Buying house owned by company

[drb]

Hiya

I have seen a house but the owners tell me it is owned by their thai company and insist on selling the company in order for me to buy the house

I have said no and although love the house I have walked away

Thoughts ??????

[WogerWabbit]

Plenty more available.You did the correct thing.Why would anyone ever buy a company that may have multiple liabilities unless they are completely naive - especially in the Land of Transparency that is Thailand?

Set up your own company and use that to buy the seller's company asset is the way to go.

[drb]

Hi mate

Thks for reply

I don't really want a company just want house

Bank had told me too many issues in owning company just to own house also government are shortly to start crackdown on foreigners foing this just to own land

[blackcab]

If the house is owned in a company name you don't have to buy the company if the house is being sold to a Thai national.

You can buy the house from the company, then leave them to close the empty company.

That might be the best offer they will get.

[AJS 7R]

Hi mate

Thks for reply

I don't really want a company just want house

Bank had told me too many issues in owning company just to own house also government are shortly to start crackdown on foreigners foing this just to own land

You want a house? But how do you do with the ownership? Put it in the name of a Thai is the only thing you can do. Then you still dont

own a house.

[bizader]

Most likely they want you to buy the Thai company so that they do not have to pay transfer fees and income taxes on the sale of the house at the Land department. There is only small fee payable at the DBD office for transferring of shares in a company, compared to the Land taxes & transfer fees involved in buying a property.

If you are still interested in just buying the house, you can offer the current owner to cover for the transfer fees & taxes (if it is not too much), then you don't need to take over the Thai company.

[drb]

Great replies Thks guys

[user7643446845]

Bank had told me too many issues in owning company just to own house also government are shortly to star

Thailand would be seriously hurting itself if it stopped capital inflows to Thailand.

t crackdown on foreigners foing this just to own land

Searched the net for any news on'crackdown on foreigners doing this just to own land'

All I could find was an article implying that iilegal ownership was soon to be cracked down on

However the article was dated July 2012. UK Telegraph newspaper.

What happened to that one?

http://www.telegraph.co.uk/finance/personalfinance/expat-money/9413075/Expats-warned-of-illegal-home-crackdown-in-Thailand.html

Also why do we assume that Thai companies controlled by Farang are dodgy.

It was set up for one puropse and in all likelyhood nothing has changed.

If it has been audited every year -then why would it not be ok

Typically it costs less than 10K Baht to change the name of the MD and there are no transfer charges.

[xylophone]

Bank had told me too many issues in owning company just to own house also government are shortly to star

Thailand would be seriously hurting itself if it stopped capital inflows to Thailand.

t crackdown on foreigners foing this just to own land

Searched the net for any news on'crackdown on foreigners doing this just to own land'

All I could find was an article implying that iilegal ownership was soon to be cracked down on

However the article was dated July 2012. UK Telegraph newspaper.

What happened to that one?

http://www.telegraph.co.uk/finance/personalfinance/expat-money/9413075/Expats-warned-of-illegal-home-crackdown-in-Thailand.html

Also why do we assume that Thai companies controlled by Farang are dodgy.

It was set up for one puropse and in all likelyhood nothing has changed.

If it has been audited every year -then why would it not be ok

Typically it costs less than 10K Baht to change the name of the MD and there are no transfer charges.

Plenty on this subject on TV............if a company is set up for the sole reason of purchasing a property then it is illegal. That's what they are/will be cracking down on.

[user7643446845]

Ba

Plenty on this subject on TV............if a company is set up for the sole reason of purchasing a property then it is illegal. That's what they are/will be cracking down on.

Can you support your statement with valid evidence?

[xylophone]

Ba

Plenty on this subject on TV............if a company is set up for the sole reason of purchasing a property then it is illegal. That's what they are/will be cracking down on.

Can you support your statement with valid evidence?

Much posted here and elsewhere on this subject so do your own research. Unfortunately there are still lawyers who will set a nominee company up for you. Also click on the links at the bottom for more info.

It helps to become familiar the Foreign Business Act 1999. This sets out the rights of foreign companies in Thailand, as well as what is not permitted.

