Wimbledon Posted October 17, 2013 Share Posted October 17, 2013 Hi i know its legal to buy a condo , however if you buy one in a thai company name , is this have any negative issues doing it this way ? In other words , if its not a foreigner quota, what are the issues ? Thanks Link to comment Share on other sites More sharing options...
jay1980 Posted October 17, 2013 Share Posted October 17, 2013 You are owning it not 100% in your own name but through a legal loophole. I think you would need to submit accounts for your 'shell company' that owns the condo. The legal loophole could be closed your future ownership of the condo would be in doubt, however many say this is unlikely to happen in the short term and many properties in Thailand are owned this way and have been for many years. Personally I would not be comfortable with this so I bought a condo in the farang allocation with the charnote in my own name, but many people are living happily in properties in company name, hopefully they will continue to do so. good luck with your property search 2 Link to comment Share on other sites More sharing options...
bangkokstick Posted October 18, 2013 Share Posted October 18, 2013 There is no problem, just do it because the government will first take a lot of money from the cheaters who buy land and houses in a company name, which is totally illegal. Link to comment Share on other sites More sharing options...
chris2004 Posted October 18, 2013 Share Posted October 18, 2013 Why take the risk, there are thousands of condos for sale in farang name. Also you will have to pay for accounting fees to do your company accounts every year and maybe have problems selling later. 1 Link to comment Share on other sites More sharing options...
oneday Posted October 18, 2013 Share Posted October 18, 2013 The way I understand it and I'm happy to be corrected. If you actually have a company making money and employing more than 4 Thai people full-time then you are probably OK. Outside of that it falls into the category the other posters are talking about...illegal. 2 Link to comment Share on other sites More sharing options...
Wimbledon Posted October 18, 2013 Author Share Posted October 18, 2013 (edited) Okay thank you. i get the picture .... With govts all over the world looking for more funds , i dont want to be in that situation .there is enough paperwork that accounting does not excite me either ...... As you say lots of condos ( except in Naklua , not a whole bunch) at a decent price Edited October 18, 2013 by Wimbledon Link to comment Share on other sites More sharing options...
robertthebruce Posted October 18, 2013 Share Posted October 18, 2013 Hi I bought my Condo about 3 years ago, with a ''Thai Company Ownership'' had no problems, nothing whatsoever. 1 Link to comment Share on other sites More sharing options...
PoorSucker Posted October 18, 2013 Share Posted October 18, 2013 When you sell it, you will be taxed as company, not as an individual. Link to comment Share on other sites More sharing options...
robertthebruce Posted October 18, 2013 Share Posted October 18, 2013 When you sell it, you will be taxed as company, not as an individual. One of my friends, sold about 6 months back and he managed to keep most of the profit, which was about 28 percent. whereas if he was taxed as an individual he would of paid more... i am no expert, but thats what happened. Link to comment Share on other sites More sharing options...
KittenKong Posted October 18, 2013 Share Posted October 18, 2013 I bought my Condo about 3 years ago, with a ''Thai Company Ownership'' had no problems, nothing whatsoever. I think that the problems may come later, if they do come. The whole point about the farang quota/company name question is that buying in farang name is totally and completely legal; the structure was created in law with the specific intention of allowing farangs to buy condos. Buying in company name is semi-legal trickery at best or outright illegality at worst and at some point it may come back to bite you on the backside, perhaps in the form of extra taxes or even in the form of confiscation and criminal proceedings. Stranger things have happened. Given the huge (over-)availability of condos of all types everywhere in Thailand (or at least everywhere I've ever looked), I really don't see the point of bothering with company name purchases. Link to comment Share on other sites More sharing options...
Theo007 Posted October 18, 2013 Share Posted October 18, 2013 Personally I would never do it, the law can be tightened up at any time. Link to comment Share on other sites More sharing options...
Thormaturge Posted October 18, 2013 Share Posted October 18, 2013 The way I understand it and I'm happy to be corrected. If you actually have a company making money and employing more than 4 Thai people full-time then you are probably OK. Outside of that it falls into the category the other posters are talking about...illegal. This is totally on the money. I have been looking into this myself since I do have a company that conducts business here, with VAT registration, four staff, social fund contributions and WP. The idea is that the company is allowed to purchase property for the director to live in, but then you have to consider who actually owns the company....I have a minority shareholding so strictly speaking the house will be owned by the Thai shareholders. On second thoughts, buy a condo. Link to comment Share on other sites More sharing options...
