Legal and payment issues

Purchasing your House through a Thai Company

Background

Under current Thai Law, foreigners are not allowed to buy land in their names. Therefore, foreign buyers can purchase land in the name of a Thai or a Thai entity ( company ). However, a foreign national may own buildings or property developed on land leased by him or his company. Therefore, you can own your own house.

Establishing a Thai Company is relatively straightforward, inexpensive to operate and can be handled by many reputable legal or accounting firms based in Cha Am, Hua Hin and Bangkok.

Hua Hin Home Resort is happy to recommend some firms to you in establishing your Thai Company.

Fees for setting up a Thai Company ( subject to final quote )

Initial cost :

Cost of a company LTD ( Baht. 1,000,000.00 capital ) Baht. 20,000.00

Capital of your company can be increased subject to your company requirements and cost will be increased by approximately Baht. 20,000.00 for each 1 million Baht capital increase.

Annual Fees :

Provision for a company registered office address and yearly account keeping and Auditor : Baht. 15,000.00

Advantages

Allows foreign buyers to purchase a land and build a house.

Since the foreign national will be the sole Director of the company, and has control over the 100% shares, it is safe to purchase a land and build a house in Thailand .

This information has been prepared as a guideline only and whilst every effort has been made to provide accurate information, neither the Developer nor the Management accepts responsibility for the accuracy of this information.

Payment Terms

A deposit of Baht. 50,000.00 has to be paid on reservation of the land.

When this is done, a Sale and Purchase Agreement will be presented to you and executed at the same time.

The agreement is valid for 45 days. During this time, a 10% of the amount of the house value has to be paid. The contract then becomes unconditional.

The balance of the payment towards construction has to be made within 2 months from the date of the contract being signed. This Balance has to be paid in the following 4 installments.

Thirty percent ( 30% ) before the start of construction of the house.

Thirty percent ( 30% ) when the foundation has been laid which takes approximately 70 days.

Thirty percent ( 30% ) when the walls, windows, doors, roof etc are ready. I.e. the general interior and exterior construction, which takes around another 70 days.

The final Ten percent ( 10% ) when the house is ready, the land registered and the keys are handed over to the Purchaser and signed off.