Hua Hin Land And House Property

Thai Legal Advice

It would appear in the first instance that the laws relating to property ownership for foreigners in Thailand are complex and complicated. This is not in point of fact the truth. The laws are understandable and in matter of fact very easy to comprehend if you are given the correct information to start with.

I will start by putting to bed the mythology of property ownership in Thailand.

Question: Foreigners cannot own property or land Thailand period.
Answer: Yet another old wives tale generally created by foreigners living here who for reasons best known to themselves decide to say this.

Question: I have decided to lease a property but I can only get a 30 year lease.
Answer: Once again not true 30 + 30 year leases can be legally registered at the land office.

Question: You can only buy a property in Thailand if you put everything in your Thai girlfriends or a Thai national's name.
Answer: Absolute rubbish this is the standard answer given the unsuspecting somewhat naive farang who has neither the brains nor ability to think for themselves. OK that might be a little harsh. There are instances where this is a perfectly acceptable scenario, I myself have done this and not encountered any problems. I would however suggest that you take a long hard look at the Thai entity involved and make a qualified decision based on facts and not your emotional connection with this entity. The fact is quite simple if the property is wholly owned paper by a Thai entity and for any reason that relationship goes south, you will be left with little more than your blushes.

Question: A foreigner can only own a property in Thailand if he is a resident here/on a work permit/or super rich.
Answer: Balony, many speculators and foreigners who are seeking a home in the sun or a second home buy homes in Thailand.

Question: If I set up a company with 51% Thai shareholders, do I have to pay them dividend every year.
Answer: Once again not true. In essence what you are doing is running a company that makes no profit and no losses and no dividend is payable.

The above questions and answers are probably the five most often asked questions in the event that you have any further questions please do not hesitate to contact us we will endeavour to assist you.
The information below will further explain Thai property law: There are two main ways in which you can legally own property in Thailand. Both of these are 100% legal and will ensure your interests are protected.

Thai Limited Company
This is the most commonly used way to buy a property in effect it is the Ltd. company that is buying the land, not an individual entity. The freehold title to the land belongs to the Ltd. company. You are the sole director of that company and you are the only person who can legally bind the company to any transaction including selling the house or the land that is built on. This legislation written into the memorandum of articles effectively gives the minority share holder control of the company.
One of the other benefits of buying a property in this way is that in the event that you chose to sell your property all you have to do is transfer your shareholding to the new buyer. This is beneficial for two reasons; firstly there is no land transfer tax on this transaction and secondly there is no requirement to register the property at the land registration department.
One must remember that in this instance in the event that you chose to sell your property that you are actually selling a company which has an asset being your property.

Lease
Most foreigners who "own" land and houses (as opposed to condos, which can be owned outright) go for a leasehold agreement of typically 30 years, with one prepaid 30 year renewal, this gives you 60 years. The lease will include clauses that automatically allow freehold ownership if the laws of foreign ownership change in future.

Condominium
Buying a condominium is perhaps the simplest and easiest option to own property in Thailand. Living in a condominium is quite inhabited in Thailand and in fact they are mostly very luxurious. A condominium block mostly has its own swimming pool, sauna, fitness centre and restaurant.
Condominium ownership is much more straightforward, you simply buy it on your own name. There is a law that stipulates that in event that the condominium block was to be more then 49% foreign owned you would have to revert back to the Ltd. company scenario. In our experience this is most unlikely...

Documents
The above information is in no way meant to deter you from purchasing a property in Thailand much the opposite; it is a statement of fact. If you follow the rules and take due diligence it's actually quite easy. At Hua Hin Land And House Consultancy Co., Ltd., we are there to assist you with your perspective purchase and will be there to help you every step of the way this is the part of the personal service you are guaranteed when purchasing a property from Hua Hin Land And House Consultancy Co., Ltd..

Of course buying property in Thailand will brings along legal papers much the same way as anywhere else in the world. We have listed below an essential check list for any prospective buyers.

