Another topic about land ownership

[Toolz]

I plan to buy some land ...

Oh dam_n, here we go again - cue the "foreigners can't buy land" cabal - one ... two ...

[carlosacao]

I plan to buy some land ...

Oh dam_n, here we go again - cue the "foreigners can't buy land" cabal - one ... two ...

CORRECTION, foreigners CAN buy land for business purposes with BOI approval (100% foreign ownership) which is my case.

[Toolz]

CORRECTION, foreigners CAN buy land for business purposes with BOI approval (100% foreign ownership) which is my case.

Now that's more than a little unreasonable isn't it? We might actually have to answer your question now!

Edited May 2, 2010 by Toolz

[BigWheelMan]

I plan to buy some land ...

Oh dam_n, here we go again - cue the "foreigners can't buy land" cabal - one ... two ...

THREE

Foreigners can`t buy land, so what`s the point of this thread?

[jaideeguy]

It sounds like the Op has it worked out and you are wrong......foreigners can and do buy all the land they want......they just can't OWN it. My case.....I bought and paid for the land, but the wife OWNS it.

[Maejo Man]

THREE

Foreigners can`t buy land, so what`s the point of this thread?

I have several friends here that actually do own their own land in their own name, and not their wife's name. If you had seen the OP's post regarding the purchase of the proposed land under the auspicies of the BOI you would understand how he can legally do it....or maybe it's above you

[BigWheelMan]

It sounds like the Op has it worked out and you are wrong......foreigners can and do buy all the land they want......they just can't OWN it. My case.....I bought and paid for the land, but the wife OWNS it.

Nop. not legal.

In most cases it has to be the Thai wife`s money, not the Farang`s.

You are just using the wife as a front for your land purchase.

This sort of reasoning to justify land and real estate ownership by Farangs comes up time and time again, but you`re always going to get the same answers.

Edited May 3, 2010 by BigWheelMan

[gotlost]

THREE

Foreigners can`t buy land, so what`s the point of this thread?

I have several friends here that actually do own their own land in their own name, and not their wife's name. If you had seen the OP's post regarding the purchase of the proposed land under the auspicies of the BOI you would understand how he can legally do it....or maybe it's above you

If one is to follow the postings of the two posters in question on this thread you would have to put their opinions in the <deleted> category.

[Maejo Man]

If one is to follow the postings of the two posters in question on this thread you would have to put their opinions in the <deleted> category.

Talking about <deleted>, who owns your shack gotlost? You seem to be an expert on land ownership

[Maejo Man]

If one is to follow the postings of the two posters in question on this thread you would have to put their opinions in the <deleted> category.

What I stated was fact on BOI land ownership, maybe you are just jealous that a farang can actually buy and own land leagally, but virtue of the Thai system for business.

[BarnicaleBob]

Here is some information from a BOI news letter on how BOI ownership works:

BOI Promotion:

Trade and Investment Support

November 2009

Newsletter No 45

BOI Promotion: Regional Trade and Investment Support Offices

© Lorenz & Partners 2009 Page 2 of 5

Tel.: +66 (0) 2 287 1882 Fax: +66 (0) 2 287 1871 e-mail: [email protected]

V:\AA Sample Forms and Publications\AA Newsletters\Full_Versions\N045_EN_TH_BOI Regional Trade and Investment Support_011 2009.doc

I. Introduction

The Thai Board of Investment (hereinafter referred to as "the BOI") (the Thai Investment

Promotion Agency) offers a wide list of promotions to both Thai and foreign

companies. Incentives range from tax benefits such as tax holidays, allowing 100% foreign

ownership in a company and the easier obtaining of work permits. Those promotions

are related to specific industries which are identified as beneficial for the country.

One of such categories is the so-called Trade and Investment Support. This under

category 7.15 Board of Investment Announcement No. 10/2552 stipulated promotion

offers a wide range of eligible activities which can be applied for BOI promotion. Even

though there are no tax benefits, such promotion enables the investor to hold 100% of

the shares of his entity in Thailand and is therefore relevant to companies which do not

qualify for any other promotion.

II. Eligible businesses

The scope of Business of Trade and Investment Support Offices (according to Office

of the Board of Investment Announcement No. Por 12/2543) is as follows:

1. Monitoring and/or servicing affiliates

2. Advisory services on business operations except those engaged in buying and

selling securities and foreign currency exchange. As for accounting, legal, advertising,

architectural and civil engineering businesses, business licenses shall be obtained

from the Department of Business Development or related governmental

agencies prior to the promotion application.

