Purchase of condo by company

[drvin]

Can a Thai company purchase a condo? I know it can buy land.  Also can the company finance the condo the same as a Thai person?

[ezzra]

A thai company can buy everything but a foreigner you can buy a condo on your name

providing the building quota allows it...

[dotpoom]

"Yes".

[inThailand]

Yes. On condo purchase.

 

Don't think so. Haven't heard of a falang controlled Thai company getting a mortgage. 

[saengd]

Yes, a Thai company can buy a condominium.

 

Yes, a company can obtain financing for a company owned condominium.

 

BUT

 

A Thai company cannot be more than 49% owned by a foreigner, and,

 

If the condominium is the sole asset of the company it will be almost impossible to obtain financing for it. If however the Thai company is a going concern that can show books, cash flow and tax returns for the past few years, financing shouldn't be an issue. Company loans are typically scrutinized more closely than personal loans because the risk is higher and the recovery process in the event of default is more complex and lengthy.

 

[CharlieH]

real estate forum - MOVED

[khunPer]

On 10/27/2019 at 3:40 AM, drvin said:

Can a Thai company purchase a condo?

Yes, but if you are considering using a company to buy a condo you're going to live in, you should rather consider to buy it in your own name.

 

Foreigners can fully, or 100 percent, own a condo if it's with the 49 percent limit of foreign ownership in the total project. Foreigners cannot own more than 49 percent of a company; however special rules US citizens under amity treaty.

[saengd]

Treaty of Amity probably doesn't help in this case, as an American he could own 51% of the shares in a Thai company but all the other restrictions would still apply, including foreign quota. I agree the best approach is to own in own name but I suspect there's a finance angle to the OP's post.

[Liverpoolman]

I purchased 2 condos here a few years back, with my company name. And I had a mortgage through KTB bank. Everything was fine, until I had a dispute of VAT claim that was not paid back to my company from the revenue department. As I was a foreigner the revenue department tried everything they could to look through my business dealings to find something to put their finger on, They found nothing exempt 2 condos my company owned. They said if a company buys this kind of property it is for incomes purpose. I was living in one and the other one I tried to sell as this was my original one that had become too small. I was not renting out. However by the law they could assume I was renting one out, and that I should pay rent to my company from the one I lived in. In the end they found prices of similar condos for rent on the internet and said I should have had income to my company for bought condos. Again with law in hand they said I should have had 100k income a month from bought condos to my company, they assumed 100% occupancy. They then calculated 25% tax from this income, going back 3 years. It was this period my company owned the condo's.

My VAT claim was 200K that they hesitated to pay out, I ended up paying them 900K in extra tax.

Needless to say, I sold the condos as quick as I could at a discounted price, so my company would not have that burden.

Do not buy any property you live in with your company, period !!!! Then the Thai's have you by the nuts if they feel like it.

[Delight]

On 10/30/2019 at 3:41 PM, Liverpoolman said:

 

Do not buy any property you live in with your company, period !!!! Then the Thai's have you by the nuts if they feel like it.

 Your circumstances seem unusual.

Why have 2 properties in the same company?

If I was to buy a property knowing that  I intended to bequeath it to my willing offspring -then for certain it would have to be a house and in a company. It seems to me that houses attract lower maintenance fees. In some cases no fees.

Given this do you still stick to your statement?