Support sought for bill to curb foreign land grabbers throughout Thailand

[webfact]

Support sought for bill to curb foreign land grabbers in Phuket and throughout Thailand

PHUKET: -- The Office of the Ombudsman is seeking support for a law to prevent foreigners illegally owning land via nominees.

The legislation was discussed yesterday (August 19) at a seminar organised by the Office of the Ombudsman, which wants to push the bill through for scrutiny by Parliament.

The 40-section bill targets foreigners illegally holding land in Thailand, their legal consultants and their nominees.

Foreigners holding land plots in Thailand illegally would face five to 20 years in prison and/or a fine of B500,000 to B2 million, while the consultants would face two-thirds of whatever penalties are imposed on the wrongdoers.

Under the bill, a committee to investigate “hidden” transactions would be set up.

One provision in the draft allows those found to be holding Thai property illegally to transfer the plots to legitimate entities within one year to avoid being punished.

Ombudsman Siracha Charoenpanij said the proposed law aims to close loopholes being exploited by foreigners.

Mr Siracha became the centre of a heated debate in March last year when he claimed that foreigners owned 30 per cent of all the land in Thailand.

Currently, foreigners may “own” land through a number of channels such as registering a limited company with 51:49 Thai-foreign ownership, or by putting the land in the name of a Thai spouse.

“We must bring to account the foreigners, Thai nominees and legal advisers,” he said.

He said the Office of the Ombudsman would propose a regulation overseeing nominee ownership before the law takes effect. It would require the Interior Minister and his permanent secretary to investigate “hidden transactions” and take legal action against offenders.

Mr Siracha said that based on the office’s study, much of the land in major tourist destinations such as Phuket, Koh Samui and Koh Chang is owned by foreigners.

He said another concern was that foreigners allegedly “seized” agricultural areas through either purchase or lease.

“If we don’t do anything, they will take control of it all – tourism, residential and farming,” he said.

Prasop Butsarakham, a legal adviser to House Speaker Somsak Kiatsuranont, backed the proposed changes.

He suggested Mr Siracha ask major political parties to submit their own versions to parliament to avoid conflicts.

Prasong Lertratwisut, a member of the law reform committee, however, pointed out that the problem lay with lax enforcement of the law.

Mr Prasong said land grabs were widespread among Thai investors and suggested a tax measure to address it.

He said information on land ownership should be made public as this would allow the state to collect taxes on unused land.

Mr Prasong believes such a measure would force many landowners to sell their plots to avoid paying taxes.

Pirapan Premputi, former secretary-general of the Anti-Money Laundering Office, also raised concerns about lax law enforcement.

He said existing laws, such as the anti-money laundering law, should be amended instead of drafting a new law.

Department of Business Development deputy chief Wichai Potchanakij said political will was needed if the problem was to be properly addressed.

Mr Siracha said he would submit the bill along with a study on nominee land ownership to the Prime Minister, Parliament and the two biggest political parties before the end of the current session.

-- Phuket News 2013-08-20

[greg71]

Buy a condo ,as this legal (still) for the time being .

[HoudiniXLogic]

Nationalism at it's highest. They're soooooo afraid of a farang actually buying land without the possibility of losing it to an exbargirl. This is BS.

[pedro01]

Time for this again, already? My, how it flies...

[jaidam]

So long as Thai citizens rights are reciprocated in the western world there will not be a problem, as ridiculous articles like this would never appear in the first place.

The most worrying piece of the article is the threat against foreigners that have leased land in Thailand. So, can't buy OK, can't lease either?? Thailand under the Shin dynasty is closing its doors.

[LennyW]

Annual sabre rattling - nothing more, next.!

[NongKhaiKid]

Complete hypocrisy. How many rich Thais own houses overseas, have interest bearing bank accounts etc. simply because they can. At one time Mr. T was trying to but an island in Montenegro and his daughter bought a very expensive house in Hong Kong yet these same people freak out at the thought of foreigners having any such rights here.

It would be nice if foreign governments responded in kind then we would screams of discrimination.

[jbrain]

Nationalism at it's highest. They're soooooo afraid of a farang actually buying land without the possibility of losing it to an exbargirl. This is BS.

Let me correct that for you.

Nationalism Xenophobia at it's highest. They're soooooo afraid of a farang actually buying land without the possibility of losing it to an ex bargirl. This is BS.

