buying the condo by using foreign company

[qazakax]

Hi guys,

I plan to purchase a condo in huay kwang area.

I am thinking to use a singapore or hong kong LLC company to purchase.

Can we do that ?

By the way, for Sales & Purchase process, is it advisable for us to engage a legal firm to conduct the S&P process, in order to avoid any unnessary hiccup ?

So far the Agent that i met told me, if purchase under Individual Name (foreigner), we need to transfer the whole sum of the purchase price from Oversea to Thailand Bank,

pay the down payment and execute the S&P.

Once S&P done,

pay the balance.

Any advice is much appreciated.

Tqvm,

Tom

[AyG]

A foreign company can own a condo within the 49% foreigner allocation. You'll still need to transfer the whole purchase sum from overseas.

[dean008]

I think the inconvenience of bringing in all the money from overseas is far far far outweighed by the inconvenience and cost of forming a limited company and cost completing returns.... Every year.

I have bought a few condos and never used a lawyer. To be frank I avoid using any Thai third parties to do anything for me, wether it be a painter, a/c maintenance, fit a shower., because based on my experience they usually damage something or do something wrong in the process, that's my experience anyway,. I imagine engaging a lawyer will be a costly waste of time and delay matters. I

[bangkoklawyer24]

To be frank I avoid using any Thai third parties to do anything for me, wether it be a painter, a/c maintenance, fit a shower., because based on my experience they usually damage something or do something wrong in the process, that's my experience anyway.

You made my day.

[technologybytes]

To be frank I avoid using any Thai third parties to do anything for me, wether it be a painter, a/c maintenance, fit a shower., because based on my experience they usually damage something or do something wrong in the process, that's my experience anyway,

I totally understand how you feel Dean, I used to be the same. Honestly there are some very good workers here, the thing is you need to find tradesmen based on recommendation and be able to see examples of work they have already done. Find guys who are already experienced in working to the standards that you require, you can't turn a 200 baht a day labourer into a master craftsman !

[sanuk711]

So far the Agent that i met told me, if purchase under Individual Name (foreigner), we need to transfer the whole sum of the purchase price from Oversea to Thailand Bank,----OP

Is it that you have funds in Thailand already & do not wish to bring more in ??

Because there are many posts on here showing you how you do not to have to do that.....(which the Agent may not want to tell you) ---gray area--so if that is your sole reasoning for forming a company...have a look at the posts.

Edited July 15, 2015 by sanuk711

[Suradit69]

I think the inconvenience of bringing in all the money from overseas is far far far outweighed by the inconvenience and cost of forming a limited company and cost completing returns.... Every year.

I have bought a few condos and never used a lawyer. To be frank I avoid using any Thai third parties to do anything for me, wether it be a painter, a/c maintenance, fit a shower., because based on my experience they usually damage something or do something wrong in the process, that's my experience anyway,. I imagine engaging a lawyer will be a costly waste of time and delay matters. I

" that's my experience anyway"

I bought my condo from a Thai lady. Because I was still working back then, I had a Thai friend close the deal for me while I was out of the country and I authorized my Thai bank manager to transfer the funds to the lady's account after the overseas deposit cleared into my Bangkok Bank account. No problems whatsoever.

​Actually the Thai lady was having the condo remodeled when I first saw it and she supervised the Thai workers who completed the job.

Since then I've had the occasional Thai workman do some repairs, replace taps or the (German) on-demand water heater twice and replace the cabinetry under the bathroom sink. Never had a problem or complaint.

That's my experience anyway.

[stevensg]

My friend took a loan from a bank in Thailand and pay the installments from Singapore. Not asked him how he do it but can ask him if you want.

[flyingdoc]

An overseas company will be in exactly the same position as an overseas buyer, and will have to fall within the 49% allocation for foreign ownership .

[flyingdoc]

An overseas company will be in exactly the same position as an overseas buyer, and will have to fall within the 49% allocation for foreign ownership .

[qazakax]

Thanks for the replies guys.

Further question I would like to seek for opinion.

1. If purchase under foreign LLC, the Director(s) need to have the Working Permit?

2. Once completed the Purchase of the Condo, if changes of the ownership of the foreign LLC, do we need to get the approval from authorities such as Land Office? Are we subject to tax ?

3. Once completed the Purchase with Cash, can we proceed to Local Bank for re.financing by pledged the Condo. Re.finance for let says 70% or more on the Valuation of the Condo? What ll be the interest rate?

Thx.

[WorkingTourist]

1. If purchase under foreign LLC, the Director(s) need to have the Working Permit?

There is no “foreign LLC” ownership.

Either you buy it in foreign name or in Thai name.

If in Thai name you must be permitted to have residence in the Kingdom under the Immigration law.

Some buy using a Thai company (when the foreign quota has been depleted), but since they can only have a minority stake in the Thai company, they are effectively buying via a straw man.

2. Once completed the Purchase of the Condo, if changes of the ownership of the foreign LLC, do we need to get the approval from authorities such as Land Office? Are we subject to tax ?

If you want to transfer ownership of your condo then you must get that registered, and yes, you pay withholding tax, stamp duty, and transfer fee for this.

Or do you mean you want to keep the foreign LLC as owner, but you change the LLC’s owner? If so, the Thai authorities do not need to give permission for this, or would be entitled to any tax.

However, if you sell an LLC, your own government might claim tax on the sale.

3. Once completed the Purchase with Cash, can we proceed to Local Bank for re.financing by pledged the Condo. Re.finance for let says 70% or more on the Valuation of the Condo? What ll be the interest rate?

If you buy in foreign name you must bring all the money from abroad.

As I understand you, you want to then get a bank loan from a Thai bank using the condo as collateral. I doubt any bank will agree to this, because your ownership is outside Thailand, so it’ll be difficult for them to make any claims against you, should you default on your loan.

[qazakax]

"There is no foreign LLC"

Which means the ownership only can be "foreign individual" by using the Passport?

Please correct me if I m wrong. Tqvm.

[blackcab]

"There is no foreign LLC"

Which means the ownership only can be "foreign individual" by using the Passport?

Please correct me if I m wrong. Tqvm.

Foreign ownership can be by:

Foreign individual if the condo is within the 49% foreigner quota.

Foreign individual if the condo is not within the 49% foreigner quota where the foreigner has been granted permanent residency.

A company where at least 51% of shareholders are Thai.

Under Section 96 of the Land Code Amendment Act (1999) [Highly unlikely in your case and in nearly all cases].

Within the terms of either:

Section 27 of the Investment Promotion Act [You have not mentioned BOI so probably unlikely]

Section 44 of the Industrial Estate Authority of Thailand Act [Extremely Unlikely]

Section 65 of the Petroleum Act [Extremely Unlikely]