Thai law change on buy property

[AZZZEY68 0]

My mate was in Pattaya on Wed to sign his ltd company document solicitor informed him the gov are look at all documents concerning farang buy houses in Thailand.Anyone else heard anything seems the door could be shut soon????

[elef 0]

This has been discussed in several threads in this forum. It's not a change of the law, all land offices had not applied the law in the same way before.

[AZZZEY68 0]

So whats that mean exactly

[pattysteve 34]

So whats that mean exactly

I dont think anyone is really sure yet,its certainly not worth the risk for new buyers

IMHO.

[Gary 4,119]

The Thai constitution forbids foreigners from owning land in Thailand. The simply means that a foreigner CANNOT own land in Thailand. There are many lawyers who will form bogus companies for a foreigner to own land but the fact is that those companies are not legal. Other than a condo in your own name you cannot own real estate.

 

Tell your friend not to spend more than he can afford to walk away from.

[jacko 8,813]

My mate was in Pattaya on Wed to sign his ltd company document solicitor informed him the gov are look at all documents concerning farang buy houses in Thailand.Anyone else heard anything seems the door could be shut soon????

Get some work done, use the search program and read the previous threads.

Too important a topic to be lacking information.

 

What Gary says is pretty much it as the law goes. The limited company being formed, with (bogus) Thai shareholders to make it 51% Thai, was the vehicle foreigners were using, the house being owned by the company, which was only on paper. It was purely a way to circumvent the law, hence illegal. That said it was a heavily utilised vehicle!

 

There are alternatives, leases on the land and liens, mortgages in a GF name, to protect your ownership, but it is involved and I struggle to comprehend the best way to go. I have put the brakes on, and am renting until I hear a method that sounds secure.....or I have to trust my GF implicitly and buy in her name outright.

 

The Pattaya People newspaper has started a campaign to allow foreigners to own up to 1 rai of land here...optimistic to expect a constitutional amendment. I can not see there being much impetus in Thai society to do anything that benefits foreigners...unless Thais benefit substantially more!

 

Even buying a condo, ensure it is one of the 49% in the development that can be foreign owned!

 

Pattaya Expats Club.....

[The Breeze 0]

The Thai'should handle property sales and aquisition like the Mexicans do. Allow a foreigner to lease the land for 99 years with a transferable lease allowing for resale.

[cecco 0]

The Thai'should handle property sales and aquisition like the Mexicans do. Allow a foreigner to lease the land for 99 years with a transferable lease allowing for resale.

i was told that foreigners can rent for 3 consecutive 30 year increments.

 

not true?

[jacko 8,813]

i was told that foreigners can rent for 3 consecutive 30 year increments.

 

not true?

Yes there is some method of leasing land for 30 years, with an option for 30 years extension tied into the contract to get 60 years....maybe 90...should see most expats out.

My knowledge on this is too sketchy and third hand!

 

Is that a viable option, who are you actually leasing the land from? You have to prevent the actual land owner selling it on......if the owner is a person of power and influence but not integrity, could the land be pulled out from 'under your very feet'..? If there is a possibility to build a 97 floor condominium and make billions of baht on the bit of land your house sits, do you think they will wait 90 years?

 

99 year leases are a common thing in the UK too, but saying the Thais should do what the Mexicans do may not hold much water with the Thais themselves. Not much is going to happen here until they figure out how to get a Government....

[Gary 4,119]

Yes there is some method of leasing land for 30 years, with an option for 30 years extension tied into the contract to get 60 years....maybe 90...should see most expats out.

My knowledge on this is too sketchy and third hand!

 

Is that a viable option, who are you actually leasing the land from? You have to prevent the actual land owner selling it on......if the owner is a person of power and influence but not integrity, could the land be pulled out from 'under your very feet'..? If there is a possibility to build a 97 floor condominium and make billions of baht on the bit of land your house sits, do you think they will wait 90 years?

 

99 year leases are a common thing in the UK too, but saying the Thais should do what the Mexicans do may not hold much water with the Thais themselves. Not much is going to happen here until they figure out how to get a Government....

Any lease longer than 3 years must be registered at the land office to be legal. The 30 + 30 + 30 is possible EXCEPT the land office will not register ANY lease for more than 30 years. It is at the discretion of the land owner whether or not he chooses to renew the lease. After 30 years you can figure on moving out. These lawyers here will write any contract you want. That doesn't mean it is legally binding. An extra 30 year lease option is worthless.

[InCider 21]

My mate was in Pattaya on Wed to sign his ltd company document solicitor informed him the gov are look at all documents concerning farang buy houses in Thailand.Anyone else heard anything seems the door could be shut soon????

The law hasn't changed. The only difference is that the existing regulations are now being enforced. This sort of crackdown was always going to happen. At the moment it's only new land purchases that are being targeted, but it's only a matter of time before it becomes retrospective and existing 'shell' companies start to be scrutinized.

[InCider 21]

Any lease longer than 3 years must be registered at the land office to be legal. The 30 + 30 + 30 is possible EXCEPT the land office will not register ANY lease for more than 30 years. It is at the discretion of the land owner whether or not he chooses to renew the lease. After 30 years you can figure on moving out. These lawyers here will write any contract you want. That doesn't mean it is legally binding. An extra 30 year lease option is worthless.

Informative post that Gary - I suspect these details are not widely known.

[jacko 8,813]

Gary,

Thx, I was nervous that I had posted information that was not the 'full story' and am glad to see your correction. Is a 30 year lease (which should see me into the grave or staggering to it) then a solid option to farang home ownership in LOS?...Be a pessimist now.

