Buying Land.

[bobby2]

Have been with girlfriend 8 years works for government and just did the family friends party thing, but not signed marriage docs.

I would like to buy some land in Samui. I understand that this cannot be done unless setting up a Thia company which I hear mixed messages about.

The route I am thinking is buying the land for girlfriend and then leasing the land from her 30 years to build a house.

I understand that it is better to get the lease done and of course a prenuptial. I understand there is also something called a unifract ( not spelt correctly I am sure)?

 

Please don't send me all the messages about don't do it I made the mistake etc etc.

 

Many thanks

[BigC]

If you her married before you purchase the land and you and your wife have a dispute and want a devorce then your entitled to half of the asset of your devorce goes through

 

how does that work?

 

if you and your wife cannot sell or agree who takes over the asset then the court  can seize it and put it up for auction 

 

if your married and then cannot lease the land back to you or house 

 

you can but it has no benefits and is a conflict of interest 

 

if your not going to get married then leasing the land back to yourself is the best bet

 

make sure the lease is registered in the back of the land deed 

 

setting up a small holding company might have benefits in the future should you wish tk use the company to start a business

 

if you tell the tessabaan that you live in the house and not renting then they shall come round to check but the tax’s shall be allot lower than business take

 

if you want to make a business boss you’ll need to up your share capital to 2 million baht and show staff tax and income and balance sheets 

 

the price goes through the roof unless your company is making good money 

 

personally I would only spend what I could afford to lose. If anything goes wrong then you might have to accept some kind of lose but try to minimize it

 

if you want full control of your asset then the company is the best option 

 

if your wife has a problem and your leasing the place then I can imagine it would be hard to sell unless she got something out of it

 

also make all payment via bank Cheques so there is a record that all your money came from you. 

 

If people do try to cheat you then at least there is a record of you finding everything 

 

all the best 

[khunPer]

You asked almost same question almost two weeks ago in the Real Estate-forum...

I answered you there with this reply to your question...

Now you ask mere specific about the Thai company limited set-up.

 

If the only purpose with the company is being a holding company for a foreigner's land holding, then it's illegal; however done my a number of foreigners.

 

The old, and often used, model with nominee shareholders – often names supplied by a lawyer or an accountant – is illegal and under scrutiny, so today you need to find the 51% majority Thai shareholder(s) yourself, and the shareholder(s) need to proof that they have access to the fund needed to invest in "your" holding company.

 

You'll need a minimum of 1 million baht shareholder capital, preferably 2 million, and minimum three shareholders, where 51% of the shares shall be held by Thai nationals. Expect the shareholder capital to be fully paid in cash. Samui Land Office normally accept 49% foreign shareholders when registering land, but can demand only 39% foreign shareholders; i.e. 61% Thai shareholders.

 

You can gain control over the votes in "your" company by using preferred shares; however it's not the intention of the law to let a foreigners control a company by votes from preferred shares, but has to my knowledge there has not been any cases challenged in a Court, so far. You can either hold preferred shares yourself, where a number of the total amount of shares – for example 10% of the shares – has 10 votes, instead of 1 vote in ordinary shares; or another method, where a Thai minority shareholder has preferred shared, where the share for example is guaranteed a yearly dividend of 4% as compensation for no voting rights follows the shares; i.e. that will cost the company, i.e. "you", 4% annually of that shares' nominal value.

 

If "your" company has no other activity than holding a plot of land, expect that the company might come under scrutiny at some point. If you can place other activities with proven income and cash flow in the company – including employing Thai staff and pay Social Security – it should be fairly safe that the company also hold a land plot as investment, and leasing that land plot out; or part of that land, if the company also use a part of it for office and business activities. In that case, make sure to clearly separate any company business activities from "your" home (for future taxation).

 

You'll need to make a lease agreement between the company, and the person (you) renting the land – see my previous reply for details, including servitudes for construction(s) on the land – and pay a lease to the company. The company will have running costs in the area of minimum 30,000 baht for accounting and auditor for making an annual statement and tax report (Samui level of costs); expect also little company tax to be paid. If you have other activities in a company, the running costs will be higher, depending of the level of other activities. Company set-up costs, including registration fees, will often be around 40,000 baht.

 

You can find experienced property law firms at Samui that can do the company paperwork and registration for you; a specialized law firm will also be fully up-to-date in the best way of setting up a holding company, and inform you about the risks.

 

Wish you good luck with your future home at Koh Samui...????