BUYING PROPERTIES IN THAILAND
BUYING PROPERTIES IN THAILAND
Many foreigners wish to buy land or property in Thailand but they don`t know how to get started. To buy land or property, there are specific legal issues relating to foreigners purchasing land or property in Thailand. Cha Am Homes can assist you in your purchase. Our experienced and friendly staff will take care of all your legal needs, letting you focus solely on buying land or property in Thailand and achieving your objectives.
According to the strict nature of Thailand land law, foreigners are, in general, prohibited from buying freehold land in Thailand. However, there are various exceptions in the law regarding this issue. There are also other methods available for acquiring ownership interest in buying land or property in Thailand.
There are two types of land tenure in Thailand: leasehold and freehold.
FREEHOLD OR LEASEHOLD
There are many questions asked as to which method is better and there are relevant arguments made for both cases. Since foreigners cannot own land outright, registered leaseholds with appropriate extensions are equivalent to freehold. Registered Leaseholds are safe, uncomplicated and easy to setup.
Leasehold title grants the lessee ownership rights to property, agriculture or other products on, under or from the land, but does not grant ownership of the land. Leasehold titles are granted for a maximum period of 30 years and an option may allow the lease to be renewed for an additional 30 years. The property can be used for only the purpose stated in the lease, and the lessee cannot sublease or alter the property without the lessor’s consent. The lessee cannot sell or transfer their interest without prior consent from the lessor.
In order to be enforceable, any lease for a period longer than three years must be registered at the Land Department, which involves payment of a registration fee and stamp duty based on a percentage of the rental fee for the whole lease term. The original registered lease remains in force and effect even if the property is sold. Both parties can contractually agree to renewals, but this right cannot be registered at the Land Department.
This type of lease has become popular among foreigners to own or buy land.
A foreigner is allowed to own a building distinct from the land, which coupled together with a renewable registered 30 year lease is regarded by many as being good as owning the freehold.
For those of you who are not comfortable with Leaseholds, the Freehold method of ownership means that the Thai company that you control owns the property.
A Freehold title is the most popular type of land ownership. A Freehold title gives ownership rights to the land and the property on or under it. The title may be sold, given as a gift or inherited. Freehold land title can be sold at any time and the new ownership comes into effect when the transfer fee and stamp duty are paid to the Land Department
Unlike land leases, the ownership is permanent as long as the company stays in existence and does not sell or transfer the land. Forming a company may make more sense for people seeking to hold land for long-term or investment purposes, to provide for their future heirs, of for those contemplating doing business in Thailand. Also, with ownership, it is possible to mortgage the land and subdivide the land for resale.
SETTING UP A THAI PRIVATE COMPANY LIMITED
This manner of purchasing property is the most popular with foreign investors as the Articles of Association can be varied to allow greater protection for foreign minority shareholders where majority Thai ownership is required under the Alien Business Law.
Thai law requires that 51% of the shares be held by Thai juristic persons, however, any company with more than 40% foreign interest that purchases land will be investigated by the Central Land Office in Bangkok (under section 74 of the Land Code) to ensure that the company has not been organized in an attempt to circumvent the prohibition against foreign ownership of land.
This results in the foreign ownership of the company being limited to 39% (only if buying land), but with the recommended changes of the Articles of Association, the foreigner can be the only director of the company, and the only person of the company who can commit or bind the company in any contractual dealings (buy or sell land and house), effectively giving the minority shareholders control over the company.
Buying property with a limited liability company is one of the most popular methods for foreign investors. This is because the Articles of Association can be written to allow greater protection for foreign minority shareholders. Thailand law generally requires that Thai nationals own a majority interest in a company if they wish to purchase land legally.
A number of means can be used to ensure that the foreign minority shareholders have effective management and financial control of the company. These include but are not limited to creating different classes of shares along with different voting and directorial appointment rights.
