Limited Company or your own names?

[stiggy23]

Dear folks,

I am in a bit of quandary to understand whether I should be buy a property in Limited company or in my own name? I am trying to think of longer term implication if I decided to sell or pass it on to my loved ones. I do not want any major headache for my dependents in future. The property I am planning to buy is in foreign ownership, so just wanted to find the most robust solution for me. Thank you

[NightSky]

Buy the property in your THAI wife’s name to begin with. If you don’t have a Thai wife to buy a house for why would you buy one at all?

[stiggy23]

14 minutes ago, NightSky said:

Buy the property in your THAI wife’s name to begin with. If you don’t have a Thai wife to buy a house for why would you buy one at all?

_{Haha.. I havent fallen into that TRAP yet..} 

[northsouthdevide]

As far as I understand, the only property that you can buy in your own name as a foreigner is a condo. 

If you where to buy land or house with chanote title deed, then you would have to buy it in a Thai person's name, or a company name. 

The company must have at least 3 named shareholders, and a foreigner can't own more than, I think 49% of shares, maybe 40%, not sure. 

But the foreigner can be company director.. 

If you where to buy a house, you should aquire the services of a good English speaking lawyer. 

The drawbacks with a company are that you must pay for a company tax audit every year, around 15000bht and also some local authorities are clamping down on companies with nominee share holders. 

 

Edited May 18, 2020 by northsouthdevide

[crazykopite]

It’s a tricky one I have owned properties by way of Limited Company I have then sold / transferred my shares and purchased another property I have been doing it for 15 years with no issues myself and wife are directors she is farang as well and we have one Thai share holder who we are good friends with but when I came to live in Thailand I was only prepared to go down this road by telling myself it could all go belly up and I could lose every penny maybe I’ve been lucky as I’ve heard many horror stories but those were all foreigners who married Thai woman. You are only allowed to own a Condo outright anything else has to be either a Limited company or on a leasehold . Good luck with your decision 

[boriga]

If it is a condo, the annual compliance costs and potential profit tax on future transfer normally make company ownership unattractive compared with personal name.

 

For landed property, if not leasehold, as mentioned above, then a minority company arrangement is the only option.

[Pilotman]

Our property and land are in our Company Name, shareholders are myself (49%),  and my Thai wife and daughter, (51%) who hold the majority. We are registered as 'none trading' and we submit accounts each year and pay tax.  

[parallaxtech]

38 minutes ago, crazykopite said:

It’s a tricky one I have owned properties by way of Limited Company I have then sold / transferred my shares and purchased another property I have been doing it for 15 years with no issues myself and wife are directors she is farang as well and we have one Thai share holder who we are good friends with but when I came to live in Thailand I was only prepared to go down this road by telling myself it could all go belly up and I could lose every penny maybe I’ve been lucky as I’ve heard many horror stories but those were all foreigners who married Thai woman. You are only allowed to own a Condo outright anything else has to be either a Limited company or on a leasehold . Good luck with your decision 

I set up my LC 13 years ago, house in my name, land in company name, no problems.  If you get a good lawyer, they will make sure you have total control of the company through the preferred shares.

[wmlc]

Buy under company or lease is your only option. You can never buy in your own name unless condo. 

[Gilltom]

1 hour ago, crazykopite said:

It’s a tricky one I have owned properties by way of Limited Company I have then sold / transferred my shares and purchased another property I have been doing it for 15 years with no issues myself and wife are directors she is farang as well and we have one Thai share holder who we are good friends with but when I came to live in Thailand I was only prepared to go down this road by telling myself it could all go belly up and I could lose every penny maybe I’ve been lucky as I’ve heard many horror stories but those were all foreigners who married Thai woman. You are only allowed to own a Condo outright anything else has to be either a Limited company or on a leasehold . Good luck with your decision 

We bought house here english couple set up company .just ad to pay accountant once a year 12.000 bht.sold it 7 years later no problems  whatever..buyers market at the moment . Nobody got money so find some good buys Don.t belive what some estate agents say ha e a look about .good luck

[khunPer]

22 hours ago, stiggy23 said:

The property I am planning to buy is in foreign ownership, so just wanted to find the most robust solution for me. Thank you

Sounds like you are talking about a condo, which is the only property a foreigner legally can own. In that case, buy it in your own name, it's fairly easy.

 

Buying property in the name of a Thai company limited imply annual fees for accounting and auditor's annual tax report; and it's really of no need for condo within the foreign limit.

 

If the property is land – that could include building on the land – foreigners cannot own it. You can use a company limited to own the land, but it's in a gray zone. You cannot own more than 49 percent of the company limited, and need minimum two more shareholders, of which Thai ownership shall be of minimum 51 percent.

