Thai law has a few exceptions that can allow a foreign national to purchase a piece of land in the country. One of these exceptions is when a person has infused an investment of THB40 million, at the least, into the country’s economy by, among other ways, investing in a business in the Kingdom.
Let us say that somebody, maybe a friend of yours or a business associate, has met the qualifications under Thai law that will allow him or her to purchase land legally under his or her name in Thailand. How does that qualified individual go about legally acquiring real estate in the Kingdom? What does he or she need to prepare?
Requisite Documents to Apply for Land Acquisition as a Foreign National
In order to receive permission from the appropriate government agency, a qualified foreign national will have to prepare the following documents:
- Documents for identification including, but not limited to, the foreignerís passport, an alien identification card issued by local police agencies, or a certificate of residency if the foreigner is a permanent resident of Thailand.
- A duly-filled Alien 4 form
- Documents that attest to the foreignerís investment in the country, including certificates of stock, bonds, or mutual funds.
- Letters of confirmation from the Ministry of Defense and the Provincial Officer as to the status of the real estate that the foreigner is interested in acquiring.
- These documents must then be submitted for the application process to commence. The applicant will then receive ample notification from the government should the application be approved.
- Limitations Imposed on Foreigners Who Own Land in Thailand
- Once a foreigner receives government approval to acquire real estate in Thailand, he or she must put the property to use right away.
Thai law requires these individuals to be able to utilize their new property in a residential capacity within the next two years immediately after the approval and registration of the acquisition. Apparently, these foreigners are disallowed from using the land in a commercial application.
They also need to continue their investment within the next five years. This rule is to prevent people from putting in the requisite amount as an investment in Thai financial instruments just to gain approval for land acquisition, and then withdrawing it afterwards. Should a withdrawal be imminent, investors are required to notify the government within the next 60 days after pulling back on the investment.
Thai law is very clear and specific about what it expects from foreign investors, and what perks they can give to those that make a significant investment in the local economy. However, youíd still need the help of a qualified legal advisor to save you from possible legal hurdles when it comes to investing in Thailand. For instance, the legal advisor should be fluent both in English and Thai to make sure that there are no misunderstandings along the way.
Feel free to contact HWAL if you have any inquiries about investing, property management and real estate acquisition in Thailand.
Aside from marriage to a Thai national, employment in Thailand is likely to be the most common grounds for a foreigner to be granted permanent resident status. Therefore, this subject is worth addressing in some detail. As with all permanent residency applicants, a person applying on the grounds of employment must satisfy the generally applicable requirements which were discussed in an earlier article (ìThailand Permanent Residency: An Overview). The legal minimum salary required for eligibility is 50,000 baht. However, there are two separate standards applied to applicants who make a minimum of 50,000 baht per month and applicants who make at least 80,000 baht per month. The requirements for an applicant who makes at least 50,000 baht per month, but not more than 80,000 baht, is as follows:
- The company that employs the applicant must have a registered capital of at least 10 million baht.
- The applicant must have been registered as a company director with signing authority for at least one year prior to the submission of the permanent residency application.
- The applicant must earn a salary of at least 50,000 baht per month for at least two consecutive years prior to the submission of the application and must present evidence of proper tax filings.
- The business of the applicantís company must be one of the following types:
- A company engaged in international commerce which has earned at least an average of 20,000,000 baht in foreign currency during the past three years from export sales. Evidence of this must be presented in the form of a letter issued by a commercial bank.
- A company which provides loans to domestic manufacturing companies and which has brought in at least 100,000,000 baht in foreign currency into the country within the past three years.
- A tourism company which has brought in at least 5,000 tourists on average. A certified letter from the relevant
- Thai governmental authority must provided as evidence.
- Any other type of business in which the applicant is a shareholder of at least 5,000,000 baht worth of shares fully paid-in. The applicant must have held those shares for at least two years prior to the date of submission. As it can be seen, the aforementioned requirements are particularly stringent.
However, the standard applied to foreigners who make at least 80,000 baht is quite easier and this may be a more realistic option. The requirements are as follows:
- The applicant must have held a Thai Work Permit for at least three consecutive years prior to the submission of the application.
- The applicant must have been employed at his or her current company for at least one year prior to the submission of the application.
- The applicant must have earned at least 80,000 baht per month for at least two years prior to the submission of the application or must have paid at least 100,000 baht in personal income taxes within two years prior to the date of submission.
The application for permanent residency status can be a daunting task and involves a complex government bureaucracy. Therefore, it is advisable that all interested persons retain the services of an experienced lawyer like HWAL when applying for permanent residency.
Starting a new venture can be exciting and challenging. It is important that you hire a lawyer too as all companies, irrespective of their size needs legal representation. When you start your business, you will find that you need legal guidance at every step and at different phases of the business life, from the initial incorporation to raising capital for expansion to hiring employees, you need the services of a good lawyer. It goes without saying that most businessmen cannot handle the legal matters in a way that professional and competent lawyers can.
You need to find a law office so that you can find the best representation that will be best for your business needs and is also affordable. One of the important thing that you need to consider is that the lawyer you hire is specialized in the industry you are starting a business. The lawyer will have clear idea about the industry and will know about the legal obstacles that you can face. The lawyer will be able to help your startup by covering all the legal tracks right from the start, so that you can grow your business without having to worry about any legal loopholes that may threaten dream venture.
We can also help you with lawsuits against negligent parties for different issues such as inadequate security, wrong hiring practices and also lawsuits against schools, companies, nursing homes, employers, hotels, apartment complexes, say care centers and more. You can get quotation from several lawyers and choose the one that best fits your budget. But ensure that you choose a competent lawyer by interviewing them before hiring. Remember that an efficient lawyer can make a big difference to your case, so it is important that you spend some time in finding the best lawyer to seek advice from for your legal matters.
If you need legal advice for your business or personal matters, hiring quality and professional lawyers may cost you lot of money. But, it is always advisable to opt for quality legal services. here are some tips that will help you to avoid high cost of legal advice. If you belong to the low-income group, you can make use of large network of legal aid programs that operates on federal agents. You can use these programs and get free legal advice for your problem.
We can also help you with lawsuits against negligent parties for different issues such as inadequate security, wrong hiring practices and also lawsuits against schools, companies, nursing homes, employers, hotels, apartment complexes, say care centres and more. You can get quotation from several lawyers and choose the one that best fits your budget. But ensure that you choose a competent lawyer by interviewing them before hiring. Remember that an efficient lawyer can make a big difference to your case, so it is important that you spend some time in finding the best lawyer to seek advice from for your legal matters.
We can also help you with lawsuits against negligent parties for different issues such as inadequate security, wrong hiring practices and also lawsuits against schools, companies, nursing homes, employers, hotels, apartment complexes, say care centres and more.
Many online self-help legal websites provide free legal advice to people. You can submit your questions online on these websites and then they are answered by lawyers or paralegals.