New Property Law For Foreigners Spreads Confusion

[george]

Thailand's new property law for foreigners spreads confusion

BANGKOK: -- Thailand's booming property sector has been thrown into confusion by a new regulation issued this month that requires all partly foreign-owned companies to prove the source of their funding before purchasing land, industry sources said Tuesday.

The new Interior Ministry regulation that went into effect on May 25 has already started to slow sales of housing estates in Thailand's popular seaside resorts, such as Pattaya, Phuket, Hua Hin and Samui Island, which have been specifically targeting well-to-do foreigners as vacation getaways or retirement homes.

Full story: (Bangkok Post)

[george]

More discussion and the new law enforcement translated here.

[Thaipwriter]

Out of all purchases of houses and land (excluding condo's) what percentage of those purchasers use the Ltd Company route.

I reckon the majority just trust the wifey to do the right thing, some use a lease or a mortgage for back-up. some use the usufruct.

So what percentage of transactions use the company route, and is this figure high enough to declare " the property boom ended on May 25"???

I think maybe 30%??

[deminister]

I do not understand the remark "the day the property boom ended". There must be some property agency behind this statement. In any civilized country it is common that one proves his or her source of income. The fact that people could laundry their money in Thailand has caused the country not only an image problem, but for who has not noticed it. Half of Pattaya is occupied by the Russian mob, the Dutch Mafia, The German underworld, or the English cammora. I would think it was about time, that there came an end to this kind of unwanted property boom, that drove legitimate investors and locals into the sea.

[barryofthailand]

I've said for a long time that if they ever tested the forming of a company to purchase property that the foreignor doing this would lose. They are directly circumventing the law.

Barry

[bquick]

We got tricked.

We all got tricked who bought here.

I swear I will never never trust a chinese man again never.

Property in thailand is now.

I wish all the money the few political lowlifes make from screwing over all the foreigners brings them all the unhappiness hunger and greed they can handle. They deserve it. it is just a shame the rest of the thai population has to suffer because of them.

[dukkha]

In the words of Karl Marx,..."Property is theft, walk right in'...never owned any in 61 years and not likely too...just left Hua Hin after one and half years...Oh My Buddha...enuff said...!! Dukkha

[Einstein]

Law is the Law. If you did it right, then you will not have a problem?

This is Thailand. They can change every day the law and the foreign invester will always loose.

You should know this already. You can not own land or houses in Thailand. That you can own a condiuminium is also a fairytale.

The only thing what you can do is, bring alot of money in Thailand, that's what they like.

The best and easiest thing is: Let your wife buy the land and house and make a lease contract for 30 years with an extention. This is safe and you don't have to make a company, use an account etc.

You can sale the house when you want or rent it to other people.

Foreigner who invests 40 million baht or more in a Thai Company is eligible to purchase land and a house at the size of maximum 400 square wah maximum total land area.(1 square wah = 4 square meters).

YOU MOST BE AN IDIOT IF YOU DO THAT

[Sulaphat]

If the existing laws relating to property ownership are now going to be enforced, what about the existing laws realting to restrictions on majority foreign ownership of companies?

I have heard that many major multinational companies have used elaborate shareholding structures and transactions, including nominees, to circumvent these restrictions when they established subsidiaries in Thailand. Is this practice now going to be endangered as well?

[Chang_paarp]

Funny this question was not asked during the sale of Shin Corp?

That will be interesting to watch. I can see the Singapore govt letting that happen.

[JimsKnight]

Thailand's new property law for foreigners spreads confusion

BANGKOK: -- Thailand's booming property sector has been thrown into confusion by a new regulation issued this month that requires all partly foreign-owned companies to prove the source of their funding before purchasing land, industry sources said Tuesday.

The new Interior Ministry regulation that went into effect on May 25 has already started to slow sales of housing estates in Thailand's popular seaside resorts, such as Pattaya, Phuket, Hua Hin and Samui Island, which have been specifically targeting well-to-do foreigners as vacation getaways or retirement homes.

Full story: (Bangkok Post)

Just like I said It would!

All these guys saying how brilliant it is to buy property in a non trading company name! I hate it to say it but I told you so!

It sucks for the guys who've been hurt by believing all the bar talk crp about making money off housing in thailand but like the poster above mentioned the thais love you to bring money into the country but not out of it!

Sure you can get your wife to change it to lease etc but for someone whose lived in thailand on and off for the past 4 years I would get a good lawyer to sort that one out!

A lot of my expat friends have trouble with their other half who wants their family to move in or pass the house and land onto them after they die. Any mention of keeping it with the falang family side opens a massive can of worms!

Buying advantages aside, I think this only strengthens the argument for renting over buying!

Edited May 30, 2006 by JimsKnight

[nikmcg]

Nothing wrong with foreigners wishing to own holiday homes in Thailand, I guess in one way it helps the Thai economy, jobs in construction etc. Downside of a boom though is you end up pricing out the locals and that could cause resentment.

Also what's so bad about the authorities wanting to know a little about the folks doing the buying? Makes sense I think.

[ColPyat]

We got tricked.

We all got tricked who bought here.

I swear I will never never trust a chinese man again never.

Property in thailand is now.

Tricked? How?

This is just enforcing an existing law. Just because foreigners used the loophole of forming bogus companies for years in order to own property in de facto their name does not mean that this practice was not all along tricking the law.

