Possible change in property/company law in 2020. Is this true??

[Tapster]

This was posted on the Phuket forum in the last week. I think it deserves a wider readership.

 

(Please note, I am only the messenger. The post doesn't relate to me at all.)

 

Is there any truth in it?

 

"A friend of mine (Aussie) was in the land office the other day as they want to sell their house of the last 15 years, they went through the generally accepted route of a Company to own the land and house with them as 49% shareholders and directors.

Please lets not get into the old arguments of whether that is the best way of doing it etc. that is not what this is about.

They were told that as from next year NO foreigners would be allowed to be Directors of Companies that own land, This has been confirmed since by my lawyer.

Has anyone else heard this? If it is true then it could mean a lot of issues for home owners."

 

 

Edited October 14, 2019 by Tapster

[inThailand]

Selling property via selling the company does not require the involvement of the Land Office.

So is this a bad rumor or a troll?

[macahoom]

7 minutes ago, inThailand said:

Selling property via selling the company does not require the involvement of the Land Office.

So is this a bad rumor or a troll?

 

Thanks, but your reply does not address the question being asked, here:

 

<<They were told that as from next year NO foreigners would be allowed to be Directors of Companies that own land, This has been confirmed since by my lawyer.
Has anyone else heard this? If it is true then it could mean a lot of issues for home owners.>>

[inThailand]

You and your friend clearly do not understand the major benefit of having a company, to avoid Land Dept involvement and its fees.

 

The Land Dept doesn't like companies holding property because they are cut off getting revenue when its sold. Hence, not surprising that they would talk down companies.

 

This is nothing more than propaganda.

[macahoom]

1 minute ago, inThailand said:

You and your friend clearly do not understand the major benefit of having a company, to avoid Land Dept involvement and its fees.

 

The Land Dept doesn't like companies holding property because they are cut off getting revenue when its sold. Hence, not surprising that they would talk down companies.

 

This is nothing more than propaganda.

 

The OP is not asking whether or not the Land Department is involved in the sale of a company owned property. This is irrelevant.

 

He is asking if it is true that from next year NO foreigners will be allowed to be directors of companies that own land. This is a very specific question.

 

Do you understand?

[inThailand]

4 minutes ago, macahoom said:

 

The OP is not asking whether or not the Land Department is involved in the sale of a company owned property. This is irrelevant.

 

He is asking if it is true that from next year NO foreigners will be allowed to be directors of companies that own land. This is a very specific question.

 

Do you understand?

Its pure fake news.

 

So if Coca cola wants to build a new factory here, they can't buy and control the land? Are you nuts! Use some common sense.

[Skallywag]

10 minutes ago, macahoom said:

He is asking if it is true that from next year NO foreigners will be allowed to be directors of companies that own land.

No foreigner, company director or not,  is allowed to "own" land in Thailand.  Only 30 year leases AFAIK.

Being the "director of a company" that is 51% Thai, can any non-Thai be considered an "owner"?  

Do not know, am asking 

 

[macahoom]

23 minutes ago, inThailand said:

Its pure fake news.

 

So if Coca cola wants to build a new factory here, they can't buy and control the land? Are you nuts! Use some common sense.

So at least this time you have come close to actually answering the question by giving your opinion that it is fake news.

 

Maybe someone else will be able to provide the definitive answer.

 

Edited October 16, 2019 by macahoom

[david555]

35 minutes ago, inThailand said:

Its pure fake news.

 

So if Coca cola wants to build a new factory here, they can't buy and control the land? Are you nuts! Use some common sense.

Do you have a company ..?

[tomazbodner]

49 minutes ago, inThailand said:

Its pure fake news.

 

So if Coca cola wants to build a new factory here, they can't buy and control the land? Are you nuts! Use some common sense.

Common sense is not very common in many parts of the World, and is surely not in Thailand.

 

In response to your Coca Cola example - to be a director of a publicly listed company in Thailand, the foreigner requires permanent residence. So it's all fine about Coca Cola buying and controlling a plot of land, but unless you have PR, you can't be director of it.

 

Now the question is, would this kind of law spread to some non-listed companies? It isn't terribly likely, but you never know. 2 years ago people would have said "So if I want to go for holiday to another province over a weekend, I have to report to immigration when I return back home? Are you nuts! Use some common sense."

 

Yet...

[saengd]

A company that is formed by a foreigner, with the express purpose or intent of owning a house/land, is not allowed by the Land Office. Why does the Land Office need to be involved you ask since this is a company related issue. Because the LO must do the transfer into the company name in the first place hence I suspect any checks need to be done at that point. There was an active crack down in the North on such things, about seven or eight years ago and foreigners found to own companies/property in that manner were given six months to make separate ownership arrangements.

[david555]

9 minutes ago, tomazbodner said:

Common sense is not very common in many parts of the World, and is surely not in Thailand.

