I Thought Foreigners Can Own Houses in Thai Companies?
Summary
TLDRIn 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
🏡 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.
Mindmap
Keywords
💡Foreign ownership
💡Thai company
💡Minority position
💡Legal provisions
💡Circumvent
💡Real estate
💡Law enforcement
💡Investment risk
💡Shop house model
💡Thai law
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
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