Condo ownership by a foreign company

[Puccini]

Can a foreign juristic person, for example a company not registered in Thailand, buy a condominium unit within the 49% allowed for ownership by foreigners?

[CRUNCHER]

Yes

[Peterw42]

The Thai Condominium act says the following, it appears a foreign company can own in the foreign quota if they are registered as a juristic person under Thai law and have an alien business license. 

 

 

Section 19 (2) 'each condominium shall have foreigners or corporate entities as indicated under section 19 first paragraph holding ownerships in the units collectively not exceeding forty-nine percents (49%) of the spaces of the whole units in such particular condominium at the time of making the registration of such condominium in accordance with Section 6'.

Foreigners eligible for ownership of a unit

There are no ownership restrictions based on nationality or specific visa categories and every foreigner who can enter Thailand legally can buy and own a condo, but foreigners must qualify for ownership under section 19 of the condo act. Generally this means that the foreigner must have transferred the full purchase price for the unit into Thailand as foreign currency and have this amount exchanged into Thai baht by the recipient bank inside Thailand and obtained proof of the transfer and exchange of foreign currency (foreign exhange transaction (Thai) forms). The following foreigners are eligible for ownership:

1. foreigners permitted to have residence in the Thailand under the immigration law;
2. foreigners permitted to enter into Thailand under the investment promotion law;
3. juristic entities as provided in section 97 and 98 of the land code and registered as a juristic person under Thai law;
4. companies (juristic entities) under section 4 of the foreign business act and having obtained an alien business license;
5. foreigners or juristic person regarded by law as foreign who have brought in foreign currency into Thailand and exchanged and withdrawn Thai baht from the Thai baht account or foreign currency account.

http://www.thailandlawonline.com/article-older-archive/thailand-condominium-buying-foreign-ownership

Edited June 11, 2017 by Peterw42

[KittenKong]

24 minutes ago, Peterw42 said:

The Thai Condominium act says the following, it appears a foreign company can own in the foreign quota if they are registered as a juristic person under Thai law and have an alien business license. 

.....

The following foreigners are eligible for ownership:

1. foreigners permitted to have residence in the Thailand under the immigration law;
2. foreigners permitted to enter into Thailand under the investment promotion law;
3. juristic entities as provided in section 97 and 98 of the land code and registered as a juristic person under Thai law;
4. companies (juristic entities) under section 4 of the foreign business act and having obtained an alien business license;
5. foreigners or juristic person regarded by law as foreign who have brought in foreign currency into Thailand and exchanged and withdrawn Thai baht from the Thai baht account or foreign currency account.

 

Thai law, as usual, is not clear but I would say that those 5 categories are separate. So anyone, including a company, who fits in group 5 should be able to buy regardless of whether they are registered as a juristic person here or not.

 

As far as I can see the only important issue is that the money to buy came from abroad. Money is frequently the only important issue in Thailand.

[oxo1947]

But a juristic person  isn't really a person --its just an entity isn't it ?.....or do I have that wrong ??

.

If so I am sure some kind person will correct me---along the lines of......You stupid thick ting tong..do you even know what your talking about....etc  ...etc

Edited June 11, 2017 by oxo1947

[biggles45]

I don't see any advantage, the annual company accounting fees etc are quite high?

[Naam]

16 minutes ago, biggles45 said:

I don't see any advantage, the annual company accounting fees etc are quite high?

the total annual cost for a BVI (British Virgin Island) company handled by a renowned service provider is around USD 1,000.- for a Thai company holding a condo and not conducting any other busines total annual cost is THB 12,000.- / USD 350.-

[Naam]

2 hours ago, KittenKong said:

Thai law, as usual, is not clear but I would say that those 5 categories are separate. So anyone, including a company, who fits in group 5 should be able to buy regardless of whether they are registered as a juristic person here or not.

there is a hurdle. no bank account for a foreign company without a Thai work permit. no transfer of forex without a bank account. been there, done that.

[KittenKong]

2 hours ago, Naam said:

there is a hurdle. no bank account for a foreign company without a Thai work permit. no transfer of forex without a bank account. been there, done that.

 

Yes, I can see that might be a hurdle that isnt covered by the condo act specifically.

