Welcome to Thailandblog.nl
With 275.000 visits per month, Thailandblog is the largest Thailand community in the Netherlands and Belgium.
Sign up for our free e-mail newsletter and stay informed!
Newsletter
Language setting
Rate Thai Baht
Sponsor
Latest comments
- Rudolf: Quote: What are the current estimated costs of building a house per m². That just depends on what kind of requirements you meet
- Johnny B.G: In the 50s-80s/90s, Dutch regularly grown food also contained poison and yet there are 20% elderly people in the Netherlands and in TH that is also the case.
- Johnny B.G: The interpreter bases himself on a number of sources, but there is of course much more to it. In Isaan since 50-60 years ago r
- rob: On average I stay in Thailand 6 to 8 months a year and enjoy the food there every day. I will never, ever be told
- Eric Kuypers: Robert, do you know how big the Isaan is? Say NL three times, so it makes sense if you give a little bit of direction like the pro
- RonnyLatYa: Yes, I say that Kanchanaburi is just an example and that you can change that. You can also do this on the web page itself and then see
- william-korat: In the dry period the line is bottom of Bangkok and lower and east of that to just above Khao Yai National Park usually we
- Eric Kuypers: If you change the command line, such as https://www.iqair.com/thailand/nong-khai, you will get a different city or region. But you
- Cornelis: Well, GeertP, I am absolutely not a 'Brussels sprouts supporter' or THE Red Brand addict, but that does not mean that I don't like the Thai cuisine.
- Rudolf: It depends on what you are looking for in Thailand, but to be honest you don't have much choice in my opinion. The big cities are falling apart
- RonnyLatYa: Also take a look at this. https://www.iqair.com/thailand/kanchanaburi Also scroll down a bit and they will also give you some explanation
- Peter (editor): I also enjoy the Thai food and yes, the price is very attractive. But it's just a fact that Thai farmers are unbelievable
- Jacks: It is best to go in the period November to February. Someone with asthma should absolutely not come here from March to May
- GeertP: Dear Ronald, I completely agree with your story, I also enjoy Thai cuisine every day and even after 45 years of Thai
- Eric Kuypers: Wilma, bad air is not in all of Thailand. Thailand is more than 12x the Netherlands! These are the big cities (traffic) and some
Sponsor
Bangkok again
Menu
Arrivals Bangkok Airport
DOSSIERS
Learning objectives and topics
- Background
- Activities
- Advertorial
- Agenda
- Tax question
- Belgium question
- Sights
- Bizarre
- Buddhism
- Book reviews
- Column
- Corona crisis
- The Culture
- Diary
- Dating
- The week of
- Dossier
- To dive
- Economy
- A day in the life of…..
- Islands
- Food and drink
- Events and festivals
- Balloon Festival
- Bo Sang Umbrella Festival
- Buffalo races
- Chiang Mai Flower Festival
- Chinese New Year
- Full Moon Party
- Christmas
- Lotus Festival – Rub Bua
- Loy Krathong
- Naga Fireball Festival
- New Years Eve celebration
- Phi ta khon
- Phuket Vegetarian Festival
- Rocket festival – Bun Bang Fai
- Songkran – Thai New Year
- Fireworks Festival Pattaya
- Expats and retirees
- state pension
- Car insurance
- Banking
- Tax in the Netherlands
- Thailand tax
- Belgian Embassy
- Belgian tax authorities
- Proof of life
- DigiD
- emigrate
- To rent a house
- Buy a house
- In memoriam
- Income statement
- King's day
- Cost of living
- Dutch embassy
- Dutch government
- Dutch Association
- News
- Passing away
- Passport
- Retirement
- Drivers license
- Distributions
- Elections
- Insurance in general
- Visa
- work
- Hospital
- Health insurance
- Flora and fauna
- Photo of the week
- Gadgets
- Money and finance
- History
- Health
- Charities
- Hotels
- Looking at houses
- Isaan
- Khan Peter
- Koh Mook
- King Bhumibol
- Living in Thailand
- Reader Submission
- Reader call
- Reader tips
- Reader question
- Society
- marketplace
- Medical tourism
- Environment
- Nightlife
- News from the Netherlands and Belgium
- News from Thailand
- Entrepreneurs and companies
- Education
- Research
- Discover Thailand
- Opinions
- Remarkable
- Calls
- Floods 2011
- Floods 2012
- Floods 2013
- Floods 2014
- Winter prices
- Politics
- Poll
- Travel stories
- Travel
- Organizations
- Shopping
- Social media
- Spa & wellness
- Sport
- Cities
- Position of the week
- The beach
- Language
- For sale
- TEV procedure
- Thailand in general
- Thailand with children
- thai tips
- Thai massage
- Tourism
- Going out
- Currency – Thai Baht
- From the editors
- Real estate law; and
- Traffic and transport
- Visa Short Stay
- Long stay visa
- Visa question
- Flight tickets
- Question of the week
- Weather and climate
Sponsor
Disclaimer translations
Thailandblog uses machine translations in multiple languages. Use of translated information is at your own risk. We are not responsible for errors in translations.