Title Deeds
A Title Deed is the only form of evidence that an individual actually owns the property or peace of land he is trying to sell. Title deeds are given only for areas of Thailand which have been surveyed.
Chanotte Ti Din is title deeds with land accurately surveyed. If you have a Chanotte Ti Din title deed, it gives you incontestable possession of the land. It is worth notice only approximately 15% of land is under this title.
Most titles around the country Are Nor Sor Sam or Nor Sam Kor. They are title deeds in as much as clear records of ownership are maintained, and they may be sold or leased.
The two titles mentioned above should give you ownership as good as a Chanotte.

IF YOU ARE OFFERED ANY OF THE THREE FOLLOWING TITLE DEEDS PLEASE BELIEVE US, THEY ARE NOT EVEN WORTH THE PAPER THEY ARE WRITTEN ON TO YOU.

The Sor Bor Kor is also a true title deed, accurately surveyed and pegged (like a Chanotte). But the big but is that they cannot be leased, sold or transferred.
Special attention needs to be given to the Sor Kor Nung, Tor Bor Tor Hoc and Tor Bor Tor Ha. They are squatter's rights registered at the district office for a small fee. Unlike the Chanotte and the Nor Sor Sam, they cannot be legally sold, nor can you build on the land.

Taxes
The taxes in Thailand are not comparable to the West. But currently Land Tax and Structures Usage Tax are claimed. The Land Tax levied on land is so miniscule that in practice the board charged to collect it, rarely bother to do so, and if they do, they usually wait several years until the amount is accumulated. The Structures Usage Tax relates to buildings and is collected by the municipal office or district office.
It is only applied to properties used for commercial purposes.
On all purchase/sale of property in Thailand there is a stamp duty of 0,5%, a transfer fee of 0,001%, a business tax of 0,11% levied against the owner who has been in registered possession of the property less than 5 years, and Income Tax. There is no Capital Gains Tax in Thailand, unlike many countries, and Income Tax (usually between 1.0 and 3.0%) on property is the comparable replacement.

There is another new Law change, there is a recent renewed law which makes it possible for a foreighner to be the only person listed on an Ltd., however this is only for big investments (50,000,000+) and they have to be approved by the BOI (Board of Investors) and is has to be proved by this Board that the investing capital will be of great benefit for the Thai Economy. So this is not ment for people who want to buy a House or a piece of Land, only for big investors abroad.


The information above is based on the educated opinion of Hua Hin Land And House Consultancy Co., Ltd., we cannot however be held responsible for any losses incurred by using the above information. We would however like to point out that as mentioned before if you use due diligence and professional services your property purchase would be an enjoyable and worthwhile experience.

If there is something not clear to you, please don't hesitate to contact us and we will take our time to provide all the information you need!

Land measurement in Thailand is different to western measurement and is generally recorded in talang wah.

