Transcript of the above video:

As the title of this video suggests, we are discussing misconceptions in terms of the rights that foreigners can gain over property here in Thailand. Let's be clear as a preface, this is a very nuanced subject; different circumstances, different prevailing circumstances are going to dictate different outcomes with respect to the types of instruments one can use as a foreigner to gain usage, usually of property. Let me get into why I thought of making this video. I was reading a recent article from Asia Times, that is asiatimes.com, the article is titled: Thailand grapples with allowing more Chinese landowners. Let's be clear, as we have discussed in other videos, there hasn't been anything yet announced where foreign nationals of any kind, of any nationality, are going to be able to own land in Thailand. I think it's unlikely that will ever happen but that is my opinion as we have discussed. 

Moving forward, quoting directly, quote: "Still, there are other ways foreigners can acquire rights to land - including through the ownership of companies, long-term leases and other investment schemes available in the Special Economic Zones (SEZs) set up by the Thai Government." Well let me start with that. The way that this is framed, it is just sort of matter of fact and I liken it to the line in the film Looper where Bruce Willis is talking to his younger counterpart and basically he says "you are using precise language to define a fuzzy mechanism!" I always kind of liked that line; the writer that wrote that line had some discernment. Yeah, when it is said "there are other ways foreigners can acquire rights to land including through ownership of companies", it is just said so matter of factly. Let's be clear and I have said this before, Companies in Thailand cannot be used to circumvent the law restricting foreign nationals from owning land in Thailand. There are specific laws restricting this and if you are deemed to be using such a structure for the sole purpose of sort of circumventing or arguably even subverting Thai Law on foreign ownership of land, you can have some real problems. You could see that land seized; you could see that company dissolved, there are a number of different problems that can occur from that. There are certain situations, again it is going to be circumstantially dependent, where it may be possible to use a Corporate structure that has a foreigner within the Corporate structure and that Corporation does have rights, maybe ownership, maybe usage, maybe some sort of a long-term lease or something where they have rights to Thai property but this sort of notion of a "one-size-fits all", "oh you just set up a company, use the company to buy the land", NO. We have seen, I have done videos on places that got raided because they were facilitating that. Ownership of real estate in Thailand, specifically land, it is a significant policy issue, just period. 

So "Long-term leases and other investment schemes available in Special Economic Zones". Yes, Special Economic Zones may accord certain ownership like or ownership rights to certain types of Corporations. Generally they need to be Corporations or operations that are kind of being promoted for purposes of promotion of certain types of Thai industries. So it's not just a foregone conclusion you just file some paperwork and you go buy some land. Meanwhile, long-term leases, yeah now on that point yeah that is kind of a matter of fact thing. It is possible for foreigners to get substantial long-term leases and usage of land throughout that time period. Quoting further: "When deciding to invest in Thai property, most Foreigner’s investor companies allowing a Thai National to arbitrate the property through a business committee on their behalf" well hold on, "Foreign investors can also purchase property through a tax-free scheme set up by the Board of Investment agency administered by the Thai Government." Again, the way that this is stated, it is that “using precise language to try to describe a fuzzy overall situation”, and by fuzzy I don't mean shady, or untoward; operating anywhere outside the lines. What I am saying is certain cases are going to clearly fall into a situation where again you might have a foreigner inside of a corporate structure and that corporate structure might own land, might own property. Again, it's going to happen on a case by case basis. It's not just a matter again, "allowing a Thai National arbitrate the property through a business committee on their behalf." Yeah not really. I have said this many times. There have been places that had real problems for trying to do that and it can lead to a situation where you could have property seized, real problems, real problems.

Again there are correct ways to do this. As we have stated in other videos, there are instruments like usufruct, life time usage, equivalent to a life estate in a Common Law context; long-term leases things of this nature and under certain circumstances again as I have said a corporation might be useful depending on the circumstances but many, many people, I hesitate to say it is annoying, but it really does kind of become exasperating where you are constantly hearing foreigners just say matter of factly, "oh yeah, we just set this up like this and it's no big deal," well there is more nuance to it than it first appears especially to lay people especially people who haven't been here very long. With respect to Board of Investment, there are certain concessions which may pertain to land ownership and property ownership and again that's going to be issued on a case by case basis with a great deal of Government scrutiny attached to it. So it's not going to be just something that you can set up and think that you are done dealing with the Thai Government. No, there is going to be some scrutiny on an ongoing basis to make sure that that concession was accorded with an operation that is in line with the types of business that Thailand is trying to promote.