Can I Own A House In Thailand?

[jltheart]

I am married to a thai girl and now live in bkk at a condo. We would like to buy a house but I am unsure first if I can and how to go about doing so. Can we buy with both our names on contract? Does she have to have a job or can we just show my income? Is it better to finence from a bank or buy from a home bulider.

Does any one know of a home bulider in Karbi.

I also need help on the definition of working in Thailand. I currently have a job in America that I do from Thailand. My work is done all by the phone. I do not have business with any Thailand company or any one in Thailand. My paycheck is sent to my bank in America and I just with draw the funds via ATM. Is this considered working in Thailand.

Thanks for your help.

*****

Edit Question on Definition of Working. I do not pay taxes on my income in America and I just withdraw money to live and pay bills here in Thailand. I leave money in my account in America for safe and savings.

Edit Question on Buying a House. This is for my personal living not a business.

Thanks again

Edited July 7, 2004 by jltheart

[IBMOPERATIONS]

Some good FAQ's at this link

http://www.thaiproperty.com/faq.htm

[Sumitr Man]

Alternatively, you may want to read the Land Code; Revenue Code; Double Tax Treaty between Thailand and the USA - all of which would answer your questions.

But my guess is that you don't want to spend time doing that, while at the same time being very willing to spend, potentially, a large amount of money on the purchase itself.

Farangs in Thailand - never cease to amaze me.

[bTW - Two immediate questions would come to mind: (1) Do you pay tax on your earnings in the USA; and (2) Do you wait 361 days before bringing the money into Thailand [via ATM] or do you do it immediately]?

[KevinN]

Ber better to wait awhile.

There is an ISAN senator that was refused a visa and he wants things brought on par with other countrys,so you will be able to buy in your own name and to get citizenship here in Thailand after he gets things straightened out.

That is if you are married to a thai.

[Sunbelt Asia]

Under Thai law, the foreigner can own the structure (for example a house) erected on the land and registered the building. Additional safeguards (if required) include personal loan agreements and/or the creation of a registered mortgage and an agency agreement. Certainty of possession of land and house is assured by being the owner of the house. If arranged as above then the house will be separate from the land, and will not be a component part under the Civil Law. Ownership of buildings can be confirmed and the lessor cannot seize the house upon expiration of the lease.

Buildings other than condominiums do not have any form of title

document, but their sale or long lease can be registered at the Amphur (district) land office. Proof of ownership, must be established either from proof of construction or a document showing sale-purchase (do not

confuse this with the House License document, which is only a register

of the house occupants).

Transfer of a building, as distinct from its land, requires the posting of 30 days public notice (to see if anyone wishes to contest the ownership). Again just to confirm this, foreign nationals (aliens) may own any building (as distinct from its land) and may register such transfer of ownership into their names at the local district office.

www.sunbeltasia.com

[Khutan]

Sunbelt,

I was going to take that path, but the concept is a bit difficult for my wife to get her head around. What I was planning to do was set up a company with the shareholders, and transfer the house into the company. Then of course how the Proxies and class of shares etc and how company structure is managed is another thing. At the end of the day its a question of control of the asset(s), and little else.

I would think this would give the further advantage that since the house and land are worth about 2million baht, then I can legitimately capitalize the company to 2m Baht. After some stuffing around that company that owns my house can then get me a WP.

Please tell me if I have made a mistake in my logic, if not, I will contact you to set this up.

[Up2U]

The company has to have a reason for existing - be it trade, computer programming, property investment or whatever. It should therefore have both income and expenditure.

If it is a property company, then further rules and restrictions apply.

Talk to a commercial lawyer. (Indo-Siam and Sunbelt Asia are also knowledgable on this) Pay the fees and hope the advice is good.

