Purchase Land

[sunhill]

Hi,

first of all - sorry for my bad english. A member of a german/thai law office here in germany told me, that since few months ago there is a new law about purchase land (not Co. Ltd). Therefore it is not possible or problematic to make a loan / lease agreement with you thai-spouse. The argumentation is, that it is a fraudelent erasion of thai law to allow foreigner to purchase land. Can somebody confirm this statement?

thanks in advance

sunhill

[GuestHouse]

Using a front company to own land has always been illegal - The laws have recently been enforced, but any lawyer telling you that you can own land by setting up a company to own the land for you has know all along that front companies to own land are illegal.

Leasing is quite legal. Buy the land in your wife's name and lease it back off her.

[udon]

And if you don't have a wife or GF, what are your options for leasing?

Thanks

[Thaipwriter]

And if you don't have a wife or GF, what are your options for leasing?

Thanks

Limited, as any Thai engaging in this activity would become a "nominee" and could face criminal charges.

[sunhill]

Using a front company to own land has always been illegal - The laws have recently been enforced, but any lawyer telling you that you can own land by setting up a company to own the land for you has know all along that front companies to own land are illegal.

Leasing is quite legal. Buy the land in your wife's name and lease it back off her.

Hi GuestHouse,

I do not propose to found a company. The reason why the lawyer forwarned me is a lease / loan agreement with your thai-spouse as a so called "front-spouse".

[GuestHouse]

I’m not sure what a ‘Front Spouse’ is.

But if you are legally married and you decide between that your wife shall buy some land and then lease it back to you, then that is perfectly legal.

Lawyers may not like this perfectly legal option.

Perhaps the reason lies in the benefits they accrued under the (illegal) front company route:

Benefit 1 – Selling yearly accounting services

Benefit 2 – Renting official registered office addresses

Benefit 3 – Selling incorporation services (far more expensive than a simple lease)

Benefit 4 – Putting their own names down as the Thai owners of the land/property held by the foreigner.

A lease, is simple, cheap and legal

And if you don't have a wife or GF, what are your options for leasing?

Rent.

[nicolau]

And if you don't have a wife or GF, what are your options for leasing?

Thanks

Limited, as any Thai engaging in this activity would become a "nominee" and could face criminal charges.

There are so many existing companies that are engaged in this type of "nominee" structure. Though it is illegal 2 things worth pondering on:

- what happens when the law really start clamping down on these companies? First, would the govt have the manpower to start going thru all the documentations and companies MA?

- don't forget these companies have large investments in thailand and by going after them, what would become of the economy as well as foreign confidence in doing business in thailand?

Thoughts anyone?

[GuestHouse]

I think you are grabbing at straws if you think the government is going to turn a blind eye because it might hurt the ecconomy or that there is insufficient manpower.

The land and investments will always remain in Thailand, options for dealing with illegal front companies are not limited to time consuming investingations.

Taxation is one possibility - Constant demands for backhanders is another, and probably far more likely.

[Dragonman]

Using a front company to own land has always been illegal - The laws have recently been enforced, but any lawyer telling you that you can own land by setting up a company to own the land for you has know all along that front companies to own land are illegal.

Leasing is quite legal. Buy the land in your wife's name and lease it back off her.

Hi GuestHouse,

I do not propose to found a company. The reason why the lawyer forwarned me is a lease / loan agreement with your thai-spouse as a so called "front-spouse".

Loans to a spouse, in my opinion, have never been valid. As all loans during a marriage are joint in Thai Law, you are in fact lending to yourself, and borrowing from yourself.

Leases are restricted to 30 years and therefore cannot be classified as ownership. There is no "front" as you will never be the owner (unless laws change). This is well established in Court rulings.