Land Crackdown Targets Thai Shareholders

[lukamar]

If you are destitute or infirm you would be more likely to gain a "stay of execution"

If you are destitute or infirm you probably would not have to worry about leases as immigration probably would not be granting you a visa to stay in Thailand. If you were disabled and the house was specifically built or modified you might stand a chance, although not much of one.

She comes from a semi-wealthy family that brought themselves up from the deep depths of poverty. Their wealth was achieved in one generation.

This is the "New Money" generation and it's not just in Thailand that the established old money people have a problem, it's everywhere.

[Heng]

I predict that Thailand will follow in the next 1 or 2 decades allowing foreigners to buy/build and you will see the economical effects in a split-second.

And, Heng, you and your family will be the first to know and the first to laugh laughing even more than you already do

LaoPo[/color]

In the next 1-2 decades? Thailand has been allowing foreigners to buy/build for more than a hundred+ years now. And yes, the economic effects have been incredible. At first, it was just the Chinese, but for the past 50+ years, it's been the Japanese as well. Now the Koreans, Taiwanese, and Singaporeans are quite welcome as well. Western foreigners as well... through THEIR FAMILIES. IMO the issue is that westerners don't maintain their legacies in the LOS (for every Links or Leonowens, there are a hundred Abdul-Rahims, and a thousand Chearavanonts), that's why they don't see much progress here when compared to say South or East Asian immigrants to the LOS.

As for laughing, I'm really content with a mere hearty chuckle now and then.

Edited June 4, 2006 by Heng

[Heng]

If Thai nationals can buy land next door to me in my country of origin, you would think that the Thai government in all it's benevelonce would reciprocate

Sure you can. It'll just cost you 40 million. Which if you compare the numbers of Thais who can afford to go abroad and acquire property (few) and foreigners who are willing and able to invest 40,, here for a piece of land (few), I'd say it about evens out. It's just a matter of each country setting roadblocks at different points.

A tongue in cheek remark Heng

edit:-syntax...I can't spell early in the morning

[Godders]

The solution is easy,

Buy the LAND in your wife’s name. Usually circa B1.000,000

Put a 30 year lease on it, plus another 30 to follow.

Build the house, this you can own and demolish if you choose to.

Keep your money out of Thailand and out of reach of the Thai courts and you’re soon to be ex wife.

If you end up divorced. The Thai law says all assets should be split 50/50.

So half the value of the house and land each. (poss, 2.000,000 each)

So it costs you about 2.000.000 Baht for the pleasure of getting rid of her.

You can offer to buy her out for a lower amount or make her wait till the end of the lease.

Get divorced in any western country and it will cost you a lot more.

Our house in Thailand is in my wifes name, if anything went wrong i would not want it, its in the village amongst the Thai family. property is one of the powest priorites in a divorce for me.

[Dragonman]

If you are destitute or infirm you would be more likely to gain a "stay of execution"

If you are destitute or infirm you probably would not have to worry about leases as immigration probably would not be granting you a visa to stay in Thailand. If you were disabled and the house was specifically built or modified you might stand a chance, although not much of one.ywhere.

I am both destitute and infirm and have had no problem renewing my Non Imm O for many, many years.

[LaoPo]

I predict that Thailand will follow in the next 1 or 2 decades allowing foreigners to buy/build and you will see the economical effects in a split-second.

And, Heng, you and your family will be the first to know and the first to laugh laughing even more than you already do

LaoPo[/color]

In the next 1-2 decades? Thailand has been allowing foreigners to buy/build for more than a hundred+ years now. And yes, the economic effects have been incredible. At first, it was just the Chinese, but for the past 50+ years, it's been the Japanese as well. Now the Koreans, Taiwanese, and Singaporeans are quite welcome as well. Western foreigners as well... through THEIR FAMILIES. IMO the issue is that westerners don't maintain their legacies in the LOS (for every Links or Leonowens, there are a hundred Abdul-Rahims, and a thousand Chearavanonts), that's why they don't see much progress here when compared to say South or East Asian immigrants to the LOS.

