Buying houses foreigners in Thailand - the Land Code

 

According to Article 86 of the first Thai Land Code, foreigners can not own land except for special agreements. Versions of a law resolve this situation two:

The first option - the purchase of land by a legal person, which will be considered "Thai". This method of ownership is often called the "clearance on the Thai company." Using it is - you own the company, and owns the house. Under Article 97 of the first companies registered in Thailand, but with more than 49% of the share capital owned by foreigners to refer to foreign legal entities, that is, to a legal person has been "Thai", should that be 51% of the share capital owned by Thais.

Thus, a foreigner can own only 49% of the company, although the Thai Land Code does not prohibit fully control it. It is therefore very important to make an entire package of documents on the company to guarantee the right to effectively and fully the company control. Ownership and management of the Thai company passes through certain procedures and imposes responsibilities and tax liabilities, which also requires additional costs. Although this method of buying some believe is not too reliable, however the last 30 most of the houses were bought by foreigners in this way. With proper preparation of documents - and a mechanism for those years long ago perfected - no problems with the owners never arisen.

The second option - a foreigner can own land through a documented long-term lease.

Long-term lease - a simple way that allows ownership of land (or land with a house) for a certain number of years. As a rule - 30 years with the right to renew the lease on the formula 30, 30 (ie, a total of 90 years). Some prefer this method because of its simplicity and because it does not require very complex procedure for the establishment of the company. The land is leased from the owner of the land: a person or entity, and shall be registered in the Land Management. The amount, stated in the contract for the 30-year lease, will depend on how you arrange with the owner of a small commission + Land Management for the registration of the contract. The contract also specifies an option to renew the lease for an additional 30 years. In addition to the lease contract can be issued for life to the enjoyment of all that is located on the surface of the site as an additional and serious guarantees. However, long-term lease can be considered a reliable way only if, if you rent land from the state. If you rent land from private individuals or firms can never be completely sure that 30 years later, when you will need to extend the lease with them nothing will happen.

You should not assume that the lease allows you to save on the cost of land - usually less than the cost of the rental price of land (the acquisition of the company) only a few percent. Developers cottage settlements is rarely go on clearance through leases and over 90% of homes are made "on a Thai company."