Thailand Investment Help

[Chatterbox2008]

I have recently reserved an investment property in Koh Phangan.
Its a new resort being built within the next year.
A friend of mine who lives in Thailand, has informed me that Thai law states that you may only release funds to the value of the initial amount deposited in a property.
This would mean any money made on the property would be stuck in a Thai bank account.
Does anyone know if this is true or not,would appreciate any info you can give.

Thanks

Chatterbox2008

[oregon woodsmoke]

I have no idea whether that is true in Thailand, but there are several countries where the law makes it very difficult to get your money back out of the country.

That's one of the things that has to be checked when you do your due diligence before purchasing.

I thought Thailand was one of those places where foreigners aren't alowed to own land?

[Chatterbox2008]

That's true you can't own land, but you can buy an apartment. Generally 54% of the complex has to be owned by Thai citizens, but there are some cases where the developer can sell 100% of the property to foreign investors. Just don't want to invest money, to find it's returns are tied up in a Thai bank account. Would be a pointless venture. So far no research and no one has been able to confirm this.

[Riccal]

Originally Posted by Chatterbox2008

I have recently reserved an investment property in Koh Phangan.
Its a new resort being built within the next year.
A friend of mine who lives in Thailand, has informed me that Thai law states that you may only release funds to the value of the initial amount deposited in a property.
This would mean any money made on the property would be stuck in a Thai bank account.
Does anyone know if this is true or not,would appreciate any info you can give.

Thanks

Chatterbox2008

Hi Chatterbox.

Are you buying as a condominium or with a lease - 49% of a condo development can be sold on a freehold (only the building) to an expat.

Thai companies with a 49% expat holding can own land and properties freehold. However, the old tricks of preference shares and non voter shares that used to be utilised to give the 49% actual control are now more difficult to do as the situation is more monitored by the Thai authorities. Thai shareholders have to prove source of funds for their holding so you can just give em the money and set up a corporate structure where you have control - it needs to be a genuine 51% Thai controlled company (tho lots of lawyers will tell you they have a way round it be cautious).

As long as you pay your money in as a non Thai currency from an account outside of the country, your lawyer will be able to advise you on a certificate from the bank attesting to this which should then allow any transactions relating to the property to be repatriated. If you paid in Thai Baht that you may hold in the country you would probably have difficulties.

Good luck

Rick

[Damian George]

Hi Chatterbox,

I had a client in a similar situation and they managed to get there money out by sending it in small clips of about £5k a time - maybe you should check with your Thai bank