Read our full here disclaimer.
Royalty
© Copyright Thailandblog 2024. All rights reserved. Unless stated otherwise, all rights to information (text, image, sound, video, etc.) that you find on this site rest with Thailandblog.nl and its authors (bloggers).
Whole or partial takeover, placement on other sites, reproduction in any other way and/or commercial use of this information is not permitted, unless express written permission has been granted by Thailandblog.
Linking and referring to the pages on this website is permitted.
Home » Thailand in general » Reader's question: Set up company for land purchase house
Dear readers,
I have a question about setting up a Company with the aim of buying land to build a house. I have also read a lot about it on this blog. I know that it is actually illegal to use so-called “nominees”. With this construction, the power lies entirely with the Farang and is therefore a smart trick to still own land.
But what is the legal way? A foreigner can own 49% of a Company.
- Suppose I and my Dutch partner have good friends who we make 51% owners and they also make a will in our name if they die.
- Do they have to show where they got that money to own 51%?
- For example, can I give them a loan for this on paper?
- I still own 49% of a Company that owns land, so I own land, is this allowed?
If this is legal, does this way make sense or is it better to opt for lease or usufruct?
Regards,
Peter
“With this construction, the power lies entirely with the Farang and is therefore a smart trick to still own land.”
That's where it starts with overestimating you .... think you haven't clearly understood the rules yet.
yes… dreaming of that little house blinds the warnings….
I want to make the construction in such a way that it is completely legal.
If I only own 49% and the Thai 51% and I don't own the full power, is it possible?
So no construction in which I secretly have full control. Should the Thai become a director, for example?
I am not afraid of the friends, but I am afraid of the family if they should die, therefore the will so that in that case I inherit their share.
Peter,
My Thai wife makes companies and also does the annual reports and the semi-annual declaration.
Also every year an advertisement of the company in the Government Gazette (which is mandatory, but many do not)
We still have 1 company left, a Dutchman wants to sell it, completely empty and with all reports available for inspection, so you no longer have to prove anything with money. Quick and easy to take over.
You can email me [email protected]
Regards, Roel
well,
Look at a company, you must have Thai shareholders and Thai staff and, of course, have the annual figures submitted by an accountant's office every year. Get started.
Several cases have already been reported that the judge found that this construction was being abused and has confiscated the land (you then have one year to remove the structures).
Of course you don't have to work for your "own" company, but if you also paint and maintain the garden, activities that a Thai can also do, you must have a work permit.
I think that road is now a dead end, with a deep ravine at the back.
Greetings Honsrug
Peter,
What is possible is if you set up a company and immediately build a few holiday bungalows, then the company will have a turnover and you will employ Thai staff. With no turnover, the accountant returns an empty company and immediately rings bells.
So like everyone else she buys the land which you pay for and you put a house on it and after a big fight you get drunk in the local pub and when you come back all your belongings are outside the gate and the house is full Thai if you are unlucky. But there are several very long-term relationships in Thailand, so it can also go well.
Laksi,
That is not necessary at all as you suggest, a company by definition does not have to have a turnover.
If you have a house in the company in which the director of the company often lives, the director rents the house for example for 5 or 10.000 baht per month, so the company has a turnover at that time but does not have to pay tax because this is under the free foot falls from 150.000 bath.
That is an illegal construction.
So far there has not been a 'crackdown' to this, but it can certainly come. It must be an active company, otherwise it will be seen as a sham construction.
