Non-B Visa, work permit & property purchase

[Phxdiver]

Greetings,

Sorry if this post is in the wrong spot.

 

I'm heading to Thailand in the fall to compete my scuba instructor qualification.  The shop I'm diving with has offered me a job after I'm qualified.  They'd handle all visa related paperwork (on one of their foreign quotas).

 

Alternatively, I understand I can find a reputable accounting firm and have them help me create my own business (freelance instruction) which would entail taxes and social security payments (I'm sure I'm over-simplifying).

 

My question is regarding the later option.  Would this route also allow me to purchase property through my newly formed "company", or is the work company formed for scuba instruction a different entity than a company formed for property purchase?

 

Just exploring options at this point as my plan will be to stay long term in Thailand.  Respectfully, I'm not looking for a "buy -vs- rent" debate.

 

Thanks in advance!!!

[FritsSikkink]

You would need to employ 4 Thai people in your company to get a work permit for yourself. Unless you are from the USA, you can only own 49% of the company, the remaining 51% must be in a Thai name.

[MarleyMarl]

Just make sure if you buy through your company, you have control over who owns the other half of the company (if not US amnesty treaty company), you could also buy under your company then have the company lease it back to you for 30 years, but for it to be official you have to pay some tax on it and it goes onto the title deed. It's worth taking as many extra precautions as possible. If you are new to Thailand also, I would just rent for the first few years.

Edited April 24, 2023 by MarleyMarl

[khunpeer]

5 hours ago, FritsSikkink said:

You would need to employ 4 Thai people in your company to get a work permit for yourself. Unless you are from the USA, you can only own 49% of the company, the remaining 51% must be in a Thai name.

what kind of arrangement do Americans have?

[Misty]

4 hours ago, khunpeer said:

what kind of arrangement do Americans have?

The US-Thai Amity Treaty was signed in 1966 to allow US and Thai citizens to go to each other's countries for the purpose of investment and business.  Today US citizens can apply under the treaty to own Thai businesses 100%.  An Amity treaty company can't own landed property, however.

[FritsSikkink]

20 hours ago, khunpeer said:

what kind of arrangement do Americans have?

Can own 100%

[BritTim]

Setting up and running your own company in Thailand is not for the faint hearted. Assuming you are not an American, you need expert legal advice on how to retain control while having the company be Thai majority owned on paper. A Thai owned company (on paper) can purchase property but, again, take expert advice on how to structure things. You are talking about a substantial financial outlay, and you had better have a very good business plan to justify it. Have you run your own company overseas in the past?

[Etaoin Shrdlu]

If you're from the US, best also look into how US tax and reporting requirements work when owing or having shares in a foreign company. Not impossible to be compliant with US tax laws, but it can impose another significant level of complexity and cost. Best to be aware in advance to make sure it is worth it.

[Misty]

2 hours ago, Etaoin Shrdlu said:

If you're from the US, best also look into how US tax and reporting requirements work when owing or having shares in a foreign company. Not impossible to be compliant with US tax laws, but it can impose another significant level of complexity and cost. Best to be aware in advance to make sure it is worth it.

Yes, it's very important for US citizens to understand their US reporting & filing requirements if they own a foreign company.  Used to be relatively simple, but the "Tax Cuts and Jobs Act 2017" added over 100 pages of filing to my annual US 1040 taxes - simply because I own a Thai Amity treaty company.  The new 5471 and its seeminly endless schedules are not for the feint of heart.  Professional tax advice is required.

[Maestro]

8 hours ago, Etaoin Shrdlu said:

If you're from the US...

This topic is another case where it would have been extremely useful if the OP had mentioned his nationality.

 

I suggest we stop with "if" replies until the OP reveals whether or not he is  US American.

[Maestro]

Actually, the OP is not asking about control of the company, only about the activities allowed by the company, ie whether in addition to teaching diving, a company may also buy properties. In this context, the OP's nationality probably does not matter. Generally, a company can do everything that is included in its articles of incorporation that are registered with the apposite government department, as far as I know.

[Phxdiver]

Appreciate all the responses.  Yes I'm American for those concerned. I don't see the benefit of 100% ownership of the company.  I highly doubt I'd make anything near the Foreign Earned Income Exclusion limits for US taxes so anything I make would essentially be tax-free on my US taxes anyway.

 

I know dozens of foreign dive instructors in Phuket who are freelance instructors who coordinate with Thai accounting firms to process tax, employment, etc. payments so they can obtain/maintain a non-B visa and work permit.  My understanding is that these instructors have essentially created Thai companies, since I always hear that there's a requirement of 4 Thai employees, presumably so that I'd get one foreigner work permit quota.

 

All I'm asking is whether that sort of company would allow real estate purchase.

 

I suspect the answer is "it depends", based on the answer provided by @Maestro.  

 

Thanks for everyone's responses!

Edited April 26, 2023 by Phxdiver
FEIE update