Noreya Posted October 18, 2013 Share Posted October 18, 2013 I think that the problems may come later, if they do come. I agree with him. Now I am trying to sell a Townhouse in Soi Ladprao 80 for 5 million - A townhouse ownership is under Thai company name (a purpose of buying property only). Buying price in 2004 was 4 million. Company must file "Annual Company Balance Sheet" and A townhouse is specific as an asset own by a company. Asset Depreciation is 10% per year. My accounting company told me one factor that I did not know it before. After 10 years this company asset will be 0 value in Company Balance Sheet. When we sell it at price 5 million. This is mean company make income from this asset. Company must pay cooperate income tax to IRS and also must be Tax at Land office in full rate at 7%. (if under Thai people - we do not have to pay tax at Land office when we sell a house that we live in for 3 years we pay only transfer fee for 2%) In my case problems come after 9 years. Due to company asset value reduce in company balance sheet and make big profit from a sell price. I bought my Condo about 3 years ago, with a ''Thai Company Ownership'' had no problems, nothing whatsoever. I think that the problems may come later, if they do come.The whole point about the farang quota/company name question is that buying in farang name is totally and completely legal; the structure was created in law with the specific intention of allowing farangs to buy condos. Buying in company name is semi-legal trickery at best or outright illegality at worst and at some point it may come back to bite you on the backside, perhaps in the form of extra taxes or even in the form of confiscation and criminal proceedings. Stranger things have happened.Given the huge (over-)availability of condos of all types everywhere in Thailand (or at least everywhere I've ever looked), I really don't see the point of bothering with company name purchases. Link to comment Share on other sites More sharing options...
Wimbledon Posted October 18, 2013 Author Share Posted October 18, 2013 (edited) If you are a ferang and you buy the condo what is the capital gains and other cost when you sell ? i believe you must hold it for ???? Years so you capital gain is not as much ! SO if i dont have a business , i think from my info so far is that its likely more profitable to buy it in personal name ..... Is this correct and accounting less too ! ?? So what are the costs to purchase and to sell if you buy in legal personal way please? Edited October 18, 2013 by Wimbledon Link to comment Share on other sites More sharing options...
bangkokstick Posted October 18, 2013 Share Posted October 18, 2013 When you sell it, you will be taxed as company, not as an individual. And so ? Does it cost more ? 1 Link to comment Share on other sites More sharing options...
little mary sunshine Posted October 18, 2013 Share Posted October 18, 2013 You are putting a lot of money into a LEGAL LOOPHOLE that can be plugged at anytime. I would think twice before investing into something that might be taken away from you. Some grumbling now about 50%+ of the resort properties owned by non-Thais., through these loopholes. I would buy into a comples that has property in foreigh names available, the 49% quota. If you have to set up a "sham company" to acquire a condo, something can go wrong. It's an attempt to skirt the laws. The Government can close these loopholes at will.....Than what happens ????? I worked to hard to gamble with 1.5-3 Million Baht. I say better safe than sorry. This may not happen, or may not happen for years, but if it does, wait unitl you hear all those that attempted to circumvent, "skirt" the laws cry like babies................. Link to comment Share on other sites More sharing options...
Braddockrd Posted October 18, 2013 Share Posted October 18, 2013 Wimbledon, the legality issue is direclty linked to the ownership, via loophole, of something that cannot be otherwise legally owned. Since this is not the issue here, what you propose is perfectly legal. Your risks are more related to the ownership of that company. Do you trust the lawyers? The nominee shareholders? The biggest issue with owning property in Thailand actually comes to Capital Gain Taxation, which in Thailand is basically the equivalent of income tax, as there is no distinct capital gain tax. http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=4&ved=0CD4QFjAD&url=http%3A%2F%2Fwww.siamrealestate.com%2Fdocs%2Ftax%2FProperty_Tax_News_Sep10.pdf&ei=_59gUryRG4SMrQfKroHwBQ&usg=AFQjCNF2HUkPOuXwtF4SNOPCPteA__wO6g&bvm=bv.54934254,d.bmk Link to comment Share on other sites More sharing options...
