Owning a House (land) via a ltd. for rental i.e. commercial use?

[aldriglikvid]

Hi, 

 

It's very well understood that the law is written for foreigners not to own land, and - on that topic - creating a company with the only purpose to own and live in said property can also be considered against the law. 

 

With all that said, and agreed upon, am I allowed to create a company with the purpose of acquiring 1-2 houses and lease them on commercial terms?

 

I'd humbly ask to not get side-tracked to what's possible, but rather what's allowed. 

[FritsSikkink]

Unless you are from the USA, you can only own 49% of the company. Unless you make it a BOI company but then you have to invest way more money.

[timendres]

As @FritsSikkink stated, unless you can leverage the Amity Treaty, you cannot own a majority stake in such a company. I would never expose myself to that level of risk for something that requires as much investment as real estate. Furthermore, having a company that is involved in real estate will almost certainly bring you more scrutiny from the various governmental agencies involved, as this type of company is often used to circumvent the ownership prohibition. Also note that you will be unable to be involved in the operation of said company without a work permit. In other words, you cannot be meeting potential renters, nor be involved in the negotiations, and will be limited in your ability to do banking related to the operation (I was once rejected from making a bank transfer until I got my work permit). So you will need to hire a Thai employee for such operations. All said, I would never attempt something like this unless I intended to have a work permit, which is another can of worms to open.

[Sophon]

Just to add, even if you are from the U.S. (which based on your forum name you probably aren't) you wouldn't be able to form an Amity company for your stated purpose. Companies formed under the Amity treaty are not allowed to buy land in Thailand.

[aldriglikvid]

37 minutes ago, timendres said:

As @FritsSikkink stated, unless you can leverage the Amity Treaty, you cannot own a majority stake in such a company. I would never expose myself to that level of risk for something that requires as much investment as real estate. Furthermore, having a company that is involved in real estate will almost certainly bring you more scrutiny from the various governmental agencies involved, as this type of company is often used to circumvent the ownership prohibition. Also note that you will be unable to be involved in the operation of said company without a work permit. In other words, you cannot be meeting potential renters, nor be involved in the negotiations, and will be limited in your ability to do banking related to the operation (I was once rejected from making a bank transfer until I got my work permit). So you will need to hire a Thai employee for such operations. All said, I would never attempt something like this unless I intended to have a work permit, which is another can of worms to open.

I appreciate the feedback. Thanks!

 

I actually have a work permit, so perhaps some of the obstacles are not too much of a hurdle then. 

 

Just trying to understand the legality of company ownership (and the dynamics around it) in this country. I'm far too often met with opinions and feelings, and it's sometimes hard to grasp actual facts. 

Anyone sitting on any good websites where I can reach somewhat of a comprehensive understanding to company ownership?