Article Source: http://www.chaamhomes.com
Many foreigners wish to buy land or property in Thailand but they don`t know how to get started. To buy land or property, there are specific legal issues relating to foreigners purchasing land or property in Thailand. Cha Am Homes can assist you in your purchase. Our experienced and friendly staff will take care of all your legal needs, letting you focus solely on buying land or property in Thailand and achieving your objectives.
According to the strict nature of Thailand land law, foreigners are, in general, prohibited from buying freehold land in Thailand. However, there are various exceptions in the law regarding this issue. There are also other methods available for acquiring ownership interest in buying land or property in Thailand.
There are two types of land tenure in Thailand: leasehold and freehold.
FREEHOLD OR LEASEHOLD
There are many questions asked as to which method is better and there are relevant arguments made for both cases. Since foreigners cannot own land outright, registered leaseholds with appropriate extensions are equivalent to freehold. Registered Leaseholds are safe, uncomplicated and easy to setup.
Leasehold title grants the lessee ownership rights to property, agriculture or other products on, under or from the land, but does not grant ownership of the land. Leasehold titles are granted for a maximum period of 30 years and an option may allow the lease to be renewed for an additional 30 years. The property can be used for only the purpose stated in the lease, and the lessee cannot sublease or alter the property without the lessor’s consent. The lessee cannot sell or transfer their interest without prior consent from the lessor.
In order to be enforceable, any lease for a period longer than three years must be registered at the Land Department, which involves payment of a registration fee and stamp duty based on a percentage of the rental fee for the whole lease term. The original registered lease remains in force and effect even if the property is sold. Both parties can contractually agree to renewals, but this right cannot be registered at the Land Department.
This type of lease has become popular among foreigners to own or buy land.
A foreigner is allowed to own a building distinct from the land, which coupled together with a renewable registered 30 year lease is regarded by many as being good as owning the freehold.
For those of you who are not comfortable with Leaseholds, the Freehold method of ownership means that the Thai company that you control owns the property.
A Freehold title is the most popular type of land ownership. A Freehold title gives ownership rights to the land and the property on or under it. The title may be sold, given as a gift or inherited. Freehold land title can be sold at any time and the new ownership comes into effect when the transfer fee and stamp duty are paid to the Land Department
Unlike land leases, the ownership is permanent as long as the company stays in existence and does not sell or transfer the land. Forming a company may make more sense for people seeking to hold land for long-term or investment purposes, to provide for their future heirs, of for those contemplating doing business in Thailand. Also, with ownership, it is possible to mortgage the land and subdivide the land for resale.
SETTING UP A THAI PRIVATE COMPANY LIMITED
This manner of purchasing property is the most popular with foreign investors as the Articles of Association can be varied to allow greater protection for foreign minority shareholders where majority Thai ownership is required under the Alien Business Law.
Thai law requires that 51% of the shares be held by Thai juristic persons, however, any company with more than 40% foreign interest that purchases land will be investigated by the Central Land Office in Bangkok (under section 74 of the Land Code) to ensure that the company has not been organized in an attempt to circumvent the prohibition against foreign ownership of land.
This results in the foreign ownership of the company being limited to 39% (only if buying land), but with the recommended changes of the Articles of Association, the foreigner can be the only director of the company, and the only person of the company who can commit or bind the company in any contractual dealings (buy or sell land and house), effectively giving the minority shareholders control over the company.
Buying property with a limited liability company is one of the most popular methods for foreign investors. This is because the Articles of Association can be written to allow greater protection for foreign minority shareholders. Thailand law generally requires that Thai nationals own a majority interest in a company if they wish to purchase land legally.
A number of means can be used to ensure that the foreign minority shareholders have effective management and financial control of the company. These include but are not limited to creating different classes of shares along with different voting and directorial appointment rights.
Article Source: http://www.chaamhomes.com
ป้ายกำกับ: Property
เขียนโดย Unknown @ 03:29
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