Noreya Posted October 18, 2013 Share Posted October 18, 2013 If you are a ferang and you buy the condo what is the capital gains and other cost when you sell ? i believe you must hold it for ???? Years so you capital gain is not as much ! SO if i dont have a business , i think from my info so far is that its likely more profitable to buy it in personal name ..... Is this correct and accounting less too ! ?? So what are the costs to purchase and to sell if you buy in legal personal way please? Yes, its likely more profitable to buy it in personal name. the capital gains - The capital gains is after for 7 years you may can sell it at break even point as same price that you paid. Its likely do not make muck profit. The profit is you did not have to pay your rents for 7 years if you keep it for 7 years at lease. and other cost when you sell ? - A house - ownership pay for common area service very cheap but - A condo common area is expensive 60% more. When sell it pay same transfer fee at Land office as same as Thai sell a house. And do not have to pay tax to IRS only Transfer fee at Land office (must have a farang name state as ownership in Tabeanbaan. (same as a House Registered Blue Book ) Also save money from pay to accounting company to prepare Company Balance Sheet to keep a company in active at Ministry of Commerce. Link to comment Share on other sites More sharing options...
SunsetT Posted October 18, 2013 Share Posted October 18, 2013 I thought personal condo ownership was only available in Bangkok and Pattaya, but I see them being advertised in Udon now. Is this legal? Link to comment Share on other sites More sharing options...
Nobbie49 Posted October 18, 2013 Share Posted October 18, 2013 When you sell it, you will be taxed as company, not as an individual. And so ? Does it cost more ? On the positive side, if a company is registered for the sole purpose of owning a house or condo then any tax (transfer as well as corporate tax) upon sale of the property can be avoided by simply transferring the shares. Voila! Link to comment Share on other sites More sharing options...
Danbit Posted October 18, 2013 Share Posted October 18, 2013 Here is what is for sale of condos at Panya Resort (Crystal Bay Golf) in Bangpra. Condoes is in Tower C, but there are many for sale in Tower A and B. Prices are before discount and the svimming pool is under repair. http://www.thaigolf.dk/prices_for_tower_c.pdf Buy a condo it is the legal way. Link to comment Share on other sites More sharing options...
allexx Posted October 18, 2013 Share Posted October 18, 2013 I bought my house about 23 years ago, with a ''Thai Company Ownership'' had no problems, nothing whatsoever. Link to comment Share on other sites More sharing options...
rayongchelsea Posted October 18, 2013 Share Posted October 18, 2013 If the asset has been depreciated on the balance sheet the difference between that amount and the sale price is assessable to progressive rates of income tax depending on the profit. Taxes are paid by the company. When the cash is distributed it would be distributed as a dividend again taxable, this time paid by the individual. As an individual owner after 5 years the taxes paid are around 5% or less. You can also negotiate to shares these taxes with the buyer.. Sent from my iPad using Thaivisa Connect Thailand mobile app Link to comment Share on other sites More sharing options...
truckerjoe Posted October 19, 2013 Share Posted October 19, 2013 Why buy when renting is still affordable, I personally have lost one house to my greedy ex, and lost my deposits on on two condos I was buying off plan when the Thai developer had problems for building without the correct paperwork, (probably forgot to take care of someone in planning) Renting is so much less stressful in Thailand, and many foreigners do eventually realize Thailand is far from being the paradise they once thought, much easier to move on if you don't have too much baggage! Link to comment Share on other sites More sharing options...
BlackJack Posted October 20, 2013 Share Posted October 20, 2013 as one said just transfer the shares to the new owner i personally think that Thailand under ASEAN will open up a bit more and allow foreigners to own land and properties - after all let the foreigners build it as they cant take it with them when they go. It happened on the Gold Coast in Australia - the Japanese poured into golf courses, hotels, condo's and everything - then the northern parts opened up with better tourist sites and the Gold Coast died. But the golf courses et al are still all there. Link to comment Share on other sites More sharing options...