Most, although not all, foreign businesses looking to set up in Thailand require a Thai majority shareholding. Many foreigners prefer to form a Thai majority company, to allow the company to operate a business in a category that is otherwise restricted to foreigners. The registration of a Thai majority company generally requires less registered capital and less paperwork than the registration of a foreign company. A Thai majority company can also buy land.

Others however prefer the simpler but highly illegal practice of nominee shareholders. A nominee shareholder is a shareholder in name only; in reality nominee shareholders lacks any real financial stake or interest in the company. There are companies in Thailand who will offer to supply Thai nominee shareholders. This is extremely high risk as not only will you have no knowledge of who the shareholder of your company is now will they owe you any loyalty, they are likely to be professional shareholders who will probably be listed as shareholders in multiple companies which will soon wave a red flag to the authorities.

1). Unquestionably it is illegal to buy a house via a company.

The Thailand Alien Business act is quite specific, and there is a blanket offence of circumventing land ownership laws that means anything the appears to allow foreigners to own houses is actually illegal.

2). Be careful here because it is illegal for a company to be formed with the sole purpose of owning a property. If the company is a trading/working entity employing Thai workers, paying taxes etc then a house can be purchased, but then again the company has to also have a majority Thai ownership and these majority Thai shareholders must be able to show how much they have invested in this company and from whence the funds came.

This is to prevent the “Thai nominee company” illegal workaround and nominee companies are illegal...

http://www.thailand-lawyer.com/land_purchase.html

http://www.telegraph.co.uk/finance/personalfinance/expat-money/9413075/Expats-warned-of-illegal-home-crackdown-in-Thailand.html

http://www.thailandlawonline.com/66-real-estate-legal-issues/14-can-a-thai-company-be-my-nominee-for-land-acquisition

http://www.thailandlawonline.com/article-older-archive/foreign-business-nominee-company-shareholder

[user7643446845]

Much posted here and elsewhere on this subject so do your own research. Unfortunately there are still lawyers who will set a nominee company up for you. Also click on the links at the bottom for more info.

It helps to become familiar the Foreign Business Act 1999. This sets out the rights of foreign companies in Thailand, as well as what is not permitted.

Most, although not all, foreign businesses looking to set up in Thailand require a Thai majority shareholding. Many foreigners prefer to form a Thai majority company, to allow the company to operate a business in a category that is otherwise restricted to foreigners. The registration of a Thai majority company generally requires less registered capital and less paperwork than the registration of a foreign company. A Thai majority company can also buy land.

Others however prefer the simpler but highly illegal practice of nominee shareholders. A nominee shareholder is a shareholder in name only; in reality nominee shareholders lacks any real financial stake or interest in the company. There are companies in Thailand who will offer to supply Thai nominee shareholders. This is extremely high risk as not only will you have no knowledge of who the shareholder of your company is now will they owe you any loyalty, they are likely to be professional shareholders who will probably be listed as shareholders in multiple companies which will soon wave a red flag to the authorities.

1). Unquestionably it is illegal to buy a house via a company.

The Thailand Alien Business act is quite specific, and there is a blanket offence of circumventing land ownership laws that means anything the appears to allow foreigners to own houses is actually illegal.

2). Be careful here because it is illegal for a company to be formed with the sole purpose of owning a property. If the company is a trading/working entity employing Thai workers, paying taxes etc then a house can be purchased, but then again the company has to also have a majority Thai ownership and these majority Thai shareholders must be able to show how much they have invested in this company and from whence the funds came.

This is to prevent the “Thai nominee company” illegal workaround and nominee companies are illegal...

http://www.thailand-lawyer.com/land_purchase.html

http://www.telegraph.co.uk/finance/personalfinance/expat-money/9413075/Expats-warned-of-illegal-home-crackdown-in-Thailand.html

http://www.thailandlawonline.com/66-real-estate-legal-issues/14-can-a-thai-company-be-my-nominee-for-land-acquisition

http://www.thailandlawonline.com/article-older-archive/foreign-business-nominee-company-shareholder

Thanks for your responce

However

The Thai government has stated that they are going to fix this problem going back to 2006-to my certain knowlege.

The solution -to my mind -is very simple i.e. If a foreigner has the majority of the voting rights -then that company must be designated as a foreign company.

They did not fix it in 2006 . They have ,however,threated to fix it ever since.

I am 100% convinced that emotionally they would love to fix it. .

I am also 100% convinced that they will never fix it.

