Hi all

 

As the title says there is a condo unit for sale but the foreign quota is full.

 

Can I buy it in my company name the same as I have with my house?

 

What would be any complications?

 

I won't be living in it, either rent it out or stay the occasional weekend.

 

This condo is in a building I've always thought the best deal in the area and the Thai wants a quick sale, it's around 1 million cheaper than the foreign quota ones currently for sale.

 

Anyone done this suucessfully or been warned not to buy?

 

Thanks.

Monthly accounting fees plus tax implication if you sell it out of company, best avoided, plus illegal anyway

2 minutes ago, scubascuba3 said:

Monthly accounting fees plus tax implication if you sell it out of company, best avoided, plus illegal anyway

I pay monthly accounting fees already.

1 minute ago, YorkshireTyke said:

I pay monthly accounting fees already.

the tax implication doesn't put you off? or it being illegal?

2 minutes ago, scubascuba3 said:

the tax implication doesn't put you off? or it being illegal?

 

I'm not aware of the tax implications, can you expand? One idea is too gift it to my son in the future, just change ownership to him, Thai.

 

Is it any different legally to buying a house/land as I already have and many others?

Just now, YorkshireTyke said:

 

I'm not aware of the tax implications, can you expand? One idea is too gift it to my son in the future, just change ownership to him, Thai.

 

Is it any different legally to buying a house/land as I already have and many others?

It's illegal to have proxy thai shareholders and most seem to have that, a matter of time that authorities will close the net.

 

You'll pay tax when you close the company, will take account of the yearly written down cost of the property

The main reason a foreigner would buy a Thai quota  condo in a company name is if the purchase cash is already in Thailand and he particularly wanted that condo and the foreign quota was full. 

2 hours ago, YorkshireTyke said:

 

I'm not aware of the tax implications, can you expand? One idea is too gift it to my son in the future, just change ownership to him, Thai.

 

Is it any different legally to buying a house/land as I already have and many others?

How old is your son? Don't believe anybody who tells you he needs to be 18 or 20 to own the condo, that's absolutely not true.

 

It's been discussed / checked many time before, very young Thai children can own land / land & house / condo.

 

To avoid all complications, why not transfer ownership to your Thai son now, and give you peace of mind.

36 minutes ago, jippytum said:

The main reason a foreigner would buy a Thai quota  condo in a company name is if the purchase cash is already in Thailand and he particularly wanted that condo and the foreign quota was full. 

 

The cash isn't in Thailand. The only reason is the foreign quota is full.

29 minutes ago, scorecard said:

How old is your son? Don't believe anybody who tells you he needs to be 18 or 20 to own the condo, that's absolutely not true.

 

It's been discussed / checked many time before, very young Thai children can own land / land & house / condo.

 

To avoid all complications, why not transfer ownership to your Thai son now, and give you peace of mind.

 

My son is 11.

He's 11. therefore you could (if you wish) fully transfer ownership to him right now.

 

But keep in mind that after transfer to a minor the property cannot be transferred out of his name until he reaches majority age and therefore legally entitled to make such a transaction / sign the appropriate documents. 

1 hour ago, jippytum said:

The main reason a foreigner would buy a Thai quota  condo in a company name is if the purchase cash is already in Thailand and he particularly wanted that condo and the foreign quota was full. 

Not a good reason, some people transfer money out and back in again

11 minutes ago, scubascuba3 said:

Not a good reason, some people transfer money out and back in again

 

Just now, jippytum said:

? 

Do you have a better one?? 

Could it perhaps work to have your Thai Son as the majority shareholder and you as the minority shareholder in the company that buys the property?  So no "foreign" ownership and no "proxy" shareholders, so not illegal, plus you could organise the company so that neither of you can sell the property without the agreement of the other.

5 hours ago, YorkshireTyke said:

 

I'm not aware of the tax implications, can you expand? One idea is too gift it to my son in the future, just change ownership to him, Thai.

 

Is it any different legally to buying a house/land as I already have and many others?

Why not buy it for you son now; i.e., in his name. Owned by a company, it will be taxed as company property. When later transferring it to your son it's a plain business sale and will be taxed as such.

7 hours ago, scorecard said:

He's 11. therefore you could (if you wish) fully transfer ownership to him right now.

 

But keep in mind that after transfer to a minor the property cannot be transferred out of his name until he reaches majority age and therefore legally entitled to make such a transaction / sign the appropriate documents. 

 

only if the mother agrees with that...

 

in theory, you could not even legally rent it out, if you read the law

I bought land in my Thai daughter's name, or rather, I paid the asking price, and the chanote was put in her name. She was 20 at the time. I live in a condo where the foreign quota was oversubscribed so that went into her name as well. It's actually a relief to know I don't have to worry about those properties. Don't need to put them in a will, nor pay any death duty/inheritance taxes if such a thing existed here.

11 hours ago, scubascuba3 said:

the tax implication doesn't put you off? or it being illegal?

What is illegal with a company buying a condo? He state he will rent it out. It might just be that works as a part of the company´s business. Taken into accounting, and taxing the income after costs, will be perfectly legal.

 

It´s also legal for the company to own the house you are living in, as long as you declare and pay fair rent to the company. If things are done right in the open, there is nothing illegal. What is illegal is to setup a company only for holding your residence without any active business in the company.

6 hours ago, Gottfrid said:

What is illegal with a company buying a condo?

 

As i said further up having thai proxy shareholders is illegal and many people have them

6 hours ago, Gottfrid said:

What is illegal is to setup a company only for holding your residence without any active business in the company.

 

18 hours ago, YorkshireTyke said:

Hi all

 

As the title says there is a condo unit for sale but the foreign quota is full.

 

Can I buy it in my company name the same as I have with my house?

 

What would be any complications?

 

I won't be living in it, either rent it out or stay the occasional weekend.

 

This condo is in a building I've always thought the best deal in the area and the Thai wants a quick sale, it's around 1 million cheaper than the foreign quota ones currently for sale.

 

Anyone done this suucessfully or been warned not to buy?

 

Thanks.

Sounds like a lot of work / hassle to save 1m.   Would it not be worth trying to negotiate the ones held under foreign quota down (even if you close the gap by half) or wait a bit longer until a foreign buyer who needs to sell can sell for a comparable price.  Owning through a company adds an additional layer of risk and complexity in my opinion.