Work Permit

[wispyerk007]

Hi all, I have lived in Thailand for over 3 years on a retirement visa. I live in my condo which is in a company name. Yesterday I was getting told that if you own property in Thailand, including condo's, which are in a company name, you will need a work permit. Has anyone else heard this or can verify it. Thanks.

[beano2274]

Not sure about that, but I think it is not legal to be on a retirement visa and have a work permit, the Mods will give you better info

[jdinasia]

At this point in time this is not a requirement. I cannot foresee it becoming a requirement ever.

[richardt1808]

hi,

you can legitimately hold shares in a company without holding a work permit (as long as you dont do any physical work for the company), so that part is not a problem. No work permit required.

Also, you cannot obtain a work permit on a retirement visa. You would need to convert to a non-imm visa and then request a work permit should you ever wish to start work.

So, owning your condo on the strength of a retirement visa is not a problem in itself, however, as as been pointed out in several threads here if the sole purpose of the company is to support your ownership of a condo, you may be falling foul of the another set of regulations and this could result in potential problems for you. The story is a whole rather large quagmire at the moment and you'll have to read up here about more on this if your company itself falls into this category.

Cheers

[wispyerk007]

Not sure about that, but I think it is not legal to be on a retirement visa and have a work permit, the Mods will give you better info

Beano, Yes as I understand it you cannot have both. I do not want a work permit, I am happy with my retirement visa. What I am refering to is, many people will have problems filling the criteria if a work permit is ever required if you own property or a condo in a company name, 1 problem that sticks out a mile to me is that you need to employ, I think it's 4 Thai people to qualify, lets hope it never happens, but it looks like it has been talked about.

[wispyerk007]

hi,

you can legitimately hold shares in a company without holding a work permit (as long as you dont do any physical work for the company), so that part is not a problem. No work permit required.

Also, you cannot obtain a work permit on a retirement visa. You would need to convert to a non-imm visa and then request a work permit should you ever wish to start work.

So, owning your condo on the strength of a retirement visa is not a problem in itself, however, as as been pointed out in several threads here if the sole purpose of the company is to support your ownership of a condo, you may be falling foul of the another set of regulations and this could result in potential problems for you. The story is a whole rather large quagmire at the moment and you'll have to read up here about more on this if your company itself falls into this category.

Cheers

Richardt, thanks for your info, are you saying that I and many more people could be breaking the law by owning and living in a condo because it is in a company name, many farangs have bought condos in company names because of the 49% 51% rule, I have no work interests at all, the company name was purely so I could purchase the condo and I am sure many farangs have done the same.

[richardt1808]

hi,

you can legitimately hold shares in a company without holding a work permit (as long as you dont do any physical work for the company), so that part is not a problem. No work permit required.

Also, you cannot obtain a work permit on a retirement visa. You would need to convert to a non-imm visa and then request a work permit should you ever wish to start work.

So, owning your condo on the strength of a retirement visa is not a problem in itself, however, as as been pointed out in several threads here if the sole purpose of the company is to support your ownership of a condo, you may be falling foul of the another set of regulations and this could result in potential problems for you. The story is a whole rather large quagmire at the moment and you'll have to read up here about more on this if your company itself falls into this category.

Cheers

Richardt, thanks for your info, are you saying that I and many more people could be breaking the law by owning and living in a condo because it is in a company name, many farangs have bought condos in company names because of the 49% 51% rule, I have no work interests at all, the company name was purely so I could purchase the condo and I am sure many farangs have done the same.

Hi,

Actually when you said 'property' I assumed you were talking about a house, but the facts apply equally, if not more so, in the case that you are considering buying a condo where the unit is not one of those which falls within the 49%.

If anyone is using the 'company' tactic to avoid the 49% rule, it is illegal - especially if the company is specifically created with the purpose of evading the quota. Bear in mind that when you take control of the company, you may own a maximum of 49% of the shares. The minute you try to pass the other 51% of the shares to your wife or some nominee, then you fall foul of the law on nominee shareholdings. Note that this 'nominee' situation is basically the reason that the Supreme Court ruled against the ex Thai PM so it is a very hot issue now and definitely not worth considering in the present climate.

[wispyerk007]

hi,

you can legitimately hold shares in a company without holding a work permit (as long as you dont do any physical work for the company), so that part is not a problem. No work permit required.

Also, you cannot obtain a work permit on a retirement visa. You would need to convert to a non-imm visa and then request a work permit should you ever wish to start work.

So, owning your condo on the strength of a retirement visa is not a problem in itself, however, as as been pointed out in several threads here if the sole purpose of the company is to support your ownership of a condo, you may be falling foul of the another set of regulations and this could result in potential problems for you. The story is a whole rather large quagmire at the moment and you'll have to read up here about more on this if your company itself falls into this category.

Cheers

Richardt, thanks for your info, are you saying that I and many more people could be breaking the law by owning and living in a condo because it is in a company name, many farangs have bought condos in company names because of the 49% 51% rule, I have no work interests at all, the company name was purely so I could purchase the condo and I am sure many farangs have done the same.

Hi,

Actually when you said 'property' I assumed you were talking about a house, but the facts apply equally, if not more so, in the case that you are considering buying a condo where the unit is not one of those which falls within the 49%.

If anyone is using the 'company' tactic to avoid the 49% rule, it is illegal - especially if the company is specifically created with the purpose of evading the quota. Bear in mind that when you take control of the company, you may own a maximum of 49% of the shares. The minute you try to pass the other 51% of the shares to your wife or some nominee, then you fall foul of the law on nominee shareholdings. Note that this 'nominee' situation is basically the reason that the Supreme Court ruled against the ex Thai PM so it is a very hot issue now and definitely not worth considering in the present climate.

Richardt, thanks for the info, I think it's time for me to talk to my lawyer, this will probable make my mind up on something I have been considering for quite a while, that is transfering the condo into my wife's name.

And before all those people out there tell me thats the last thing I should do, let me tell them that we have been together a long time and I know I can trust her 100%. Now lets see if that sentence starts another thread.

[Phil Conners]

You could also check with the condo management if the ownership rate in your condo is still below the 49/51% treshold. Maybe a Farang sold or a Thai bought in allowing you to own outright...

[jingjingna]

OP,

If you apply for a retirement visa for a property that was purchased via a shell company route then I believe you have to prove that your company is legit, paying taxes, staff etc etc.

If you have 800,000 Baht or a pension to meet the requirement for a retirement visa ..just go for that and not mention condo at all?

Good luck ..whatever you do!

[monty]

You can hold shares in a company that owns a condo.

Legally, the 51% Thai shareholders have to be able to prove that they came up with 51% of the value of the shares, and where those funds came from!

Your problem is that you are likely a director in your company. This in itself does not require you to hold a work permit, BUT, you are not allowed to sign anything on behalf of the company, whether it be shareholders meetings, book keeping papers, signing an insurance policy, nothing!

If you do that, while physically in Thailand, you will need a work permit.

You are allowed to sign all those papers if you can prove that you are not in Thailand, i.e. your accountant Fedex's them to you in your home country, you sign them and you send them back.

If you want to do things legally, you need a Thai person registered as director and he/she will have to sign everything. Which basically means that person controls the company and possibly it's assets.

This is the same for any property owned through a company. If the foreigner wants to control the company and it's assets through being the sole director of that company, and that foreigner resides in Thailand, then that foreigner will need a work permit to do so.

You would even need a Thai director in your company to apply for your work permit if you wished to have one!