Selling A House Within A Thai Company Set-Up

[BOOKEMDANO]

Can anybody advise how to go about selling a house, if the property, (land and house) is registered within a Thai company?

Would it be as simple as transferring the names of the shareholders and M.D to the new owners, thus giving them control of the company and ultimately that of the chanott title?

If this is indeed the case, has anybody had any experience of transferring their company to new owners? Also, would this only apply to foreigners or would Thais also be required to do this if they wanted to buy the property?

Thanks...

[thaiwanderer]

better to transfer shares in offshore controlling company - but if as appears that isn't the case here then in general what you suggest will be required (at the very least)

if a Thai wishes to buy and that's how you are selling then for sure they may be required to do it that way but they must really want it - otherwise why not just own in their own name rather than taking on the company that was only used so a foreigner could circumvent the law?

[InterestedObserver]

If it were me I'd want the company closed by the previous owners to resolve all liabilities. Then I'd purchase the property free and clear.

[seanog]

If already in a Thai Company structure you transfer your shareholding to the new owner , very simple and correct wat to do

[BOOKEMDANO]

If it were me I'd want the company closed by the previous owners to resolve all liabilities. Then I'd purchase the property free and clear.

Understandable. However, many companies are set-up just for the acquisition of property in Thailand. Effectively, it can be very cost effective to simply transfer the names of those concerned as the buyer often pays the land transfer fees.

[thaiwanderer]

If it were me I'd want the company closed by the previous owners to resolve all liabilities. Then I'd purchase the property free and clear.

Understandable. However, many companies are set-up just for the acquisition of property in Thailand. Effectively, it can be very cost effective to simply transfer the names of those concerned as the buyer often pays the land transfer fees.

There wouldn't be any land transfer fees.

Even if the seller pays corporate transfer fees why would a Thai want an illegal nominee company?

For a foreigner relaxed with breaking the law they still might prefer their own company since they will know there's no debts etc.

[BOOKEMDANO]

There wouldn't be any land transfer fees.

Even if the seller pays corporate transfer fees why would a Thai want an illegal nominee company?

For a foreigner relaxed with breaking the law they still might prefer their own company since they will know there's no debts etc.

Why wouldn't there be any taxes to pay if buying a property?

If buying a new property then in most cases the developer will pay the fees. They don't mind doing this as they are making a big enough profit from you as it is. However, if selling privately, of course 'somebody' is liable to pay the transfer fee and land tax.

This is taken from sunbelt asia's website:

"All land transfers and leases over 3 years must be registered with the land department. Taxes and transfer fees will be payable at this time. Those entail:

• Specific Business Tax with a flat rate of 3.3% on a selling price
• Transfer Fees with a flat rate of 2% of an official appraised price
• Stamp Duties with a flat rate of 0.5% of the officially appraised price
• Income Tax with a flat rate of 1% on the selling price for a juristic person or a progressive rate on the selling price for a natural person"

[BOOKEMDANO]

So I say again,

If somebody who didn't want to buy a new property - where in most cases the transfer fees would be paid - the buyer, or the seller, would have to pay taxes somewhere along the line.

If it was registered within a thai ltd company however, would both parties bypass many of these taxes, as it is the company that remains the owner of the said property. Therefore, by simply changing the shareholders within the company would avoid many of these fees that would otherwise be required by law to pay.

[thaiwanderer]

Shares rather than land is being transferred in the example.

[johnnyk]

IMO this is the best option IF SELLING TO A FALANG.

A Thai doesn't need the company to own land and he won't want to pay the yearly costs of maintaining a company (15K+/year).