CAN A FOREIGNER OWN LAND IN THAILAND?
The hunt for profitable returns through rental yield or capital appreciation, is luring foreign investors into the thriving property market of Thailand. A country renowned for its numerous stretches of glorious beaches and tropical weather, has seen an ever-increasing influx of visitors from all across the globe reaching a remarkable number of 35 million tourist visits in 2017. The revenue brought in by these tourists is stimulating the economy’s growth which is reflected in the booming property market, causing huge numbers of foreigners seeking to acquire property – both for personal and investment purposes. While a deep extensive knowledge of the Thai legal system is unnecessary, a sufficient amount of information regarding owning land in Thailand will aid first time investors in making profitable decisions.
There are two ways a foreigner can own land in Thailand:
1. Setting up a Thai Company for Freehold Ownership:
The most exercised option for a Freehold Ownership is through setting up a Thai Limited Company to own the land on the investors’ behalf; where the investor is a 49% shareholder of the company, with the remainder of the shares held by Thai shareholders who are not associated with one another. An efficient arrangement is having the foreign investor, be made the Managing Director of the company, granting his 49% shares complete authority over every decision made in the company; guaranteeing the foreign investor a thoroughly safe and secure investment.
There are various procedures involved in establishing the Thai Limited Company:
1.Reserving the proposed company name
2.Preparing the Thai version of the Application
3.File a Memorandum of Association and Article
4.Registering the Company
5.Preparing a Share Register Book and Share Certificates
6.Preparing an English Version of the Affidavit
7.Value Added Tax Registration
8.Social Security Registration
9.Opening a Company Bank Account
A developer of world-class quality such as KASA, shall take on all proceedings involved in establishing the Thai Limited Company for clients who invest with us. Due to our partnership with Juslaws & Consult – an International Legal Firm, KASA is able to expertly provide clients with skilled professionalism in legal matters, ensuring them of an absolutely secure and stress-free investment.
2. Renewable Leasehold Agreements:
The alternative option for foreigners to own land in Thailand would be through a renewable leasehold agreement. Purchasing a property under a leasehold title would get the investor a 30 – year lease. Under the Thai Law, the agreement is renewable twice: 30 years and then another 30 years, all together offering the holder a 90-year lease. An investor wanting the lengthier term lease must take an active step by signing a legally binding extension contract, stating the intention to renew the lease for 30 years, alongside the initial 30-year lease agreement.
All legal processes associated with acquiring and renewing the leasehold agreement shall be undertaken by KASA’s International Legal Firm – Juslaws & Consult and their team of specialists, who will expertly aid investors through the land acquisition laws of Thailand.
The simplest means to owning land in Thailand:
With an outbreak of foreign investors seeking to invest in upscale property developments in Thailand, major developers such as KASA have become well-versed in providing assistance to foreigners looking to own a landed property in Thailand legally.
When purchasing a property from KASA, legal procedures of property acquisition will be undertaken by our partnering firm – Juslaws & Consult, a legal firm devoted to legal duties and counselling that foreign investors will undoubtedly require. Our team will expertly aid investors in setting up a Thai Limited Company, along with a whole suite of other services in order to maintain and maximize yield on the property.
Browse through KASA’s collection of beautiful luxury villas and allow us to assist you with all procedures necessary to owning your property in Thailand.