Money makes the world go round!

[xylophone]

Much posted here and elsewhere on this subject so do your own research. Unfortunately there are still lawyers who will set a nominee company up for you. Also click on the links at the bottom for more info.

It helps to become familiar the Foreign Business Act 1999. This sets out the rights of foreign companies in Thailand, as well as what is not permitted.

Most, although not all, foreign businesses looking to set up in Thailand require a Thai majority shareholding. Many foreigners prefer to form a Thai majority company, to allow the company to operate a business in a category that is otherwise restricted to foreigners. The registration of a Thai majority company generally requires less registered capital and less paperwork than the registration of a foreign company. A Thai majority company can also buy land.

Others however prefer the simpler but highly illegal practice of nominee shareholders. A nominee shareholder is a shareholder in name only; in reality nominee shareholders lacks any real financial stake or interest in the company. There are companies in Thailand who will offer to supply Thai nominee shareholders. This is extremely high risk as not only will you have no knowledge of who the shareholder of your company is now will they owe you any loyalty, they are likely to be professional shareholders who will probably be listed as shareholders in multiple companies which will soon wave a red flag to the authorities.

1). Unquestionably it is illegal to buy a house via a company.

The Thailand Alien Business act is quite specific, and there is a blanket offence of circumventing land ownership laws that means anything the appears to allow foreigners to own houses is actually illegal.

2). Be careful here because it is illegal for a company to be formed with the sole purpose of owning a property. If the company is a trading/working entity employing Thai workers, paying taxes etc then a house can be purchased, but then again the company has to also have a majority Thai ownership and these majority Thai shareholders must be able to show how much they have invested in this company and from whence the funds came.

This is to prevent the “Thai nominee company” illegal workaround and nominee companies are illegal...

http://www.thailand-lawyer.com/land_purchase.html

http://www.telegraph.co.uk/finance/personalfinance/expat-money/9413075/Expats-warned-of-illegal-home-crackdown-in-Thailand.html

http://www.thailandlawonline.com/66-real-estate-legal-issues/14-can-a-thai-company-be-my-nominee-for-land-acquisition

http://www.thailandlawonline.com/article-older-archive/foreign-business-nominee-company-shareholder

Thanks for your responce

However

The Thai government has stated that they are going to fix this problem going back to 2006-to my certain knowlege.

The solution -to my mind -is very simple i.e. If a foreigner has the majority of the voting rights -then that company must be designated as a foreign company.

They did not fix it in 2006 . They have ,however,threated to fix it ever since.

I am 100% convinced that emotionally they would love to fix it. .

I am also 100% convinced that they will never fix it.

Money makes the world go round!

AFAIK, the government has never said that they are going to "fix" this problem, but that they will take action against any companies formed solely for the purpose of owning property/land.

Hidden somewhere in the small print of the "Foreign Business Act" is the fact that foreigners cannot own the majority of the shares/voting rights and if they do, this contravenes the act/or this gives them nothing more than they already have.

Whichever way you look at it, foreigners wishing to set up a company this way in order to purchase property/land are doing so illegally and will have to face the consequences sooner or later – – there are a couple of cases already on ThaiVisa which relate to the fact that the foreigner has been screwed over by someone, but cannot rectify/remedy it, because they utilised the nominee company route to buy this in the first place.

[user7643446845]

AFAIK, the government has never said that they are going to "fix" this problem, but that they will take action against any companies formed solely for the purpose of owning property/land.

Hidden somewhere in the small print of the "Foreign Business Act" is the fact that foreigners cannot own the majority of the shares/voting rights and if they do, this contravenes the act/or this gives them nothing more than they already have.

Whichever way you look at it, foreigners wishing to set up a company this way in order to purchase property/land are doing so illegally and will have to face the consequences sooner or later – – there are a couple of cases already on ThaiVisa which relate to the fact that the foreigner has been screwed over by someone, but cannot rectify/remedy it, because they utilised the nominee company route to buy this in the first place.

I remember the issue back in 2006/2007

The attached 2007 aricle gives detail

My money says that they will never fix it

Your money says they will

Just a difference of opinion

http://www.thailandlawonline.com/thai-company-and-foreign-business-law/foreign-business-law-in-thailand-proposed-amendments

Edited June 15, 2016 by Cellarvee

[xylophone]

AFAIK, the government has never said that they are going to "fix" this problem, but that they will take action against any companies formed solely for the purpose of owning property/land.