 

In response to your Coca Cola example - to be a director of a publicly listed company in Thailand, the foreigner requires permanent residence. So it's all fine about Coca Cola buying and controlling a plot of land, but unless you have PR, you can't be director of it.

 

Now the question is, would this kind of law spread to some non-listed companies? It isn't terribly likely, but you never know. 2 years ago people would have said "So if I want to go for holiday to another province over a weekend, I have to report to immigration when I return back home? Are you nuts! Use some common sense."

 

Yet...

Neither we would have believed that we have to keep half of the 800k on bank for half year untouched and even 5 months full , neither we would believed that Metv visa holder would be denied entry at random at airports....., or that visa exempt would be limited to a certain number etc.... etc... 

 

No this so farang friendly Thailand would never do ….was all fake news  & scaremongering ….????

Edited October 16, 2019 by david555

[yankee99]

Get a new lawyer or tell him to do what every other lawyer does. Set up the company all thai add the house then transfer directorship and shares to the foreigners name. 

 

bottom line you need a better lawyer 

[david555]

10 minutes ago, yankee99 said:

Get a new lawyer or tell him to do what every other lawyer does. Set up the company all thai add the house then transfer directorship and shares to the foreigners name. 

 

bottom line you need a better lawyer 

https://www.interactivethailand.com/corporate/foreign-business-ownership-in-thailand/

 

Edited October 16, 2019 by david555

[baansgr]

1 hour ago, macahoom said:

 

The OP is not asking whether or not the Land Department is involved in the sale of a company owned property. This is irrelevant.

 

He is asking if it is true that from next year NO foreigners will be allowed to be directors of companies that own land. This is a very specific question.

 

Do you understand?

It is irrelevant for validity of the statement that"Aussie friend" and the OP made. 

Why was the Aussie in the land office, he wasn't actually selling and any questions would no doubt be directed to the lawyer that set up the company.

It seems like a scaremongering post by both parties and if the original question wants to be asked can be but in a factaul matter feather than a friend of friend unclarified post.

[david555]

7 minutes ago, baansgr said:

It is irrelevant for validity of the statement that"Aussie friend" and the OP made. 

Why was the Aussie in the land office, he wasn't actually selling and any questions would no doubt be directed to the lawyer that set up the company.

It seems like a scaremongering post by both parties and if the original question wants to be asked can be but in a factaul matter feather than a friend of friend unclarified post.

Many possibility's why he was there …. suppose a moment he would take the property out of the company and sell it example to his Thai wife /GF. (if any ) or any other Thai , he need the information as then it becomes a sale of house & and land and hence a land office case ...Maybe he did not trusted the rumors / news …. maybe the information made him become pre active on the change of company formation said for next year and acted in accordance now still possible ….. who knows ….

( I personally would also act before the axe fall's....) 

Edited October 16, 2019 by david555

[Pattaya46]

52 minutes ago, tomazbodner said:

// 2 years ago people would have said "So if I want to go for holiday to another province over a weekend, I have to report to immigration when I return back home? Are you nuts! Use some common sense."

Bad example, as I would still say it today. 

(Ok, I heard some immigration offices may ask for that, but it's not a general rule)

 

And to reply to the OP, looks like fake news. I just don't see how they could control that. Exchange of data among different Thai services is still not great today.

Edited October 16, 2019 by Pattaya46

[BestB]

This was on the cards for long time. It was a loophole which allowed foreigners to own houses. 
 

No idea if true or not but makes sense if it was indeed true .

 

though I believe would only apply to companies that exist for sole purpose of house or land ownership . 
 

Trading companies would be business as usual.

 

i also have a feeling once it becomes public knowledge , we may see housing prices crash, especially around towns like Pattaya where a lot of houses are owned by foreigners via a company 

[Tapster]

Trudging though the obligatory TV nastiness, to the sunlit uplands of a few sensible views, I get the feeling that nobody has heard of this.

 

So maybe it's not a thing, or was lost in translation by the lawyer, etc., etc.

 

We'll see if there are more comments but for now I'm returning to DEFCON 3, my usual state of readiness in Thailand.

 

Thanks all!   ????

 

Edit: this topic is in the TV newsletter this morning so expect more comments.

Edited October 16, 2019 by Tapster

[david555]

8 minutes ago, Pattaya46 said:

Bad example, as I would still say it today. 

(Ok, I heard some immigration offices may ask for that, but it's not a general rule)

 

And to reply to the OP, looks like fake news. I just don't see how they could control that. Exchange of data among different Thai services is still not great today.

So just next year we can now for sure it was fake news or …. real news …. but by then it would surprise maybe many they can not "repair or handle" the case anymore …. I am curious ...but not in the "danger zone" ...

[david555]

5 minutes ago, BestB said:

This was on the cards for long time. It was a loophole which allowed foreigners to own houses. 
 

