I believe it is possible for Americans to buy a house in Thailand by setting up a company.

Has anyone here actually done it? I am hoping to get some feedback on how the process went, what it cost, and if there are any pitfalls.

I will obviously have to go through a lawyer and any recommendations there will also be helpful. Thanks.

https://www.siam-legal.com/realestate/thailand-buying-house.php

 

 

www.youtube.com/channel/UCvgdD1yswBd9AV1AkdhDoag   

 

Hi,dice is better and totally channot,better den one hause , best regards Ele

Is company ownership of land (and house or land with house seperated) possible ?? Yes it is 

 

Is this kind of nominee ownership legal ?? No it isnt. 

 

Does the business which owns the property actually do any work in Thailand, which justifies it owning the asset for the purpose of that work ?? Very rarely 

 

Does this expose the home owner to risk of losing it ?? It does exist.. Not only the fact it is an illegal nominee structure, land and homes get stolen via this route via corrupt lawyers (I was involved in a case just 2 months ago where someone has lost control of a company he believed was his via minority shares, and was looking at losing 2 houses and a decent land plot). Also see the many well published cases like Colin Vards. 

 

Does this have a cost, yes theres annual accounts, annual zero returns, shareholder costs, etc etc etc ?? Yes it does.. 

 

Basically, given the large quantity of rental stock, changing market, and ongoing costs involved to do this.. Combined with the small risk or future clampdowns, It doesnt really add up IMO. 

Leasehold is safer IMHO, though the land is never yours...but much safer and you are at peace for 30 years (with an extension possible)....and perhaps one day a law may pass allowing a farang to puchase a reasonable amount of land for a individual house.

Also of note as you mentioned 'americans' a 100% american owned Amity company cannot hold land.. 

 

So yes you can do this, as long as you understand you can only be a minority shareholder, IE you can give away 51% or more of a company you pay for, which holds land you pay for.. 

Many Chinese are being recommended to "buy" via the "form a company" route by real estate agencies and are being provided with simple shell companies for large fees.

 

These are of course potential bombs waiting to explode.

2 hours ago, LivinLOS said:

Also of note as you mentioned 'americans' a 100% american owned Amity company cannot hold land.. 

 

So yes you can do this, as long as you understand you can only be a minority shareholder, IE you can give away 51% or more of a company you pay for, which holds land you pay for.. 

According to the Siam Legal site (link above) a minimum of 51% of the company must be held by Americans. No maximum was specified.

Maybe you are talking about a non-Amity Treaty company?

Just marry a Thai girl, buy a house, and put everything in her name.

That always works out for the best.......

"I will obviously have to go through a lawyer and any recommendations there will also be helpful. Thanks."

    Not so, its  a simple process, many Foreigners have houses in Thailand. I have had 3 plus a condo.

  Go to any Real Estate agent, preferably in a condo project. He will put you in touch with an office (or do himself) usually in the same block that can set up a company for you....

  Around 25,000 Bt. all told, (depends on some variations). You will be named as the Co. Director with 51% ...Thai names for the remaining 49% (3 names).

Just be aware that there is a chance - opinions differ - that an investigation will find that you only set up the company to purchase the property. Or a crackdown will happen. Or ...

If so, the land and buildings can be seized.

Chances of this happening ... In Shallah

5 minutes ago, canthai55 said:

Just be aware that there is a chance - opinions differ - that an investigation will find that you only set up the company to purchase the property. Or a crackdown will happen. Or ...

If so, the land and buildings can be seized.

Chances of this happening ... In Shallah

That crackdown will happen when there is a crackdown on all the Visa agencies.

Never!

 

Never say never- it is completely illegal to set up a company for the sole reason of buying property. There is also a chance of losing one's right to stay in Thailand if the company was set up with fake nominees. 

 

A much safer route is the house rental market with long lease or a Condo which can be legally purchased with all the legal documentation.

 

It's always up to you- some people do it and don't care.

Just my personal opinion, but any farang that thinks it is a good idea to own property of any sort in LOS is just asking for problems, and there is no excuse for doing so, given the hundreds of other farangs that have gone before and had it all go very wrong.

Even more unnecessary because it's so cheap to rent or lease here, though leasing also leaves one vulnerable when a rock crushing plant or an all night karaoke opens next door. Even Thais have problems, eg the family that have had a 10 year battle over illegal parking in their drive.

Best, and IMO only plan is being able to move without a problem doing so ( other than perhaps not getting the deposit back ).

 

BTW, I hope they never allow foreigners to own land. In my country families are living in their cars because foreign profligacy in the housing market has raised prices above the ability of citizens to buy.

1 hour ago, bkk6060 said:

That crackdown will happen when there is a crackdown on all the Visa agencies.

Never!

 

That crackdown has been in action in Chiang Mai Province for at least the past four years and the LO has been actively giving people six months to change their ownership structure otherwise the land revert to the previous owner.

2 hours ago, bkk6060 said:

Never!

There are none so blind as those who will not see ...

Example - see post above

17 hours ago, Wandr said:

According to the Siam Legal site (link above) a minimum of 51% of the company must be held by Americans. No maximum was specified.