3. Information services on goods sourcing

4. Engineering and technical services, except those related to architecture and civil

engineering

5. Testing and certifying standards of products, production and services that do not

qualify for investment promotion under activity 7.13 (Scientific and Laboratories)

of the list of promotional activities attached to Board of Investment Announcement

No. 10/2552

6. Export trading

7. Business activities related to machinery, engines, tools and equipment such as:

- Importing for wholesaling

- Training services

- Installation, maintenance and repairs

- Calibration that does not qualify for investment promotion under activity 7.22

(Calibration Services) of the list of promotional activities attached to Board of

Investment Announcement No. 10/2552

8. Software design and development that does not qualify for investment promotion

under Software activity of the list of promotional activities attached to

Board of Investment Announcement No. 10/2552

9. Wholesaling products.

Projects, which operate their business under any of the above type of activities could

apply for investment promotion under the category of Trade and Investment Support

Offices.

III. Further requirements

Applicants for this promotion must be either companies established under Thai law, or

companies planning to establish under Thai law. Before applying, operating license

must have been acquired from all relevant government agencies and the operating expenses

of the applicant must be at minimum 10 million THB per year, which shall consist

of sales and administrative expenses (as set forth in the Revenue Code). In general,

a grace period is granted for the start-up phase. The operating plan must be approved

by the BOI before entering the promotion under category 7.15.

Previously, the requirement to have operating expenses over 10 million THB was required

from the first full fiscal year of operation. However, recently due to the economic

situation, BOI loosened its approach and now requires the company to comply

with the condition only, once an operating licence is applied for (latest after 3 years).

IV. Benefits for Regional Trade and Investment Support

In general the BOI offers two kinds of benefits: Tax-based incentives, such as tax holidays

or tariff exemptions and duty reductions, and non-tax privileges, such as special

rights guarantees, protections, easier granting of work permits, right to own land, and

other permissions and services. The non-tax privileges are available to all BOI-promoted

projects, regardless of location, industry, condition or category.

For the category "Trade and Investment Support", only non-tax incentives are available.

For foreigners, the probably most essential benefit is the right to hold 100% of the

shares of the promoted company.

Besides this, BOI-promoted companies may also be granted the right of land ownership

in Thailand which is generally very much restricted. However, the amount of land

which may be owned by a foreign BOI promoted company is generally limited to the

following (Announcement of the Board of Investment No. 2/2546, which gives BOI

the right to increase the amount if deemed appropriate):

1. Land for the establishment of offices for promoted projects must not exceed 5

rai (1 rai amounts to 1,600 sqm)

2. Land for the residences of executives or experts must not exceed 1 rai

3. Land for the residences of employees must not exceed 2 rai.

With regard to visas and work permits, staff of promoted companies are entitled to

"One-Stop Service Centre," which will considerably quicken the visa and work permit

procedures. Foreigners can be brought into the country for feasibility studies, as well as

technicians and experts, with very few limitations.

V. Summary

Announced in April 1996 by the BOI, the establishment of trade and investment support

offices has become a very popular category of activities eligible for investment

promotions. Although no tax benefit are granted, the right to own 100% of a company

makes this promotion interesting especially for foreign service providers and traders,

who are not eligible to any other investment promotion.

Generally, the requirements are quite wide so that many companies theoretically qualify.

Most important restriction, however, is the requirement of selling and administrative

expenses of more than THB 10 Million (approx. 200,000 Euro) per year.

Accordingly, promotion is only granted to companies of a certain size.

Although Lorenz & Partners Co., Ltd. always pays greatest attention on updating the information provided in this newsletter

we cannot take responsibility for the topicality, completeness or quality of the information provided. None of the information

contained in this newsletter is meant to replace a personal consultation. Liability claims regarding damage caused

by the use or disuse of any information provided, including any kind of information which is incomplete or incorrect, will

therefore be rejected, if not generated deliberately or grossly negligent.