Hidden somewhere in the small print of the "Foreign Business Act" is the fact that foreigners cannot own the majority of the shares/voting rights and if they do, this contravenes the act/or this gives them nothing more than they already have.

Whichever way you look at it, foreigners wishing to set up a company this way in order to purchase property/land are doing so illegally and will have to face the consequences sooner or later – – there are a couple of cases already on ThaiVisa which relate to the fact that the foreigner has been screwed over by someone, but cannot rectify/remedy it, because they utilised the nominee company route to buy this in the first place.

I remember the issue back in 2006/2007

The attached 2007 aricle gives detail

My money says that they will never fix it

Your money says they will

Just a difference of opinion

http://www.thailandlawonline.com/thai-company-and-foreign-business-law/foreign-business-law-in-thailand-proposed-amendments

http://www.samuiforsale.com/knowledge/thai-business-law.html

I'm only saying that nominee companies set up with the intent of owning property/land will still be deemed illegal (see above).

As of now this is still illegal..........no point in speculating. So anyone trying to buy through this route is breaking the law.

No point in discussing further, over and out.

[blackcab]

It's interesting to note that the government recognises the foreign ownership/preference share scenario and chooses not to act most of the time.

There are, however, very specific businesses where it is specifically stated that ownership must be majority Thai and that the shareholders voting must not be limited. No preference shares are allowed.

So the government currently chooses to act on this when it suits the national interest.

[UKJASE]

we bought a company that owned a house, and lived there happily for 3 1/2 years. we then sold the house to a thai couple and now need to close the company.

buying the company avoided all land office taxes, plus i could be 49% share holder, plus i was director of the company.

Now we live in a house and the land is owned by my wife....... i preferred the company method

[williamgeorgeallen]

i had a house in a company name. no problems. you are going to have to put it in a company or thais name and the company option is the best of 2 bad options. would i do it again? no because houses are extremely hard to sell. if anything i would buy condos which can be owned in a foreign name, and even then renting is so cheap why bother buying? being suck owning property in thailand is a hassle, i know because that is the situation i am now in. i have 2 condos in pattaya i need to sell before i leave. this seems just about impossible and i want to take my kids back to nz to go to school.

[dotpoom]

It is normal procedure to buy a house in a Company name if you are a Farang and want to own it. It is also normal procedure to sell a house with the Company if a Farang wants to buy it.

If a Thai wants to buy it they don't need the Company. Simple really. I'm on house No. 3 by this method and one condo.

[bangkoklawyer24]

Which of the following statements do you think is right and which is wrong:

1. Thais are allowed to own property thought a Co., Ltd. without additional business and without taxable profits.

2. The Civil & Commercial Code has no stricter rules for foreigners, because the CCC has no specific foreigner rules at all.

3. The Foreign Business Act has not stricter rules for foreigners, because the FBA has no provision about land ownership at all.

4. The Land Code has no stricter rules for foreigners, because the LC has no provision about company structures at all.

5. Therefore, a land holding Co., Ltd. with or without 49% foreign shareholders, does not need to have additional business or taxable profits.

[mrboats]

I can only inform that my experiences have been fantastic .....have purchased many properties in the company method....and sold a few as well...it's easy and smooth...you just have to know how to do it...no need to scare monger about nominees and getting cheated....just need the correct documents...pre signed .exit documents are important to remove shareholders....simple loan document that you loaned them the money keeps all silly demands at bay. Company tax documents are prepared every year by an accountant....some of the 10000-13000 baht fee gos towards paying some taxes...it's clean and simple....you cannot be cheated out of the property . I also agree that selling houses and condos in Thailand can be difficult...BUT...again it depends on the asking price and the location....sold a condo and a house last year ....both within a week....location.location

Bottom line is having a company to own a house is not as scary as what it's made out to be...still have four properties in this method and I'm happy with it

[Fairynuff]

I've bought and sold a number of properties in Thailand. They have all belonged to me, my name on the title deeds. The reason, they have all been condos. Why would I buy a house when I can never legally own it? Why would I buy a house when the name(s) on the deeds is not mine?

