Ownership

The answer is No. Foreign nationals are only allowed to own a building but not the land. They can not own more than 49% of the shares in a Thai company. BUT there are legal alternatives that will allow a foreigner to own and/or have control of their investments.

Freehold

The Land Code of Thailand and the Foreign Business Act (FBA) does not prohibit foreign control (voting and management) of a Thai majority owned company that owns land in Thailand . It is most important to have proper legal advice when setting up a company, to retain effective control over a Thai majority owned company, and at the same time a number of means can be used to ensure that the foreign minority shareholders have effective management and financial control of the company.

There is an additional safeguard to control the freehold land which is to lease the land as an individual from the company you control. You may also have the company register a mortgage over the land in your favor. There are of course legal responsibilities and tax implications with respect to the owning and running of a Thai company. There are 2 different types of Tax levied on property in Thailand;

Land Tax The amount is relatively small, payment for this tax could be paid yearly or up to 4 yrs., at the time.

Structures Usage Tax applicable at the rate of 12.5% on the actual or assessed gross rental value of the property. Lessees are not subject to this tax.

Leasehold

Since foreigners cannot own land outright, registered leaseholds with appropriate extension are equivalent to freehold. Registered Leaseholds are safe, uncomplicated and easy to setup. This procedure is to be done at the Land Department, your name would be registered on the back of the Land Document. The leasehold is usually registered for 30 years and it is renewable, and is as good as owning the freehold.

Transferred Repatriation of funds

When transfering your funds into Thailand in foreign currency, they are converted into Thai baht. The receiving bank will issue the relevant exchange control form (Thor Tor 3) confirming the transaction. This is one of the documents you will need in the future if you wish to repatriate funds without incurring tax of (15%).

Repatriation of investment/funds and repayment of overseas borrowing in foreign currency can be remitted freely upon submission of supporting evidence. Thor Tor 3 form is one of the document required. Remittance of funds without proper documentation will be regarded as income and liable for tax.