Crackdown on properties owned thru shell companies ??

[kuma]

I have heard there is a new campaign to crackdown on properties bought improperly via shell companies and that Phuket is the first area they are focusing on, has anyone else heard of this ?

[KhunLA]

Nothing new about it, but does seem to be getting a bit of press, with more enforcement and scrutiny now.

 

Aside from the businesses that do that, for foreigners to have, more than a few folks do the same, when building, buying a home.

 

Personally never understood the logic of a large investment, made illegally, and risk of losing if & when caught.  Along with, not even having full control of that asset, as only allowed to own 49% of said company. as a foreigner, in most cases.

[impulse]

6 hours ago, KhunLA said:

Personally never understood the logic of a large investment, made illegally, and risk of losing if & when caught.  Along with, not even having full control of that asset, as only allowed to own 49% of said company. as a foreigner, in most cases.

 

I ascribe that to the stigma attached to renters (project dwellers) when we were growing up.  It's tough to get past years of indoctrination, even when the conditions change.  Like living where the risks of "ownership" outweigh the benefits.

 

I'd agree with your characterization of "nothing new".  Since I first arrived in 2011, they trot out crackdowns on illegal shell companies a few times a year.  Probably before I arrived, too.  Usually in response to some kind of political imperative.  Or casting greedy eyes on properties controlled by foreign entangled companies.

 

[Tom100]

13 hours ago, kuma said:

I have heard there is a new campaign to crackdown on properties bought improperly via shell companies and that Phuket is the first area they are focusing on, has anyone else heard of this ?

Yes. Maybe on Tim Newton?

People are complaining about LOUD farang parties

[jcmj]

It tears its head every year for at least the past 20 years and nothing really comes out of it. Sure they are going after businesses and criminals but not so much for your average home owner. 

[john donson]

too many fat cats involved...

[jas007]

On 12/20/2024 at 1:27 AM, kuma said:

I have heard there is a new campaign to crackdown on properties bought improperly via shell companies and that Phuket is the first area they are focusing on, has anyone else heard of this ?

From what I can remember, I've been hearing similar stories just about every year since I've been coming to Thailand, which is now about 24 years.  I haven't been here all that time, but there's always a "crackdown" in the works.  

[theblether]

There's deep irritation at the Chinese putting Thais out of business. This is a relatively recent development and will cause ( has caused ) a backlash. Some farangs are being caught in the net but the real target is the Chinese. 

 

 

[London Lowf]

2 hours ago, theblether said:

There's deep irritation at the Chinese putting Thais out of business. This is a relatively recent development and will cause ( has caused ) a backlash. Some farangs are being caught in the net but the real target is the Chinese. 

 

 

 

Your comment surprises me.

 

As a casual observer (six months of the year touring around Phuket on my scooter) it seems that Chinese investment has dried up since CoViD and been replaced by Russian and Ukranian.

 

[Agusts]

How about if the company rent a bar or a massage shop or some similar business and add it to it's operation, would that make it legal...? 

 

How do they make these companies illegal, is it the definition of a company...!? I mean anyone can create a company and then do anything with it, they buy a property in this case - maybe sell at some point in the future... , would this also be illegal if in UK or US etc. ....? Does a company oblige to do certain business, buy/sell, make/lose money etc .. .?

 

There maybe a lot of illigal compranies out there in that case...!!! Maybe that's why they can't make a serious crackdown, big net that can catch some other Thais too...! 

 

By the way, they do some creative, but legal, trick with preferential share types that makes company 51% Thai owned, but the Thai owner does not have 51% voting right, hence can't sell or do anything on his own..., low risk. 

 

[stevenl]

14 hours ago, London Lowf said:

 

Your comment surprises me.

 

As a casual observer (six months of the year touring around Phuket on my scooter) it seems that Chinese investment has dried up since CoViD and been replaced by Russian and Ukranian.

 

Chinese companies and activities are less visible than Russian, but definitely still there.

[JBChiangRai]

We hear about these crackdowns periodically, usually it's nothing.  That's not to say that there won't be a real one at some point.  If you're targeted then it's likely you will have to gift a very large brown envelope.

 

Your nominee shareholders should be people you actually know and trust who won't admit to being straw men at the first question.  Never use nominees suggested by your lawyer.

 

If you have a home in a company, there are some things you need to do.

 

For example, in your will, don't leave the house to someone. You don't own it so it's not yours to leave, instead leave the shares in your company to someone.  Once your home is in a company, it's very expensive to take it out of the company and close the company.  The land office will assess the value and it's going to be higher than when you put it into the company so the company has a tax liability on that profit and after that, closing costs.

 

You probably have undated forms signed by your nominees and copies of their ID cards.  ID cards are valid 7 years only, so you need to get new copies on expiry or your undated forms are useless.

 

There are ways to own a house in a company legally.  The legal test is whether your primary motive for doing it was to circumvent the foreign ownership laws.