No idea if true or not but makes sense if it was indeed true .

 

though I believe would only apply to companies that exist for sole purpose of house or land ownership . 
 

Trading companies would be business as usual.

 

i also have a feeling once it becomes public knowledge , we may see housing prices crash, especially around towns like Pattaya where a lot of houses are owned by foreigners via a company 

Not crash the prices …… as the seller shall try anyway trying to get the max. …… but a RISE in sales offers for houses would be the sign to worry ….

 

But I would not be so sure they should "grandfather" the existing even "trading" ones ….. as a cash-cow for fines is in the draw for them , as example a settling fine fee at % of value property  for breaking the law ….

Edited October 16, 2019 by david555

[BestB]

6 minutes ago, david555 said:

Not crash the prices …… as the seller shall try anyway trying to get the max. …… but a RISE in sales offers for houses would be the sign to worry ….

 

But I would not be so sure they should "grandfather" the existing even "trading" ones ….. as a cash-cow for fines is in the draw for them , as example a settling fine fee at % of value property  for breaking the law ….

Why have a fine when they can take the whole thing as it’s illegal.

 

prices will crash because all foreigners who own through a company will not be able to own, unless sign directorship to a lawyer or accountant or gf, in which case they no longer own anything but minority shares.

 

all the ones who own will be forced to sell and no foreigners will be buying 

[BestB]

23 minutes ago, Pattaya46 said:

Bad example, as I would still say it today. 

(Ok, I heard some immigration offices may ask for that, but it's not a general rule)

 

And to reply to the OP, looks like fake news. I just don't see how they could control that. Exchange of data among different Thai services is still not great today.

It is very easy, shelve companies with no trading shows what company owes and who is the director. 
 

first sales can not take place because will be unable to change director , second audit shelve companies with foreign directors at the end of financial year and you have a full list of which company and who is the director .

 

super easy

[Captain 776]

If.........IF being the operative word...........probably not true.

 

1.) Thailand economy can not stand another hit to expats and tourism.
Many other reasons, it was true it would have been published far n wide by now, would have to be going forward, it would cause chaos to go retroactive, it would stop 50% of homebuilding, and many more

[david555]

8 minutes ago, BestB said:

Why have a fine when they can take the whole thing as it’s illegal.

 

prices will crash because all foreigners who own through a company will not be able to own, unless sign directorship to a lawyer or accountant or gf, in which case they no longer own anything but minority shares.

 

all the ones who own will be forced to sell and no foreigners will be buying 

In your reply you gave the answers already why a fine and not taking the property 

 

As it is more simple to let keep the "culprit" his house …. he shall cough up that nice fines amount anyway for not loosing all ….. and the Government has no hassle to sit with a whole bunch of depreciated houses to sell …..???? 

 

So it becomes a "naughty farang tax".....extra cash cow for the government in money need for the wish list of things to buy or do ...

Edited October 16, 2019 by david555

[khunPer]

I think that if this is true, it would already had hit the major news, as someone needs to suggest a change in law to make it possible. Seems like nothing but a bad rumor...????

[baansgr]

1 hour ago, Tapster said:

Trudging though the obligatory TV nastiness, to the sunlit uplands of a few sensible views, I get the feeling that nobody has heard of this.

 

So maybe it's not a thing, or was lost in translation by the lawyer, etc., etc.

 

We'll see if there are more comments but for now I'm returning to DEFCON 3, my usual state of readiness in Thailand.

 

Thanks all!   ????

 

Edit: this topic is in the TV newsletter this morning so expect more comments.

Anyone buying amy property in Thailand except a foreign quota condo is in.my eyes a fool, however, its not TV nastiness.....I first heard of this in October 2004...yes 15 years ago and its reared its head many times...saber rattling by the Thais that is all, if in fact the story is even true

[baansgr]

1 hour ago, BestB said:

It is very easy, shelve companies with no trading shows what company owes and who is the director. 
 

first sales can not take place because will be unable to change director , second audit shelve companies with foreign directors at the end of financial year and you have a full list of which company and who is the director .

 

super easy

And the Mrs has a noodle stall in the front garden, or sewing machine on the terrace....hey presto, its a valid working company with minimal turnover

[baansgr]

4 hours ago, macahoom said:

 

The OP is not asking whether or not the Land Department is involved in the sale of a company owned property. This is irrelevant.

 

He is asking if it is true that from next year NO foreigners will be allowed to be directors of companies that own land. This is a very specific question.

 

Do you understand?

Specific answer to specific question...no

[david555]

3 minutes ago, baansgr said:

And the Mrs has a noodle stall in the front garden, or sewing machine on the terrace....hey presto, its a valid working company with minimal turnover

But that does not change anything on the main topic ….as it points out that foreigner can no more be in the director's seat (if true rumor...)….. so the Thai misses can ….. so behave good to her ...or else ….????