Land Ownership

[bigcest]

Hello

I have been looking into buying some land in Koh Samui for possible development, I understand that I would need to form a company in Thailand with a 51% thai shareholders, but I have heard that the laws in Thailand may be changing soon to make it a lot easier for non Thai nationals to purchase land, does anyone know if there is any truth in this?? If this is the case then would property prices be expected to go up overnight??

Any advice or assisstance would be grately appreiciated. Or if anyone could suggest the correct people I need to talk to about this

Thank you in advance

Bigcest

[BKK90210]

Ask the neighbour for the exact address or by looking at the neighbours you can figured out the exact house number. Then ask the neighbours for the extra info such as the exact district and province juristriction and zipcode. In addition look at the property markers at each corner, there should be a concrete marker with Chanote number on it....then take all the info to the land office ...but there is no guaranteed the land office will disclose owner's information.

[Morden]

Hello

I have been looking into buying some land in Koh Samui for possible development, I understand that I would need to form a company in Thailand with a 51% thai shareholders, but I have heard that the laws in Thailand may be changing soon to make it a lot easier for non Thai nationals to purchase land, does anyone know if there is any truth in this?? If this is the case then would property prices be expected to go up overnight??

Bigcest

You are about to step into a minefield!! I suggest that you research very carefully on this site and elsewhere before you go ahead. Question no. 1 is always, 'How much money am I prepared to lose?'. The answer to that question should be the limit to your investment in Thailand.

[Morden]

Duplicated post. SPoooooooky!!

Edited March 21, 2006 by Morden

[Dragonman]

Hello

I have been looking into buying some land in Koh Samui for possible development, I understand that I would need to form a company in Thailand with a 51% thai shareholders, but I have heard that the laws in Thailand may be changing soon to make it a lot easier for non Thai nationals to purchase land, does anyone know if there is any truth in this?? If this is the case then would property prices be expected to go up overnight??

Any advice or assisstance would be grately appreiciated. Or if anyone could suggest the correct people I need to talk to about this

Thank you in advance

Bigcest

There have been hints by Government ministers for some time that rules will change, but they will not make it easier to BUY, simply to LEASE. The suggestion is that 99 year leases will be available with the freehold held by the Land Office. IF you died, the land could only be bequeathed or sold to a thai national. As with most "suggestions" don't hold your breath

[BKK90210]

Opp....sorry I posted above info in the wrong thread.

Forgive me

[Nadia 2]

Hello

I have been looking into buying some land in Koh Samui for possible development, I understand that I would need to form a company in Thailand with a 51% thai shareholders, but I have heard that the laws in Thailand may be changing soon to make it a lot easier for non Thai nationals to purchase land, does anyone know if there is any truth in this?? If this is the case then would property prices be expected to go up overnight??

Any advice or assisstance would be grately appreiciated. Or if anyone could suggest the correct people I need to talk to about this

Thank you in advance

Bigcest

The laws on foreign landownership will change soon and the land would be worth double.. Sure.

What else did they you, the seller is a drunk, has gambling debts, divorce and you must act quickly because other people are also interested, he can sell for more but if you offer 3 million per rai today he will sell... and maybe even a buy back guarantee?

The land code will not change, the foreign business act will not change and it is illegal to set up a company to circumvent the law (void)… If you start a company you must use the company for business not just as a convenience to own the property. But even then your company can be deemed foreign and therefore you are not allowed to own land, section 94 of the Land Code - or section 96 of the land code; 'When it appears that any person (including a juristic person) has acquired land as the owner in place of an alien or juristic person under the provisions of Section 97 and 98, the Director-General shall have the authority to dispose of such land and the provisions of Section 94 shall apply mutatis mutandis'. Not only could the limited company be deemed alien, also could the limited company be seen as person 'in the place of the alien'.

This is of course quite obvious the case, looking at the capital investment, the nominee structure (illegal), the company's business, foreign control, etc. and therefore, within present Thai law, the company could be forced to dispose of the land. It is just a matter of time till maybe the next government start enforcing the law again and you could lose your investment.

You think to develop the land? Land trading (list one) is mentioned as a prohibited business for foreigners to operate. Have a look at the official website of the ministry of commerce – section 4 how a company is deemed foreign and the penalties section 36 - http://www.dbd.go.th/eng/law/fba_e1999.phtml . Have you checked the development plan for that area where you plan to purchase? Most property people only point out the zone regulations under the Ministerial Regulation issued by the Building Control Act. However, these areas are only general restrictions and building regulations. There are exemptions and zone restrictions or protected areas under other laws. Note that in Phuket a few years ago land deeds of 10,000 rai of agricultural and forest area were revoked and returned to the state because of illegal development.

Between April 1999 and April 2004 foreigners could under certain restrictions and in specified areas own up to 100 % of the aggregate unit space in a Condominium block. This has since been amended back to 49 % of the aggregate unit space. How about the Thai government giving more freedom to foreigners to own property in Thailand….

I do not know many foreign real estate agents or legal advisors who own property themselves (unless they have Thai wives). They all rent. I wonder why, if it is such a good investment. Probably because they are not that stupid....

Talk to a independent lawyer in BKK without interest in the property market if you need advice.

[Gary A]

My advice is to wait until the Thai government loosens up land ownership rights. Since that won't happen in our lifetimes you will save a lot of money and headaches.

[Maigo6]

I would think long and hard about any deals offered to you in Thailand.

Especially by other westerners.

These guys use the fact that you may not trust the locals to be honest with you, but the friendly westerner you will trust, beware, these guys prey on that.

There will be no way that Farangs will be able to own land in Thailand, I imagine someone is trying to con you into believing that you will be able to double your investment very quickly.

In Thailand as a rule, if there is money to be made easily, the Thais will be making it, not Farangs.

[Heng]

In Thailand as a rule, if there is money to be made easily, the Thais will be making it, not Farangs.

Actually from the few that I know that have done fairly well: the uneven playing field + the seemingly perpetual uphill has a weeding out effect that does leave some rather capable business farangs in the business arena. True, many farang businesses are just treading water but there are plenty of stars out there as well.