Langsuan Man Posted October 21, 2013 Share Posted October 21, 2013 as one said just transfer the shares to the new owner i personally think that Thailand under ASEAN will open up a bit more and allow foreigners to own land and properties - after all let the foreigners build it as they cant take it with them when they go. It happened on the Gold Coast in Australia - the Japanese poured into golf courses, hotels, condo's and everything - then the northern parts opened up with better tourist sites and the Gold Coast died. But the golf courses et al are still all there. Sorry I can't agree with you. I think that absolutely nothing will change when ASEAN is fully implemented here in regards to property ownership. Property taxes here in Thailand are ridiculously low, so low that in most places they don't even bother to send out tax bills, so there is no reason for those in charge to change the law. In fact one of the reasons property is so expensive here in Thailand is because there is no pressure to sell, since it cost's you nothing to keep it, might as well let it accrue in value over time The current system's "loophole" via the company route raises millions of Baht to the lawyers, accountants, and tax authorities, the people that really run this country. They are not about to change the system that guarantees them at a minimum of 15 to 20 K Baht each and every year for each piece of property that is owned by a company NAFTA did absolutely nothing to change the property ownership laws for foreigners in Mexico, which also relies on "company structure" to own property there So unless the Thais are serious about changing their own property tax structure (and they are not). The system currently in place will continue, IMHO since it benefits the elite, who own everything in this country Link to comment Share on other sites More sharing options...
BlackJack Posted October 21, 2013 Share Posted October 21, 2013 There is a tax now ffor sitting on land and thats why people are developing Sent from my GT-N7100 using Thaivisa Connect Thailand mobile app 1 Link to comment Share on other sites More sharing options...
Noreya Posted October 21, 2013 Share Posted October 21, 2013 I agree with Langsuan Man. The system currently in place will continue, IMHO since it benefits the elite, who own everything in this country. We try to make more source of INCOME for our country regarding property tax and peace of land plot that did not develop. But nothing pass from the lawmaker yet. Since they are the elite. Just transfer the shares to the new owner. Most of Thai when they buy property they put under individual asset - mean you can only sell a company to farang only. as one said just transfer the shares to the new owner i personally think that Thailand under ASEAN will open up a bit more and allow foreigners to own land and properties - after all let the foreigners build it as they cant take it with them when they go. It happened on the Gold Coast in Australia - the Japanese poured into golf courses, hotels, condo's and everything - then the northern parts opened up with better tourist sites and the Gold Coast died. But the golf courses et al are still all there. Sorry I can't agree with you. I think that absolutely nothing will change when ASEAN is fully implemented here in regards to property ownership. Property taxes here in Thailand are ridiculously low, so low that in most places they don't even bother to send out tax bills, so there is no reason for those in charge to change the law. In fact one of the reasons property is so expensive here in Thailand is because there is no pressure to sell, since it cost's you nothing to keep it, might as well let it accrue in value over time The current system's "loophole" via the company route raises millions of Baht to the lawyers, accountants, and tax authorities, the people that really run this country. They are not about to change the system that guarantees them at a minimum of 15 to 20 K Baht each and every year for each piece of property that is owned by a company NAFTA did absolutely nothing to change the property ownership laws for foreigners in Mexico, which also relies on "company structure" to own property there So unless the Thais are serious about changing their own property tax structure (and they are not). The system currently in place will continue, IMHO since it benefits the elite, who own everything in this country Link to comment Share on other sites More sharing options...
Langsuan Man Posted October 21, 2013 Share Posted October 21, 2013 There is a tax now ffor sitting on land and thats why people are developing Sent from my GT-N7100 using Thaivisa Connect Thailand mobile app Source please? There was an attempt to levy a significant property tax on unused land here in Thailand during the Abhist Administration but it never got to the floor for a vote, so as we say in the US, it died in committee. The main thrust of the proposed legislation was to allow property tax revenue to be collected locally instead of everything flowing to Bangkok and then back to the locals. Of course that would mean that the central government would not get it's cut therefore dooming it before it could even start. Not to mention the uproar on the part of large landowners who were not about to have what their ancestors stole suddenly taxed 1 Link to comment Share on other sites More sharing options...
dighambara Posted October 22, 2013 Share Posted October 22, 2013 Hi I bought my Condo about 3 years ago, with a ''Thai Company Ownership'' had no problems, nothing whatsoever. However, in point of fact, the Thai company owns the condo - you do not. Should the company fail for any reason, ownership is in doubt. Link to comment Share on other sites More sharing options...
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