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ResourcesThailand Real Estate & Property LawTitleThai Property Issues: Long Term Leases vs Holding Companies

Thai Property Issues: Long Term Leases vs Holding Companies

Transcript of the above video:

As the title of this video suggests, we are discussing basically leasing or using corporate structures for foreigners to use real estate here in Thailand. Now to be clear, let me just preface this by saying with respect to Holding Companies, with respect to Corporations, you have to be really careful with this. Thai Law is very explicit insofar as it is clear that foreign nationals are not allowed to own property in Thailand. 

Now, certain corporate structures that involve a foreign national can be set up that utilize land as a result of their operation or their existence if you will. That stated, it is not just a foregone conclusion. These need to be legally, carefully constructed because failure to do this could have serious negative ramifications and could even be considered criminal. So there are certain circumstances where it may prove feasible but it is probably a good idea to contact a legal professional with respect to gaining some insight and guidance in how to deal with that. Long story short though, if it is a situation where that works well that may be great under those circumstances.

Meanwhile a much more straightforward methodology again depending upon circumstances, is leasing. Leasing of Thai property is again, it is much more clearly defined in the Civil and Commercial Code. It is possible to lease property here in Thailand and for this reason, again it is cost benefit, it is going to be circumstantially dependent but probably not a bad idea to get some legal advice because the differences here can be pretty staggering and depending on your circumstances, especially in the long term, there can be substantial positive or negative aspects to structuring things one way or the other.