Buying Comercial Property

[Theo&Aon]

Another newbie i'm afraid - just looking some freindly advice on the pros and cons of buying comercial property in the northeast.

Can i buy in mine or business name?

Can i rent it out?

Can i live in it?

All comments Please

[SunbeltAsia]

Another newbie i'm afraid - just looking some freindly advice on the pros and cons of buying comercial property in the northeast.

Land ownership rules in Thailand as they apply to foreigners are pretty straightforward. Foreign individuals and foreign companies are not allowed to own any direct interest in land with a few exceptions( BOI and IEAT)

You as a foreigner or a foreign company however can own the structure 100% in your name.

Can i buy in mine name

no

or business name?

With BOI approval or if the land is located inside the Industrial Authority of Thailand Estate then you could. If the objective is for investment purpose only, no. This has to be for your companies use or your use as the MD. You can have 99.994% of the shares in your name under BOI.

If you have a real business and Thai parties hold more than 61% of the company's shares and more than half of the company's shareholders are Thai nationals, the company will have the legal right to hold title to land. Technically you may be able to do this if this is a real company but all shareholders will be investigated if they have the funds to invest and some land depts still will not allow the registration. The most you will have in your name is 39% of the shares.

Can i rent it out?

No. BOI would not approve it and neither would the Industrial Authority of Thailand.

Second option with a real business, it depends how it was set up and your companies objective.

Can i live in it?

Yes with BOI approval and IEAT. Yes with a real company scenario.

Many foreigners avoid these restrictions with owning land by leasing the land for 30 years. ( if you invest 20 million and its for commercial & industrial reasons, it can be 50 years)

www.lawyer.th.com