Due Diligence

When buying property in Thailand we highly recommend you use a reputable lawyer, do not under any circumstances try to go it alone as there are so many pitfalls, especially with the spoken and written Thai language interpretations. Foreigners may not own land in Thailand so legal mechanisms are used to overcome this situation and [...]

Seller Tips

Here are some useful tips when wishing to sell your property or land:
Broker terms
Going with the broker that offers a smaller fee for a successful sale is false economy! We all have costs and how can a broker successfully market your property if he makes a very small margin? This means they are not [...]

Holiday Rental Tips

When browsing to find the right holiday rental that suits you out of the huge choice on the internet we suggest that you follow some sensible guide lines:
1. The booking agent are they transparent and give you info on their company, if not don’t!
2. Do they have testimonials from satisfied customers?
3. Do they have Guest [...]

Purchasing a dream home in Phuket

March 26th, 2013 admin

The Real Estate Industry in Thailand is poorly regulated and this article will assist you in buying property.

Due diligence on title and the property

A property due diligence should always be conducted on the land title and building permit for any structure, and verification of road access should be made. Further, a surveyor should verify the size and particulars of the location of the land as there are certain areas where construction is prohibited by law.

Legal information on purchase and holding rights to property

Subject to limited exceptions, freehold title to land is not available to foreigners, although foreigners may hold the ownership of buildings and condominium units. Therefore, acquisition of an interest in land in a foreigner’s personal capacity must be by leasehold, usufruct or usage rights for land. As a result, while houses can be purchased or built in  the name of a foreigner the developer/seller will remain as the land owner and will be the purchaser’s lessor under a land lease.

Payment

Property under construction generally requires payment through installments determined by milestones in completed construction stages. The payment schedule should accommodate the purchaser’s budget and the milestones themselves to ensure that the payments fairly reflect the value of the works completed at each stage and are not unduly front-loaded thus leaving sufficient funds for the developer to complete the structure.

Contract signing

After the purchaser has made his decision to buy, the next step usually requires a Reservation Form and payments of a deposit. This commits both parties to the process and triggers a defined time within which the contract terms should be settled. Having made a reservation, the parties will need to gare on the sales contracts. The contracts will need to be carefully drafted according to the best interests of both parties. Competent developers will have all the necessary base documents in place to ensure a smooth transmission for the purchaser and his lawyer to review. For purchasers, a local attorney or adviser is beneficial and need not be expensive as it’s common to agree to a fixed fee rather than an hourly rate basis. A reputable firm will have no hesitation to provide an initial free consultation.

Ownership or rights to property

A properly drafted contract is the purchaser’s best security, and it’s best if the contract provides that the purchaser will hold ownership of the house. As for the land, a land lease in Thailand is for a term of 30 years. Purchaser’s should require that their long term land lease contracts be renewable and may be transferred to a third party, and that the lease rights are inheritable. Lesser known vehicles with which to acquire land interests in Thailand such as Usufruct can extend for the life of the purchaser. Your local attorney can advise.

Warranties

Any property will suffer small defects after construction is completed and a good developer will promptly remedy the same.  While new condominium unit purchases carry a statutory one year warranty by law, the purchaser of a villa will have to rely on his contract. Typically the structure itself will have a two year warranty, with non structural items (water pumps and appliances, for example)guaranteed for one year. The supplier or manufacturer should provide separate warranties for swimming pools. The laws in Thailand do not provide protection against latent defects (those defects which might appear at a later stage but which previously were undetectable to he naked eye) so these need to be provided for within the construction contract itself.

Article courtesy of Sam Fauma, Director International Law Office
http://www.ilo-phuket.com

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Transfer of Property in Thailand

April 30th, 2012 doctor

Property Purchase & Transfer

When you purchase real property, you pay because you want to possess the property you are buying. While there are several preliminary steps, the main event is the transfer of property from the owner or developer to you. Often the contract for the purchase of the property will list the property transfer data. The property transfer will take place at the land office where the ownership of the property will be registered. If you buy property from a developer before development is completed, the transfer of property takes place once after your property  is complete. If the property had already been built, the transfer of property takes place once the contract has been signed and the installment payments have been completed. The remaining balance of the purchase price is usually paid on the day of transfer at the land office.

