to prevent foreigners from circumventing the law through company ownership of land.
• 👮 Thai authorities actively investigate and take action against companies trying to bypass foreign land ownership restrictions.
• ❌ If caught circumventing these laws, the company can be dissolved, and the land may be taken back by the authorities.
• 🔍 Foreigners involved in companies owning land must closely follow Thai laws and regulations to avoid legal issues.
• 💼 Some foreign nationals may participate in small business arrangements, like a shop house with their Thai spouse, but this still does not equal ownership.
• ⚠️ Setting up structures to give foreigners a say in a company owning property should be done with extreme caution.
• 💸 Failing to comply with Thai land ownership laws can result in the complete loss of investment for the foreign national.

Q & A

Can foreigners own land in Thailand?

No, foreigners cannot legally own land in Thailand. Thai law strictly forbids foreign nationals from owning land in the country.

Is it possible for a foreigner to own a house in Thailand through a company?

No, ownership through a company does not equate to personal ownership. A foreigner may be involved in a company that owns land, but this does not translate to direct ownership of the property.

Can a company own land in Thailand?

Yes, a company can own land in Thailand, but the company must comply with Thai laws, especially regarding foreign ownership restrictions.

What role can a foreigner have in a company that owns land in Thailand?

A foreigner can hold a minority position within a Thai company that owns land, but they cannot have majority control or ownership over the property.

Are there any legal risks for foreigners using companies to own land in Thailand?

Yes, there are significant legal risks. Thai authorities have mechanisms to investigate and prevent foreigners from using companies to circumvent land ownership laws, which can result in the company being dissolved and the land being taken back.

What happens if a company that owns land is found violating Thai ownership laws?

If authorities find that a company is being used to violate foreign ownership laws, the company may be dissolved, and the land may be confiscated.

What is the 'shop house model' mentioned in the video?

The 'shop house model' refers to a situation where a foreigner, often through a marriage to a Thai national, has some say in a business run from a shop house. However, this does not provide the foreigner with ownership of the property.

Can a foreigner have any control over real estate owned by a company in Thailand?

A foreigner may have some control or say in the company's decisions, but this is not equivalent to owning the real estate itself.

What is the potential consequence of trying to bypass Thai land ownership laws through companies?

The primary consequence is the loss of investment, as authorities may dissolve the company and repossess the land if laws are circumvented.

Is there any situation where a foreigner can legally have real estate in Thailand?

While foreigners cannot directly own land, they may have some level of involvement in a company that owns real estate, but this should be done with extreme caution to avoid legal issues.

Outlines

00:00

🏡 Foreigners and Home Ownership in Thailand

Benjamin Hart, an American attorney, introduces the topic of Thai home ownership for foreigners. He explains that while foreigners cannot directly own land in Thailand, there are structures like Thai companies that can own land. However, this does not equate to direct ownership by a foreigner. Hart highlights that even if a foreigner is a minority shareholder in a company that owns land, it still does not translate into property ownership for the foreigner under Thai law.

🤔 Misconceptions About Ownership Through Thai Companies

The script addresses common misconceptions regarding foreigners owning property 'on paper' through a Thai company. Some foreigners believe they can own a house through company ownership, but this is not legally accurate. Hart emphasizes that there are strict legal provisions in Thailand that prevent foreign nationals from owning land directly or indirectly. Despite the presence of companies that own land, foreigners are still restricted from owning property.

🚨 Thai Legal Provisions and Corporate Ownership

Hart further discusses the Thai legal framework, which forbids foreign nationals from owning land. He explains that while companies in Thailand can own land, any changes in law to allow foreign ownership have consistently failed. Foreigners cannot circumvent this law by holding minority shares in companies that own land, as the Thai law and enforcement policies are strict on this matter.

🔍 Investigations and Legal Consequences

Hart mentions that Thai authorities actively investigate cases where foreigners may be using companies to bypass ownership restrictions. In such cases, companies may be dissolved, and their land reclaimed by the government. He warns that foreigners involved in such arrangements risk losing their investment entirely.

⚠️ Risks of Involvement in Thai Property Companies

Hart advises caution when entering into arrangements where a foreigner has involvement in a company that owns land. He stresses the importance of understanding and complying with Thai law and enforcement policies. Failure to do so can lead to severe consequences, including loss of investment. He reiterates that any foreign involvement in property ownership does not equate to full ownership.

💼 Shop-House Model and Limited Circumstances

In some limited cases, such as the 'shop-house model,' foreigners may have a say in businesses that operate through a legal setup or a company. This might involve a Thai spouse or partner. However, Hart emphasizes that these setups are far from actual property ownership and should not be mistaken as such under Thai law.

📜 Final Warning Against Ownership Beliefs

Hart concludes by cautioning foreigners not to believe that they can own property in Thailand through any corporate structure or legal workaround. He stresses that Thai law and enforcement policies do not support foreign ownership, and any belief to the contrary is a misconception.

Keywords

💡Foreign ownership

Foreign ownership refers to the legal ability of non-citizens to own property, particularly land. In the context of Thailand, the video clearly states that foreigners are legally forbidden from owning land, and any attempt to circumvent this law through indirect methods, such as setting up a company, does not grant actual ownership.

💡Thai company

A Thai company is a legal entity registered under Thai law. The video explains that while a company can own land in Thailand, foreign nationals involved in such companies in minority positions do not have ownership rights over the land held by the company. This concept is crucial to understanding the difference between holding assets through a company and actual ownership.

💡Minority position

A minority position refers to holding a smaller, non-controlling share or interest in a company. In the video, this term is used to describe the limited role that a foreign national can have in a Thai company that owns land, emphasizing that such involvement does not equate to owning the property.

