For foreigners interested in owning land or villas in Thailand, setting up a Thai company can be a strategic approach. While direct land ownership is restricted "freehold" for foreigners, a Thai company allows foreign investors to legally acquire property under certain conditions.
How Thai Companies Work for Property Ownership
A Thai company is a registered legal entity in which foreign nationals can hold up to 49% of shares, while Thai nationals must hold at least 51%. This structure allows the company itself to own land or property, effectively providing foreigners with indirect ownership.
It’s important to note that establishing and maintaining a Thai company comes with regulatory obligations. These include:
- Employing Thai staff and maintaining proper records.
- Displaying the company name at the property for transparency.
- Ensuring the company is properly registered with authorities and compliant with tax and labor laws.
Key Points
- Foreigners can hold up to 49% of a Thai company.
- Thai nationals must hold the majority shares (51%).
- Proper company registration and compliance are essential.
Legal Considerations
Although a Thai company provides a path to property acquisition, foreign investors must work with professional lawyers to ensure the company and property transactions comply with Thai law. Siam Immobilier is not a law firm, but we partner with trusted legal experts to guide you safely through the process.
Key Points
- Legal guidance is mandatory.
- Siam Immobilier connects buyers with verified lawyers.
- Compliance reduces risk of disputes.
Practical Uses
Thai companies are most commonly used by foreign investors for:
- Villas or houses on freehold land acquired by the company.
- Commercial property investments requiring corporate ownership.
This structure can be combined with leasehold arrangements or condominium purchases, depending on your investment strategy. For instance, see Condo Ownership for Foreigners for simpler ownership alternatives and Leasehold Property in Thailand: What Foreign Buyers Need to Know.
Key Points
- Useful for high-value land or villa investments.
- Can complement leasehold or condo ownership strategies.
- Provides operational control through corporate structure.
Siam Immobilier Assistance
At Siam Immobilier, we guide clients through the process of setting up a Thai company for property investment. While we cannot provide legal advice ourselves, we work closely with experienced local lawyers to ensure compliance with Thai corporate and property laws.
We also advise on operational considerations, including maintaining Thai staff, proper documentation, and managing the company to meet legal requirements.
Key Points
- Siam Immobilier facilitates company setup with lawyers.
- Ensures adherence to Thai corporate regulations.
- Helps maintain compliance for property ownership.
Conclusion
Using a Thai company for property ownership offers a legal avenue for foreigners to invest in Thailand’s land and villa market. Combined with proper legal guidance and careful planning, this structure can provide a secure and compliant way to acquire property while adhering to Thai law.
At Siam Immobilier, we are dedicated to helping foreign investors navigate these processes with confidence, ensuring each step is supported by trusted legal and professional advisors.