Purchasing any kind of private estate in Thailand is quite troublesome for foreign residents who cannot own property directly. The control over land can be established with some extensive legal advice and support. Certain legitimate methods of securing property have been successfully utilized by foreign businessmen over the course of last years.
Ownership of lands
Foreign nationals may employ one of two ways to secure land:
Leasehold for an extensive period of time
This way is the most simplistic form of land ownership that can be used by a foreigner in Thailand. Contracts defining the nature of a leasehold will give you all necessary rights to conduct most business operations regarding the usage of the land in question. In general, a standard leasehold contract is signed for 30 years. This agreement can be prolonged if necessary to a total of 90 years. The prolongation is not enforceable which should be noted as well as the fact that Thai law is on the side of the lessor.
Ownership through an LLC
Another method is to open a limited liability company that will be a standalone juridical entity eligible to purchase, own, and develop lands just as any local. With some expertise from our side and legal aid provided by a professional lawyer, you will be able to purchase any contestable land in the company name.
An important factor is that you cannot own more than 49% of the company. The majority of the stakes should be controlled by local residents who will transfer their rights to control shares to you. The property will belong to the company. You will act as a general manager meaning that you will effectively have full authority in terms of managing the land since you control the majority of votes in the LLC.
Condominium Ownership
The 19th section of the Thailand Condominium Act has several requirements for foreign residents. These requirements must be met to allow a foreign resident to purchase the property. There are certain limitations that are applied to the process of purchasing. Only 49% of overall unit space can be purchased as a freehold by a foreign resident. It is imperative to send the guarantee letter from the condominium to the Land Department. This letter specifies the exact share purchased by a foreigner.
You will need to visit any Thai bank to receive a FETF (foreign exchange transaction form) in which the amount equal to 100% of the funds must be specified. This document will serve as a proof of purchase of a certain share in a condominium. A FETF also allows you to avoid complications with the law and possible appliance of the remittance tax while selling the share in the condominium later on.
Attention: a FETF should be used for all transactions with the amount more than $20 000. When filling out the form, you need to specify correctly the exact purpose of the payment as well all necessary information regarding the condominium (name and unit number).
If you need any form of assistance regarding purchasing any kind of property in Thailand, contact us and receive all important information.
Attention: you will definitely require some legal assistance from an experienced lawyer. We recommend you to hire a good specialist.