[BigWheelMan]

Here is some information from a BOI news letter on how BOI ownership works:

BOI Promotion:

Trade and Investment Support

November 2009

Newsletter No 45

BOI Promotion: Regional Trade and Investment Support Offices

© Lorenz & Partners 2009 Page 2 of 5

Tel.: +66 (0) 2 287 1882 Fax: +66 (0) 2 287 1871 e-mail: [email protected]

V:\AA Sample Forms and Publications\AA Newsletters\Full_Versions\N045_EN_TH_BOI Regional Trade and Investment Support_011 2009.doc

I. Introduction

The Thai Board of Investment (hereinafter referred to as "the BOI") (the Thai Investment

Promotion Agency) offers a wide list of promotions to both Thai and foreign

companies. Incentives range from tax benefits such as tax holidays, allowing 100% foreign

ownership in a company and the easier obtaining of work permits. Those promotions

are related to specific industries which are identified as beneficial for the country.

One of such categories is the so-called Trade and Investment Support. This under

category 7.15 Board of Investment Announcement No. 10/2552 stipulated promotion

offers a wide range of eligible activities which can be applied for BOI promotion. Even

though there are no tax benefits, such promotion enables the investor to hold 100% of

the shares of his entity in Thailand and is therefore relevant to companies which do not

qualify for any other promotion.

II. Eligible businesses

The scope of Business of Trade and Investment Support Offices (according to Office

of the Board of Investment Announcement No. Por 12/2543) is as follows:

1. Monitoring and/or servicing affiliates

2. Advisory services on business operations except those engaged in buying and

selling securities and foreign currency exchange. As for accounting, legal, advertising,

architectural and civil engineering businesses, business licenses shall be obtained

from the Department of Business Development or related governmental

agencies prior to the promotion application.

3. Information services on goods sourcing

4. Engineering and technical services, except those related to architecture and civil

engineering

5. Testing and certifying standards of products, production and services that do not

qualify for investment promotion under activity 7.13 (Scientific and Laboratories)

of the list of promotional activities attached to Board of Investment Announcement

No. 10/2552

6. Export trading

7. Business activities related to machinery, engines, tools and equipment such as:

- Importing for wholesaling

- Training services

- Installation, maintenance and repairs

- Calibration that does not qualify for investment promotion under activity 7.22

(Calibration Services) of the list of promotional activities attached to Board of

Investment Announcement No. 10/2552

8. Software design and development that does not qualify for investment promotion

under Software activity of the list of promotional activities attached to

Board of Investment Announcement No. 10/2552

9. Wholesaling products.

Projects, which operate their business under any of the above type of activities could

apply for investment promotion under the category of Trade and Investment Support

Offices.

III. Further requirements

Applicants for this promotion must be either companies established under Thai law, or

companies planning to establish under Thai law. Before applying, operating license

must have been acquired from all relevant government agencies and the operating expenses

of the applicant must be at minimum 10 million THB per year, which shall consist

of sales and administrative expenses (as set forth in the Revenue Code). In general,

a grace period is granted for the start-up phase. The operating plan must be approved

by the BOI before entering the promotion under category 7.15.

Previously, the requirement to have operating expenses over 10 million THB was required

from the first full fiscal year of operation. However, recently due to the economic

situation, BOI loosened its approach and now requires the company to comply

with the condition only, once an operating licence is applied for (latest after 3 years).

IV. Benefits for Regional Trade and Investment Support

In general the BOI offers two kinds of benefits: Tax-based incentives, such as tax holidays

or tariff exemptions and duty reductions, and non-tax privileges, such as special

rights guarantees, protections, easier granting of work permits, right to own land, and

other permissions and services. The non-tax privileges are available to all BOI-promoted

projects, regardless of location, industry, condition or category.

For the category "Trade and Investment Support", only non-tax incentives are available.

For foreigners, the probably most essential benefit is the right to hold 100% of the

shares of the promoted company.

Besides this, BOI-promoted companies may also be granted the right of land ownership

in Thailand which is generally very much restricted. However, the amount of land

which may be owned by a foreign BOI promoted company is generally limited to the

following (Announcement of the Board of Investment No. 2/2546, which gives BOI

the right to increase the amount if deemed appropriate):

1. Land for the establishment of offices for promoted projects must not exceed 5

rai (1 rai amounts to 1,600 sqm)

2. Land for the residences of executives or experts must not exceed 1 rai

3. Land for the residences of employees must not exceed 2 rai.

With regard to visas and work permits, staff of promoted companies are entitled to

"One-Stop Service Centre," which will considerably quicken the visa and work permit

procedures. Foreigners can be brought into the country for feasibility studies, as well as

technicians and experts, with very few limitations.

V. Summary

Announced in April 1996 by the BOI, the establishment of trade and investment support

offices has become a very popular category of activities eligible for investment

promotions. Although no tax benefit are granted, the right to own 100% of a company

makes this promotion interesting especially for foreign service providers and traders,

who are not eligible to any other investment promotion.