As for laughing, I'm really content with a mere hearty chuckle now and then.

Thank you for enlightening the subject, but I think we are talking different subjects here.

If you're talking about condo's, yes I agree.

But I was talking about the possibility to buy/build a house, villa if you wish, where the foreigner can own the land on which the house is built.

I am talking about 'rights' here; rights a foreigner has if he buys/build a house in liberal countries, not protective countries like Thailand.

Or are you saying that Thailand is a liberal country where it comes to the possibilities for a foreigner to own land and the house it is built on?

The same rights you have to build a nice villa on the Cote d'Azur/France, Marbella/Spain, or Florida/USA?

That's why I said that in 'my view' the Thai government will see the possibilities of allowing foreigners to own land/buy/build a house in the next 1 or 2 decades and throw 'protectionism' overboard

But.......I think that day will be nearer than you or I anticipate or dream of; the next crash for Thailand is around the corner but not just for Thailand....(therefore TH has to find ways to boost her economy again to put hundreds of thousands of workers to work again -after a crash-.....think!).

The stockmarkets in the Middle East and India already dropped a staggering 50% in the past weeks/months; the US Dollar is in turmoil.

What happened there, can happen to Thailand; sorry, will happen!

LaoPo

Edited June 4, 2006 by LaoPo

[BlackJack]

I have only been in Pattaya/Jomtien and few months and can see that there are many scams going on regarding farangs and real estate. Many openly state dont worry - just register a company to get around the problem.

From where i sit all the authorities seem to be doing is tightening up the process for owning land / house / factory.

Its not just Thailand that doesnt allow foreigners to own land.

I bet if we all check our respective countries of origin we might find that foreigners cant own land either.

[LaoPo]

Its not just Thailand that doesnt allow foreigners to own land.

I bet if we all check our respective countries of origin we might find that foreigners cant own land either.

I don't know which country you're from but in Europe (and also in the US I think) it's no problem for a foreigner to own land and/or a house.

LaoPo

[Heng]

If you're talking about condo's, yes I agree.

But I was talking about the possibility to buy/build a house, villa if you wish, where the foreigner can own the land on which the house is built.

I am talking about 'rights' here; rights a foreigner has if he buys/build a house in liberal countries, not protective countries like Thailand.

Or are you saying that Thailand is a liberal country where it comes to the possibilities for a foreigner to own land and the house it is built on?

The same rights you have to build a nice villa on the Cote d'Azur/France, Marbella/Spain, or Florida/USA?

That's why I said that in 'my view' the Thai government will see the possibilities of allowing foreigners to own land/buy/build a house in the next 1 or 2 decades and throw 'protectionism' overboard

But.......I think that day will be nearer than you or I anticipate or dream of; the next crash for Thailand is around the corner but not just for Thailand....(therefore TH has to find ways to boost her economy again to put hundreds of thousands of workers to work again -after a crash-.....think!).

The stockmarkets in the Middle East and India already dropped a staggering 50% in the past weeks/months; the US Dollar is in turmoil.

What happened there, can happen to Thailand; sorry, will happen!

LaoPo[/color]

LaoPo,

I'm talking about land. Foreigners who own land through their local husbands or wives own land. The Indians and Chinese used the exact same method until the next generation was completely legal... and then expanded upon that and eventually left the rest of the field behind.

But you're right, we are talking about different things. You're talking about rights in a rule book. I'm talking about practical applications of the human spirit. The same practicality that says if you want to make a better/more prosperous life for yourself and your family, you sometimes choose to put away (but not throw away) the rule book.

[Martin]

'Heng' finished post #189 with:

"But you're right, we are talking about different things. You're talking about rights in a rule book. I'm talking about practical applications of the human spirit. The same practicality that says if you want to make a better/more prosperous life for yourself and your family, you sometimes choose to put away (but not throw away) the rule book. "

Is this not the difficulty that we euro-centric farangs have with getting comfortable with/in Thailand?.