[Sunbelt Asia]

Yes I understand your wife. Land is a different story than the house. Just so you know there are a number of ways that a foreigner may follow to own freehold land:

1. As you suggested, acquire the land through a Thai private limited company. This involves the incorporation of a private limited company of which the foreigner holds 39% of the shares. Thai law requires that 51% of the shares be held by Thai juristic persons, however, any company with more than 40% foreign interest that purchases land will be investigated by the Central Land Office in Bangkok (under Section 74 of the Land Code) to ensure that the company has not been organized in an attempt to circumvent the prohibition against foreign ownership of land. Hence the remaining 61% of the shares is held by Thai Nationals who grant an irrevocable and absolute power of attorney over the same. The foreigner retains full control by being the sole director of the company with executive powers and having more voting rights with their class of shares. Additional safeguards include personal loan agreements, the creation of a registered mortgage and/or long lease with pre-paid options to renew. It is illegal to have a non trading company just to hold the land. It is recommended the company gets income even by collecting rent of the land from the foreigner who has the house in their name and pays taxes.

2. Become a Thai resident/citizen

3. Be the principal investor in a new export orientated Board of

Investment (BOI) approved company [the current maximum size limit of freehold ownership rights is one Rai of land (1600 Sq.m.)

4. Make an approved investment of over 40 Million Baht left for a

minimum number of years [the current maximum size limit of freehold ownership rights is one Rai of land (1600 Sq.m.)

5. Acquire the land in the name of a Thai national who then grants a

registered a typical30 year lease (residential) to the foreigner in the foreigner's own name with pre-paid option to renew for a further two periods of 30 years each. This must be registered with the Land Office to be valid, the foreigner may also be given the option to purchase the land should the law in respect of foreigner's land ownership rights change. Disadvantage is the landlord of the land can sue you on a claim of mismanagement and it’s tied up in court for several years.

6. Usufruct Interest - gives the foreigner temporary ownership rights to things on or arising from the land, but does not give ownership in the land itself. In practice, a usufruct is limited to a 30-year maximum period; like leases, the agreement can be successively renewed. In contrast to a lease, a usufruct interest can be sold or transferred, although it expires upon the death of the holder of the usufruct and therefore cannot be inherited. Any use is allowed (except for destruction) without the land-owners permission.

7. Superficies – A superficies is similar to a usufruct, but provides more security for interests of the holder of the rights. A superficiary has the right to own, on or under the land, buildings, structures or plantations, but not the land itself. A renewable 30 – year maximum term applies. Unlike usufruct, a superficies is both transferable and transmissible by the way of inheritance. Further, a superficies is not extinguished by the destruction of the buildings, structures or plantations. The superficiary has the right to remove buildings, structures or plantations upon the expiry of the superficies, provided the owner of the land is first given the opportunity purchase them at market value. As with as usufruct, the land must be restored to its former condition prior to it return to the owner.

8. Nominee with Mortgage – some people use a Nominee to purchase the house/land and have a mortgage (registered with the appropriate land office) on the property in their favors. It is important to note that only the owner of the land is entitled to mortgage the land; the lessee of land does not have the same privilege. The property cannot be sold until the mortgage lender signs the title documents declaring the mortgage cleared. This once again gives 100% control over the property although not ownership. The buyer may remove the nominee should any problems arise and transfer in a new nominee at any time. One problem is however if the value of the land is greater than the loan, the person who owes the loan, can pay the loan off and buy the land. Another disadvantage is with several cases where the foreigner was taken to court in circumventing the law of land ownership.

9. Elite Card-are offered the opportunity to acquire real estate through a governmental

entity acting as the Thai nominee with usufruct. To become an Elite-card-member, the applicant has to pay one million Baht for the card. It is still unclear on the rules on the future for ownership of the land.

In practice, the technique favored the most by foreigners is to acquire land through a Thai private limited company and register the building in their name. The added advantages are that it establishes a business presence in Thailand and it may be the employer/sponsor in the foreigner's application for a non-immigrant visa and/or work permit.

We welcome the opportunity to help.

www.sunbeltasia.com