 

But is there a real requirement that the incoming money actually has to go to an account here in the same name as that of the purchaser? I thought the only real requirement was that the money should come from overseas. Many developers seem to receive advance payments for farang-name condos directly into their bank accounts from overseas.

[KittenKong]

3 hours ago, biggles45 said:

I don't see any advantage, the annual company accounting fees etc are quite high?

 

One advantage might be in relation to inheritance tax and general ease of dealing with the asset in case of death.

 

And though BVI fees might be high there is no reason why a company owning a condo here would have to be based in a dubious tax haven. Company fees in the UK are quite low, for example.

[Naam]

42 minutes ago, KittenKong said:

But is there a real requirement that the incoming money actually has to go to an account here in the same name as that of the purchaser?

the land office requires the document (formerly "tor tor 3") from the bank with the name of the purchasing party. downpayments to developers up to 20% of the total are accepted (i was told). 

[Naam]

43 minutes ago, KittenKong said:

And though BVI fees might be high there is no reason why a company owning a condo here would have to be based in a dubious tax haven. Company fees in the UK are quite low, for example.

1) BVI companies are accredited worldwide and are not less dubious than a company in any other jurisdiction. we own immobile property in Germany and Switzerland in the name of a BVI corporation.

 

2) when i talk about fees i talk about total fees including annual tax returns, flat corporate tax and mandatory board meetings by the directors including the filing of various documents (update residences of beneficiaries, etc.).

 

i bet the total fees in a UK company are a multiple.

[KittenKong]

1 hour ago, Naam said:

1) BVI companies are accredited worldwide and are not less dubious than a company in any other jurisdiction.

 

Well, that's a matter of opinion and not relevant to the question anyway.

 

 

1 hour ago, Naam said:

2) when i talk about fees i talk about total fees including annual tax returns, flat corporate tax and mandatory board meetings by the directors including the filing of various documents (update residences of beneficiaries, etc.).

 

i bet the total fees in a UK company are a multiple.

 

I bet they are a fraction!

[KittenKong]

1 hour ago, Naam said:

the land office requires the document (formerly "tor tor 3") from the bank with the name of the purchasing party. downpayments to developers up to 20% of the total are accepted (i was told). 

 

I've heard of people paying nearly all the cost of a condo directly to the developer, hence my doubt.

 

I'm still doubtful that the name on the account is a real and invariable requirement, unlike the FET form (which replaced the TT3). I dont know for sure though, nor am I ever likely to find out first-hand. I just wonder.

[Destiny1990]

Selling a condo in Thailand is not so easy now try selling ur Bvi owned company condo to another.

[Peterw42]

3 hours ago, KittenKong said:

 

I've heard of people paying nearly all the cost of a condo directly to the developer, hence my doubt.

 

I'm still doubtful that the name on the account is a real and invariable requirement, unlike the FET form (which replaced the TT3). I dont know for sure though, nor am I ever likely to find out first-hand. I just wonder.

If you pay straight to the developer, they produce the FET from their account showing incoming funds. 

[Naam]

1 hour ago, Destiny1990 said:

Selling a condo in Thailand is not so easy now try selling ur Bvi owned company condo to another.

that's correct but besides the discussed point.

[Naam]

42 minutes ago, Peterw42 said:

If you pay straight to the developer, they produce the FET from their account showing incoming funds. 

that might be possible and depends whether the land office accepts it. i can only report ridiculous difficulties, e.g. a friend of mine wanted to buy a condo and transferred the equivalent amount to his account. Pattaya land office refused the registration in his and his wife's name because the account name and the FET was in his name only. Kasikorn bank refused to transfer the amount to a newly opened joint account and issue a new FET reason:

Quote

cannot!

why not?

because no can do!

so he had to transfer the same amount again and struggled for several months to have the first transfer returned to his bank in Singapore.  

this is Thailand Dorothy!

 

i swear all holy oaths this was the conversation in my presence at Kasikorn branch near Villa Market.

 

Edited June 11, 2017 by Naam

[newnative]

9 hours ago, Naam said:

that might be possible and depends whether the land office accepts it. i can only report ridiculous difficulties, e.g. a friend of mine wanted to buy a condo and transferred the equivalent amount to his account. Pattaya land office refused the registration in his and his wife's name because the account name and the FET was in his name only. Kasikorn bank refused to transfer the amount to a newly opened joint account and issue a new FET reason:

so he had to transfer the same amount again and struggled for several months to have the first transfer returned to his bank in Singapore.  

this is Thailand Dorothy!