Taxes & Transfer Fees

In addition to the balance of the purchase price, you will also need to pay certain taxes and transfer fees. These taxes are the stamp duty or special business tax, transfer taxes, and a withholding tax. The special business tax is a 3.3% tax assessed on the sale price of the property.  This tax only applies if the property is sold within the first five years of ownership.  If the property is sold after five years of ownership, a stamp duty will be assessed instead .  The stamp duty is 0.5% of the sale price. The land department also imposes a transfer duty when a property’s ownership is transferred.  This tax is calculated as 2% of the property’s official assessed value.

Income Tax from the Sale

Income from the sale of property is subject to Thai income taxation.  The land department will withhold a prepayment of the property seller’s income tax at the time the transfer of property is registered.  When the property seller is a company, the withholding tax is 1% of the sales price or 1% of the assessed value, whichever is higher. When the property seller is an individual, the withholding tax is calculated on a progressive income tax scale.  How much of these taxes will be paid by the seller and how much will be paid by you, the buyer, should be negotiated before going to the land department and written into the sales contract.

Legal Services & Conveyancing

Siam Legal provides a number of services that can help make the transfer of property easier for you. If it is not possible for you to go to the land office, we can prepare a Power of Attorney that will allow you to appoint our firm or a third party to conduct the transfer at the land office on your behalf.  If you prefer to go to the land office yourself, one of our staff can company you to make sure your rights are protected. Before the official transfer of property at the land department, we will inform you of the documents needed and the approximate amount of money you will need for the taxes and administrative fees that must be paid.

Reproduced Courtesy of SIAM LEGAL www.siam-legal.com

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Last Will & Testament

April 30th, 2012 doctor

It is strongly recommended that you have a Last Will & Testament prepared in both your home country and in Thailand.  It is not a pleasant thought to think of your demise. However you should plan in advance regarding your estate so the affairs are in order in the unfortunate event of your passing.  The last thing you want to do is cause additional stress to your family during this period.  Your property in Thailand becomes of value once you sign the contract and make an initial payment; hence even before the transfer of the property you will have an asset to consider for your estate planning.

Siam Legal provides legal services for drafting of a Thai Will.  The document will detail your assets in Thailand, such as property, bank accounts, vehicle, and personal items.  Typically upon the death of a foreigner in Thailand, the government officer will ask the family for a copy of a Will or they will seek the deceased person’s lawyer for this document. Having a Will drafted in your home country to cover assets in Thailand may be problematic and burdensome to your family as documentations will need to be translated, notarized and approved by a government body. We recommend a separate Will for your assets in Thailand.

DRAFTING A THAI WILL FOR PROPERTIES IN THAILAND OR ABROAD

Thai Will and Estate planning is not something we like to think about. What Happens Upon Your Demise? This is certainly not something we would like to think about but it is important to have good estate planning to ensure your loved ones are taken care of should you finally pass away. If there is no In a Thai will, the intestate’s assets must be distributed in accordance with the classes of relations as stipulated in the CCC Article 1629 which are, in order of priority:

  1. descendants;
  2. parents;
  3. brothers and sisters of full blood;
  4. brothers and sisters of half blood;
  5. grandfathers and grandmothers;
  6. uncles and aunts.

Before any distribution of the estate to the relatives, half of the estate, known as Sin Somros, will belong to the spouse, if any.

The rest will be equally distributed accordingly. If there are no living relations and no Thai will, the estate will devolve on to the State. As such, we do strongly recommend making a Thai Will to cover all of your properties and assets in Thailand. For those who own land under a company on a freehold basis, upon your demise your property would not simply be passed on to your heirs. Instead, it would be passed on in the form of shares. In the other words, your heir will receive shares of the company as opposed to the actual property itself which can involve complex legal mechanisms. It is therefore imperative that you arrange for the drafting of a Thai will.