I don't see the perfectly legal purchase of condos being affected at all by this regulation.

[bquick]

I do not understand the remark "the day the property boom ended". There must be some property agency behind this statement.

There will be a lot of unhappy builders and other foreigners who invested in building houses here and now not being able to sell them so you can expect a lot of fake talking from them here about how everything is ok. All the normal foreigners who put money in a thailand house just got screwed screwed screwed. Everything about that is not ok.

If you still have your money before buying you are lucky. You escaped. A lot of people had paid already only to find out they will have to put the house into a non-trustable name and lease it and deal with the offical thai owner's family likely for a few years before giving up from the unhealthy hassle.

Lots of Dead money with news of that change.

[mobiryder]

one would have to be pretty resourceless to trust their 'wife' to be the owner of the houses, especially if we're talking an expensive house... 'wives' come and go, ESPECIALLY in Thailand.... just my .02

[Noel]

Law is the Law. If you did it right, then you will not have a problem?

This is Thailand. They can change every day the law and the foreign invester will always loose.

You should know this already. You can not own land or houses in Thailand. That you can own a condiuminium is also a fairytale.

"Einstein"...?

[aartchm]

In the New Alien Business Act (March 3, 2000) is stipulated that "Any Thai national or Thai juristic person who provides assistance or holding shares on behalf of the alien, including an alien who allows Thai nationals or juristic person to conduct such act shall be subject to not more than 3 years imprisonment or fine of Thai Baht 100.000,--. to Thai Baht 1.000.000,--. or both imprisonment and fine" Read " March 2000" !!

These nominees are provided by Thai Lawyers and through "legal" or lawyer companys run by foreigners all over Thailand. All this lawyers and "legal" companys now that establishing a company to hold property (land and/or house) where as the 51% Thai owners are formed by office staff, maids, drivers, girlfriends and other persons (there salary most of the time not more than a few thousand a month and there bankaccounts close to zero) is illegal in Thailand. But it is al about greed and most of them are not up to provide legal security for there clients. An the other side most of Thai Law Offices don't have a clue about the Thai Property Laws. Our company, after been informed about this "New Alien Business" act in 2000 only provides ( Yes, through Thai Lawyers) leasecontracts up to 30 years (registered with the landoffice) and with a contract for extension for another 30 years. This is so far we know the most secure way to "own" property in Thailand. Conclusion: Nothing new, they just enforcing the law !!

Aart Chiang Mai

[mjcl]

Just a bit more insular Thai paranoia.

The whole world wants to buy Thailand out from under their feet, if that was to happen, where could they drink lao kao?

[bquick]

We all got the carrots dangled in front of us and reassured again and again by professionals that everything was wonderfuland now we have being bent over and screwed up the ass. Tricked and Screwed screwed screwed. ass raped, lifetimes work raped.

And it hurts.

I walk around the malls now and see the luxury house advertised for the foreigners and my stomack hurts. Thailand ass raped me.

[OZONE]

one would have to be pretty resourceless to trust their 'wife' to be the owner of the houses, especially if we're talking an expensive house... 'wives' come and go, ESPECIALLY in Thailand.... just my .02

What kind of marriage do you have anyway! Must a sad marriage without trust.

[VanZam]

So they want to examine where the money came from... big deal.

Should have read the law before buying here.

[astral]

A lot of hot air about nothing.

This is just the old cherry of Anti Money Laundering again.

It is not only Thailand.

I had the devil of a job getting funds invested in the Isle of Man a couple of years back.

[TBWG]

Out of all purchases of houses and land (excluding condo's) what percentage of those purchasers use the Ltd Company route.

I reckon the majority just trust the wifey to do the right thing, some use a lease or a mortgage for back-up. some use the usufruct.

So what percentage of transactions use the company route, and is this figure high enough to declare " the property boom ended on May 25"???

I think maybe 30%??

I seem to recall a recent Thai Visa poll on land/house ownership which showed that the vast majority of property was registered soley in Thai wife's name.

TBWG

[bquick]

look at ozones avatar above.

"I know how you feel princess." Many of us got turned around and bent over by them luxury house adverts lawyers and land offices too.

[bquick]

Honestly most of us must have lied about that poll because of who might read it.

I know i clicked on thai spouse/girlfriend owning it.

easy rig anyway.

[Phil Conners]

Ok bquick, we got your point. Now please stop repeating yourself

[elGrande]

Where are all those forward looking farangs who rag on elGrande every time he says "investing" in Thailand is risky to the point of foolish.

Probably in "their" homes.

[JimsKnight]

one would have to be pretty resourceless to trust their 'wife' to be the owner of the houses, especially if we're talking an expensive house... 'wives' come and go, ESPECIALLY in Thailand.... just my .02

What kind of marriage do you have anyway! Must a sad marriage without trust.

Erm, well you must be a very trusting kind of guy, when in Thailand the concept of trust and lying is a very flexible thing indeed!

There is no love for the falang in thailand! Love of his money... Now thats something altogether different!

[farang2002]

One would have to figure, safely, that whatever he owns in Thailand will stay there forever with the wife and her family. Entertaining a notion that the farang side of the family will inherit anything after death is fantasy. Hopefully when a farang marries a Thai girl he knows he's really marrying into her whole family.

[Cabana]

The silence from the 'experts' such as Indo Siam and Sunbelt is deafening.