Is it easy to purchase a condominium?
Yes, purchasing a condominium is the easiest, simplest transaction, provided that an allocation remains within the 49% allowance and the funds for the purchase have been remitted from abroad and correctly recorded as such by a Thai bank. Company set up is NOT required.
If more than 49% of the shares have already been sold, you will find the foreign buyers of the remaining shares have taken the units through either some form of lease or nominee corporate structure. The foreign freehold is definitely the preferred structure for purchase of a Condominium; if you choose another structure of ownership, have it checked carefully (since most are likely to have tax or other implications that are not immediately apparent); certainly look for a price less that the freehold equivalent.

What documents are needed when purchasing a condominium?
For foreigners to be eligible to purchase a condominium in Thailand they must present proof to the Land Department that the funds have been remitted from overseas in foreign currency, otherwise the Land Department will NOT permit the transfer of ownership to the foreign buyer.

• Remittances must be sent in exactly the same name as that on the purchase contract.
• Transfer of funds must be made in foreign currency only and not in Thai Baht, i.e. remit in GBP.
• Amounts transferred must be more than $5,000 in order to obtain a Thor Tor 3 form. So if necessary, the installment schedule may need to be modified so that all amounts remitted are more than $5,000.
• The purpose of the remittance must be stated on the remittance advice. This should be FOR THE PURCHASE OF A CONDOMINIUM. The Bank of Thailands code for this is 5.22.

What is the difference between a condominium and an apartment?
You can own a condominium by purchasing direct freehold condominium title, which is part of the quota that may be sold to foreigners. The general rule is that 49% of the area of a condominium can be allocated to foreigners. If the quota for foreigners has been used, you can set up a Thai company or lease.
Apartments by their very nature, will only be available through leasehold ownership. 30+30 (option to renew) +30 (option to renew) is the maximum term you can obtain and scrutiny should be applied to the ultimate freehold ownership structure and landlord.

What are the other benefits of owning a condominium?
For the infrequent visitor a condominium has the advantage of security and the assurance that your property will be cared for (and if you require, let out) while you are away.

Can the 30 year lease on land/property be extended?
Thai law allows for leases of up to 30 years according to the Civil and Commercial Code and options of to extend up to 90 years. According to the Act Governing Leasing of Immovable Property for Commercial and Industrial Purposes leases of up to 50 and options of up to 100 years are allowed. The leases may be recorded against the title and thereby create a lien against the property which is a matter of public interest.

What sort of company do I need to set up for land ownership?
The most popular form of corporate land ownership is Limited Liability Company (LLC) Thai corporate structures are very similar to Western style corporate structures. Thai law allows for PLCs, LLCs, Limited Partnerships, Ordinary Partnerships, and various other types of corporate entities. Once these are formed, they are referred to, in Thai legal parlance, as Juristic Persons (legal entities). Juristic Persons which are owned by a Thai majority are considered, in terms of property ownership, to be a Thai person and therefore may own property in Thailand.

As a minority shareholder in Thai Company, how can I insure I have control of my investment?
Thai law permits the issuing of classified or two-tiered stocks. So an LLC may issue Ordinary Shares, where the holder of one share is entitled to one vote, and Preferred Shares, where a shareholder must have 20 shares in order to obtain one vote. The Thai majority shares may be issued as Preferred and the foreign minority shares as ordinary. This allows the foreign minority shareholder to control the company.

How do I set up a Thai company?
To set up a Thai company for business purposes and as a vehicle for freehold ownership of property we recommend you use a good solicitor. Subsomnam Properties can recommend an independent, reputable law company to you.

What are the total costs involved in purchasing property?
In addition to the purchase price of the property the following fees apply:

• Lawyers fees
• Cost of setting up a Thai Company
• Leasehold title fees leasehold registration fees and stamp duty (currently 1.1% of the land rental or lease premium) is payable to the Land Department upon registration of the lease.
• Freehold title fees Freehold registration fees (currently 2.0% of the appraisal price of the property) is payable to the Land Department upon transfer and registration of the title of the property.
• Freehold title taxes Corporate Income Tax (currently 1.0%) and Specific Business Tax (currently 0.5%)

Do I have to pay Capital Gains Tax when I sell property?
Yes, 30% corporate income tax calculated on gain from selling, 1% withholding tax and 3.3% specific business tax on the selling price or appraisal price announced by the Land Department which ever is higher.

What Visa can I get to stay in Thailand?
There are 4 basic types of Visa available for visitors to Thailand. Thai government does change regulations from time to time but it is the governments policy to welcome visitors. Some visitors do not need to get a visa before entering Thailand.

• Transit Visa valid for 14 days or 30 days depending on your country of origin. This visa is issued to visitors on arrival in Thailand without a visa.
• Tourist Visa issued by a Thai embassy abroad. These visas are valid from 60 to 90 days (varies from country to country). You can also purchase more than one visa at a time and can be used consecutively.
• Non Immigrant Visa issued at an embassy outside Thailand and valid for 90 days, this visa can be extended in Thailand for a period of up to a year.
• Resident Visa These are issued on a very selective quota basis. Qualification requirements include reading and writing Thai, a fairly strong local financial status and some good (influential) Thai references.