Integrity Legal - Law Firm in Bangkok | Bangkok Lawyer | Legal Services Thailand Back to
Integrity Legal

Legal.co.th - Resources 

Research & gain insights into Thai, American, and International Law.

 

Contact us: +66 2-266 3698

info@integrity-legal.com

ResourcesThailand Real Estate & Property LawThailand Condominium LawUsing a Company to Buy a Condominium in Thailand

Using a Company to Buy a Condominium in Thailand

Transcript of the above video:

As the title of this video suggests, we are discussing condominiums.  Condominiums are very useful for foreigners because of what is called the Thai Condominium Act which basically allows foreign Nationals to own Thai condos freehold.

What do we mean by freehold? I mean that you can have a “Chanote” where it is basically a title not a leasehold, like most foreigners have to deal with, with respect to land or enjoyment of land here in the Kingdom due to the restrictions on foreigners being able to own real property. Condominiums are an exception so long as that condominium unit comports with the provisions of the Thai Condominium Act  the condominium can be held in freehold; “Chanote” title. We call it a “Chanote” here in the Kingdom and it designates the place and the specifications of the property. It actually looks like architectural blueprints actually on the title itself.  But foreigners can own condominiums out right under certain circumstances.

Now some have asked me over the years “are there any benefits to having a company own condominiums?” There can be. Although if one is using a company to circumvent certain aspects of the Thai Condominium Act, for example the quota on foreigners within a given condominium juristic person, within a given condominium complex. I could see where that can prove problematic and one probably needs to go ahead and get some legal advice for dealing with condominiums where the condominium is just getting up to the foreign quota, that can be problematic. Under certain circumstances it is perfectly acceptable to use a corporation to own a Thai condominium.

That being said, when a company is an owner of a condo you have certain responsibilities with respect to that company in order to maintain it. For example yearly audited financial statement filing. Depending on the tax status of the company, one may need to be doing monthly tax filings with respect to that corporation. These are all responsibilities that are inherent to a corporation rather than the condominium itself. So depending on the given circumstances of a given individual, a company may or may not be particularly beneficial for condominium ownership. 

For those who have more questions with respect to this specific issue, I recommend contacting a legal professional, especially to get a grip on the situation and the right course of action with respect to one’s specific circumstances surrounding a condominium and the need or necessity of using a corporation to own it.