Generally, the requirements are quite wide so that many companies theoretically qualify.

Most important restriction, however, is the requirement of selling and administrative

expenses of more than THB 10 Million (approx. 200,000 Euro) per year.

Accordingly, promotion is only granted to companies of a certain size.

Although Lorenz & Partners Co., Ltd. always pays greatest attention on updating the information provided in this newsletter

we cannot take responsibility for the topicality, completeness or quality of the information provided. None of the information

contained in this newsletter is meant to replace a personal consultation. Liability claims regarding damage caused

by the use or disuse of any information provided, including any kind of information which is incomplete or incorrect, will

therefore be rejected, if not generated deliberately or grossly negligent.

I`ve heard about these BOI business dealings for Farang schemes. One of our Mr Thaksin brain childs I believe.

This scheme is really geared for Foreign and Thai trade big businesses and not for the average run of mill Farang like most of us.

Many Farangs that obtain land by these means are very dubious and again as I said previous, for most of us owning land and property in Thailand, is still illegal even if using a Thai to front the ownership.

Edited May 3, 2010 by BigWheelMan

[carlosacao]

Not correct, can be a very small investment, the minimum the BOI requires is 1 million baht investment.

[carlosacao]

Another note: The BOI limit for the land size is 40 rais. (If bigger than that, it has to be one of those big time projects like a Toyota plant or so.

Edited May 3, 2010 by carlosacao

[Maejo Man]

I`ve heard about these BOI business dealings for Farang schemes. One of our Mr Thaksin brain childs I believe.

This scheme is really geared for Foreign and Thai trade big businesses and not for the average run of mill Farang like most of us.

Many Farangs that obtain land by these means are very dubious and again as I said previous, for most of us owning land and property in Thailand, is still illegal even if using a Thai to front the ownership.

It has been in place long before Thaksin ever came to power. I'd do some serious reading before opening your mouth. That sums it up when you say that you are an "average run of the mill" farang, I need say no more. Try and run a "dubious" company through the BOI and see how far you get. Back to driving busses perhaps?

Edited May 3, 2010 by Maejo Man

[carlosacao]

If one is to follow the postings of the two posters in question on this thread you would have to put their opinions in the <deleted> category.

What I stated was fact on BOI land ownership, maybe you are just jealous that a farang can actually buy and own land leagally, but virtue of the Thai system for business.

A fact it is as Maejo Man stated, I received this benefit once, it only took 3 weeks for approval. In the end I didn't use it when I discovered a pig farm near the land, so now I go at it for a second time at another location.

[eek]

If someone wishes to create a serious thread about land ownership (although probably already many floating about in the forum), you are welcome to.

But to be honest this one just seems like an extension of the last thread, which mainly went back and forth arguing the same points.

Welcome to pm me if you disagree.

So..im sorry..but..

//Closed//

[PeaceBlondie]

Re-opened from what it's not worth,

[carlosacao]

I`ve heard about these BOI business dealings for Farang schemes. One of our Mr Thaksin brain childs I believe.

This scheme is really geared for Foreign and Thai trade big businesses and not for the average run of mill Farang like most of us.

Many Farangs that obtain land by these means are very dubious and again as I said previous, for most of us owning land and property in Thailand, is still illegal even if using a Thai to front the ownership.

It has been in place long before Thaksin ever came to power. I'd do some serious reading before opening your mouth. That sums it up when you say that you are an "average run of the mill" farang, I need say no more. Try and run a "dubious" company through the BOI and see how far you get. Back to driving busses perhaps?

Adding to what Maejo Man said, BOI land ownership is for REAL companies doing REAL business, can't fool around with the BOI to use it as a front company just to get land or a work permit. This is not to be confused with setting up a regular Thai corporation where farang can own up to 49% of it and can buy land trough it. That type of companies have been done a lot here and often as a front, but............. watch out! easy comes, easy goes if not legit. Regulations have been changing and if they decide to enforce them............

[BigWheelMan]

I`ve heard about these BOI business dealings for Farang schemes. One of our Mr Thaksin brain childs I believe.

This scheme is really geared for Foreign and Thai trade big businesses and not for the average run of mill Farang like most of us.

Many Farangs that obtain land by these means are very dubious and again as I said previous, for most of us owning land and property in Thailand, is still illegal even if using a Thai to front the ownership.

