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ResourcesThailand Real Estate & Property LawConveyancing and Property TransferCould Thai Real Estate Holding Companies Become More Feasible?

Could Thai Real Estate Holding Companies Become More Feasible?

Transcript of the above video:

As the title of this video suggests, we are discussing the concept of a Land Holding Company. For those who are unaware, sometimes foreign nationals especially, attempt to utilize Corporate structures incorporated in Thailand that are set up in such a way that they are considered a Thai entity in order to own Real Property in Thailand and thereby be in compliance with the Foreign Business Act as well as the restrictions on foreign land ownership. 

Now as we have discussed in a number of videos on this channel you need to be really, really careful with this. Although certain things can be legal or they can be operating under colour of law, there are real restrictions in Thailand regarding the foreign ownership of real estate. It is restricted to Thai Nationals and if a structure is deemed to be exclusively operating for the purpose of subverting or circumventing the restrictions on foreign land ownership, it is possible that such a Company could be dissolved or such an incorporated entity could be dissolved and the property could essentially be seized by the state. So, you need to be really careful with this. 

Now we have had a number of questions and we have some correspondence from folks asking, based on prior videos on this channel where we have discussed, there has been speculation in many outlets, many news media outlets and it apparently is being discussed at certain policy levels, the notion of relaxing certain restrictions on foreign land ownership most notably things like house ownership. This has mostly been discussed with regard to the concept of a Moo Baan, a Housing Development where it may be possible for foreigners to own something in one of these developments. Again, we haven't seen anything actually promulgated to that effect; we haven't seen any rules come out; even any announcements from any official sources that this is even being seriously discussed but there has been enough out there that caused me to go ahead and make some videos. I have had questions from folks asking "Well is it possible that they may ease up regarding Thai Land Holding Companies?" It remains to be seen. I guess it is possible this could happen. I can see scenarios playing out where this becomes more of a feasible option for those who are looking to essentially enjoy land usage in Thailand through a corporate structure. Again though, you have got to be really, really careful; you have got to have folks that know what they are doing with respect to the incorporation and with respect to the conveyancing of the property into the Corporate structure in order to ensure it is all done in such a way that comports with Thai Law. Again if it is deemed that one of these is exclusively going to be used for purposes of circumventing Thai Law or specifically restrictions on foreign land ownership it is a possibility that you can have some real problems there.

So it is probably a good idea before you do anything to contact a legal professional, gain some insight and guidance as to the lay of the land and then go from there.