Buying Property in Thailand.

Buying a Property in Thailand. - Must need to know information.

Please do not be put off by any of these legalities our Phuket office is their to assist you.

If you are buying a business or property in Thailand , the law requires that you register a Thai limited company and, if you are going to work in your business or receive any income from that business, you must apply for a work permit. The penalties for working and receiving an income from your business without a work permit are severe, resulting in possible detention and deportation. The advantages of having a work permit are that you can apply for a 1 year non-immigrant B visa, purchase a car, motorbike, telephone and open a bank account in your own or company name.

If you have decided to make Thailand your home and wish to register a Thai limited Company, the procedure is as follows.

On arrival, we will introduce you to our lawyers who are experts on buying a property or business in Thailand and they will process the necessary papers to register a company which will take approximately 3 weeks. Once your registration is approved, you can then apply for a 1 year non-immigrant B visa, followed by your application for a work permit. Your work permit will take approximately 1 month to process.

Company Formation Requirements For Non Residents Buying a property in Thailand.

NB. The minimum requirement for one work permit is a 2m baht Ltd Co.

• 2 x Copies of the front page of your passport and visa page, each copy
  signed by yourself.
• 5 x Copies of house registrations and I.D. cards of your Thai shareholders.
• 3 x Company names, in order of preference. The company name does not
  have to be the same as your trading name.
• Minimum number of shareholders is 7. i.e. one foreigner, 6 Thai.

Work Permit Requirements

• Form WP2
• 3 x Recent photo's; 5 x 6 cms
• Letter of employment
• Copy of company registration certificate, including objectives.
• Copy of shareholders list.
• Copy of VAT registration; Phor Phor.01
• Organization chart
• Copy of front page of passport and visa.
• Education certificate and resume of previous employment.
• Health certificate
• Map of place of business.

DOCUMENTS REQUIRED FOR WORK PERMIT RENEWAL ( EVERY 90 DAYS )

• Letter of power of attorney
• Copy of company certificate
• Work permit
• Copy of passport and visa

DOCUMENTS REQUIRED FOR WORK PERMIT RENEWAL (ANNUALLY )

• Copy of company certificate.
• Income year end report ( Por Ngor Dor.1,50,51 and 90,91 )
• Letter of employment
• Audited accounts
• Letter of power of attorney
• Work permit

Documents required for Non-Immigrant Visa

• Letter of VISA application signed by Thai director
• 2 x Recent photo's; 3.5 x 4.5 cms
• Copy of company certificate
• Copy of list of shareholders

If you require any further information on buying a property or business in Thailand then please do not hesitate to contact us.

Land Laws - Info on buying Land.

Buying property and land in Thailand under Thai law it stipulates that a foreigner may not own land in his name, he has the right of ownership of buildings only. If a foreigner wishes to purchase land to build a property he has 2 options:

1. The land is purchased on a 30 year leasehold, with an option to extend the lease for further 30 year periods. Possession of the land is assured by virtue of the fact that the property occupies the land. The lessor cannot seize the property upon expiration of the lease, as the property is separate from the land.
2. If a foreigner is going to operate a business in Thailand then he may purchase the freehold of the land through his Limited Company. Details on forming a Thai Limited Company can be found here . The land will be owned by the Company, not the individual.

Land titles

There are many different types of land titles in Thailand, the majority of which do not allow for the legal right to build on that land. At Bargain Properties we only recommend 3 land titles:

1. NOR SOR 3 ; This is the lowest land title which allows for legally building a property, but is not ideal as the land is measured approximately. There are no markers to indicate the boundaries of the land.
2. NOR SOR 3 GOR ; This land has been measured using aerial survey to set the points and land area. This land can be sub-divided into separate plots.
3. CHANOT ( land title deed ); This land has been accurately measured using GPS to set the area and boundaries of the land. The boundaries of the land are indicated by numbered posts.

Land Owning Laws FAQs

Question : Can I , as a foreigner, Purchase Land in Thailand in my own name ?

Answer : A foreigner cannot own land in his own name. He can purchase the land through his company ( Thai limited company ) or he can lease the land for 30 years, usually with extra 30 year options.

Question : What is the maximum number of shares I can hold if I register a Thai Limited Company?

Answer : All foreigners, other than Americans, can hold a maximum of 49% shares in a Thai limited company.

Question : If I purchase a bar or restaurant, but do not work in that business do I need a work permit ?

Answer : Thai law stipulates that as a foreigner, if you are working and do not receive an income you still need a work permit. Even if you purchase a business and do not physically work, but you receive an income from that business, you need a work permit.

Question : How many Thai Shareholders do I need to form a Thai Limited Company?

Answer : This depends on the number of foreign shareholders. The minimum requirement is a total of 7 shareholders, 1 foreign 6 Thai, 2 foreign 5 Thai etc.

Question : What are the advantages of having a work permit ?

Answer : Having a work permit means you are legally allowed to work and receive an income in Thailand, you can obtain a 1 year multiple entry visa, open a bank account and purchase a telephone in your own name.

Question : I want to purchase a business, purchase a plot of land and build my own house. How do I get started ?

Answer : Easy, as you would in your own country, you leave it to the professionals. Bargain Properties will guide you through the whole process, from finding the appropriate business, registering a company, acquiring the land, design and construction. We will even find you a rental home whilst your dream home is being built.

Question : How is land measured in Thailand . What is a Rai ?

Answer : One rai is 1,600m2 or 2/5 of an acre.