Buy Land Lease Or Set Up A Company ?

[anisathai]

Hello,

I'm from switzerland and i have a thai gf. I'm interested to buy a land 2,5 million bahts in Krabi. What is the safer solution ? Set up a company or doing a leasing contract 30 years please ? I plan to marry in 3 months with my gf but we can't wait to buy the land it's a very good opportunity. How long to set up a company ? How much it cost please ?

Thanks a lot for your precious informations

Regards

Greg

[sam666]

Company and employ fake thais, don't put your girlfriend on the business, have your self at 49% and lots of fake thais to make up 51%.

Don't know in krabi but in HH is around 10-15k a year for the lawyers to sort out the tax and payments etc. Imo people have to be crazy to do leases or put shit in their "thai gf" name.

[challenger99]

Nothing against your girlfriend or future wife but it seem me you act to quick as after tomorrow no more land and house could be found even the immo market now drop down and many cheap and good occasions on the market.

I am Swiss too, living over 5 years here and have seen and read, most farang fail with company or girl. I consult listen what sam666 say and be wise. If this isn't enough buy few cheap books in German language about Thai woman and practise how they milk a farang. This books you can order http://www.der-faran.../?article=books I have read all before come to Thailand and was thinking the writer had a bad experience and lie at 90%; after 5 years I would say maybe 10% are written "with flowers" to make it more interesting and 90% is the sad truth. Up to you to make such investment for books and take your time to read it

The story I send you happen to a colleague and such you can find weekly in the press ..... enjoy!

Edited February 2, 2011 by challenger99

[anisathai]

Thanks for your answer challenger99 i don't speak german but french and i know about this kind of story i live in Thailand for 8 years and stay with my gf for 6 years

[CharlieHarper]

There is lots of info on Thai Visa about how to 'buy' land.

You will find many supporters of both lease and company set ups.

Rules regarding setting up a company are much stricter now than a few years ago.

Strong supporters of this method always conclude with: "Have you ever heard of someone losing their house/land that is held in the name of a company?"

IMHO, it all comes down to whether you believe your company will be investigated - either now or 5, 10, 20, 40 years in the future.

If you buy the land in your GF/wife's name you can get a lease on it in your name giving you a minimum of 30 years use.

There are also Usufructs which, it is my understanding, give you use of the land (house?) for the duration of your life.

You really need to get good legal advice.

A good tip whichever way you go in the Krabi area is that there are several self-proclaimed farang property experts, project managers, design firms etc with nice new offices who will try to swindle you out of your money.

[taninthai]

I just love the lAst paragraph in last post and oh so true beware I know off 1 that charges 8.5 bht per unit for electricity

[Sunbelt Asia]

If you are setting up a company in order to run a business, then the 30 year lease is an option but it is not legal to set up a company simply to purchase land.

The 30 year lease offers you a wide spectrum of rights and you can build and own a house on the land if the lease stipulates it, however the maximum lease agreement is 30 years. While a lease agreement can contractually obligate the landlord to a second 30 year lease it requires the Landlord to go to the Land Office with the lessor to register the second 30 year lease. If the landlord dies before this, his heirs are not contractually obligated to renew. A 30 year lease must be registered at the Land Office on the back of the Title Deed or Certificate of Use and by doing so, any potential buyers will then know the obligations of the lease on the property. If a third party buyer was to buy the land, the tenants rights would be acquired for the remainder of the term of the lease.

A usufruct grants the user a lifetime use of the property, even allowing the usufructary the right to lease the property that would remain legal even after his death. You can also add others to the usufruct, such as your children and then the usufruct would extend to their lifetime. With a usufruct agreement you are registered on the title deed. The property cannot be sold, mortgaged or transferred without termination of the usufruct. The usufruct would be registered with a 1.5% tax of the value of the benefit (since you are not married to a Thai).

You could consider talking to the landowner and setting up the usufruct with him or her directly as this would be the safest way to obtain legal use of the property with a low risk factor.

If your wife purchased the land and then put you on the usufruct, the Land Department would most likely consider this as a gift from a loving wife and either no or nominal fees would be involved.

Sunbelt Asia can help draft a legal usufruct and obtain the yellow house registration book.

[ZOOKA]

Agree with Sam. Set up the Thai co. If the Ministry ever decide to investigate then go to leasehold or sell!

Condo is your safest bet 100% freehold but can be expensive!

Don't put anything in your GF name not even the car! Challenger is spot on. Most of these girls are ruthless. Too many foreigners have llost their life savings to thai girls.

There is no rush to buy land out here. Plenty of choice.

Rent first take your time and live with your lady. Don't be pressurised into making rash decisions which could affect the rest of your life!!

Good luck!!

[nattymatt]

Agree with Sam. Set up the Thai co. If the Ministry ever decide to investigate then go to leasehold or sell!

Condo is your safest bet 100% freehold but can be expensive!

Don't put anything in your GF name not even the car! Challenger is spot on. Most of these girls are ruthless. Too many foreigners have llost their life savings to thai girls.

There is no rush to buy land out here. Plenty of choice.

Rent first take your time and live with your lady. Don't be pressurised into making rash decisions which could affect the rest of your life!!

Good luck!!

Too many foreigners have llost their life savings to thai girls. True, but a lot have been taken for a ride by foreigners

There is no rush to buy land out here. Plenty of choice. ......But you don't want to be last to the party.....The best booze may well be finished already.