We have been brought up to expect a rule-book (i.e. laws) to be applied without fear or favour (at the root, belief and faith in democracy/equality etc).

But the Tai/Thai way stems from family relationships and thence to a hierarchical society. So any 'rules' may be applied selectively---a blind-eye being turned to the rule-book when dealing with a 'perceived good person', but the rule (i.e law) being applied rigorously to the 'perceived offensive person'.

It is a big culture-gap to bridge, for the Westerner who lands at BKK and thinks, from the Western-style office blocks etc, that s/he can still apply the thinking inculcated in her/his youth.

[number6]

Ill say it again

ท If u don’t like rules here don’t stay – you have a choice – no one forced u to come and live here.

ท Yes its probably best for Thialand and Thais to allow foreigners to own land but I REPEAT ITS UP TO THEM – we have no right to say how they should run the country. The same as non citizens in USA or UK etc have no right to tell their governments what they should do.

ท If u don’t trust your wife or fear she might get away with your money and really want to own a place here then buy a condo. Sad if you live your life like that.

ท Yes theirs lots of sad stories here but people mostly like to talk about bad cases – they don’t mention good ones.

ท Yes be careful but don’t be paranoid.

ท Lots of posts say I do trust my wife but actually don’t or worry that they might break up later – that’s live everywhere.

ท As I said in a previous post after many years through no ones fault I split with my first wife. She got 50% and I would not have wanted it any other way (our kids were already sorted re finance).

ท I have been coming here for 15+ years and been with my Thai wife for over 4 years. We did not buy property/land/house until wed been together for 2 years but I did buy a condo.

ท We now have a lovely child (after carefully thinking about it) and I believe it’s my duty to care for that child and my wife. If we split which I consider unlikely I still feel I have a duty to care for our child.

ท In my experience the main problem is often the Thai ladies family and u have to tread very carefully regarding this before making a firm commitment. Luckily my wife’s mother has her own small business, her brother works at Toyota and apart form 1 uncle none of her family have ever asked for even 1 satang. The uncle who asks has been and is given short thrift.

ท Difficult to do but get ground rules sorted at beginning. If your wife/partner expects to support her family and u can and want to then that’s fine. If your not happy with that and she definitely wants that (most do) then youre almost certainly heading for rocks.

ท Theirs lots of ways u can test the water before rushing in – most will cost u a lot but a lot less in heartache etc later. My wife worked at a factory and post office so was poorly paid. I knew horror stories so once I decided and believed I could trust our love I simply put 1,000,000 baht in an account in her name. When 2 years later it had not been touched then I bought our first house in her name. She could have run away with it anytime and it represented about 8 years wages at factory. Before skeptics lead in she really believed it was the only capital money I had.

Go with your heart. Be honest, do good and good comes back to you. Stop worrying so much but be careful for first few years. As for those who will say I don’t/cant afford to loose 1,000,000 baht ($25,000) I believe you should not be here. Im not rich just careful with my money but I’m not poor either.

[Arkady]

Heard from someone who claims to have good government connections that the problem started in Hua Hin where some high ranking persons questioned the legality of the large number of housing developments targeted exclusively at foreign buyers, since they viewed them as having harmful environmental and social side effects. They were also concerned that foreign buyers were being cheated by the developers due to misrepresentation including the claim that buying through a Thai company was safe practice. Apparently all the foreigner developments in Hua Hin went ahead and built without housing development (jatsan) licences them, simply subdividing the land and reselling. This bit seems to figure with the wording in about subdividing land in the letter to provincial governors.

The scary bit is that this guy said that the Land Department in Hua Hin has been ordered to investigate all the existing companies with foreign shareholders or directors that own land there and that they believe this applies nationwide.

If this is true, apart from the land ownership issue, it could expand into a witch hunt for any companies apparently controlled by foreigners that have Thai shareholders who can't demonstrate the source of the funds used to invest in the company came from their salaries. This would be a wonderful opportunity for investigators to demand bribes.