LEASEHOLD AND YOUR THAI WILL

For those who acquired a property under a leasehold structure, it is worth mentioning that a lease is a personal right which is not attached to the property per se and essentially terminates when the lessee dies. Therefore, if you make a renewable long term lease and have already paid the rental in advance, you should also ensure that there is a succession clause in the lease contract so as to allow you to transfer your right of the lease to your heir. Nevertheless, you should still have a Thai Will which states your clear intention to pass on such rights to your loved ones.

There are a lot of things that can happen to your property if you are not aware of your legal rights in Thailand. The entire process can become quite a tangled web and at times, very costly if certain precautions are not taken early on. One of the major concerns in any property acquisition is the minimization of risk and the security of your investment. This is even more important when you purchase properties outside of your own jurisdiction where communication can also serve as a severe impediment to your objectives. A valid Thai will eliminates much of the risk. It is always wise to seek some professional advice from a trusted professional that looks out for your interest and understands your needs.

Siam Legal has professional Thai lawyers and foreign lawyers and solicitors who can help you prepare your will ensuring that your properties will be going to your chosen beneficiaries should the unexpected happens. Call us now or drop by at our office for initial consultation on drafting your will in Thailand.

Reproduced courtesy of  SIAM LEGAL   http://www.siam-legal.com

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Dowry in Thailand

October 14th, 2011 doctor

After the roller coaster ride of what many singles call “dating”, you’ve finally found someone
and are willing to put your single life on a shelf for the rest of your life. But before you both go
through the motions of being together for the rest of your lives, you are faced with one last
dilemma, giving Thai dowry.

The tradition of the Thai dowry (Sin Sod)
This is one of the things that need to be considered when getting married in Thailand. The Thai
dowry system, which is more commonly known as Sin Sod, is common and has its roots deeply
embedded in Thai culture. Tradition shows that the groom must compensate the family for the
loss of their daughter and this is also a way of honoring your bride’s parents for raising their
daughter well. Parents also consider financial security as a starting point in your married life so
the Sin Sod is also a demonstration of your financial capability in taking care of your Thai bride.

How much dowry do I need to pay for my bride?
You will need to negotiate with your bride’s parents regarding the amounts of the Sin Sod and
Tong Mun. The Tong Mun is the engagement ring that will be presented to the bride in a Thai
ceremony called Phitee Mun.
Then there’s the Sin Sod, or the actual dowry, which can be anything of value, but normally it
is money. Most Westerners get confused with the amount of dowry given to the Thai bride’s
parents, as dowry prices are set at unbelievably high amounts ranging from 100,000-1,000,000
baht.

One important thing that you should keep in mind when discussing Thai dowry is that its
amount is based on the family’s status, the bride’s education, occupation, income and other
personal information (such as her previous marriage or having children). An average middleclass,
university-educated Thai lady deserves a dowry of 100,000-300,000 baht. A dowry of a
million baht for an uneducated lady of modest means is absurd. The price of Thai dowry falls or
is not given if the bride has been previously married or already has children.

Objections to the Thai dowry
The concept of the dowry may be a bit sensitive to the typical Westerner who of course has a
different background and tradition. Even though some Westerners object to the Thai dowry,
others simply disagree with the price. One reason is that foreigners in Thailand cannot own
land or a house under his name and this lack of benefit causes them to feel the dowry is
unnecessary.
Thai dowry is a tradition and not the law so there is really no need to show proof that you
have paid dowry, as it is just presented during the actual wedding ceremony itself. It is merely
symbolic in nature and will normally be returned to the married couple after the wedding, so as
to help them start on their new life.

Getting married in Thailand and with the one you love may be the happiest day of your life,
but it would be best to have a thorough understanding of the traditions before you go through
the actual ceremony. When in doubt, consult a reputable Thai law firm who can assist you with
marriage registration in Thailand and even outlining a Thailand prenuptial agreement to keep
everything in order before you both say the words, “I do”.