I'd love to have a house here but the fact is I can't. So until I can legally own a house in MY name I'll stick to buying condos

[khunPer]

If the house comes with no land – i.e. build on leased land – you can own the house as foreigner (but not land) and don't need a company; you still have to pay land lease and carefully check the leasing agreement conditions. When the lease expires you can either move the house, or loose it.

If the house include the land it's build on, you (a foreigner) cannot own it. That's where the company method become a possibility. By taking over a Thai company limited owing the land+house you avoid transfer at Land Department, fees and taxes; and the seller don't need to close a company and may also avoid some company taxes; which however may be due, when you once in future sell house+land and close the company. There are a number of benefits taking over an existing company, rather than establishing you own and buy the property, but you need to have due delligene performed; and you first of all need a lawyer to check the company set-up and advise you.

Many house+land change foreign owner, by selling/transferring shares in a company limited.

[xylophone]

I can only inform that my experiences have been fantastic .....have purchased many properties in the company method....and sold a few as well...it's easy and smooth...you just have to know how to do it...no need to scare monger about nominees and getting cheated....just need the correct documents...pre signed .exit documents are important to remove shareholders....simple loan document that you loaned them the money keeps all silly demands at bay. Company tax documents are prepared every year by an accountant....some of the 10000-13000 baht fee gos towards paying some taxes...it's clean and simple....you cannot be cheated out of the property . I also agree that selling houses and condos in Thailand can be difficult...BUT...again it depends on the asking price and the location....sold a condo and a house last year ....both within a week....location.location

Bottom line is having a company to own a house is not as scary as what it's made out to be...still have four properties in this method and I'm happy with it

So despite all of the warnings by Thai lawyers/legal firms as highlighted in these links, you still think it's okay to go ahead? As for "pre-signed exit documents to remove shareholders", well If you mean what I think you mean by that, that is also highly illegal.

This is to prevent the “Thai nominee company” illegal workaround and nominee companies are illegal...

http://www.thailand-...d_purchase.html

http://www.telegraph...n-Thailand.html

http://www.thailandl...and-acquisition

http://www.thailandl...any-shareholder

The fact that someone gets away with breaking the law, does not mean that it is okay to do so.

[user7643446845]

So despite all of the warnings by Thai lawyers/legal firms as highlighted in these links, you still think it's okay to go ahead? As for "pre-signed exit documents to remove shareholders", well If you mean what I think you mean by that, that is also highly illegal.

This is to prevent the “Thai nominee company” illegal workaround and nominee companies are illegal...

The fact that someone gets away with breaking the law, does not mean that it is okay to do so.

Given the foregoing -why do the Land OIffice allow it to occur on a daily basis?

[xylophone]

So despite all of the warnings by Thai lawyers/legal firms as highlighted in these links, you still think it's okay to go ahead? As for "pre-signed exit documents to remove shareholders", well If you mean what I think you mean by that, that is also highly illegal.

This is to prevent the “Thai nominee company” illegal workaround and nominee companies are illegal...

The fact that someone gets away with breaking the law, does not mean that it is okay to do so.

Given the foregoing -why do the Land OIffice allow it to occur on a daily basis?

This might give you a clue...........

"The Land office is the most corrupt agency in the Thai bureaucracy, while police are ranked second in this dubious list where households needed to make illegal payments to facilitate their service, according to an academic survey.

The survey titled "Corruption in the Thai Bureaucracy in 2014: A Survey of Attitudes and Experiences of Heads of Households" by Chulalongkorn University's Pasuk Phongpaichit found that 7.2 per cent of 6,048 heads of Thai households said they were asked for a bribe by officials at land offices whenever contacted for a service, while 6.1 per cent said police personnel asked for money from them.

Land offices, which come under the Department of Lands, are the key agency for all transactions and documentation involving sale or purchase of land. The office is authorised to charge a fee but officials demand extra money to speed up work or legalise some grey documents, the survey revealed.".

As opposed to a survey by the Office of the Ombudsman, taken two years previously, which found that the police were the most corrupt.

This also from the Land Department Minister (office of)...........

"If it is appears that the company is having foreigner as shareholder or Director or if there is a reason to believe that it is nominating the Thais to hold shares for the foreigners, the officer is to investigate income of every Thai shareholders in the legal entity by looking into their work history of what kind of work they have done and what monthly salary they earned, all of these proved by evidence.