Rent first take your time and live with your lady. Don't be pressurised into making rash decisions which could affect the rest of your life!! V V good advice

Edited February 28, 2011 by nattymatt

[Rooo]

Moving to Real Estate Forum.

[johnnyk]

If you do a company arrange the shares 39% for you and 61% for others. The Land Office mostly examines companies where falang has 49% but generally ignore companies with 39%.

To keep control you can have two classes of shares, Ordinary and Preference.

The falang should hold the Ordinary shares because each share has 10 votes.

Preference shares have only one vote per share.

Example: 1000 shares total (610 Preference and 390 Ordinary)

Thai shareholders have 610 = 610 votes

Falang has 390 = 3900 votes and control.

This way you own a minority but in a way that gives you control.

It is legal to have two classes of shares in many countries including Thailand.

Edited March 7, 2011 by johnnyk

[nattymatt]

I do believe that they have got rid of the 2 share types now.

If this isn't true i would like to know, as i was told by my accountant that ordinary and preference shares don't apply any more.

Maybe this only applies to newly registered companies or new foreign companies.

If any one knows i would love to know too.

[rodentwarrior]

I do believe that they have got rid of the 2 share types now.

If this isn't true i would like to know, as i was told by my accountant that ordinary and preference shares don't apply any more.

Maybe this only applies to newly registered companies or new foreign companies.

If any one knows i would love to know too.

If your accountant doesn't know, you should consider replacement!

[nattymatt]

Duh!!!!

I'm asking the question, as i am not sure if the info i have been told is correct.

I am not an accountant Rodent Warrior...are you? do you know if this information is correct?

If anyone does have any info i would appreciate it......my accountant (i assume) knows more than i do about the thai business law.

[thaiwanderer]

If you are setting up a company in order to run a business, then the 30 year lease is an option but it is not legal to set up a company simply to purchase land.

The 30 year lease offers you a wide spectrum of rights and you can build and own a house on the land if the lease stipulates it, however the maximum lease agreement is 30 years. While a lease agreement can contractually obligate the landlord to a second 30 year lease it requires the Landlord to go to the Land Office with the lessor to register the second 30 year lease. If the landlord dies before this, his heirs are not contractually obligated to renew. A 30 year lease must be registered at the Land Office on the back of the Title Deed or Certificate of Use and by doing so, any potential buyers will then know the obligations of the lease on the property. If a third party buyer was to buy the land, the tenants rights would be acquired for the remainder of the term of the lease.

A usufruct grants the user a lifetime use of the property, even allowing the usufructary the right to lease the property that would remain legal even after his death. You can also add others to the usufruct, such as your children and then the usufruct would extend to their lifetime. With a usufruct agreement you are registered on the title deed. The property cannot be sold, mortgaged or transferred without termination of the usufruct. The usufruct would be registered with a 1.5% tax of the value of the benefit (since you are not married to a Thai).

You could consider talking to the landowner and setting up the usufruct with him or her directly as this would be the safest way to obtain legal use of the property with a low risk factor.

If your wife purchased the land and then put you on the usufruct, the Land Department would most likely consider this as a gift from a loving wife and either no or nominal fees would be involved.

Sunbelt Asia can help draft a legal usufruct and obtain the yellow house registration book.

How many leases granted by a foreign usufructuary have Sunbelt registered?

[thaiwanderer]

If you are setting up a company in order to run a business, then the 30 year lease is an option but it is not legal to set up a company simply to purchase land.

The 30 year lease offers you a wide spectrum of rights and you can build and own a house on the land if the lease stipulates it, however the maximum lease agreement is 30 years. While a lease agreement can contractually obligate the landlord to a second 30 year lease it requires the Landlord to go to the Land Office with the lessor to register the second 30 year lease. If the landlord dies before this, his heirs are not contractually obligated to renew. A 30 year lease must be registered at the Land Office on the back of the Title Deed or Certificate of Use and by doing so, any potential buyers will then know the obligations of the lease on the property. If a third party buyer was to buy the land, the tenants rights would be acquired for the remainder of the term of the lease.

A usufruct grants the user a lifetime use of the property, even allowing the usufructary the right to lease the property that would remain legal even after his death. You can also add others to the usufruct, such as your children and then the usufruct would extend to their lifetime. With a usufruct agreement you are registered on the title deed. The property cannot be sold, mortgaged or transferred without termination of the usufruct. The usufruct would be registered with a 1.5% tax of the value of the benefit (since you are not married to a Thai).

You could consider talking to the landowner and setting up the usufruct with him or her directly as this would be the safest way to obtain legal use of the property with a low risk factor.

If your wife purchased the land and then put you on the usufruct, the Land Department would most likely consider this as a gift from a loving wife and either no or nominal fees would be involved.

Sunbelt Asia can help draft a legal usufruct and obtain the yellow house registration book.

How many leases granted by a foreign usufructuary have Sunbelt registered?

I had set up a separate thread regarding this issue but perhaps that is unnecessary duplication.

However I do feel its an important issue for a forum sponsor to clear up otherwise posts such as that above might well be misinterpreted.

So, respectfully could Sunbelt (or anyone else for that matter) please respond to the following as the usufruct / lease issue has been touted by others as solid law but i suspect only in a theoretical way for foreigners.

Does anyone have direct knowledge or experience of a foreign usufructuary personally registering a long term lease to a third party? (and for Sunbelt / other professionals - how commonly is this successful?)

Further still any such leases (granted by a foreign usufructuary) being upheld in Court?