[Dragonman]

Its not just Thailand that doesnt allow foreigners to own land.

I bet if we all check our respective countries of origin we might find that foreigners cant own land either.

I don't know which country you're from but in Europe (and also in the US I think) it's no problem for a foreigner to own land and/or a house.

LaoPo

I think you will find in general that the countries with the highest house prices also have the fewest restrictions ; or vice versa of course A good reason in my opinion to keep the status quo.

[xbusman]

Thats not a causal effect Dragonman. You will find that countries that have the least barriers to trade, best education, best infrastructure, best uniform protection under the rule of law, clear legal systems and rights, etc etc also have the highest house prices.

Keeping things status quo is what keeps Thailand behind developed countries but it includes a lot more than property ownership rights, thats just one small facet of the overall picture.

Having said that, I like Thailand just the way it is. I dont want to live in Oslo or Toronto. So I agree its a good reason to keep the status quo so as to keep Thailand the country we chose over all others.

Edited June 5, 2006 by xbusman

[nikster]

Hey, I just heard that

-- The news of this law brought foreign investment to a standstill and cement orders dropped 50% at the largest manufacturer in Thailand.

-- The law will be revoked after some high ranking business interests had a personal meeting with the responsible political parties

-- A new law will be written which actually provides more rights for foreign shareholders

Now, I just got that from a friend so there might be nothing to it. Nevertheless it makes perfect sense because, let's face it, the property market in Thailand is HUGE. $1 Million farang-villas are mushrooming on Samui. The market is expanding like crazy, and Thai companies are making a killing - developers, builders, suppliers, etc.. If the law went through and was enforced, all that economic activity would come to a standstill overnight. The very existence of it has already caused damage.

Money talks, in the end.

A business-unfriendly law like this stands in the way of an avalanche of giant profits, and, as usual in Thailand, those profits are being made by people with a lot of influence. Oligarchs are involved. Cement companies can be very convincing when trying to protect their interests. Occasionally they go into the shoe business for brief periods.

[rockytimeshere]

Hey, I just heard that

-- The news of this law brought foreign investment to a standstill and cement orders dropped 50% at the largest manufacturer in Thailand.

-- The law will be revoked after some high ranking business interests had a personal meeting with the responsible political parties

-- A new law will be written which actually provides more rights for foreign shareholders

Now, I just got that from a friend so there might be nothing to it.

Hey nikster,

That does all make sense, mind if I ask where your friend got the info from ? From a reliable source, someone in government, lawyer etc ?

Cheers,

[george]

JSM responds to Post piece

International law firm Johnson Stokes and Master have issued a response to the Bangkok Post´s piece on new regulations for foreigners investing in Thai real estate.

"A recent regulation dated 15 May 2006 (the "Regulation"), issued by the Land Department of Thailand´s Ministry of Interior, has attracted a great deal of attention in the Thai property market. Reported in the Bangkok Post under the inaccurate headline ´New Property Law Stuns Foreigners´, the Regulation establishes procedures for land officials to follow when dealing with an acquisition of land by a corporate entity with foreign shareholders or directors. The stated objective of the Regulation, is to prevent avoidance of the law," the press release says.

"The procedures set out in the Regulation call for land officials to investigate the income history of all the Thai shareholders of a corporate entity attempting to effect a transfer or ownership in the land. In conducting such an investigation, the land officials will look at things such as occupation, number of years worked, number of years worked with their present employer, and salary amount. Any purported loans should be evidenced by a loan agreement. If, after these checks, the land official takes the view that the parties are trying to avoid the law he will interview the Thai nationals in detail and send a report to the Land Department in Bangkok, who will forward the materials to the Cabinet for resolution."

"Despite assertions in the media to the contrary, the Regulation is clearly not new law. It is an assertion that existing laws should be more strictly applied. As the Regulation requires certain cases to await further "… order of the Minister", some delay in transfers might be expected until the application of the policy is fully developed. JSM will continue to monitor the implementation of the policy."