1 talang wah = 4 square meters = 42.7 square feet

100 talang wah = 400 square meters = 4,277 square feet

400 talang wah (1 rai) = 1600 square meters = 17,108 square feet



PROPOSAL FOR INVESTING IN THAILAND

What makes an investment by buying Land plots in Thailand lucrative?
Before we will explain what’s lucrative about investing in Land plots and what will be your return on investment, we will tell some things in general.
We are a company that is specialized in selling Houses, Condos, from private owners as well from project developers. Our major specialty however is buying and selling of Land plots for foreign investors, in the meanwhile we have a large group of investors, that’s still growing by mouth to mouth advertising. If you wish we can provide you different references. A plot of land can double and sometimes even triple it’s value within one year, but you have to know which Land plots you should buy, with the knowledge and experience which make you sure you can sell it again with a great profit.
Most of our customers buy and sell directly through us without even taken a look at the land, but for those customers that don’t know us this is of course a kind of tricky option without any certainty. To give you this certainty there are different ways or structures that will make your investment very certain and even without any risk.
First of all you have to form a Thai Ltd. in which you on the moment of registration can posses 49% of the shares, but at the same moment your Thai shareholders will sign official documents, all of this with the presence of a lawyer, in which they confirm to put almost all there shares on your name, what will make you immediately the Director and the only person who is able to make any decisions in the Ltd., you also won’t have to pay any dividend because we will make sure your Ltd. won’t make any profit (on paper) but also no loss. So this means you won’t have to pay tax, however there is a yearly standard fee when you own a Ltd. of about 300 Euro, whatever you do. But you cannot compare this with the ridiculous amounts of Tax you have to pay in Europe.
When you made an investment in Thailand and you want to return your money to your country, you have to show prove at the bank where your money came from, this must be done by a bank transfer, so you have to save your bank documents when you have transferred money to Thailand very carefully, this together with a document from the Land office which shows you have sold the Land and you can return your money to your country. We will assist you in the complete period of buying and selling. We can open a Bank account for you while in fact you cannot open a bank account on a tourist visa; however we have the right contacts to arrange everything for you from A to Z.
When you are going to register your Ltd. you have to mention the company’s capital (this is a formality and only paperwork) if you want to invest 1 Million Bath with your Ltd., then that amount is all you can use for your investment. So make sure that the company’s capital at registration is the same as the amount that you want to invest. Your other shareholders, who still have a few shares, will lend the money from you on paper. One of the most common ways for a proper and secure structure is to sell your Ltd.at the moment when you are selling your Land. This is the most lucrative way in two ways, first of all, you won’t have to pay any Land Transfer Tax and you won’t have to register at the Land office. If you have done this and you want to do it again you just form a new Ltd.. We will provide you a very well known and reliable Lawyer (you can also choose your own Lawyer) who will also provide you your other shareholders; these are people with a registered home address and with a salary which they can prove by their Bank documents. This is a lot of paperwork, but we will take care of all of this, we check everything and we assist you when you start your Ltd. what will cost you about 600 Euro.
There are still quit some very good Land plots for sale in the Hua Hin area for very fair prices, we have a lo of experience with this and all of our clients are very happy with us.
It is up to you how much return on investment you want to achieve, in most cases, it’s the longer you wait, the higher your return on investment will be.
If there is something not clear to you, please don’t hesitate to contact us and we will take our time to provide all the information you need!

Thailand BOI Board of Investment Application

The Board of Investment (BOI) was set up to promote investment in Thailand by providing privileges to local companies or foreign entities planning on incorporating under Thai law that perform select activities. The range of activities and industries eligible for promotion include:
* Controlling and advertising affiliated companies
* All types of consulting services, except those engaged in:
- Buying and selling securities
- Foreign currency exchange
- Accounting
- Advertising
- Legal affairs
- Architecture
- Civil engineering
* Information services related to source and procurement, but not brokerages or agencies
* Engineering and technical services, except those related to architecture and civil engineering
* Testing and certifying standards of products, production, and services standards
* Exporting of all types of products
* Wholesaling of all types of products within the country, excluding local agriculture products, second-hand products, art & crafts, antiques, and natural resources
* Wholesaling and/or retailing of machinery, engines, tools and equipment
* Provision of training on the use of machinery, engines, tools and equipment
* Installation, maintenance and repairing of machinery, engines, tools and equipment
* Calibration of machinery, engines, tools and equipment
* Computer program (software) design and development

Exceptions may be granted through permission extended by the Ministry of Commerce or concerned government agencies.
Privileges offered by the BOI include:
* Permission to own land
* Permission to operate under 100% foreign ownership
* Permission to bring in as many foreign technicians and experts as you need
* Permission to remit foreign currency abroad
* Other financial benefits include:
- Tax holidays up to 8 years
- Reductions in customs and duties when importing machinery

Thailand Trademark

Thailand does not have any international agreements on trademark ownership. If your trademark is not registered in Thailand it is in danger of being claimed by another party. To regain control of your trademark after it has been registered by another person, is expensive and will take years, Even then you may lose your trademark in Thailand unless you register it before someone else.
If you as the true owner then wanted to challenge the ownership of the mark you may submit a petition to cancel the registration at the Intellectual Property Court in Bangkok.
This petition must be submitted within five years of the date that the previous registration of the mark in Thailand was approved, and the proof needed in order to cancel the registration is substantial.
The first step that an investor who owns the trademark should do, is protect their rights by registering the trademark at The Trademark Division of the Department of Intellectual Property (Ministry of Commerce).

