Buying a house / condo through your own company?

[dagling]

Is this still possible and is it recommended? Have heard over the years that this is discouraged,
you risk losing all of your investments and you can, from what I have heard, risk being deported from Thailand for several years?
 

If this is still possible, which law firm is recommended and what are the costs of setting up such a firm?
I live in Chonburi Province.
 

What is the truth about this?

[scubascuba3]

Better than putting a house in a girlfriends or wife's name but apart from that I'd avoid.

 

Condo should be in foreign quota

[LarrySR]

It's a gray area.

I believe it is illegal for a company to be formed with the sole purpose of owning a property. If the company is a genuine working entity, employing the minimum number of Thai workers, paying taxes etc. then a house can be purchased, but then again the company has to also have a majority Thai ownership. 

Also be aware, Thai lawyers will say anything to get your money. And if goes belly up, you can spend years and years in court paying them even more to sort it out. 

Edited January 8, 2022 by LarrySR

[yeahbutif]

The cost is about 30.000 b to set up. And if buy a house with it the house can be sold with the company name .can be useful to sell to Another falang..as it would be a case just changing the main director. Who has 49%. The other 51%is split between two Thai people.as a falang can only hold a 49%share.and has control of the company.as he has the biggest share...the problem can be if the two other people know each other and one sells their shares to the other he or she will own 51% then they have control of your company...they could sell then you are bugged.... Also to Keep with in the law your company has to show its a working company so the person who sets up the company for you Will charge 15.000b every year to do this......if you sell house to a Thai you would  have to try sell company name or keep it going with yearly fees.or close company down ..that cost money as well...could be near the same cost to close it as open it ...

Edited January 8, 2022 by yeahbutif

[Delight]

On 1/8/2022 at 2:06 PM, yeahbutif said:

The cost is about 30.000 b to set up. And if buy a house with it the house can be sold with the company name .can be useful to sell to Another falang..as it would be a case just changing the main director. Who has 49%. The other 51%is split between two Thai people.as a falang can only hold a 49%share.and has control of the company.as he has the biggest share...the problem can be if the two other people know each other and one sells their shares to the other he or she will own 51% then they have control of your company...they could sell then you are bugged.... Also to Keep with in the law your company has to show its a working company so the person who sets up the company for you Will charge 15.000b every year to do this......if you sell house to a Thai you would  have to try sell company name or keep it going with yearly fees.or close company down ..that cost money as well...could be near the same cost to close it as open it ...

Just to correct the foregoing statement 

 

51% then they have control of your company

 

When a foreigner sets up a company for the sole purpose of acquiring a property then :

a) The foreigner does NOT own the company

b) The foreigner does NOT own the property.

 

If the company is set up correctly for this purpose then the voting rights of the 51% are signed over to the foreigner.

The foreigner then has 100% of the votes. This gives the foreigner 100% control.

The government  does not like the 'company 'route -however -at the same time the same government wants foreigners to spend lots of foreigner money.

The secondary  benefit of the company route relates to inheritance.

I think that nowadays buying a house via the company route is not possible -the land office will not allow it.

Buying a condo is still ok-I think- because the individual foreigner does not own  a plot of land.

 

An attempt to stop the practice was put to parliament in 2006/7 . The proposal was that if a foreigner has 100% of the voting rights-then the company must be a foreign company -not a Thai company.

The proposal failed

Edited January 10, 2022 by Delight

[timendres]

Setting up a company for the sole purpose of purchasing a house just to live in is walking a line that you will likely regret. Many businesses purchase property as part of their legitimate business - restaurant purchases townhouse for the restaurant itself, rental company purchases properties to rent, developer purchases property to develop and resell. If you purchased a townhouse to run a business out of the first floor, and the business rented you the third floor to live in, that would likely have no issues. Frankly, I would never do it for the sole purpose of a living arrangement. Too many pitfalls and little to gain. Furthermore, there are ongoing costs for running a business that will far exceed any perceived "loss" from renting a decent property, which is what I do. A nice three story townhouse in a good neighborhood, and only 30k baht per month. Too cheap to consider purchasing anything. And I have the luxury of moving any time I wish.

[smutcakes]

I believe if the company is set up with the pure intent of circumnavigating the foreign ownership laws then you have an issue.

 

The chances of anyone ever enquring/asking or mass enforcement are very very remote though. Dont think anyone asking you about your ownership structure is ever likely to happen.

 

If you want a condo then obviously buy in your own name in the foreign quota, that is pretty damn secure by any country standards.