"The use of nominees in Thailand has always been, and remains – illegal. This was first stated in the then Alien Business Law. Changes to the Alien Business Law in 1999 reinforced the point and went further to expressly state the sanctions applicable for any breach of law. The Land Department has always retained the power to examine a potential property transfer, if the officers are concerned that Thai nationals are being used to improperly acquire property for foreigners."

"To avoid the use of nominees, the correct approach has always been that foreigners who wish to enjoy the exclusive use of Thai property, should joint venture with Thai strategic investors."

"In our view a person will not be deemed a nominee if: (1) they are people or companies who typically invest in other companies for profit; (2) they are entities with financial substance, not ´men of straw´; and (3) in any particular structure they did actually invest the money."

"JSM welcomes the renewed application of existing Thai law which ensures Thai people are not exploited. Moreover, and perhaps most importantly, the application of these tests will assist the Thai authorities in ensuring that investments are legitimate. This approach by the Thai Government forms part of the worldwide campaign to eliminate illegally obtained money, from legitimate financial systems," it concludes.

-- jsm.com 2006-06-05

http://www.property-report.com/archives.php?id=508&date=0606

[Thaible]

Do you really believe that any Thais would vote for a party that helps farangs take their land and women?

I will be voting for whatever party came up with this law to finally stop farangs from pricing poor Thais out of their own land.

What a Five knuckle shuffle .

Have a sticky day.

Nice intelligent response. You must be one of those highly-educated farangs that want to help out Thailand.

[Johpa]

JSM responds to Post piece

International law firm Johnson Stokes and Master have issued a response to the Bangkok Post´s piece on new regulations for foreigners investing in Thai real estate.

"JSM welcomes the renewed application of existing Thai law which ensures Thai people are not exploited. Moreover, and perhaps most importantly, the application of these tests will assist the Thai authorities in ensuring that investments are legitimate. This approach by the Thai Government forms part of the worldwide campaign to eliminate illegally obtained money, from legitimate financial systems," it concludes.

-- jsm.com 2006-06-05

http://www.property-report.com/archives.php?id=508&date=0606

Oh now that's a good one, an international law firm pretending to back an imagined worldwide campaign to elimimate moving money offshore, focusing on a typical less-than-fully-developed nation (Thailand) where local profits always seem to find their way out of the country.

[Netfan]

I have a friend whose Thai wife is a real estate agent in town. She took a farang client to the land office in town today and was told "no transfers". I don't know the details, but my friend told me this is having a BIG effect on business. Wife's clients are bailing, confusion reigns.

I don't think enforcing the law is a bad thing, but the way this whole thing is playing out is a testament to lack of planning, foresight and common sense.

[Arkady]

JSM responds to Post piece

International law firm Johnson Stokes and Master have issued a response to the Bangkok Post´s piece on new regulations for foreigners investing in Thai real estate.

"JSM welcomes the renewed application of existing Thai law which ensures Thai people are not exploited. Moreover, and perhaps most importantly, the application of these tests will assist the Thai authorities in ensuring that investments are legitimate. This approach by the Thai Government forms part of the worldwide campaign to eliminate illegally obtained money, from legitimate financial systems," it concludes.

-- jsm.com 2006-06-05

http://www.property-report.com/archives.php?id=508&date=0606

Oh now that's a good one, an international law firm pretending to back an imagined worldwide campaign to elimimate moving money offshore, focusing on a typical less-than-fully-developed nation (Thailand) where local profits always seem to find their way out of the country.

I would agree with Johnstone, Stokes and Master in taking the moral high ground, supporting local laws and wanting to prevent money laundering and exploitation of Thai people etc, if they were not farang lawyers illegally practicing law in Thailand which is prohibited by the Alien Business Act. Hopefully hypocrit farang lawyers breaking the law are next on the hit list after illegal farang property developers. That will provide more work for Thai lawyers and prevent them from being exploited.