In order to get the trademark registered it must:
• be distinctive
• not be the same as or similar to a trademark already registered by another person and
• not be otherwise prohibited by law.
Some of the issues associated with registering marks in Thailand are:

Distinctiveness
Determining whether a given mark is distinctive is with the discretion of the Registrar at the Trademark Division of the Department of Intellectual Property. A distinctive mark separates the goods or services with which the mark is used from other goods and services. It must have one of the following:
• a combination of colors represented in a special manner, stylized letter(s), numeral(s) or invented word(s);
• a word or words that has no direct reference to the character or quality of the goods and is not a geographical name designated by the Ministerial Notifications;
• a personal name, a surname not being such according to its ordinary signification, a name of a juristic person or a tradename represented in a special manner;
• the signature of the applicant for registration or some predecessor in his business or the signature of another person with his or her permission;
• a representation of the applicant or of another person with his or her permission or of a dead person with the permission of his or her ascendants, descendants and spouse, if any;
• an invented device.

Three of the most common issues which arise concerning whether a mark is distinctive.
- Stylized Letter(s), and Invented Word(s)
- No Direct Reference to the Character or Quality of the Goods
- Exception: Proof of Use
If you have a trademark that has been extensively used in Thailand prior to submitting the trademark application can be deemed distinctive even if it does not comply with the above listed rules. This use must be such as adverts, promo pieces, letterhead, etc in Thailand.
Not the Same or Similar to a Trademark Registered by Another Person
If a mark is the same or similar to a mark previously registered by another party you will not be allowed to register it. Many of our clients have us do a search at the Trademark Division of the Department of Intellectual Property to determine whether anyone has previously registered the same or a similar mark in Thailand. They then know (before submitting the application) that the application may be rejected on this basis.

Not Prohibited by Law
The law specifically states that marks having the following characteristics cannot be registered:
• a mark, registered or not, which is identical with a well-known mark, as prescribed by the Ministerial Notifications, or so similar that the public might be confused as to the owner or origin of the goods;
• state arms or crests, royal seals, official seals, Chakkri emblems, emblems and insignia of the royal orders and decorations, seals of office, and seals of ministries, bureaus, departments or provinces;
• national flags of Thailand , royal standard flags or official flags;
• royal names, royal monograms, or abbreviations of royal names or royal monograms;
• representations of the King, Queen or Heir to the Throne;
• names, words, terms or emblems signifying the King, Queen or Heir to the Throne or members of the royal family;
• national emblems and flags of foreign states, emblems and flags of international organizations, emblems of heads of foreign states, official emblems, quality control symbols and certification symbols of foreign states or international organizations, and names and monograms of foreign states or international organizations, unless permission is given by the competent officer of the foreign state or international organization;
• official emblems and emblems of the Red Cross or appellations "Red Cross" or "Geneva Cross";
• a mark identical with or similar to a medal, diploma or certificate or any other mark awarded at a trade exhibition or competition held by the Thai government or a Thai government agency for public enterprise or any other government organ of Thailand, foreign government or international organization, unless such medal, diploma, certificate or mark has been actually awarded to the applicant for goods and is used in combination with the trademark;
• any mark which is contrary to public order, morality or public policy;
• trademarks similar to those under ii., iii., iv., vi., vii., or viii;
• geographical indications protected under the law on geographical indications;
• other trademarks prescribed by the Ministerial Notifications which are famous trademarks. Even though the Registrar is mostly just concerned with other marks registered in Thailand only. Trademarks registered in other countries are not taken into account when determining trademark ownership rights with one exception which is famous marks such as Coke or McDonalds.

Trademark Protection in Thailand
The Trademark Act B.E. 2534 provides protection for four kinds of marks as following:
Trademark means a mark used or proposed to be used on or in connection with goods to distinguish the goods, for which the Trademark of the proprietor of such trademark is used, from goods under another Trademark.
Service Mark means a mark used or proposed to be used on or in connection with services to distinguish the services of the proprietor of such service mark from services under another person's service mark.
Certification Mark means a mark used or proposed to be used by the proprietor thereof on or in connection with goods or services of another person to certify the origin, composition, method of production, quality or other characteristics of such goods or to certify the nature, quality, type or other characteristics of such services.
Collective mark means a trademark or service mark used or proposed to be used by companies or enterprises of the same group or by members of an association, cooperative, union, confederation, group of persons or any other state-owned or private organizations.
Intellectual Property can be divided into two categories as followed:
• Industrial Property
• Copyright and related rights

Industrial Property can be divided as follows:
• Patent (Patent for invention, utility model and design)
• Trademark
• Integrated Circuit
• Trade Secret
• Trade Name
• Appellations of Origin

Term of Patent protection
- Invention patents shall be valid for 20 years from the date of application.
- Design patents shall be valid for 10 years from the date of application.

