Can Foreigners Buy Land in Thailand? Honest Advice

Summary

In 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.