💡Legal provisions

Legal provisions are the specific laws and regulations that govern a particular legal issue. In this case, Thai legal provisions forbid foreigners from owning land. The video repeatedly refers to these provisions to underline that foreign ownership of real estate in Thailand is not permitted.

💡Circumvent

To circumvent means to find a way around a rule or law. The video mentions how some foreigners attempt to circumvent Thailand’s land ownership laws by creating companies that hold property on their behalf, but it warns that such strategies are not lawful and may lead to legal consequences.

💡Real estate

Real estate refers to land and property, including homes and businesses. In the video, the term is used to explain the strict legal restrictions in Thailand that prevent foreigners from owning real estate directly, despite potential involvement in companies holding such assets.

💡Law enforcement

Law enforcement in the video refers to the Thai authorities that monitor and regulate compliance with the country's legal system. The video highlights that Thai law enforcement actively investigates foreigners trying to bypass property ownership laws and may take action, such as dissolving companies and reclaiming the land.

💡Investment risk

Investment risk refers to the potential financial loss that one might face in certain situations. The video stresses that foreigners who try to own land in Thailand through companies could face severe risks, including the total loss of their investment if the Thai authorities dissolve the company or reclaim the land.

💡Shop house model

The shop house model is an example mentioned in the video where a married couple may operate a small business, and the foreign spouse might have some involvement through a legal setup involving a corporation. However, the video makes it clear that even in such cases, the foreigner does not legally own the property.

💡Thai law

Thai law refers to the legal framework in Thailand. The video focuses on the specific laws that restrict foreign land ownership and discusses the need for anyone engaging in real estate transactions in Thailand to thoroughly understand and comply with these laws to avoid legal issues.

Highlights

Foreign nationals are not legally allowed to own land in Thailand.

Ownership through a Thai company does not equate to foreign ownership of land.

Corporate entities in Thailand can own land, but this doesn't grant ownership to foreign nationals involved in the company.

Thai legal provisions explicitly forbid foreign nationals from owning real estate in Thailand.

There have been no legal changes permitting foreign ownership of land in Thailand.

Foreign nationals may hold a minority position in a company that owns land, but this does not translate to ownership of the property.

There are investigative measures in Thailand to ensure foreigners are not using companies to circumvent property ownership laws.

Companies found violating the law may be dissolved, and the land assets reclaimed by the authorities.

Legal structures allowing foreign nationals a say in a company's assets need to comply strictly with Thai law.

Any violation of Thai property laws can result in a complete loss of investment for foreign nationals.

Certain setups, like a shop house model where a foreigner has a minor role in a business, may provide some involvement, but it's not ownership.

Foreign nationals should be cautious and well-informed about Thai property laws before investing.

The Thai government's policies on foreign property ownership remain stringent and enforced.

Even if a company is legally set up, foreign nationals should not mistake this for any form of property ownership.

Understanding the implications of Thai law and its enforcement policies is crucial for any foreigner considering property investment in Thailand.

Transcripts

foreign

hello my name is Benjamin Hart I'm an

American attorney and the managing

director of Integrity legal here in

Bangkok Thailand as the title of this

video suggests we're discussing well

we're discussing Thai home ownership

type property specifically being owned

in a Thai company we've discussed this

at length in other videos I'll get into

the analysis on that in a minute reason

I thought of making this video I

recently read a comment on our Channel

quoting directly I'm sure you have

touched on an element of this in the

past but maybe not in full I've been

told by a few of my friends on the

market to purchase a house that a

foreigner living in Thailand can quote

unquote own a house on paper through

ownership of a company I personally

don't think any of this is possible

nonetheless there could be some

confusion going on making a good video

topic yeah I've been discussing this for

a long time long story short is no

that's not ownership yes there there are

corporate companies can own land just

like they can own land in any other

jurisdiction but there are Thai legal

provisions and we've done videos on this

before there are Thai legal Provisions

which forbid foreign Nationals from

owning land in Thailand real estate

period end of discussion every time it

comes up any anytime it's come up that

I've been here in discussion to change

that it's gone away it it's it does not

occur so again legally no foreigners

cannot own land yes a company can own

land yes a foreigner can be involved in

that company in a minority position

especially if the corporation is the

landowner that is not translate to

ownership that is simply what it is a

minority position within a corporation

that happens to have real estate as one

of its assets it doesn't it's not

ownership in any stretch

any way of the word moreover it goes

even further because there are

investigative apparatuses here in

Thailand that do look at whether or not

foreigners are using things like

companies to

essentially circumvent the law on

foreign on restriction of foreign

ownership a type property of Thai real

estate and in we've done the videos on

this in the past some of these places

get rated and things and when it happens

they dissolve the company and they take

the land back it's basically what they

do

that's a bad deal so again there are

structures that it may be possible to

set up wherein a foreigner has a say in

for example a company that may again

have real estate as an asset but you

need to be really really careful with

that you need to make sure the

formalities are met you need to keep a

good eye on Thai Law and tie law

enforcement policy with regard to that

because it can get you into some real

problems most notably if nothing else

just a total loss of one's investment so

again understand there may be limited

circumstances I oftentimes see it as

I've discussed it that sort of my shop

house model you know where you see a

married couple and they're running a

little business out of a shop house

maybe they have some kind of you know

legal setup or through a corporation

that provides some level of say for that

foreign National but never ever make the

mistake of believing that that's

anything akin to ownership because quite

honestly under both Thai Law and under

the policies associated with Thai Law

Enforcement that absolutely is not the

case