An expired patent cannot be extended.

Term of Copyright protection
In general, the term of protection for Copyright exists for the life of the author plus 50 years after the death of the author. In case of a work is of joint authorship, Copyright exists for the life of the joint-authors plus 50 years as from the death of the last surviving co-author.
In the case where the author is a juristic person, copyright exists for 50 years from the time of authorship.
Copyright in photographic, audiovisual, cinematographic and audio and video broadcasting works as well as sound recordings exists for 50 years from the time of authorship.
Copyright in works which are created during the course of employment, instruction or commission exists for 50 years from the time of authorship.
Copyright in a work of applied arts exists for 25 years from the time of authorship.
In the case that the work is published during such period, copyright exists for 50 years from the first publication with the exception of copyrighted works in the field of applied arts, which exist for 25 years from the date of the first publication.

Also be aware of:
When registering a mark in Thailand.

Registration Procedure
The applicant or his agent must have a place of business or address in Thailand at which he can be contacted by the Trademark Office and the application must be in Thai. The law stipulates that the applicant or his agent must have a fixed place of business or an address in Thailand: Non-resident applicants can only resister a trademark by appointing an agent who is a Thai resident and granting him power of attorney
• After an immediate evaluation to assess the completeness of an application, an application is then evaluated further with multiple levels of certification and approval being needed in the department. However, protection rights begin on the date of filing. If the Registrar determines that your application appears to qualify, the trademark will be published in the Trademark Journal. If, after 90 days of publication, the mark meets no further challenge to its validity a certificate will be sent to the applicant in approximately 30 days lr
Trademark Division of the Department of Intellectual Property Registrar will usually grant registration of the mark within 6-10 months of the initial filing date of the application.

Disclaimers
Many marks contain a combination of letters, numbers, words and symbols. Some of these combinations will be able to be registered and some will not.
• If an applicant applies to register a mark and a portion of the mark can not register all of it. The Registrar will withhold approval of the application unless the applicant disclaims the portion that cannot be registered.
• By stating this, the applicant is requesting protection of the mark as a whole, but not for the portion which can not be registered. Class System
A given mark may receive protection only with regard to the specific kinds of products and/or services that the applicant designates in the application. Thailand adheres to the International Classification for Goods and Services. There are 34 different classes of goods and eight different classes of services. If a trademark is intended for more than one class, a separate application is required for each Renewals
Trademark registration is effective for a period of 10 years. Owners of trademarks must file an application for renewal at least 90 days prior to the expiration of their current trademark registration. A renewal trademark will be effective for an additional 10 years.
• A trademark may be registered even if it is not being actively used. However, failure to utilize the trademark entitles third parties to challenge the rights of the trademark owner.
• In order to renew the original certificates of registration should be presented along with information explaining the goods for which the trademark is intended, and an application for renewal. The government renewal fee is 1,000 baht

Official Fees
• Filing: The fees depend on the number of different classifications of goods or services. The fee for each classification is 500 Baht.
• Publication: The applicant has to pay a fee of 200 Baht for each application.
• Registration: The applicant has to pay a fee of 300 Baht for each classification of goods or services.



If you plan to spend a long time in Thailand, Thailand Elite membership is worth a look just for the 5 year renewable visa. This can be renewed indefinitely every 5 years for the rest of your life.
There is also complimentary daily green fees for golf at Thailand's top golf courses. Thailand Elite members also get VIP fast-track through immigration and passport control, complimentary transfer service from international airports on arrival and departure, free annual medical check up at any of 11 international standard hospitals, etc.
Thailand Elite is run by the TAT (Tourism Authority of Thailand), has just been recently endorsed by the cabinet and costs 1M Baht.
Note that rules change for applications received after October 1st and limitations are placed on the golf and spa usage If you are interested its best to lodge your application before end September 2007 to make sure you get the unlimited lifetime membership. The price is also set to go up to 1.5m from 1st Jan.
Thailand Elite applications require only a passport copy, and photo.