Phuket Condo Non Freehold

[jonnie]

I want to buy a condo in Phuket. Unfortunately the 49% foreigner owned freehold are already sold. I do not need finance and will transfer the money from the UK to my BKK bank account. What are my options? All the post I can find, talk about owning a condo freehold within the 49% foreigner freehold allocation. But this doesn't apply to my situation. Setting up a Thai company to purchase land for a house, I believe is technically illegal as it can be interpreted as trying to circumvent the Thai land laws. Does the same law apply to condominiums? i.e. setting up a Thai company to buy a condo because the 49% foreigner freehold allocation has gone. I do not want to break the law, likewise I do not want to risk loosing my investment. What should I do?

I don't subscribe to buying it and registering it in the name of a Thai lady who I trust. Is the Thai company route my only option?

I would be grateful for some advice. Thank you in anticipation.

Jonnie.

[backflip]

As you suggested, you can set up a Thai company to purchase the condo. It's entirely legal, and I suggest you contact Sunbelt Asia which can handle the details. Setting up the company properly will cost about $1200USD and about $500USD per year in fees.

[Nadia 2]

Backplif is correct that a Thai or foreign company / juristic person can purchase a condominium. However, to determine if the company is a Thai or foreign entity (foreigner) the Condominium Act referrers to Announcement No. 281 of the National Executive Council dated November 24, 1972 which is repealed by the foreign business Act 1999 http://www.dbd.go.th/eng/law/fba_e1999.phtml

See section 4 how a company is deemed foreign.

The Phuket Land Office will probably register the unit title deed in a minority owned company without investigating the capital investment or if you used a nominee structure to circumvent the law. They will only check the foreign shareholder proportion. This practice may be correct as they may assume you have followed the law... But then again as in fact you have not followed the law this may lead to potential problems in the future.

This besides all the restrictions and requirement of operating a Thai company and you being a foreign director in Thailand (the drawbacks are mentioned a few times in relation to Landholding companies).