 

i swear all holy oaths this was the conversation in my presence at Kasikorn branch near Villa Market.

 

Interesting.   I just sold a condo, foreign quota, to a Chinese couple, not married. They opened individual accounts here in Thailand and some of the money from China was sent to his account and some to hers. They both got FETs that together added up to the purchase price of the condo and the Land Office put both of their names on the Chanote.  They also used Kasikorn, but the branch at Central Marina.

[trogers]

2 hours ago, newnative said:

Interesting.   I just sold a condo, foreign quota, to a Chinese couple, not married. They opened individual accounts here in Thailand and some of the money from China was sent to his account and some to hers. They both got FETs that together added up to the purchase price of the condo and the Land Office put both of their names on the Chanote.  They also used Kasikorn, but the branch at Central Marina.

I did it differently.

 

I opened a joint account with my mum at Kasikorn bank, transferred the foreign money into it, and got a FET to cover the condo purchase under our joint names.

[Naam]

7 hours ago, newnative said:

Interesting.   I just sold a condo, foreign quota, to a Chinese couple, not married. They opened individual accounts here in Thailand and some of the money from China was sent to his account and some to hers. They both got FETs that together added up to the purchase price of the condo and the Land Office put both of their names on the Chanote.  They also used Kasikorn, but the branch at Central Marina.

sounds logical to me because two accounts existed. in the case i described the wife had no account, that's why the land office refused. ridiculous behaviour at the land office and ridiculous behaviour of the bank. but then... this is Thailand!

[Destiny1990]

18 hours ago, Naam said:

that might be possible and depends whether the land office accepts it. i can only report ridiculous difficulties, e.g. a friend of mine wanted to buy a condo and transferred the equivalent amount to his account. Pattaya land office refused the registration in his and his wife's name because the account name and the FET was in his name only. Kasikorn bank refused to transfer the amount to a newly opened joint account and issue a new FET reason:

so he had to transfer the same amount again and struggled for several months to have the first transfer returned to his bank in Singapore.  

this is Thailand Dorothy!

 

i swear all holy oaths this was the conversation in my presence at Kasikorn branch near Villa Market.

 

So your friend his wife was not a Thai person correct?

[Naam]

3 hours ago, Destiny1990 said:

So your friend his wife was not a Thai person correct?

correct!

[wordsofwisdom]

Married to Thai lady for more than 5 years. My company is one year older, so can I buy condo on my name ? Money should come from abroad, applies in this condition as I have been doing business with my wife

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[Destiny1990]

2 hours ago, wordsofwisdom said:

Married to Thai lady for more than 5 years. My company is one year older, so can I buy condo on my name ? Money should come from abroad, applies in this condition as I have been doing business with my wife

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u want in ur name or in a company name?u said u been doing business with ur wife but i doubt that is relevant for a condo purchase

[wordsofwisdom]

u want in ur name or in a company name?u said u been doing business with ur wife but i doubt that is relevant for a condo purchase

I want it on my name. Yep doing business with my wife. Already bought a house on company name.

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[Destiny1990]

24 minutes ago, wordsofwisdom said:

I want it on my name. Yep doing business with my wife. Already bought a house on company name.

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Yes makes the most sense.

Fyi you do not need to be doing or having any business with ur wife just for buying a freehold condo.

Edited June 12, 2017 by Destiny1990

[wordsofwisdom]

Thanks a lot for helping out and replying. Have a happy day.

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[newnative]

5 hours ago, wordsofwisdom said:

Married to Thai lady for more than 5 years. My company is one year older, so can I buy condo on my name ? Money should come from abroad, applies in this condition as I have been doing business with my wife

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You can buy a condo in your name but it must be in foreign quota. Make sure you ask if it is in foreign quota.

[te2000r]

Can a foreign juristic person, for example a company not registered in Thailand, buy a condominium unit within the 49% allowed for ownership by foreigners?

Why would any company buy a property but only gets 49% while the others who put nothing In the company gets 51%.

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