Purchase Condo in Foreign Company/Trust Name

[Gopro]

If purchasing a condo in a foreign company name (i.e completly foreign owned, has no office or ltd company in Thailand)

What are the implications of doing this locally if the condo is rented out and earning income?

Does that company have to comply with any laws including taxation, etc.

What would be the best solution going forward for this?

Thank you

[Sunbelt Asia]

Buying a condominium in Thailand with the use of a foreign entity as the buyer who then later rents out the condo is less problematic if the renter is an individual as they will not be declaring his/her expenses in full detail. The foreign entity (as the Landlord) may find some difficulties in transferring the money (rent collected) out of the country as you may be questioned as to the source of the transferred funds.

But if you are renting it out to a juristic entity. That juristic entity (the Lessee) will likely be declaring the rent as company expenses and will be withholding taxes. Therefore, if the Lessee declared this as their expenses, the Lessor/Landlord will also need to declare this as income.

It might be best to acquire the property with either a domestic juristic entity or to acquire by the use of an individual’s name.

[sunbeltlegal][/sunbeltlegal]