[jaidam]

Buy a condo ,as this legal (still) for the time being .

Leasing land, or buying 49/51% in nominee company is also legal at present. Who is to say this xenophobic regime will not extend their forbidden list to condo ownership. It is a natural progression I'm afraid.

[jbrain]

Buy a condo ,as this legal (still) for the time being .

Leasing land, or buying 49/51% in nominee company is also legal at present. Who is to say this xenophobic regime will not extend their forbidden list to condo ownership. It is a natural progression I'm afraid.

Buying 49/51% in nominee company has never been legal.

Read the OP, it exactly that which the ombudsman opposes.

[EvilDrSomkid]

The most worrying piece of the article is the threat against foreigners that have leased land in Thailand. So, can't buy OK, can't lease either?? Thailand under the Shin dynasty is closing its doors.

Please reread OP. Leasing of agricultural land.

Not to be an apologist, but there are no SEA countries where foreigners can legally own land.

[laurentbkk]

I know a lot of thais who own lands and properties in different countries .... without any issues. Maybe its time for our governments to stop that practice and impose the same laws as we have here. I dont think any foreigners would leave the country with the land on the back anyway.

[clockman]

Its too late, deal has been done!

[jaidam]

The most worrying piece of the article is the threat against foreigners that have leased land in Thailand. So, can't buy OK, can't lease either?? Thailand under the Shin dynasty is closing its doors.

Please reread OP. Leasing of agricultural land.

Not to be an apologist, but there are no SEA countries where foreigners can legally own land.

And who is to say what is agricultural land. Its just a matter of zoning. My mate Denzil Penbirthy took a 30 year lease on 5 rai in Isaan to build a house for his Thai wife and kids to grow up on. Their neighbors grow some rice, and one neighbor has a few coconut palms and a pond they use to grow pla nin. This might make his land technically "agricultural" in an overall zoning map but he didn't think this nonsense would happen and they could get turfed out on their ear.

Makes sense to read yesterday that there is concern about the number of farang beggars. The authorities seem to be expecting an explosion in their numbers. Now we know why.

[expat888]

So long as Thai citizens rights are reciprocated in the western world there will not be a problem, as ridiculous articles like this would never appear in the first place.

The most worrying piece of the article is the threat against foreigners that have leased land in Thailand. So, can't buy OK, can't lease either?? Thailand under the Shin dynasty is closing its doors.

The problem is Thais think that this happens in western countries now, but it doesn't.

[harrry]

The most worrying piece of the article is the threat against foreigners that have leased land in Thailand. So, can't buy OK, can't lease either?? Thailand under the Shin dynasty is closing its doors.

Please reread OP. Leasing of agricultural land.

Not to be an apologist, but there are no SEA countries where foreigners can legally own land.

FALSE

Malasia. http://www.mm2h.gov.my/incentive1.php

Singapore http://www.stproperty.sg/articles-property/legal-guides/foreigners-buying-singapore-residential-real-estate/a/129619

Indonesia http://www.expat.or.id/info/ownershiprights.html

Laos http://jclao.com/foreign-investors-allowed-to-own-land/

Vietnam http://tuoitrenews.vn/society/9178/hanoi-to-grant-land-house-deeds-to-foreigners

[expat888]

I always wondered when the foreigners that used businesses created by attorneys and only would own 49% would get screwed by rule changes. Looks like the time is coming closer. Maybe they are fretting over the AEC and taking it out on foreigners.

[Tatsujin]

They should read this: http://meebal.com/ashamed-to-be-a-thai-citizen/

[Thaiwine]

Quote "or by putting the land in the name of a Thai spouse."

Does this mean Thai spouses of foreigners will no longer be allowed to own land

This maybe a lucky break for some of us

[worgeordie]

Everyone should know the biggest landowners in Thailand,are Politicians,influential people,Temples,

So best pass a law so they have no competition,the average foreigner would only like enough land

he could legally own to build a house on, and feel he has a little bit of security,

Thais can go to Europe,U.S.A. and lots of other countries and buy as much land as they want, in their

name,if they have the money.but don't want to let any of it here be bought by outsiders, it not like we

could take it with us,and if it ever got out of hand,they could just make another law,and Nationalize

any Farang owned land.

