Can foreigners buy a guesthouse or other hospitality business?

[Hal65]

I notice they are for sale on English websites. Are they considered real estate or businesses under Thai law? I am an American so can technically set up a 100% owned company if it's a business (Amity treaty)

[trogers]

Amity treaty is equal to paper in the toilet with regards to owning real estate.

 

A foreigner can lease a business property for up to 30-year, treaty or no treaty. But a foreigner cannot own one freehold.

[blackcab]

Most of the time the business you buy does not own the real estate it sits in. Often the property is leased. A business being sold for a few million baht probably doesn't own a freehold chanote. 

 

There are some exceptions to this, but that's roughly how it is.

[Hal65]

6 hours ago, blackcab said:

Most of the time the business you buy does not own the real estate it sits in. Often the property is leased. A business being sold for a few million baht probably doesn't own a freehold chanote. 

 

There are some exceptions to this, but that's roughly how it is.

 

I don't know about Thailand but in the US hospitality businesses generally include the real estate, as the building and land are integral to the business itself.

[blackcab]

4 hours ago, Hal65 said:

 

I don't know about Thailand but in the US hospitality businesses generally include the real estate, as the building and land are integral to the business itself.

 

You're not in Kansas now Dorothy.

[DoctorG]

7 hours ago, Hal65 said:

 

I don't know about Thailand but in the US hospitality businesses generally include the real estate, as the building and land are integral to the business itself.

 

Hotel and restaurant chains rarely own the property. Hilton, Hyatt, Intercontinental, etc usually have a long contract with the building owner.

A single operator might own their own small building for peace of mind but the big boys & girls use the money to generate profits, not tie it up for the long-term capital gain.

 

[grumbleweed]

You can certainly *invest in them.  The only criteria is that the number of functioning brain cells doesn't run into double figures

 

*invest (v) throw money into a black hole

[jacksam]

8 hours ago, Hal65 said:

 

 NaI don't know about Thailand but in the US hospitality businesses generally include the real estate, as the building and land are integral to the business itself.

Your not in the USA. 

Seem bit innocent to be purchasing a business

[PaoloR]

If you have to ask questions such as the above - please don't even think about joining the thousands of others who have lost their shirts in various hospitality enterprises!

Just google getting a license for a hotel guest-house - then google the penalty for running a business without a license.

 

It is possible - but not for the unwary or those inexperienced in the ways of Thai business which you appear to be.

[williamgeorgeallen]

8 hours ago, Hal65 said:

 

I don't know about Thailand but in the US hospitality businesses generally include the real estate, as the building and land are integral to the business itself.

in thailand the business very rarely owns the building it is in. is a fantastic scam in pattaya (and probably any where else there are westerners in thailand) to sell a business in a leased premises. charge the first years rent in advance then the new business owner realizes the business makes so little money it barely covers the rent. they leave and the building owner sells the business again.

 

[F4UCorsair]

6 minutes ago, PaoloR said:

If you have to ask questions such as the above - please don't even think about joining the thousands of others who have lost their shirts in various hospitality enterprises!

Just google getting a license for a hotel guest-house - then google the penalty for running a business without a license.

 

It is possible - but not for the unwary or those inexperienced in the ways of Thai business which you appear to be.

Couldn't have said It better.  You are right on tbe button, and OP, please, for your own sanity and financial wellbeing, FORGET IT!!

[phantomfiddler]

Of course you can buy a guesthouse, but operating it is a different kettle of fish. I am assuming you mean "buy" as opposed to "rent", though similar restrictions apply. To buy you will have to start a company, be the company director with 2 other shareholders, and if you wish to operate the business yourself you will have to obtain a Work Permit. In this case you will be hit with en excessive amount of tax every month (even if you are making no profit !) and a better idea would be to then rent the property to a thai person, whose name will be on the Business License, with the arrangement that they are there in name only. You still cannot be seen to be physically working on the premises, so the obvious manager would be your girlfriend or whoever you see fit to employ. All sounds a bit complicated but in the long run it would be more profitable than renting a place. If you do not wish to start a company you can buy it in your girlfriend,s name but be warned that many (as in MANY) have lost their life savings by trusting someone of an untrustworthy nature !

[khunPer]

If you have a Thai company limited, the company can buy and own a guesthouse or resort. Mind you, that foreigners legally can own only 49 percent of the shares (sometimes only 39 percent when registering property, depending of the local Land Office). Foreigners can be employed in the company as managers and like, but that require Work Permit and the conditions fulfilled for obtaining a WP. I don't think the US Armity Treaty allow a 100% US-owned Thai company limited to hold more than a minor land plot, you need to check the clauses of that agreement carefully.

[SOTIRIOS]

....you can... 'pay'....as for... 'owning'.....

 

...only reason we are... 'welcome' ...it seems....

[Thaidream]

Don't even think about buying, owning or renting any type of business in Thailand. There are few who have done it and made it work. The obstacles are simply just too many to overcome. Stay in the US make a good living- save your money- then come back and enjoy Thailand. It will always be here.

[oldlakey]

5 hours ago, Thaidream said:

Don't even think about buying, owning or renting any type of business in Thailand. There are few who have done it and made it work. The obstacles are simply just too many to overcome. Stay in the US make a good living- save your money- then come back and enjoy Thailand. It will always be here.

Hopefully it will have got better Hal 65 in about 50 years when you have grown up a bit

[oldlakey]

8 hours ago, khunPer said:

If you have a Thai company limited, the company can buy and own a guesthouse or resort. Mind you, that foreigners legally can own only 49 percent of the shares (sometimes only 39 percent when registering property, depending of the local Land Office). Foreigners can be employed in the company as managers and like, but that require Work Permit and the conditions fulfilled for obtaining a WP. I don't think the US Armity Treaty allow a 100% US-owned Thai company limited to hold more than a minor land plot, you need to check the clauses of that agreement carefully.

The land plot just big enough to install a squat 5555555555555555

[oldlakey]

If you want the right to buy land  with real legal protection for land ownership buy in a  first world country

Now watch my lips you will not get that in Thailand as we say in the UK  end of CHAT

We also say a fool and his money are soon parted 

 I think our North American cousins say one is born every minute but I think that is an underestimate

Edited September 27, 2016 by oldlakey

[Rimmer]

A flame has been removed

[In the jungle]

Sure you can buy a guest house.

 

Admittedly the last guy I know to do so went back to Europe shortly afterwards bankrupt.

 

We're still using some of the stuff he sold to us trying to raise the airfare.

Edited September 28, 2016 by In the jungle