This article was provided by Siam Legal, an international law firm with offices in Bangkok,
Chiang Mai, Hua Hin, Pattaya, Phuket, and Samui. Siam Legal publishes legal guides to marriage
in Thailand on its website.

www.siam-legal.com

Siam Legal International
Interchange 21 Building, 23rd Floor, 399 Sukhumvit Road
North Klongtoey, Wattana, Bangkok 10110
Tel: 662 259-8100

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Phuket new land zoning regulations

August 27th, 2011 doctor

A new Thai government planning regulation has been issued for Phuket. Legal firm Baker & McKenzie have issued a summary and analysis of the implications which we are reprinting with permission:

RECENT DEVELOPMENTS

On 7 July 2011, the Ministerial Regulation to Implement the Phuket Province Town Planning Regulation B.E. 2554 (the “2011 Regulation”) was published in the Government Gazette. This regulation replaces the Ministerial Regulation to Implement Phuket Island Town Planning Regulations B.E. 2548 (the “2005 Regulation”). It extends the laws on town planning and land utilization to all land in Phuket province, including small secondary islands, and will remain in effect for an initial period of five years.

WHAT THE LAW SAYS

Significant differences between the 2005 Regulation and 2011 Regulation are as follows:

- The 2011 Regulation is applicable to the whole of Phuket, including small secondary islands within the territory of Phuket province, whereas the 2005 Regulation covered only Phuket island;

- The 2011 Regulation increases the number of land utilization zones from 13 to 16 zones, as noted in the chart below. The three additional zones, which govern the sea areas around Phuket province and its small secondary islands, are the blue zone (empty land for environmental preservation, tourism and fishery), the blue with white stripe zone (empty land for recreation and preservation of coastal environment), and the blue with light brown stripe zone (empty land for preservation of natural resources and coastal environment);

- The 2011 Regulation provides that the use of land in each zone for purposes other than those prescribed in the regulation must not exceed a certain percentage in each area of each zone as prescribed in the regulation. Previously, under the 2005 Regulation, the percentage limit for such use applied to each individual land plot; and

- There are changes regarding the scope of land utilization in each zone, including changing certain commercial and high-population residential zones (red zones) to low-population or medium-population residential zones (yellow or orange zone). The key changes are summarized in the table below.

LOW-POPULATION RESIDENTIAL ZONE (YELLOW ZONE)

2005 Regulation:

- The use of land for other purposes must not exceed 30 percent of the area of each individual land plot.

- The land must not be used for the storage of fuel intended for sale.

2011 Regulation

- The use of land for other purposes must not exceed 5 percent in each area of the yellow zone.

- The land must not be used for the storage of fuel intended for sale, except for liquefied petroleum and natural gas.

MEDIUM-POPULATION RESIDENTIAL ZONE (ORANGE ZONE)

2005 Regulation

- The use of land for other purposes must not exceed 50 percent of the area of each individual land plot.

- The land must not be used for the storage of fuel intended for sale.

2011 Regulation

- The use of land for other purposes must not exceed 15 percent in each area of the orange zone.

- The land must not be used for the storage of fuel intended for sale, except for liquefied petroleum and natural gas.

COMMERCIAL AND HIGH-POPULATION RESIDENTIAL ZONE (RED ZONE)

2005 Regulation

- The use of land for other purposes must not exceed 70 percent of the area of each individual land plot.

- The land must not be used for the storage of fuel intended for sale, except for gas stations.

- The land must not be used as a graveyard or crematorium.

- The red zone in certain Muang Districts must not be used for factories other than factories that operate without causing any nuisance or pollution.

2011 Regulation

- The use of land for other purposes must not exceed 15 percent in each area of the red zone.

- The land must not be used for the storage of fuel intended for sale, except for liquefied petroleum and natural gas.

- No restriction on the use of land for graveyard or crematory purposes.

- The red zone in certain Muang Districts must not be used for any type of factory.

INDUSTRIAL AND WAREHOUSE ZONE (PURPLE ZONE)

2005 Regulation

- The use of land for other purposes must not exceed 50 percent of the area of each individual land plot.