Maybe you are talking about a non-Amity Treaty company?

Which is exactly the reason why an Amity Treaty cannot own land in Thailand.  Only a non-Amity Treaty company (which doesn't have the 51% American ownership requirement) could possibly be able to own land and then only if at least 51% of the said company was owned by Thai people. 

Nonetheless, still a very bad idea for the reasons outlined in earlier posts.  Best advice is to rent.  If you really want to own some real estate then you are basically restricted to owning a freehold condo unit which is legal under the Condominium Act (because at least 51% of the condo is owned by Thais).  The only exception I can think of is if you really had a (non-American Amity Treaty) company that really did business in Thailand (i.e., not a paper front company set-up solely to buy real estate) then it's possible the company could legally own property.

Just now, canthai55 said:

There are none so blind as those who will not see ...

Example - see post above

Thanks, exactly correct which is why I am not so blind as to ever buy any land or property here.

I disagree, the best option is to buy and to take out an usufruct on the property but not with your spouse.

I believe it is possible for Americans to buy a house in Thailand by setting up a company.
Has anyone here actually done it? I am hoping to get some feedback on how the process went, what it cost, and if there are any pitfalls.
I will obviously have to go through a lawyer and any recommendations there will also be helpful. Thanks.

My (American) wife and I bought a small bungalow outside of Chiang Mai, signing a 30 year contract. Frankly, the lease may outlive us. We did have a lawyer draw up the contract which includes first right of renewal. We take no small measure of comfort in knowing we're on a pretty solid legal footing.

Sent from my Mi A1 using Tapatalk

1 hour ago, ChristianBlessing said:

the lease

You did not buy the land. Possible to buy the house, and lease the land.

Make sure the house is equipped with a gun rack.

21 hours ago, Wandr said:

According to the Siam Legal site (link above) a minimum of 51% of the company must be held by Americans. No maximum was specified.

Maybe you are talking about a non-Amity Treaty company?

Yes what I am saying is.. The amity company cannot own land.. So in this case is not useful.. 

 

A non Amity company, which can own land, you must give away more than half of it to other shareholders.. 

3 hours ago, ChristianBlessing said:

My (American) wife and I bought a small bungalow outside of Chiang Mai, signing a 30 year contract. Frankly, the lease may outlive us. We did have a lawyer draw up the contract which includes first right of renewal. We take no small measure of comfort in knowing we're on a pretty solid legal footing.

Sent from my Mi A1 using Tapatalk
 

Glad your happy.. But that 'first right of renewal' clause is pretty much non enforceable. 

 

Its a contractual right not a 'real right' under Thai law. Enforcing future contract obligations is not easy.. If the landowner changes the new land owner is not bound to that contract either. 

 

But as long as your happy with the 30 and pricing its a solid option. 

14 hours ago, bkk6060 said:

That crackdown will happen when there is a crackdown on all the Visa agencies.

Never!

 

has nothing to do with visa agency's,   Also, it has happened in the past that the govt has cracks down on Nominee ownership. i think last time was about 5-6 years ago. 

7 hours ago, ericthai said:

has nothing to do with visa agency's,   Also, it has happened in the past that the govt has cracks down on Nominee ownership. i think last time was about 5-6 years ago. 

Citation please

 

 Living here for over 16 years the ONLY time there has ever been a "crackdown" on nominee ownership of private property was one case in Phuket , where the governor had the Land Office void the Chanote for a company owned piece of land by the local chapter of the Hells Angeles motorcycle club

 

Hardly a crack down 

2 minutes ago, Langsuan Man said:

Citation please

 

 Living here for over 16 years the ONLY time there has ever been a "crackdown" on nominee ownership of private property was one case in Phuket , where the governor had the Land Office void the Chanote for a company owned piece of land by the local chapter of the Hells Angeles motorcycle club

 

Hardly a crack down 

There's only been a single crackdown that you know of, these things are not exactly broadcast in the media!

 

I personally know of three farang friends who have been forced to change their house ownership structures in Hang Dong (Chiang Mai) in the past five years.

One thing I have learned about Thailand is that the Thai Media love crackdowns 

 

and give them lot's of coverage 

1 hour ago, simoh1490 said:

There's only been a single crackdown that you know of, these things are not exactly broadcast in the media!

 

I personally know of three farang friends who have been forced to change their house ownership structures in Hang Dong (Chiang Mai) in the past five years.

I would have thought that would certainly have made the news as many foreigners have used the "company" option despite the potential problems.  Do you have any links/references to this?

19 minutes ago, Thailand said:

I would have thought that would certainly have made the news as many foreigners have used the "company" option despite the potential problems.  Do you have any links/references to this?

The three people in question are farangs that I've come to know over the years, I did however start a thread on the subject over a year ago where I mentioned the fact in the context of the thread which was about proxy ownership, I believe under the chiang mai poster name. But I'm not sure why you think the Land Office doing its job is a newsworthy item, unless you mean Thai visa forum as a form of news, in which case it did. Perhaps the problem with this aspect is use of the word crackdown, it might be more accurate to suggest that the law is being enforced more rigorously.