It has been in place long before Thaksin ever came to power. I'd do some serious reading before opening your mouth. That sums it up when you say that you are an "average run of the mill" farang, I need say no more. Try and run a "dubious" company through the BOI and see how far you get. Back to driving busses perhaps?

Correct me if I’m wrong, but it quotes that the company has to have an expenditure of 10 million baht per annum. That’s well out of my league and I’ve no doubts beyond the capabilities of many others.

And the thought that there could be a group of Farangs buying up real estate and starting up businesses close by soon horrifies me.

I used to drive buses. Are busses those insects that buzz around?

The guy I knew was of very dubious character. Wasn’t you was it?

Edited May 3, 2010 by BigWheelMan

[Godspeed]

I`ve heard about these BOI business dealings for Farang schemes. One of our Mr Thaksin brain childs I believe.

This scheme is really geared for Foreign and Thai trade big businesses and not for the average run of mill Farang like most of us.

Many Farangs that obtain land by these means are very dubious and again as I said previous, for most of us owning land and property in Thailand, is still illegal even if using a Thai to front the ownership.

Dear BWM,

You are so out of touch,out of your element it makes you seem like the dubious one !

Let's all be adults and understand everyone is not you, not the same . Some people here are substantial and are of a higher standing in life.

Edited May 3, 2010 by PeaceBlondie
Edited out long nested post. PB

[BigWheelMan]

Dear BWM,

You are so out of touch,out of your element it makes you seem like the dubious one !

Let's all be adults and understand everyone is not you, not the same . Some people here are substantial and are of a higher standing in life.

So it seems you consider yourself as the elite, yet you`re not impressing me.

Again as I said previous, these projects are financially beyond the means of the average Farang that moves here and is completely different from the scenario of Farangs owning land in the names of up front Thais.

This is a completely seperate issue.

Edited May 5, 2010 by PeaceBlondie

[Godspeed]

No it is dead on

owning land in Thailand

Did your bus have smog control?

[BigWheelMan]

No it is dead on

owning land in Thailand

Did your bus have smog control?

[hagler]

Dear BWM,

You are so out of touch,out of your element it makes you seem like the dubious one !

Let's all be adults and understand everyone is not you, not the same . Some people here are substantial and are of a higher standing in life.

So it seems you consider yourself as the elite, yet you`re not impressing me.

Again as I said previous, these projects are financially beyond the means of the average Farang that moves here and is completely different from the scenario of Farangs owning land in the names of up front Thais.

This is a completely seperate issue.

[/b]

so your telling us that you don't have at least 1 000 000 baht to put into land ownership in LOS. I really hope you are in your early 20's and not at the end or nearing the end of your working life cause if you are your retirement years are gonna be very grim indeed.

Guess driving the buses didn"t pay so well huh? Or is it a case of "where did it all go"?

Edited May 5, 2010 by PeaceBlondie

[JimShortz]

Is this thread a competition in who can quote the longest posts. You guys owe me money for wear and tear on my mouse wheel and contribution to repetitive strain injury (repeatedly giving me the urge to *&it)...

[butterisbetter]

As I understand it, under the Thai-United States Amity Treaty, U.S.A. based businesses owned by Americans are allowed to buy land in Thailand under much easier terms than would be the case for other foreign owned business. The Amity treaty does accord Americans special status. For example, I know that unlike other foreigners, because of this treaty, as an American I don't need to show that I have 800,000 baht in the bank to obtain or renew my retirement visa. . I just need to go to the U.S. Consulate and get a notarized statement that I earn x amount of income per year.

[PeaceBlondie]

EDITED OUT QUOTES

[Langsuan Man]

As I understand it, under the Thai-United States Amity Treaty, U.S.A. based businesses owned by Americans are allowed to buy land in Thailand under much easier terms than would be the case for other foreign owned business. The Amity treaty does accord Americans special status. For example, I know that unlike other foreigners, because of this treaty, as an American I don't need to show that I have 800,000 baht in the bank to obtain or renew my retirement visa. . I just need to go to the U.S. Consulate and get a notarized statement that I earn x amount of income per year.

As you understand it is WRONG

" Thai-United States Amity Treaty " has absolutely nothing to do with the Retirement (long stay) Visa or Permission to stay for Retirement that is covered by the 65,000 THB monthly income requirement . These are Immigration rules and only because you are an American the Consulate or Embassy does not require proof of this income

[clinique]

these threads are really pathetic ,, as mostly posters have no idea what they are talking about..