Foreigners buying house

My wife and myself both British would like to retire here, but really would want to buy a house.
How complicated is it to set uo company for foreigners to buy a house??
-@Chelsea123

Setting up a company just for the purpose of buying a house is something expats "normally" never do as retirees. Foreigners are by law not allowed to buy land. Why not rent a house? It's not that expensive, it depends on location of course.

@Leeds forever!

Thanks your response..

We are looking to set up small business once settled here...

@Leeds forever!
Thanks your response..
We are looking to set up small business once settled here...
-@Chelsea123

Well, as retirees you're not allowed to work. You'll need a work permit and a visa based on business.

Yes plan to work on this also..

Yes plan to work on this also..
-@Chelsea123

Just out of curiosity, may I ask what kind of business?

@Chelsea123

Speak to a Thai lawyer. Which part of Thailand?

I just bought a house in Thailand this year. You need to find 2 thai people to form a company. After a couple of weeks, they can make you a shareholder at 49% and the only director that can make any decisions. You won't fully own the property but you'll be the only one who can make decisions and if you were to ever sell, you just sign over to the next director (owner of the property) and take the money. The cost should be something like 60,000 to form a company with 5 million capital. They usually register homes for significantly less than their sell value to avoid taxes so this covers you easily for what you're likely going to buy.

The only tough part is finding 2 thais. It can be anyone and you could pay anyone to do it by needs to be someone who will not disappear within a month on you.

Also, if the property is already owned by a corp you won't even need to set up a company, just incase that wasn't already obvious from the above.

You can expect to pay about 15k a year to do the balance sheet but otherwise there's not much else to it.

    I just bought a house in Thailand this year. You need to find 2 thai people to form a company. After a couple of weeks, they can make you a shareholder at 49% and the only director that can make any decisions. You won't fully own the property but you'll be the only one who can make decisions and if you were to ever sell, you just sign over to the next director (owner of the property) and take the money. The cost should be something like 60,000 to form a company with 5 million capital. They usually register homes for significantly less than their sell value to avoid taxes so this covers you easily for what you're likely going to buy.
The only tough part is finding 2 thais. It can be anyone and you could pay anyone to do it by needs to be someone who will not disappear within a month on you.

Also, if the property is already owned by a corp you won't even need to set up a company, just incase that wasn't already obvious from the above.

You can expect to pay about 15k a year to do the balance sheet but otherwise there's not much else to it.
   

    -@BrianDNation

Did you forget to mention a few things about a so called limited company and some stuff that every Thai company has to abide by law,like:

- Conducting Legitimate Business Activities

– Generating Revenue

– Providing Profit To The Shareholders

Corporate laws are quite tough in Thailand especially when foreign shareholders and foreign directors are involved. It doesn't matter if it's just you and two Thai's. The law still applies.

@Leeds forever!

That's interesting, because my lawyer advised against using the corporation to do any kind of business activity. I had sought advice from a 2nd lawyer regarding the property purchase and everything matched what the first lawyer said. I've inquired about these specific points and will post back what the lawyer states.

I am actually in the process of opening another company just to import and perform small amounts of business; there was interest to do this with the property-owning business but the lawyer said because it's a dormant company, it is advised to open a separate company.

I think this covers it well.

[link moderated]

Makes sense that realtors and local lawyers would not make any comment on the more recent laws regarding dormant companies to own land so they can make money, But I'm confused as to why the lawyer advises against using the company to conduct business when that is something which could help avoid issues with the authorities. The dormant company itself is not a problem but if seen as the sole purpose to own land for me as a foreigner, it is illegal.

I haven't been able to find anything about foreigners who have been forced to sell their property by the government. Is this more of a worry about what could happen in the future or are there cases that can be referenced?

In my case, I need a company to conduct business so I am stuck on whether I should follow this lawyer's advice in forming another company or use the existing company for business. Would performing business be more likely to trigger audits? Maybe the idea is to lay low and hope no one notices, which seems to be common but is still technically illegal.

Any recommendations for lawyers that can give proper legal advice regarding this situation?

Answer from an alternate lawyer:

Yes, using a Thai corporation for a foreigner to own property is technically illegal. They have only ever seen one case where the government ever did an audit. They said if an audit happens, you can say you haven't been successful yet in your business venture: for example, attempting to rent the property for business. There are usually ways around the problem. The worst case is you're forced to sell the property (which is pretty bad)

It's generally ok to generate income/do business with your property-owning corporation. However, you can't deviate from the company's mission statement. So if you start selling things when the purpose of the corporation was to own property, it could lead to an audit and puts some liability risk (liability being the main emphasis of risk because of potentially being sued and losing the property as an asset)

There was a lot of other information I learned but isn't as relevant to property owning and more about doing business in Thailand and obtaining a work permit / non immigrant work visa by using business.

@BrianDNation  Hello Brian, may I ask, before you bought your home did you consider any of the other alternatives such as issuing a mortgage or the 30-year lease?  I am considering buying a home in the name of my Thai fiance but concerned about protecting my investment and having the ability to sell.  If you have any thoughts or advice I'd appreciate hearing how and why you chose to purchase your home through a Thai company.