2011 Regulation

- The use of land for other purposes must not exceed 10 percent in each area of the purple zone.

Specific industrial zone (Light purple zone)

2005 Regulation

- The use of land for other purposes must not exceed 50 percent of the area of each individual land plot.

2011 Regulation

- The use of land for other purposes must not exceed 10 percent in each area of the light purple zone.

RURAL AND AGRICULTURAL AREA (GREEN ZONE)

2005 Regulation

- The use of land for other purposes must not exceed 30 percent of the area of each individual land plot.

- The land must not be used for the storage of fuel intended for sale.

- No restriction on the use of land for residential or commercial purposes in the form of commercial buildings.

- The land must not be used for residential purposes in the form of common residential buildings such as condominiums or apartments.

2011 Regulation

- The use of land for other purposes must not exceed 5 percent in each area of the green zone.

- The land must not be used for the storage of fuel intended for sale, except for liquefied petroleum and natural gas.

- The land must not be used for residential or commercial purposes in the form of commercial buildings, except if such use is part of a land subdivision for residences and does not exceed 10 percent of the total area of the project.

- The land must not be used for residential purposes in the form of common residential buildings such as condominiums or apartments unless the land is 1,000 meters away from the shoreline.

EMPTY LAND FOR RECREATION AND ENVIRONMENTAL PRESERVATION (LIGHT GREEN ZONE)

2005 Regulation

- Land which is privately owned shall be mostly used for residential purposes, tourism, governmental institutions, public utilities and public activities.

- The use of land for other purposes must not exceed 50 percent of the area of each individual land plot.

- The land must not be used for the storage of fuel intended for sale, except for gas stations.

- The land must not be used for factories classed as type 2 or 3.

- No restriction on the use of land for the sale, purchase or storage of scraps.

2011 Regulation

- Land which is privately owned must be mostly used for recreation, recreation-related activities, environmental preservation, residences, tourism, governmental institutions, public utilities and public activities.

- The use of land for other purposes must not exceed 5 percent in each area of the light green zone.

- The land must not be used for the storage of fuel intended for sale, except for liquefied petroleum and natural gas.

- The land must not be used for any type of factory.

- The land must not be used for the sale, purchase or storage of scraps.

- Forestry reservation area (Green with white stripe zone)

FORESTRY RESERVATION AREA(GREEN WITH WHITE STRIPE ZONE)

2005 Regulation

- The use of land for other purposes must not exceed 50 percent of the area of each individual land plot.

- The land must not be used for the storage of fuel intended for sale.

- The land must not be used for factories classed as type 2 or 3.

- The land must not be subdivided for residential purposes, except for single housing.

- The land must not be used for residential or commercial purposes in the form of commercial buildings or row houses.

- No restriction on the use of land for the sale, purchase or storage of scraps.

2011 Regulation

- The use of land for other purposes must not exceed 5 percent in each area of the green with white stripe zone.

- The land must not be used for the storage of fuel intended for sale, except for liquefied petroleum and natural gas.

- The land must not be used for any type of factory.

- The land must not be subdivided for any residential purpose whatsoever.

- The land must not be used for residential purposes or for the construction of high rise buildings or large scale buildings.

- The land must not be used for the sale, purchase or storage of scraps.

CONCLUSION

The 2011 Regulation is currently the key law governing all types of development and land utilization in Phuket. Prior to acquiring any land for real estate development in Phuket, developers need to carefully consider the new regulation and keep abreast of any other upcoming regulations regarding land utilization restrictions and requirements to ensure that their proposed projects can be realized under Thai law.

Developers who acquired, but did not start developing, their land before the 2011 Regulation took effect, including those who already have building construction permits, should confirm whether the 2011 or 2005 Regulation will apply before proceeding with their proposed developments.

