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Tapster

Possible change in property/company law in 2020. Is this true??

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This was posted on the Phuket forum in the last week. I think it deserves a wider readership.

 

(Please note, I am only the messenger. The post doesn't relate to me at all.)

 

Is there any truth in it?

 

"A friend of mine (Aussie) was in the land office the other day as they want to sell their house of the last 15 years, they went through the generally accepted route of a Company to own the land and house with them as 49% shareholders and directors.

Please lets not get into the old arguments of whether that is the best way of doing it etc. that is not what this is about.

They were told that as from next year NO foreigners would be allowed to be Directors of Companies that own land, This has been confirmed since by my lawyer.

Has anyone else heard this? If it is true then it could mean a lot of issues for home owners."

 

 

Edited by Tapster
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Selling property via selling the company does not require the involvement of the Land Office.

So is this a bad rumor or a troll?

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7 minutes ago, inThailand said:

Selling property via selling the company does not require the involvement of the Land Office.

So is this a bad rumor or a troll?

 

Thanks, but your reply does not address the question being asked, here:

 

<<They were told that as from next year NO foreigners would be allowed to be Directors of Companies that own land, This has been confirmed since by my lawyer.
Has anyone else heard this? If it is true then it could mean a lot of issues for home owners.>>

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You and your friend clearly do not understand the major benefit of having a company, to avoid Land Dept involvement and its fees.

 

The Land Dept doesn't like companies holding property because they are cut off getting revenue when its sold. Hence, not surprising that they would talk down companies.

 

This is nothing more than propaganda.

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4 minutes ago, macahoom said:

 

The OP is not asking whether or not the Land Department is involved in the sale of a company owned property. This is irrelevant.

 

He is asking if it is true that from next year NO foreigners will be allowed to be directors of companies that own land. This is a very specific question.

 

Do you understand?

Its pure fake news.

 

So if Coca cola wants to build a new factory here, they can't buy and control the land? Are you nuts! Use some common sense.

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10 minutes ago, macahoom said:

He is asking if it is true that from next year NO foreigners will be allowed to be directors of companies that own land.

No foreigner, company director or not,  is allowed to "own" land in Thailand.  Only 30 year leases AFAIK.

Being the "director of a company" that is 51% Thai, can any non-Thai be considered an "owner"?  

Do not know, am asking 

 

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23 minutes ago, inThailand said:

Its pure fake news.

 

So if Coca cola wants to build a new factory here, they can't buy and control the land? Are you nuts! Use some common sense.

So at least this time you have come close to actually answering the question by giving your opinion that it is fake news.

 

Maybe someone else will be able to provide the definitive answer.

 

Edited by macahoom
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35 minutes ago, inThailand said:

Its pure fake news.

 

So if Coca cola wants to build a new factory here, they can't buy and control the land? Are you nuts! Use some common sense.

Do you have a company ..?

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49 minutes ago, inThailand said:

Its pure fake news.

 

So if Coca cola wants to build a new factory here, they can't buy and control the land? Are you nuts! Use some common sense.

Common sense is not very common in many parts of the World, and is surely not in Thailand.

 

In response to your Coca Cola example - to be a director of a publicly listed company in Thailand, the foreigner requires permanent residence. So it's all fine about Coca Cola buying and controlling a plot of land, but unless you have PR, you can't be director of it.

 

Now the question is, would this kind of law spread to some non-listed companies? It isn't terribly likely, but you never know. 2 years ago people would have said "So if I want to go for holiday to another province over a weekend, I have to report to immigration when I return back home? Are you nuts! Use some common sense."

 

Yet...

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A company that is formed by a foreigner, with the express purpose or intent of owning a house/land, is not allowed by the Land Office. Why does the Land Office need to be involved you ask since this is a company related issue. Because the LO must do the transfer into the company name in the first place hence I suspect any checks need to be done at that point. There was an active crack down in the North on such things, about seven or eight years ago and foreigners found to own companies/property in that manner were given six months to make separate ownership arrangements.

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Get a new lawyer or tell him to do what every other lawyer does. Set up the company all thai add the house then transfer directorship and shares to the foreigners name. 

 

bottom line you need a better lawyer 

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10 minutes ago, yankee99 said:

Get a new lawyer or tell him to do what every other lawyer does. Set up the company all thai add the house then transfer directorship and shares to the foreigners name. 

 

bottom line you need a better lawyer 

https://www.interactivethailand.com/corporate/foreign-business-ownership-in-thailand/

 

2019-10-16_085316.png

Edited by david555
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1 hour ago, macahoom said:

 

The OP is not asking whether or not the Land Department is involved in the sale of a company owned property. This is irrelevant.

 

He is asking if it is true that from next year NO foreigners will be allowed to be directors of companies that own land. This is a very specific question.

 

Do you understand?

It is irrelevant for validity of the statement that"Aussie friend" and the OP made. 

Why was the Aussie in the land office, he wasn't actually selling and any questions would no doubt be directed to the lawyer that set up the company.

It seems like a scaremongering post by both parties and if the original question wants to be asked can be but in a factaul matter feather than a friend of friend unclarified post.

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