In 2012 I bought a house in a company. The purchase transaction and investigation was satisfactorily conducted by Jane Ria Haddow of Chavalit and Partner from Hua Hin.
I paid the purchase price to the seller and nobody made any inquiries where the money of the 51% of the Thai partners came from. To have full control, the voting power ratio of my shares is 10 times that of the Thai partners. So I have 490 / (490 + 51) = 90.5% control in running the company. I am of course formally the director of the company.
Thai shareholders are often asked to immediately sign a share sale consent, but I do not know whether the destination of the proceeds can also be arranged immediately. If so, you can suffice without a loan agreement with the Thai partner. And yes, the company may own land and the division of shares does not play a role in my opinion.
The annual accounts must be drawn up every year and I have this done by a specialized accountancy firm. Costs 15.000 Baht about which my Thai girlfriend of course complains, but I'm very happy that I'm in control and not she (5555). Must be done and reported before June 1. I've never experienced any problem with having a house in a company. Many foreigners live in my neighborhood with the same situation and I never heard from them about any problem regarding the company.
You can change a will, an authorization is valid as long as it has not been revoked. Don't be blinded by the possibilities you think you'll get thrown at you. You won't be the first to be left with nothing.
Consult a well-trained lawyer. Bear in mind that you can only inherit land for a short period of time and pass it on to another non-Thai. Does Thailand have shares with special rights? Find it in that atmosphere. Costs money but your house costs many times more.
Or find a reliable Thai, let them buy the land and establish one of the rights that the Land Act offers you with registration on the chanoot. That is also not 100% watertight (one can take out a kongsi, give a mortgage, not pay the interest and you end up with a lot of misery…..) but in my opinion this is better than a contrived construction with people who are at the first best quarrel being able to throw the k… against the crib and leave you with nothing.
I think this construction is prohibited by law. The huduge government is busy chasing to roll up these constructions. I wouldn't risk it.
And remember: nowadays companies have to pay real estate taxes. That was instituted in 2014 and then immediately with retroactive effect to 2012. That can cost several tens of thousands of baht annually
Wouldn't it be more sensible and easier to rent the land for 30 years and build a house on it?
Setting up a company to purchase land is not legal, whatever some may claim
https://www.thailandlawonline.com/article-older-archive/land-laws-prohibiting-foreign-land-ownership
and especially read this
https://www.thailandlawonline.com/article-older-archive/foreign-business-nominee-company-shareholder
Never being able to understand why you would want to pay 100% for something you own for only 49%. A company construction is surrounded by all kinds of legal restrictions, and is actually intended to acquire land if you need it because you want to conduct/set up a business.
The fact that a company is used to enable occupancy is actually against the meaning/intention of the relevant legislation. That is why the use of so-called nominees is no longer allowed, annual accounts must be submitted, and there is a registration obligation. An annual account already means that it is assumed that there is business turnover. No household will be asked to do anything similar, unless this also includes your annual tax return. Ultimately it causes a lot of hassle, because the principle applies: in Thailand a non-Thai cannot and may not own land.
My advice would be to think before you leap. We often make decisions on an emotional level, because we really want that house in our name, etc. Thailand is not friendly to foreigners in this regard. The land is sacred and belongs to the Thais. Some things can be done with a certain construction, but for many it remains a bogus construction, because the conditions are not actually met. Even if you have this done by one of the “reputable” companies, you are still responsible if things go wrong. See the fairly recent court decisions. You want to do this legitimately because you have integrity. That suits you. Many are not like that and can apparently live quietly despite the deception. If you're not like that then don't do it. You actually have to employ three people and you have to pay them anyway. Many only pay an adjuster/mediator and do not know what happens next. Your partners in crime must of course be trustworthy and who is this in Thailand when it comes to money. Things often go wrong.
Many English people have already approached my wife to be one of those three on paper, because they no longer have faith in the existing structure and people. Stress all over. My wife does not participate in this, so far I have managed to convince her. Everything has consequences. I am here for my peace and not to worry in my old age. Life is too short for that.
Incidentally, Thailand is not alone in imposing rules that are foreigner unfriendly. My former colleague, also retired, has joined his girlfriend in Indonesia. For his annual permit, he must employ two people and therefore actually pay. Minimum 200 euros per person. He therefore pays 400 euros from his pension. A relatively unnecessary loss and drain on income.