Edited July 21, 2006 by jacko

[sinkorswim 80]

As stated.......leases are limited by law to 30 years. 30 + 30 years only have a possibility of being enforced between the 2 original parties. Only a 30 year lease can be registered at the land office. Wait a few years until these 30 year leases try to get renewed and see what happens. I personally dont know of anyone who has renewed their lease after the 30 years is up.

[elef 0]

The 30 year option to renew the lease contract is not legal binding, but as one lawyer said, it needs a change in the law during the first 30 year period to become legal.

[Gary 4,119]

A thirty year lease is perfectly legal and it it registered, so that is probably the best way to go for guys wanting to have a house. Keep in mind that that also has complications. There is a 12.5 percent tax that is payable monthly for each months rent. What I am saying is that after you pay for the lease in full you are still liable for the 12.5 percent tax on the total lease payment. If you lease from your legal wife and she lives with you on that property the tax does not have to be paid. If she does not live with you and there is question of how much tax is to be paid, the government will decide what is fair. Buy a condo in your name and sleep well at night.

[jacko 8,813]

A thirty year lease is perfectly legal and it it registered, so that is probably the best way to go for guys wanting to have a house. Keep in mind that that also has complications. There is a 12.5 percent tax that is payable monthly for each months rent. What I am saying is that after you pay for the lease in full you are still liable for the 12.5 percent tax on the total lease payment. If you lease from your legal wife and she lives with you on that property the tax does not have to be paid. If she does not live with you and there is question of how much tax is to be paid, the government will decide what is fair. Buy a condo in your name and sleep well at night. 

Just don't really like condos....big ugly tower blocks of flats. You need 5 or 6 good neighbours too if you want to sleep well at night......I also have nightmares about elevator failure and sleepwalking.

 

This tax.....presuming you have a 30 year lease for the land, and a 12.5% tax is due on each months 'rent' ...say the 30 year lease cost you 36,000 baht total (no idea if this is realistic..but for calculations sake) that is only a monthly rent of 100 baht. Hence a monthly tax of 12.5 baht? Correct?

Edited July 21, 2006 by jacko

[fopa 0]

Just don't really like condos....big ugly tower blocks of flats. You need 5 or 6 good neighbours too if you want to sleep well at night......I also have nightmares about elevator failure and sleepwalking.

 

This tax.....presuming you have a 30 year lease for the land, and a 12.5% tax is due on each months 'rent' ...say the 30 year lease cost you 36,000 baht total (no idea if this is realistic..but for calculations sake) that is only a monthly rent of 100 baht. Hence a monthly tax of 12.5 baht? Correct?

I feel the same way, at Thai prices I would much rather buy a house, and there are plenty of Westerners that have done it through bogus conpanies. But with the dodgy laws I don't intend to loose my investment, so I'll probably try to find a large condo and Buy a house later if the laws change.

[Gary 4,119]

Just don't really like condos....big ugly tower blocks of flats. You need 5 or 6 good neighbours too if you want to sleep well at night......I also have nightmares about elevator failure and sleepwalking.

 

This tax.....presuming you have a 30 year lease for the land, and a 12.5% tax is due on each months 'rent' ...say the 30 year lease cost you 36,000 baht total (no idea if this is realistic..but for calculations sake) that is only a monthly rent of 100 baht. Hence a monthly tax of 12.5 baht? Correct?

That's correct but I don't think you will get much for 36,000 baht. When someone sells you a thirty year lease the price will be about the same as buying the property outright. I guess the scary part is if the government thinks what tax you are paying is not reasonable THEY will decide how much it should be.

 

I should mention that I don't know of anyone who is actually paying that tax. It's the same when you rent out your condo. You are SUPPOSED to be paying that same 12.5 percent tax but it appears no one is actually paying it.

[elef 0]

Guys,

 

I remind you again - there are other thread discussing this question.

 

What you can't own is the land (except if you invest 40 million baht you can own 1 rai), but you can own the house without a company!

[jacko 8,813]

Guys,

 

I remind you again - there are other thread discussing this question.

 

So what?...I don't see any other active ones in the Expats Forum.....

 

What you can't own is the land (except if you invest 40 million baht you can own 1 rai), but you can own the house without a company!

 

Yes I realise I can buy the house, but the underlying insecurity of having no rights on the land is a worrying factor that I want to discuss if you do not mind.

 

I recall many Bangkok beer bars being demolished in the early hours despite having paid rents.....Thailand is not a place to be unaware. The old western answer of 'get a lawyer' doesn't necessarily cover you either.....

Edited July 22, 2006 by jacko

[halfaboy 31]

Guys,

 

I remind you again - there are other thread discussing this question.

There may be, but not so easy to find. Wouldn't it be wise to start a new topic for all property related discussions ?

[elef 0]

I've posted in those threads so they're easy to find here on the first page, also the thread about Thai divorce is about property.

[kolobos 0]

Yes I realise I can buy the house, but the underlying insecurity of having no rights on the land is a worrying factor that I want to discuss if you do not mind.

If you invest 40 million baht in Thailand you can OWN 1 Rai of land...along with the house that you build on it

 

As already quoted by Elef

[bazz 0]

Having read this,surely if you are already married this only protects you on half of the house value.

30 year lease from the wife.House in your name only.

When divorced the house goes 50/50 and you will need to sell.

Who's going to buy ?

The courts may force the sale and you will get a pittance.

You keep the lease but for what use.

The land stays with her solely.

 

 

Any comments ?

 

Bazz