Can Americans Own Land In Thailand Directly?

[dblaisde]

A friend told me that it's possible for an American to own up to 1 rei (about 1/3 acre?) of land in his own name, that this law is a relic of the Vietnam war and it is still valid. Is this really true? My German wife and I are considering building a little retirement house in Thailand.

[The Dan Sai Kid]

I don't think so.

[Phil Conners]

It's probably in Vietnam

[The Dan Sai Kid]

Maybe it's in the US!

[lopburi3]

No it is not true.

[chuckd]

Is the Treaty of Amity still in effect?

I don't know.

[Gary A]

Is the Treaty of Amity still in effect?

I don't know.

I understand the treaty has been renewed but that still does not allow you to own land. It only applies to business ventures.

Under certain circumstances you can own a rai of land but I think the required figure is 40 million baht of Thai investment.

[monty]

I'm not American, but I'm of the impression if a Co.,Ltd. wants to acquire land, it needs to have a majority of Thai shareholders.

So 100% American companies, as possible under the treaty of amity, would not be eligible to acquire land...

And indeed Gary A, if you invest over 40 Million Baht, you are eligible to acquire up to 1 rai of land, but this land can only be used for residential purposes!

It is however possible if you are approved by the BOI, to form a 100% foreign owned company, which even can own the land on which it wants to put it's factory outright.

They do have to comply with very strict regulations, one of which is that a very large part of production has to be exported...

[Aujuba]

Sounds like the option you want is one of those long term leases on the land. What are they 90-year leases? There's a thread somewhere on here with info about this. Even though you may own a house or a house with land or any property in Thailand I don't believe that you are guaranteed the right to live on Thai land. That means no visa guarantees.

Edited December 23, 2006 by Aujuba

[johnnyk]

Maximum lease is 30 years. Period.

Being American confers no special rights.

As far as Thais are concerned, falang are falang no matter where from.

[jvlozare]

Yes, Americans may own residential land in Thailand not exceeding 2 rais.

Contact any Bangkok-based American lawyer because it will be a real long

tedious hassle involving the Ministries of Foreign Affairs (treaty), Interior

(immigration, visa status, police and amphur clearance, etc.), Justice (fiscal

clearance, etc.), and Labour (work permit, etc.). You may be required to

produce proof on income from abroad (pension for retirees, etc.) or any

business investment in Thailand (minimum THB 2.0 million).

You may also simply your life and just buy a condo unit with minimum legalities

and hassles.

[johnnyk]

Yes, Americans may own residential land in Thailand not exceeding 2 rais.

Contact any Bangkok-based American lawyer because it will be a real long

tedious hassle involving the Ministries of Foreign Affairs (treaty), Interior

(immigration, visa status, police and amphur clearance, etc.), Justice (fiscal

clearance, etc.), and Labour (work permit, etc.). You may be required to

produce proof on income from abroad (pension for retirees, etc.) or any

business investment in Thailand (minimum THB 2.0 million).

You may also simply your life and just buy a condo unit with minimum legalities

and hassles.

I did just that, a lawyer with close to 30 years practise in BKK.

No dice.

[jumbo]

[quote name='monty'

It is however possible if you are approved by the BOI, to form a 100% foreign owned company, which even can own the land on which it wants to put it's factory outright.

They do have to comply with very strict regulations, one of which is that a very large part of production has to be exported...

A foreigner (private or company) can only hold 100% of the ownership of a thai company when the company produces goods that are exeptions under the Thai foreign business act, example shoes and garments.

In order for this company to own land they would need to be on an Industrial Zone, preferably an export processing zone and would need written permission from the Industrial Zone Authority

When you have Permanent Residency you are allowed to hold ownership upto one rai but not for 100%

No exceptions for no nationalities other than the above

J

Edited December 26, 2006 by jumbo

[johnnyk]

Yes, and BOI setups are for serious investment of 40 million baht and up.

Not samesame as falang looking to put up a million baht bungalow on his own land.

Lots of people really have a tough time accepting that they cannot own land in their own name in Thailand.

Its just the way it is.

[quiksilva]

If 80% of goods are export bound, the BOI (Board of Investment) can grant permission for a wholly owned firm to own land for industrial purposes.

If 50% of goods are export bound, foreigners can own a majority shareholding position in the enterprise.

