Corporate and real estate investment in Thailand continues to offer attractive opportunities and excellent financial returns. However, many potential investors are concerned about the rules and regulations in the Kingdom, and this, in turn creates uncertainty and fear.
The Avocats Lawyers firm has primarily been established to provide the proper legal advice from experienced, locally knowledgeable lawyers, in order that clients are able to fulfill all legislation issues. This not only means that clients can feel initially confident about their investments, but also that the correct legal structure is in place to protect the long term future of the investment
Under Thai law foreign investors are not permitted to own land in the Kingdom, except under certain laws such as the Investment Promotion Act and the Industrial Estate Authority of Thailand Act
However, the law does allow a land transaction via a long term lease, either under the client’s name or through a corporate body. Ownership of the property itself can be transferred directly to the client, personally or corporately, onshore or offshore.
Thus, common practice is for land to be purchased leasehold, with the property bought freehold.
Alternatively, clients may choose to establish a Thai Limited Company, which involves introducing Thai shareholders to the organization, as Thai law does not allow foreigners to own more than 49% of a Limited Company. With this option, the Company can own the land as well as the property.
This method of purchase has, however, come under increasing scrutiny, and therefore it is important that clients are able to demonstrate the correct and proper financial records to support the acquisition and meet the legal regulations.
In addition this option does involve ongoing annual charges relating to Auditing and Accountancy requirements
Avocats Lawyers are able to provide a full and comprehensive review of all the options open to clients including advice on onshore/offshore tax benefits, Limited Company requirements, “re-sale” Capital Gains Tax laws etc.
We offer independent objective advice and recommendations to ensure that the needs of our clients are best achieved.