[Arkady]

Hey, I just heard that

-- The news of this law brought foreign investment to a standstill and cement orders dropped 50% at the largest manufacturer in Thailand.

-- The law will be revoked after some high ranking business interests had a personal meeting with the responsible political parties

-- A new law will be written which actually provides more rights for foreign shareholders

Now, I just got that from a friend so there might be nothing to it. Nevertheless it makes perfect sense because, let's face it, the property market in Thailand is HUGE. $1 Million farang-villas are mushrooming on Samui. The market is expanding like crazy, and Thai companies are making a killing - developers, builders, suppliers, etc.. If the law went through and was enforced, all that economic activity would come to a standstill overnight. The very existence of it has already caused damage.

Money talks, in the end.

A business-unfriendly law like this stands in the way of an avalanche of giant profits, and, as usual in Thailand, those profits are being made by people with a lot of influence. Oligarchs are involved. Cement companies can be very convincing when trying to protect their interests. Occasionally they go into the shoe business for brief periods.

It is not that simple to revoke a law and write a new one. We are dealing with two laws here: the Land Code and the Alien Business Law. Both were amended by the Democrat govt after the Asian financial crisis when they are trying to make things easier for foreign investors. The amendments to the Alien Business Law made it easier for multinationals like Tesco to come in and own their own businesses but it made it harder for small foreign businessmen and introduced specific penalties including jail sentences for nominee shareholders and their foreign partners which had previously been left vague. The foreigner friendly amendments introduced to the Land Code were: increasing leases on commercial and industrial property from 30 to 50 years; allowing foreigners to buy one rai of land if they invest 40 million baht in govt bonds or other approved investments; allowing Thai women married to foreigners to buy land. These amendments to the Alien Business Act and the Land Code were fiercely opposed by opposition politicians and business people. Many of those opposition politicians are now in the government. Most Thais of all walks of life that I have discussed this topic with believe that foreign land ownership should remain in force. This makes it a political hot potatoe. Add to that the fact that we have only a caretaker govt: a new government will not be installed before December at the earliest; its priority will probably be reform of the constitution and it will probably dissolve itslef

[ovenman]

I would agree with Johnstone, Stokes and Master in taking the moral high ground, supporting local laws and wanting to prevent money laundering and exploitation of Thai people etc, if they were not farang lawyers illegally practicing law in Thailand which is prohibited by the Alien Business Act. Hopefully hypocrit farang lawyers breaking the law are next on the hit list after illegal farang property developers. That will provide more work for Thai lawyers and prevent them from being exploited.

Indeed. I'll just bet that Johnson, Master, Strokes, et al. have never participated in the setup of any companies with quasi-legitimate Thai shareholders, formed for the sole purpose of the acquisition of property by foreigners.

[Ricardo]

If this is true, apart from the land ownership issue, it could expand into a witch hunt for any companies apparently controlled by foreigners that have Thai shareholders who can't demonstrate the source of the funds used to invest in the company came from their salaries. This would be a wonderful opportunity for investigators to demand bribes.

Surely this would impact upon Temasek-controlled companies, such as Shin-Corp & Air Asia Thailand, with Thai shareholders who may have been 'leant' the money to 'pay for' their share-holdings ?

And might also impact connected-Thais, who acquired wealth in other ways, than earning a salary ??

[Arkady]

If this is true, apart from the land ownership issue, it could expand into a witch hunt for any companies apparently controlled by foreigners that have Thai shareholders who can't demonstrate the source of the funds used to invest in the company came from their salaries. This would be a wonderful opportunity for investigators to demand bribes.

Surely this would impact upon Temasek-controlled companies, such as Shin-Corp & Air Asia Thailand, with Thai shareholders who may have been 'leant' the money to 'pay for' their share-holdings ?

And might also impact connected-Thais, who acquired wealth in other ways, than earning a salary ??