 

If it's land already owner by a foreigner, that will mean owned by a company limited controlled by a foreigner, one way or the other. Often that kind of property is sold as the company limited, and not transferring the land to a new owner. However, make due diligence of the company limited before buying anything. 

[Delight]

There is  only one benefit in buying via   company.

That is the ease to transfer to Farang  family member -prior to your death.

Of  course you will need a Farang family member who is interested in receiving such a gift.

Suspect that not all will be interested.

 

 

[KhaoYai]

4 hours ago, khunPer said:

Buying property in the name of a Thai company limited imply annual fees for accounting and auditor's annual tax report; and it's really of no need for condo within the foreign limit.

But remember a house is unlikely to have monthly fees whereas condos do.

[khunPer]

2 hours ago, KhaoYai said:

But remember a house is unlikely to have monthly fees whereas condos do.

There can be huge monthly fees for a house, if it's with a project; and you still need to pay for water, electric and garbage collection etc.

[KhaoYai]

55 minutes ago, khunPer said:

There can be huge monthly fees for a house, if it's with a project; and you still need to pay for water, electric and garbage collection etc.

That's why I said 'unlikely'. You have to pay for water, electric and rubbish removal anywhere but most houses, certainly mine, don't have monthly maintenence fees, sinking funds etc. etc. Of course that doesn't mean that a house is maintenance free - but you have the choice of what's done and when it takes place.

[stiggy23]

Thank you all. I have decided to buy the property in my own name as it is a condo. Please can someone suggest a name of a decent English speaking lawyer. I have read that the Thai authorities are letting in those people who have residences. If the property deal is complete within the next month, I presume I can come to Thailand to stay in my condo for a few months. 
 

[smutcakes]

21 hours ago, stiggy23 said:

Thank you all. I have decided to buy the property in my own name as it is a condo. Please can someone suggest a name of a decent English speaking lawyer. I have read that the Thai authorities are letting in those people who have residences. If the property deal is complete within the next month, I presume I can come to Thailand to stay in my condo for a few months. 
 

Where is the Condo? Bangkok?

I used a guy called Sathien Hemsin (Dennis) from Bangkok International Associates in BKK.

Condo purchase is fairly simplistic, he was reasonable cost, no nonsense and straight to the point.

[Darksidedude]

On 5/18/2020 at 11:23 AM, stiggy23 said:

_{Haha.. I havent fallen into that TRAP yet..} 

Buying property in this limited company name is technically illegal but tolerated, one day they may just say oh thats not yours thanks for your property it is very stupid to do it in this way.

 

I have friends that have done it this way i.e company name and have actually married so they can legally put it into their wives name, these friends were 100% against marriage but legal reasons they are better off, if it goes to <deleted> down the track at least you can legally split 50:50 

 

Why do you want a house, just go for a condo with a falang name on the title easy and 100% legal

[Gilltom]

On 5/19/2020 at 7:51 AM, crazykopite said:

It’s a tricky one I have owned properties by way of Limited Company I have then sold / transferred my shares and purchased another property I have been doing it for 15 years with no issues myself and wife are directors she is farang as well and we have one Thai share holder who we are good friends with but when I came to live in Thailand I was only prepared to go down this road by telling myself it could all go belly up and I could lose every penny maybe I’ve been lucky as I’ve heard many horror stories but those were all foreigners who married Thai woman. You are only allowed to own a Condo outright anything else has to be either a Limited company or on a leasehold . Good luck with your decision 

We are english couple and bought a house here with company

Had no problem what so ever when it came to selling.if fact a lot easier and quicker than in uk.

[Brickbat]

Buy Land in Thai name, do a Userfruct, Superfreezee, 30x30x30 lease , registered with Land Office, Power of Attorney with Thai name , Signed Sale doc , not dated.

or LC . 
house can be in foreigners name.

[Fairynuff]

On 7/7/2020 at 2:56 PM, stiggy23 said:

Thank you all. I have decided to buy the property in my own name as it is a condo. Please can someone suggest a name of a decent English speaking lawyer. I have read that the Thai authorities are letting in those people who have residences. If the property deal is complete within the next month, I presume I can come to Thailand to stay in my condo for a few months. 
 

I’ve bought and sold a number of condos in various places, never once used a lawyer. As long as you have a Thai friend who can go to the land office with you a lawyer really isn’t necessary. It’s nothing like it is in the UK.

as for being allowed in because you’re buying or already own a condo, sorry to disappoint you but that’s not going to possible for quite some time.