Can foreigners on a Retirement visa buy land or houses in Thailand?

Jun 23, 2022
2 years ago
Casa ********
ORIGINAL POSTER
On Retirement visa, is there any ways to buy old land/house on ownership basis? Or can we include name as 49 percent partner in any existing company owned by Thai person and buy land/house in company name? I not have any GF or Thai wife so looking for other options to buy house
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TLDR : Answer Summary
Foreigners on a Retirement visa are limited in their ability to purchase land outright in Thailand. While they can own a house on the land, they cannot own the land itself unless they enter into a partnership with a Thai national through a Thai company, where they may own up to 49%. However, this option comes with complexities and risks, including the need for a reliable lawyer and potential difficulties with resale. Many expats recommend renting as a safer, more cost-effective alternative, given the current uncertainties in the property market.
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Steve ********
On the day you buy the land and the day you sell the land you cannot be part of the company ive been there seen it do it also on sale there a extra 3percent company tax
Steve ********
I sold to a english guy who i already new. I gave him a morgage as well
George *******
Prices are low everywhere. Interest rates rising. I personally think if’s not a long term investment rent
John *********
Give Isaan lawyers a call or email.
********************


They have been around a long time and deal with expats daily.
Vic *********
Yes! Don't ask here. Find a good lawyer. Hint, good lawyers are not cheap. It will be money well spent.
Mart ******
Ignore all advice and get lawyer.
Chris *******
Purchasing a home or condo has pitfalls.

We bought our condo and renovated it to our standards.

Purchasing thai company has its risks but there are ways to have control over it.

Farang cannot own the land out right, BUT you can own the home on the land

Thai law does not allow land severance from the building.

So your Purchasing the land thru Thai company 49% ownership and a Thai partnership of 51% But you are the director.

The home built by you is yours.

Yes this not straight forward and you need a trustworthy lawyer.

A condo can be a much easier route.

REMEMBER buying in Thailand may be easy enough, selling in not as easy.

For many renting is a much safer and cost effective way to go.

Homes and condos are not necessarily a profitable investment here.

Many of our expat acquaintances have been renting for many years.
Terary **********
@Chris ******
Yeah.. I dont know how I feel about that. Part of the reason I want to buy a home is to not pay rent, but it's only good if I can sell. If I loose a little its ok. If I loose it all then renting is the better option for me.

A buddy of mine who owns a few condos and has bought/sold over the years, speculates that the market is really low now but expects it to pick-up.

For me it's less of an 'investment' but more of a stop-loss.
Chris *******
@Terary *********
there is a huge inventory of condos and houses for sale (phuket anyway).

Easy to buy but you could be years to sell worst case.

Our condo sat empty for 2 years before we bought it, and we paid half what the previous owner did.
Johnny ******
@Chris ******
I can't sell my house in Khon Kaen, been for sale for nearly 2 years.
Frank-Steven ***********
Since we are talking on the subject of investing into Thai real estate here. Are there any (recommended) investment funds or ETF's covering this market? Could be a less risky alternative. Could also be something I may look into establishing in Thailand.
Terary **********
I am also considering buying a house. Most people say the same thing 'Don't do it' but I will likely ignore that advice.

There is a "Thailand Home Builder" (or similar) facebook page that may be helpful in terms of advice for ownership.

To be honest its a little worrisome to enter into legal agreements in a language I do not read/write/understand. There are a few scams and I am vulnerable to all of them.

I would recommend talking to a lawyer and find someone who has bought and sold homes. Facebook isn't the best place to get that kind of advise.
Johnny ******
@Terary *********
not wise to ignore advice
Terary **********
@Johnny *****
Depends on the advice, who is given it, what experience they have, what are their motivations. Fuck it would be stupid to listen to all advice.
Frank-Steven ***********
The company way would work, albeit at additional costs, complexities and uncertainties. Why risk investing money when you cannot control the asset / it’s use. Just rent. Worry-free and mostly ends up cheaper. Plus more flexible.
Frank-Steven ***********
Not sure how some of you guys are misreading my initial response. I never claimed there wasn't potential profits in real estate or that investing in that asset class was too risky in itself (e.g.
@To**
and
@Da**
). Quite to the contrary, actually. I was merely cautioning about having to do so by needing to incorporate a legal entity in which one can only be a minority shareholder in a foreign legal system. I would assume there is less risky and less complex ways of profiting from rising real estate prices than owning them "directly" via shared Thai Limited companies.
Dave **********
@Frank-Steven **********
I used Legal Advice to assist me and did very well. My suggestion to you is ask around for recommendation on good legal advice FB is not the place.
Todd *********
@Frank-Steven **********
not misreading anything. You asked a specific question. ‘Why risk investing money when you cannot control the asset / it’s use.’

I gave a specific answer.

It’s definitely not a recommendation. It’s simply a different perspective that has turned out exceptionally well for many of us on Samui and Phuket already.
Frank-Steven ***********
@Todd ********
As I said. Nothing wrong at all with investing into real estate. But pumping money into a shared Thai Limited company as a foreign minority stakeholder and two local / native (majority holding) partners comes at an extra portion of risk and complexity involved. Just to mention the information asymmetry. And many foreigners had to learn that lesson the hard way (similar as with putting things in the wife's name). But you know how it generally is with investing, right? Risk correlates with interest rate. So yes, if the market holds as much profit potential right now as you claim, it might outweigh the added risk. Economics 101 🙂
Todd *********
@Frank-Steven **********
agreed. The risk/return ratio seems favourable at present.

The Thai shareholders is an additional layer of complexity. Generally spreading 17% to 3 different shareholders helps mitigate risks. And you can restructure your company shares with preferred shares holding 10 votes to 1 share in order to ensure the director (you) retains full control of the company
Casa ********
ORIGINAL POSTER
@Todd ********
Thank you. This seems more practical alternative
Frank-Steven ***********
@Todd ********
Thanks for sharing those insights. I was considering the "preferred" shares route before. Some legal professionals caution about it, claiming that it may not hold at court if shit hits the fan, as it basically circumvents what the legislative body wanted to achieve with having the need for Thai majority holders in the first place. I will look into that deeper and further at some point.
Todd *********
For
@Frank-Steven **********
’s question as to ‘why risk investing money’? The simple answer is that right now, it’s a damn good investment.

The Covid situation in Thailand necessitated closing borders for an extended period of time. Tourism suffered. House values in key tourism areas suffered severely as owners access to the property or rental income was closed off. At the same time, the Thai baht plummeted 15% + against major western countries. There has not been a better opportunity to buy here (major tourism areas) in the last 25 years. The market will recover. (I’m up about 40% already in a year) and the THB will recover. Opportunity knocks… take it or leave it
Dave **********
@Frank-Steven **********
I made a lot of money with homes here. So if your a long term expat my questionsl is why flush your money down the rent toilet? Each to their own.
Casa ********
ORIGINAL POSTER
@Frank-Steven **********
For investment buy and sell later. Not for living cause rent work cheaper i am aware.
Ludwig ***********
@Casa *******
for investment you should consider condominium. You can own 100% (in designated developments) and maintenance costs are lower.
Bobby ********
@Casa *******
You stand to lose 51% of your investment. Better places to invest money than in Thailand real estate! 😆
Ken ********
@Bobby *******
what a good simple response. I tend to agree with you too
Frank-Steven ***********
@Casa *******
Ok. Still, 49% is a minority. You would need two more Thai shareholders. Is that a desirable and reliable construct? Depends.
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