The type of structure used by Temasek and other multinationals is a complex one put in place by the most expensive lawyers in town, involving preference shares and shares pledged as collateral for loans. It would not be so easy to break as the law stands today. The prominent Thais that acted as nominees for Temasek are probably untouchable. As already mentioned, the new Alien Business Law was intended to liberalise things for multinationals while tightening the nose on small foreign businessmen. Without much doubt this elitist theme would also be pursued in any crackdown. Witness the attitude of TRT to backpacker tourists vis a vis elite card candidates.

[rcav8r]

elite card candidates.

Now there's an interesting reference to a different aspect - whatever happened - or is happening - to the Elite Card ? Anybody know ? It's gone awful quiet of late.

[thestirfry]

It's all a load of bull!

The bangkok post probably got a bung to publish it!

[ovenman]

Now there's an interesting reference to a different aspect - whatever happened - or is happening - to the Elite Card ? Anybody know ? It's gone awful quiet of late.

I would imagine that the Big champion of the elite card in the Thai government has been busy tending to other matters as of late.

[jaidam]

Land Office moves to allay property bust fears

PHUKET: The Chief of the Phuket Provincial Land Office (PPLO), Supot Suwannachote, has moved to reassure businesspeople that the closer inspection of companies wanting to register land titles, as ordered by the Ministry of Interior, does not mean that transfers of ownership will be refused.

He stressed that he did not want to see a slowdown in Phuket’s booming property industry. “If your company is genuinely 51% Thai-owned, then there is no problem.”

K. Supot denied that all applications by companies with foreign shareholders are being put on hold, or that applications are being sent to Bangkok for examination.

“The first thing we do is check with the Provincial Business Development Office (BDO) whether the company has been properly set up, with foreigners owning no more than 49%.

“Where the company has a Thai MD [Managing Director] or has both Thai and foreign MDs, there is no problem. But when a Thai-registered company has a foreigner as its Managing Director, we check more carefully. For example, we check with the BDO whether the shareholding has changed so that the foreign share exceeds 49%.

“So far, we have not sent a single case up to Bangkok,” he said. Details of some applicant companies with foreign shareholders might be sent to the BDO for further checks, he said, but these checks should not take more than a month to complete. Since the order was issued on May 15, however, no cases have been sent to the BDO for checking.

The PPLO receives between 100 and 120 applications for change of ownership of land every day, he said, though most of these are transfers from one Thai to another or people wanting to register loan or lease agreements.

Since the original uproar over the tightening of checks on land transfers, matters have gone rather quiet in the property community, with concern over the brakes being put on business having, apparently, abated. Stuart Reading, Assistant Vice-President of Finance at Laguna Resorts & Hotels (LRH), said that LRH was not particularly concerned as most of its sales were on a leasehold basis, and thus did not require a change in land ownership.

But, he added, “I’m not aware of any transfers we’ve done in the past week that have [run into problems]. From what I understood this was mainly aimed at foreign developers. We’re a Thai company, so we are legally able to acquire and develop land, because we are a public company.”

BDO Chief Veerachai Tantiwathanavallop denied that checks on companies would take a month, as suggested by K. Supot. “It will take only a minute or so,” he said. “Just give me the name of the company and its registration number and I can tell you.” He confirmed that he had, to date, received no queries from the PPLO.

He noted that when people apply to set up companies, he explains to them that in order to register a Thai company the foreign shareholding must be no more than 49%.

He said that, theoretically, a company could increase its foreign shareholding to more than 49% but that it would then have to be re-registered as a foreign company, which would limit it to just 49 areas of business, all effectively in exports. “I have never had a single application of this nature,” he added.

The registration of new companies in Phuket continues apace. A total of 157 new limited-liability companies were registered in May. Of these, 50% were registered to do property business, and of those, 70% had foreign investors.

[taxexile]

that sounds like good news for phuket , hopefully land office chiefs elsewhere in thailand will take an equally pragmatic view on the situation and ease the fears of worried buyers.