It does not have to be in an EPZ or Free Zone, however, just so long as it is in an IEAT (Industrial Estates Authority of Thailand) registered estate/park, however if you are exporting most of your goods, it is advantageous to be there.

----

I never knew about the PR land ownership rights, but I heard you could get local mortgages. I am thinking of going down the PR route next year, so this could be very interesting indeed.

But it just sounds too good to be true... I mean it would be great but I just dont see it. So Jumbo can you provide more details please?

You say 100% ownership is not allowed but how much is?

Can you post a link to your source for this information so we can investigate further?

Heck even just 49% ownership registered in my name would be better than using a company structure (in today's political climate), and it would certainly beat all of the other land holding alternatives out there.

Edited December 26, 2006 by quiksilva

[brahmburgers]

Everything in Thailand works on a subjective level. Even if there were some Thai law somewhere, it's moot when the time comes to sit down with a bureaucrat and discuss possiblities. In other words, the power broker will size you up (your appearance, your Thai wife's appearance, how much wealth you represent, etc) and make a decision based on that. The short answer is; there's no way for an American to put his name on a title (chanod) unless he does the mega investment in Thailand (40 million bt, which doesn't count the land/house investment) and then he might be allowed 1 rai in his name, but there will still be strings attached.

Best is to secure land in a trusted Thai person's name with a good contract between you and that other person. If you do as 95% of farang do, and use your Thai wife's or girlfriend's name for that purpose, you're asking for trouble - as relationships normally don't last (here or anywhere else). So if you use the wife/girlfriend's name - assume you're giving the property to her in the big picture of things. Chok dee / good luck / Happy new year!

[jumbo]

If 80% of goods are export bound, the BOI (Board of Investment) can grant permission for a wholly owned firm to own land for industrial purposes.

If 50% of goods are export bound, foreigners can own a majority shareholding position in the enterprise.

It does not have to be in an EPZ or Free Zone, however, just so long as it is in an IEAT (Industrial Estates Authority of Thailand) registered estate/park, however if you are exporting most of your goods, it is advantageous to be there.

----

I never knew about the PR land ownership rights, but I heard you could get local mortgages. I am thinking of going down the PR route next year, so this could be very interesting indeed.

But it just sounds too good to be true... I mean it would be great but I just dont see it. So Jumbo can you provide more details please?

You say 100% ownership is not allowed but how much is?

Can you post a link to your source for this information so we can investigate further?

Heck even just 49% ownership registered in my name would be better than using a company structure (in today's political climate), and it would certainly beat all of the other land holding alternatives out there.

First off all if you would do that qty of your manufacturing for export it would not be smart not to be in an EPZ.

Secondly it doesnot matter how much % you do for export it all matters to wether you are an exception under the thai foreign business act.

On the IEAT you are right is not linked to EPZ's

There is a pinnend thread about PR on this site and there you will find benefits, furthermore a google on this subject can help as well.

I am going fro PR next year as well, let's keep in touch about progress and advises we receive??

J

[quiksilva]

Sounds good, I'd be happy to share any information I come across. I read that pinned thread you mentioned and another which lists the benefits of PR. I noticed that the PR will have to have their name recorded on a tabien baan, but I am not sure whether that actually constitutes actual ownership.

re BOI thing I am sure what you say is true regarding exceptions under the foreign business act. The figures I quoted are indeed out of date it now stands as follows:

Criteria for Shareholding by Foreign Investors

To relax the limitation of foreign shareholding in manufacturing activities and to facilitate investors on their investment, the following criteria are used:

3.1 For a project in agriculture, animal husbandry, fishery, mineral exploration and mining and service business under Schedule One of the Foreign Business Act B.E. 2542, Thai nationals must hold shares totaling not less than 51 per cent of the registered capital;

3.2 For manufacturing projects, in all zones, foreign investors may hold a majority or all shares in promoted projects;

3.3 The Board may specifically fix the shareholding of foreign investors on some promoted projects when it is deemed appropriate.

So apologies, if any one is interested in BOI policies I highly recommend the BOI's excellant website www.boi.go.th

[ilyushin]

Please see some interesting reading at INVESTMENT CLIMATE STATEMENT fellows.

[toptuan]

What about having land through a holding company administered by your (trusted) Thai lawyer, insured by an iron-clad contract? Seems like I ocassionaly hear wind of this on TV. Or is it just someone breaking wind?