If the purchased is funded by loan, then loan evidence must be provided. If after the investigation, it is led to believe that the application for land ownership is circumventing the law or any individual is purchasing land to the benefit of foreigners under the Land Act 74, paragraph 2, the officer is to investigate the case in detail and report to the Land Bureau to be waiting for further advise from the Minister".

Some more info for you... http://www.thailaws.com/aboutthailand/business_42.htm

I will grant you the fact that looking for a definitive answer is sometimes hard, because on an Internet search today I have found a couple of Real estate agencies who provide information that is clearly wrong. One in particular stating that someone can lease land and property for a period of 30 years with provision for a further two 30 year lease periods in the initial agreement. The above link deals with some aspects of that.

I won't post again on this, because it is becoming a little repetitive and there are some people who have gotten away with buying houses/land through the nominee company route and think it's just fine, and maybe it has been for them, but it is illegal and if the proverbial hits the fan, then there is only going to be one loser. Furthermore any convoluted scheme which tries to circumvent the law in this regard will also be deemed illegal.

You do this at your own peril and you may wish to refer to the previous link to an article in the Telegraph....

"Expats who own land illegally in Thailand could be deported under tough new laws being drafted by the government.

Thai ombudsman Siracha Charoenpanij said earlier this month that he was drawing up "carrot-and-stick" legislation to protect the country from illegal foreign nominee ownership.

Under Thai laws, foreign nationals are not allowed to own residential land. They can, however, buy apartments so long as no more than 49 per cent of a development is owned by foreigners. They can also purchase detached villas, but while they can own the house, they cannot own the land the house is on and are only able to lease it for 30 years at a time.

To get around these restrictions, some have entered into complicated structures whereby a company is set up to purchase the land. A Thai national holds the majority of shares in that company, but in reality may have no financial interest in the company and may own it on behalf of the foreign buyer.

It is these such "nominee ownership" arrangements that the government now wants to crack down on, and Charoenpanij has also proposed a reward – of 20 per cent of the land’s value when sold – for those providing information about illegal ownership. His plans also include penalties for lawyers or consultants who advise foreign buyers on nominee structures".

[user7643446845]

So despite all of the warnings by Thai lawyers/legal firms as highlighted in these links, you still think it's okay to go ahead? As for "pre-signed exit documents to remove shareholders", well If you mean what I think you mean by that, that is also highly illegal.

This is to prevent the “Thai nominee company” illegal workaround and nominee companies are illegal...

The fact that someone gets away with breaking the law, does not mean that it is okay to do so.

Given the foregoing -why do the Land OIffice allow it to occur on a daily basis?

This might give you a clue...........

"The Land office is the most corrupt agency in the Thai bureaucracy, while police are ranked second in this dubious list where households needed to make illegal payments to facilitate their service, according to an academic survey.

The survey titled "Corruption in the Thai Bureaucracy in 2014: A Survey of Attitudes and Experiences of Heads of Households" by Chulalongkorn University's Pasuk Phongpaichit found that 7.2 per cent of 6,048 heads of Thai households said they were asked for a bribe by officials at land offices whenever contacted for a service, while 6.1 per cent said police personnel asked for money from them.

Land offices, which come under the Department of Lands, are the key agency for all transactions and documentation involving sale or purchase of land. The office is authorised to charge a fee but officials demand extra money to speed up work or legalise some grey documents, the survey revealed.".

As opposed to a survey by the Office of the Ombudsman, taken two years previously, which found that the police were the most corrupt.

This also from the Land Department Minister (office of)...........

"If it is appears that the company is having foreigner as shareholder or Director or if there is a reason to believe that it is nominating the Thais to hold shares for the foreigners, the officer is to investigate income of every Thai shareholders in the legal entity by looking into their work history of what kind of work they have done and what monthly salary they earned, all of these proved by evidence.

If the purchased is funded by loan, then loan evidence must be provided. If after the investigation, it is led to believe that the application for land ownership is circumventing the law or any individual is purchasing land to the benefit of foreigners under the Land Act 74, paragraph 2, the officer is to investigate the case in detail and report to the Land Bureau to be waiting for further advise from the Minister".

