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Is a Thai Real Estate Holding Company Worth It?

Transcript of the above video:

As the title of this video suggests, we are discussing Thai Real Estate Holding Companies, so-called. We have discussed this in other videos. This is a delicate issue in Thailand not something, it is very much viewed kind of in a conventional wisdom sense, I hate even using that term, but the popular notion especially out on the internet "Oh, you just form a Company and have that Company buy a house, and then you can live in the house." Yeah, it doesn't really work that way insofar as you can have some real problems if you do that and it is adjudicated that that Company is simply being used to circumvent the rules against foreign land ownership in Thailand.

There are clear rules against foreign land ownership in Thailand. Foreigners are prohibited from owning real estate in Thailand; they are prohibited from owning land. Usage of instruments to circumvent that prohibition can and I have seen them be dissolved and the underlying asset namely the land, can just be sort of essentially escheated or revoked, the title revoked back to the State. So the thing to understand about this, and there are certain sort of limited subsets of situations where, yes you might see, oftentimes it involves marriage to a Thai national where the couple is oftentimes maybe working a business like a shophouse business or like a restaurant business and they may own the property, they may live on the property together but that Thai national will oftentimes have the majority share of the Company as they would probably need to, to be in compliance with the relevant Thai Law across the board but understand that is a very different thing than just "Oh, I have this pretextual, this pretensive Thai Company that is being used to hold property in it and I am using that to essentially circumvent Thai Law." That can prove to be very problematic in the sense that you could end up losing everything. 

So if you are really looking into this, it is really, really very much a good idea to contact a legal professional, gain some insight and guidance into how best to proceed.