Property rights for foreign nationals
The most common question arises: Can a foreign person individually own the rights to land in Thailand? The answer in any case an unambiguous: None.
In addition, the alien has no right to own more than 49% of the shares registered in Thailand, the company that owns the land ownership. However, there are perfectly legitimate ways:
1. Foreign shareholder has sole control of established Thai company and produced over its investments.
2. Foreign individuals are allowed to own buildings, separate from land, the registration of land rights of 30-year lease, which subsequently can be prolonged. This option is considered by many owners, as almost equivalent to land.
3. resident company incorporated under the laws of Thailand, has the right to acquire and sell land, as a legal entity. Thus, a foreign individual is a director and shareholder of the company may become the owner of the land holdings through his company. Land ownership and holding of investments should be reflected in the activities authorized by the company (as specified in the Annex to the Certificate of Registration "Types of the company"). Foreigners have the right to own up to 49% of the shares, the remaining 51% must by law belong to the residents of Thailand. Each company (Thai Limited Company) shall have a minimum of 7 shareholders. A foreign person is allowed to own preferred shares, giving the advantage in the voting, and thus control the company, and accordingly, the acquired her property.
Often, investors are asking what kind of scheme to land ownership is more consistent with the principles of reliability? And he and other methods have their advantages. Due to the fact that foreign nationals have no right to own land directly, through the ownership of the registered lease with the possibility of further extension, is almost the same ownership. In this case it means the following: a Thai company that you control owns landed property. For added security (if required) can take under consideration the land lease to himself on behalf of the company you own. Moreover, you can also lay on behalf of the land, in its favor: the land may be pledged to the foreign person as collateral for borrowing Thai person or entity. Registration fee is 1% of the amount specified in the escrow agreement. Should be submitted proof that the stamp duty on security agreement has been fully and timely paid. Both these schemes are well represented in legal practice. Transfer of ownership of the property is registered local Land Department, for which a public agency awarded the contract, signed by the parties. Typically, for each sale transaction, there are two contracts: the first - the contract between the buyer and seller, which regulates the timing and form of payment, the additional conditions imposed on the parties (the organization of an entrance, an electric line, etc.) that contract is usually prepared qualified lawyer or real estate agent, contains a schedule and the actual amount of payments. Second - this is an official agreement of the Land Department, which records only the fact of a particular section from one owner to another at a price fixed by the Land Department to date. This step usually takes place after the parties of all mutual. At the request of the parties, may be declared and the real price of land if its value exceeds the current price of the Department. From this amount will be deducted taxes and fees for re-registration of ownership. Similarly recorded leases of real estate.
Acquisition condominiums
The rules governing ownership of a condominium in Thailand, in many respects similar to those that determine the ownership of the land. For every individual apartment is issued a special certificate of ownership, registration of sale of the property is also produced by the Land Department. Due to the fact that every apartment carry them as a proportional piece of land on which the building is located, the ownership of foreigners is tightly controlled. Foreign natural persons resident companies controlled by foreigners or foreign companies can own no more than 49% of land ownership condominium. Non-residents who buy property in condominiums, must submit proof that the funds for the purchase were imported into Thailand from abroad. This decision is mainly aimed at ensuring that foreigners could not have credited in the Bank of Thailand for the purchase of housing. However, if the alien is officially employed in Thailand, it can be used for the acquisition of property funds earned from their workplace. The exception in this case a company supported by the state program of the Council on Investments (Board Of Investments). In any case, a condominium can be rented by a foreign person on the same principle as the land holdings.
Five major issues on the acquisition of property
If you intend to buy property in Thailand, you should consider your future real estate in terms of 5 main aspects:
1. Who is its current owner (the developer), Chrysobalanus icaco document that defines the ownership, issued by the Land Department;
2. Terms of the surrounding terrain, accessibility, availability of infrastructure
3. Control over the investments and possible tax deductions that are associated with them;
4. Obtaining adequate guarantees for the construction of your future contractor;
5. Insurance for the possible bankruptcy of the contractor