Some more info for you... http://www.thailaws.com/aboutthailand/business_42.htm

I will grant you the fact that looking for a definitive answer is sometimes hard, because on an Internet search today I have found a couple of Real estate agencies who provide information that is clearly wrong. One in particular stating that someone can lease land and property for a period of 30 years with provision for a further two 30 year lease periods in the initial agreement. The above link deals with some aspects of that.

I won't post again on this, because it is becoming a little repetitive and there are some people who have gotten away with buying houses/land through the nominee company route and think it's just fine, and maybe it has been for them, but it is illegal and if the proverbial hits the fan, then there is only going to be one loser. Furthermore any convoluted scheme which tries to circumvent the law in this regard will also be deemed illegal.

You do this at your own peril and you may wish to refer to the previous link to an article in the Telegraph....

"Expats who own land illegally in Thailand could be deported under tough new laws being drafted by the government.

Thai ombudsman Siracha Charoenpanij said earlier this month that he was drawing up "carrot-and-stick" legislation to protect the country from illegal foreign nominee ownership.

Under Thai laws, foreign nationals are not allowed to own residential land. They can, however, buy apartments so long as no more than 49 per cent of a development is owned by foreigners. They can also purchase detached villas, but while they can own the house, they cannot own the land the house is on and are only able to lease it for 30 years at a time.

To get around these restrictions, some have entered into complicated structures whereby a company is set up to purchase the land. A Thai national holds the majority of shares in that company, but in reality may have no financial interest in the company and may own it on behalf of the foreign buyer.

It is these such "nominee ownership" arrangements that the government now wants to crack down on, and Charoenpanij has also proposed a reward – of 20 per cent of the land’s value when sold – for those providing information about illegal ownership. His plans also include penalties for lawyers or consultants who advise foreign buyers on nominee structures".

Xylophone

Thanks for your detailed response

Just one further small question

What would you think would be the economic impact on Thailand if the practice of nominee companies were actually stopped. That is companies current and future?

Others are of course free to comment

Edited June 18, 2016 by Cellarvee

[Naam]

Plenty on this subject on TV............if a company is set up for the sole reason of purchasing a property then it is illegal. That's what they are/will be cracking down on.

that's your personal assumption which is not based on prevailing facts.

[Naam]

So despite all of the warnings by Thai lawyers/legal firms as highlighted in these links, you still think it's okay to go ahead? As for "pre-signed exit documents to remove shareholders", well If you mean what I think you mean by that, that is also highly illegal.

This is to prevent the “Thai nominee company” illegal workaround and nominee companies are illegal...

The fact that someone gets away with breaking the law, does not mean that it is okay to do so.

Given the foregoing -why do the Land OIffice allow it to occur on a daily basis?

because the land offices don't read Xylophone's postings in Thaivisa. as simple as that.

[xylophone]

Xylophone

Thanks for your detailed response

Just one further small question

What would you think would be the economic impact on Thailand if the practice of nominee companies were actually stopped. That is companies current and future?

Others are of course free to comment

"What would you think would be the economic impact on Thailand if the practice of nominee companies were actually stopped. That is companies current and future"?

Okay, this is the last answer......................IMO The economic impact would be between almost zilch to zero!!

Why, well the people who want to own their land and house through a nominee company don't actually own it anyway even if they go down this route, they just have shares in a company which owns it and they can do nothing about it. Sure they may fix up some shenanigans about voting rights etc, but at the end of the day they don't own anything except a shell/illegal company.

Once this avenue is completely cracked down on, then farangs who want to "own" land/property will have to go down the lease/usufruct route (or buy a condo) which is what they should have been doing all of the time. Farangs simply won't stop wanting to live in houses long-term just because a particular illegal practice has been stopped, so they will continue down the only legal avenue. Anyway it is important to remember that even through the nominee company route, they actually don't own the land and this is particularly set out clearly in Thai law, so why do it?

As for those farangs who have this set up at present, well you can see from my previous post what has been suggested and it will not be pretty for the farangs although Thailand will definitely benefit!!

Economic impact will be just about nothing apart from just a few thousand baht per illegal transaction going to the bent lawyer and bent land officer and of course a few thousand baht per annum in supposed "company tax".

I am talking about those nominee companies set up specifically to buy property.

That's it and I leave it up to you to do as much more research as you wish.