Source: Baker & McKenzie in Thailand

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Renting Property Thailand

July 4th, 2011 doctor

Renting a villa or apartment long term is becoming very popular in Thailand especially in resort areas such as Phuket, Pattaya, Koh Samui. Many would be buyers are deciding to hold off and rent for one year or more while they get to know the area and learn the ways of Thailand without any risk.

Renting long term is very cheap compared to Europe and you can find a 2 bed villa with pool for as little as 20,000 THB or EURO 440 per month. Majority of properties are fully furnished and offer all usual amenities. View here to see our selection of over 360 villas in Phuket http://bit.ly/jwGQrv .

Using an Agent

It is highly recommended that you use a reputable real estate agent to ensure you get the right advice, property selection, and assistance in viewings and negotiating the best rate possible. Going it alone is not advisable.

Rental Prices

Rental prices range from as little as 10,000 THB per month up to 300,000 THB for luxury high end villas with stunning ocean views and staff to cook and clean and provide a first class service.

The average 3 bed pool villa (If sharing sleeps 6) in a quiet area such as Rawai, Naiharn, Phuket with lots of restaurants, bakeries, bars, shops, and very close to famous Naiharn beach go for 35-50,000 p.m. THB

Rental term and utilities

A long term rental is 1 year but usually a minimum of 3 months however negotiable with the owner. The rental price includes in most cases, maid service, pool cleaning and gardener but utilities such as electric, water, cable or UBC TV, internet are normally extra. Check with agent or owner at the outset.

Internet

Most villas apartments have internet available but not always broadband so you should check on speed available if this is an important criteria.

Rental payment

Rent is due on the first of each month in advance and must be paid to the owners account as agreed at the time of booking. Failure to make payment on the due date or within 7 days of the due date is grounds for immediate eviction.

Security deposit

The owner will require a security deposit on booking which is normally 2 months’ rent and is held by the owner until check out and as long as all utilities and other bills have been paid and there is no damage to the property then the deposit will be returned in full usually within 21 days of departure. This delay is due to owner waiting for utility bill account amount.

Inventory

On checking in the owner should provide an inventory list for you to check, agree and sign. We strongly recommend you check furniture take photos and inform the owner of any damage, scratches etc at the outset to avoid any disputes on check out.

Lease Agreement

Before you move in the owner should provide a standard lease agreement with the terms which you must agree with the owner prior to occupation. The cost of this agreement is usually shared between the parties (we can provide for 5,000 THB a standard lease agreement).

Insurance

It is recommended that you take out full insurance cover prior to occupation to cover all eventualities.

Misuse of the Property

The owner reserves the right to interrupt service and evict the tenant due to noise complaints or any type of property abuse without a refund. Illegal activities will be cause for immediate eviction by local police.

For further details contact:                          July 2011

Patrick Lusted of
Siam Villa Rentals www.siamvillarentals.com – Information Portal
Siam Real Estate www.siamrealestate.com – for all your real estate needs

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Amity Company: The Thai Company without Thais

June 7th, 2011 doctor

The Foreign Business Act (1999) of Thailand (the “Act”) generally restricts foreigners from
engaging in most business activities in Thailand, without special permission as provided by
the Act. Serious violations of the Act by a foreigner or facilitated by a Thai carry significant
criminal penalties. In the case of a Thai limited company, Section 4 of the Act provides that
if fifty percent or more of its share capital is owned by a non-Thai, then that company is a
“foreigner” for purposes of the Act. This means that if a foreigner wishes to conduct busi -
ness in Thailand in compliance with the Act, the foreigner generally must find a Thai willing
to actually invest in and own more than half of the company. This can be a significant impediment
to a foreigner wishing to conduct lawful business in Thailand.