Regards Worgeordie

[EvilDrSomkid]

The most worrying piece of the article is the threat against foreigners that have leased land in Thailand. So, can't buy OK, can't lease either?? Thailand under the Shin dynasty is closing its doors.

Please reread OP. Leasing of agricultural land.

Not to be an apologist, but there are no SEA countries where foreigners can legally own land.

Speaking so emphatically yet completely incorrect. Did you search for this or just spout off at the mouth, er, fingers?

Malaysia my 2nd home allows land purchase by foreigners.

http://www.mm2h.gov.my/incentive1.php

Also in Singapore under the Residential Property Act, a foreigner can own land.

Apologies, I meant to edit to say 'most' countries in SEA do not allow foreigner ownership.

Technical issue prevented me from editing my post.

[GentlemanJim]

In more recent news:

"In a bid to clarify his stance on this proposed law to prevent foreigners owning land, we tried to contact Mr Siracha Charoenpanij who has conceptualised the bill. Unfortunately he was unavailable for comment as he is now on holiday. We tried both his house on Holland Park Rd London and the modest estate in Scotland that he owns, but he was reportedly somewhere in the NE of England buying a farm with 40 acres of greenbelt land attached. We have forwarded his latest article 'Don't let foreign scum own land in Thailand' to the Foreign Office in London."

[Bluespunk]

"One provision in the draft allows those found to be holding Thai property illegally to transfer the plots to legitimate entities within one year to avoid being punished."

The legitimate entity being this racist and his equally xenophobic mates?

[Thai at Heart]

Another step......

[jombom]

The article by the OP is very confusing. If there is a loophole, then it follows that the practice is not presently illegal, or am I missing something? If the loophole is closed in a new bill, can the legislation be made retro-active?

[CanInBKK]

Not to spark the debate further, but does anybody know the origins or rationale for such laws? I would assume that it is to protect the Thai people from being taken advantage of by "comparatively more wealthy" foreigners. What I mean as an economist is that supply and demand are the basic drivers of price; since supply is finite in order to keep housing affordable the logical approach would be to limit demand.

The reason why a reciprocal law makes no sense in developed nations where so many posters are moaning that "Thais can own land" is that there are not significant numbers of Thai immigrants/visitors that are wealthier than the local population.

If anybody has a better way to keep pricing of land for Thais (yes, I said for Thais because this is Thailand after all), then I'm sure the gov't would love to hear it.

[Thai at Heart]

Not to spark the debate further, but does anybody know the origins or rationale for such laws? I would assume that it is to protect the Thai people from being taken advantage of by "comparatively more wealthy" foreigners. What I mean as an economist is that supply and demand are the basic drivers of price; since supply is finite in order to keep housing affordable the logical approach would be to limit demand.

The reason why a reciprocal law makes no sense in developed nations where so many posters are moaning that "Thais can own land" is that there are not significant numbers of Thai immigrants/visitors that are wealthier than the local population.

If anybody has a better way to keep pricing of land for Thais (yes, I said for Thais because this is Thailand after all), then I'm sure the gov't would love to hear it.

It's basically so a very small percentage of the population can go along hoovering up land without competition.

[Pimay1]

The phrase foreign land grabbers makes me wonder where this writer received his English education. This sound like a headline from a newspaper in India where they really play on words.

[mrtoad]

This one gets an airing at least twice a year - howvere, given the current political instability and xenophobia within the Red Shirt Thugocracy, anyhting is possible, especially if the DL returns.

[gemini81]

Not to spark the debate further, but does anybody know the origins or rationale for such laws? I would assume that it is to protect the Thai people from being taken advantage of by "comparatively more wealthy" foreigners. What I mean as an economist is that supply and demand are the basic drivers of price; since supply is finite in order to keep housing affordable the logical approach would be to limit demand.

The reason why a reciprocal law makes no sense in developed nations where so many posters are moaning that "Thais can own land" is that there are not significant numbers of Thai immigrants/visitors that are wealthier than the local population.

If anybody has a better way to keep pricing of land for Thais (yes, I said for Thais because this is Thailand after all), then I'm sure the gov't would love to hear it.

It's basically so a very small percentage of the population can go along hoovering up land without competition.

Exactly. They control 90% of it. One day, it will all cave in on them; maybe real soon,