Property Ownership Issues
The Thai nation is famous for protecting their own interests, which has its good points and bad points. The most pungent example of this is their property ownership laws, which theoretically exclude foreign nationals from owning land or houses. There are of course legal loopholes which can be exploited in order for you to purchase a property.
It is imperative you seek independent and professional advice before you allow money of any amount to change hands. You should also gain 2 or 3 different opinions, evaluate your options and use common sense before purchasing.
Although foreigners can buy some things outright, the two most common ways for foreign nationals to purchase land or a property are:
Long-Term Leasehold
Normally, the land or house is purchased with a 30 year lease with a Thai individual or domestic company, with 2 further renewable options for 30 years thereafter, equating to 90 years in total.
Limited Company
For people who are not happy with the Leasehold option, you may wish to purchase a property through a Limited company. You can simply set up a Thai company, which is able to purchase land and houses. The only drawback is, you, as a foreigner can only own 49% of the company. The remaining 51% of the shares will be owned by Thai juristic people, who your lawyer will arrange. The 51% will automatically sign over the control of their shares to you. You, being the Managing Director will also dictate the voting, thus controlling the company.
The common problems that arise for foreigners wishing to buy a house, includes allowing your Thai spouse to take full ownership of the property in her/his name. While this decision is down to individual preference, if the marriage fails, you may lose your house to the spouse. So if you decide to follow this path, signing prenuptials is essential.
Be Aware of Scams
Most people realize the possible pitfalls in using vast amounts of their own money to purchase something. This is not only reserved for Thailand, the same problems emerge in every country of the world. A few worthwhile pointers include:
- Making sure the coordinates of your house or land correspond with those on the title deeds.
- If you are buying land and a house, be sure to confirm that there are two separate title deeds for both.
- If you purchase a condominium in a high-rise development, be sure to check the law for height restrictions, because sometimes these are violated.
- Be sure to understand the tax regulations regarding a purchase.
Taking the first step to invest within a foreign country is always akin to walking on hot coals, due to the different cultural aspects, language and any relevant rules and regulations. Obtaining professional advice from different sources is the only way to fully understand the procedures of any business or personal monetary transaction. Although I don't wish to patronize, using common sense is a vital component in protect yourself from losing money or your property, ensuring you follow the correct procedures and not cutting corners is paramount.
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