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Is it necessary to open a Thai company to purchase real estate?

Is it necessary to open a Thai company to purchase real estate? main image

The necessity of opening a Thai company depends on numerous factors, primarily dictated by individual goals and the type of real estate involved.

Thai Property Ownership Tax Laws:

The Thai government is keen on attracting foreign investments, making it legal for foreigners to establish companies, considering their objectives and the nature of legal entities. As per current legislation, foreigners can establish companies in various forms:

🔸 Partnerships

🔸 Limited Liability Company (LLC)

🔸 Public Limited Company (PLC)

🔸 Joint Venture

🔸 Branch or Representative Office

The most common organizational form for business operations in Thailand is the Thai Limited Company or LLC, given its streamlined registration process and minimal formalities in business operations.

When to Open a Company and When Not To:

Not Necessary to Open a Company

✔️ When purchasing condominiums under the foreign quota or under Leasehold.

✔️ When buying a house with land under Leasehold ownership.

Necessary to Open a Company

✔️ When opting for Freehold ownership of condominiums after the foreign quota is exhausted.

✔️ When firmly deciding to purchase land for a villa under Full Freehold ownership.

If the goal is to generate income from real estate, purchasing Freehold through a company is financially debatable—costlier, involves additional expenses for company maintenance, and requires declaration in the home country.

Renting Out Property:

Not Necessary to Open a Company

✔️ If a professional management company handles apartment or villa rentals, as they assume the legal aspects, including tax obligations, transferring profits to the individual's account.

Necessary to Open a Company

✔️ If you decide to manage your property independently, operating a full-fledged business in Thailand, requiring the establishment of a company.

Legal Considerations and Costs:

If opting to open a company, the initial step is to consult with a lawyer. The purpose of the first meeting is to determine whether opening a company is necessary in your specific case. Topics to discuss with the lawyer include:

🔸 Taxes – types and amounts to be paid.

🔸 Registration for residence or tax residency.

🔸 Foreign ownership share in the company.

🔸 Cost of company establishment and maintenance.

The typical costs for company opening and maintenance are:

Opening a company: From 50,000 baht

Accounting/yearly balance: From 15,000 baht/year

Business visa application: Approximately 100,000 baht/year

Deciding to open a Thai company should be carefully weighed, considering all pros and cons. Before making this crucial decision, it is advisable to seek legal advice.

Questions or Inquiries?

Feel free to reach out to us via social media, and we'll gladly provide free consultation on any questions. ⬇️

✔️ Email: hello@apart-homes.com

✔️ Contact Phone: +66 83 503 2555

✔️ WhatsApp: +66 83 503 2555

✔️ Telegram: +66 83 503 2555