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.