Foreign "owned" Land Etc

[Doro22]

Hi!

I had been doing some research regarding a Co., Ltd owning house and land. According to the “new rules”, it’s impossible for a Co., Ltd to own land (especially when the majority owner is a foreigner).

What about a company formed four years ago? Land and property purchased for around 15million Thb in the company name. I am asking for a friend of mine, I am bit worried that he might get screwed eventually. He also told me that the company pays 10.000 thb a year in “taxes”. Sounds very little to me.

Would he be better of to change the contract to a lease contract or something like that. I will recommend him to see a real lawyer ( I got the feeling that he used a friend of a friend that knows a laywer...) or use Sunbelt to solve his problem (if there is any).

Anyway some comments would be grateful at this stage.

Best regards

[Sunbelt Asia]

Hi!

I had been doing some research regarding a Co., Ltd owning house and land. According to the “new rules”, it’s impossible for a Co., Ltd to own land (especially when the majority owner is a foreigner).

What about a company formed four years ago? Land and property purchased for around 15million Thb in the company name. I am asking for a friend of mine, I am bit worried that he might get screwed eventually. He also told me that the company pays 10.000 thb a year in “taxes”. Sounds very little to me.

Would he be better of to change the contract to a lease contract or something like that. I will recommend him to see a real lawyer ( I got the feeling that he used a friend of a friend that knows a laywer...) or use Sunbelt to solve his problem (if there is any).

Anyway some comments would be grateful at this stage.

Best regards

He can talk to us and we can explore how legit his company and go over options on what could happen.

www.sunbeltasiagroup.com

[laureen]

This link might prove useful to you:

http://www.globalpropertyguide.com/service...&category=2

You should get in touch with reliable professionals in Thailand which is recommended by Global Property Guide, a non-partisan residential property research website that you real estate folks can trust.

laureen

[quiksilva]

hmm any website that still recommends the following should be treated with caution.

Another option is to set up a private limited company with mixed Thai and foreign ownership, the foreign ownership being 49% or less. Companies are allowed to own land. The foreign national can control the company by using a legal power of attorney from the Thai shareholders, handing control to the foreign directors, or through assigning greater voting rights to the foreigner partner/s. This is an effective and time-tested route, most commonly taken by foreigners. The help of a lawyer is very important.

http://www.globalpropertyguide.com/country...id=as&cat=5

Edited March 7, 2007 by quiksilva

[thaigene2]

Forget the company route. You can bet those adivisng you this is ok will also have many, many farang-owned/controlled companies 'for sale' too. How convenient. int he real estate trade this is called double-ending, though in the West it usually means the same real esate agent getting a double commission - not a law company that also does real estate!

having said that, Sunbelt is ok I think..bearing in mind the above commercial incentive though!

[dee123]

how do you sleep at nights sunbelt asia?

[JimmyGreaves]

how do you sleep at nights sunbelt asia?

By doing a very good job for the expat community. You can trawl this forum and find many satisfied expats who have used SunBelt. So what are you refering to dee123?

[dsfbrit]

Nothing wrong with buying this property if its worth it. Being 'worth it' is a whole different discussion though.

The important thing is to de-couple it from the company structure when he buys it, before he is the owner. The costs of this can be split between your friend and the current company owners.

In other words buy via the lease route/ Usufruct etc...

Do not buy the company with the land etc... it is not worth the hassle/uncertainty and he will have all the problems with the additional business taxes if he does try to remove the property from the company in the next few years.

I have a property that is owned using the company method and I would not use it if I were buying a property now. Not worth the hassle.

Sunbelt would be the best people to advice your friend in this matter as they dont like the property method and they are considered to be honest.

good luck

Edited March 9, 2007 by dsfbrit

[Doro22]

Dear all,

Thanks for all the inputs. I am in contact with Sunbelt and will present them with all the docs, so we can take it from there.

Rgs

Nothing wrong with buying this property if its worth it. Being 'worth it' is a whole different discussion though.

The important thing is to de-couple it from the company structure when he buys it, before he is the owner. The costs of this can be split between your friend and the current company owners.

In other words buy via the lease route/ Usufruct etc...

Do not buy the company with the land etc... it is not worth the hassle/uncertainty and he will have all the problems with the additional business taxes if he does try to remove the property from the company in the next few years.

I have a property that is owned using the company method and I would not use it if I were buying a property now. Not worth the hassle.

Sunbelt would be the best people to advice your friend in this matter as they dont like the property method and they are considered to be honest.

good luck