However, Section 10 of the Act does provide for a significant exception to its restrictions on
business by foreigners in Thailand. Such exception is for foreigners whose country is a party
to a treaty that outlines that each party’s citizens may operate businesses in each other
party’s country under the same conditions as their own citizens. Currently, Thailand has
such a bilateral treaty only with the United States. Under the Treaty of Amity and Economic
Relations between the United States and Thailand (1968)(the “Treaty”) citizens of the
United States and of Thailand are granted reciprocal national treatment with regard to,
among other things, ownership of businesses in the other’s country. Thus, a Thai company
of which fifty percent or more of the share capital is majority American owned, a majority of
the directors are also American and which further obtains formal permission pursuant to
the Treaty (herein after referred to as an “Amity Company”) is permitted, without any Thai
ownership or management, to engage in virtually any business activity in Thailand in which a
Thai majority owned company is permitted to engage.
In order a Thai limited company to qualify as an Amity Company it must meet the following
conditions:
(1) more than half of company’s capital is held by an American(s);
(2) more than half of the company’s shareholders are Americans or American and Thai;
(3) more than half of the authorized directors of the company are American(s) or
Thai(s); and if
(4) if authorized director is from a third country, he must be required to jointly act for
the company with another authorized director who is either American or Thai.
However, if the Amity Company wishes to engage in any of the business activities restricted
by the Act, this permission is not automatic. To do so, the Amity Company must then obtain
a “Foreign Business Certificate” (“FBC”) as provided for under Section 11 of the Act. But because
of the Treaty, obtaining the FBC for an Amity Company is a relatively certain and expeditious
process as long as the legal and administrative requirements are met during the
application process.

Please note that although under the Treaty Americans have the right to own and control
their Thai limited company, it does not grant Americans unrestricted freedoms to stay or
work in Thailand. In other words, Americans must obtain the relevant valid Thai visas and
work permits to stay and work in Thailand just like citizens of other third countries.
It should also be noted that the right to own land in not granted by the Treaty. Thus, although
pursuant to American law foreigners of good standing may own land in the United
States, under current Thai law, with few exceptions, foreigners, including Americans and
Amity Companies, may not own land in Thailand.

Finally, although the Treaty would permit an Amity Company to engage in most businesses
in Thailand including most generally restricted by the FBA, the Treaty itself does include exceptions.
Therefore, the Treaty does not grant the right to an Amity Company to engage in
any of the following businesses in Thailand:
(1) communications;
(2) transportation;
(3) fiduciary functions;
(4) banking involving depository functions;
(5) exploitation of land or natural resources;
(6) domestic trade in indigenous agricultural products

Reproduced courtesy of  Duensing Kippen Tax & law

http://dktaxandlaw.com

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Permanent Residency in Thailand

February 16th, 2011 doctor

Thai law states that anyone who was born to a Thai father or a Thai mother inside or outside the country can obtain Thai nationality.

A Thai national married to a foreign national keeps their Thai nationality unless they decide to formally give it up. The spouse of a Thai national can apply for Thai residency and then full citizenship.

Applying for a Residential Permit in Thailand

Those wishing to apply for permanent residency in Thailand need to contact the Thai Immigration Bureau and make an application for a residential permit, also known as a residence permit.

Only 100 people from each country can apply for permanent residency in Thailand each year. It is not an easy process but it is possible for those who fulfil all the criteria. If the number of the applicants from a certain nationality is high a new ratio may be set.

Each year, normally between October and December, the Thai Interior Minister announces that applicants will be considered until the end of the year. Application must be made to the Immigration Bureau. For full details on the conditions that the applicant must meet either contact the Immigration Bureau or see their website and click on “Criteria and conditions for foreign nationals’ residential permit consideration”:

  • Bangkok Immigration Office (Immigration Bureau)
    At    : Chaengwattana Building B, No. 120, Moo 3, Chaengwattana Road, Tungsonghong Sub-District, Laksi District, Bangkok 10210
    Tel: 02 141 9889 / 1178
    Fax: 02 143 8228

  • Open: Monday to Friday 08:30-16:30
  • Map and how to get there
  • For information on the documents required for the various residential permit category applications: Click here

For citizens of Laos, Cambodia and Myamar:

  • Immigration Bureau
    At: Soi Suan Plu, off South Sathorn Road, Bangkok 10120
    Tel: 02 287 3101-10
  • Open: Monday to Friday 08:30-16:30 (closed on official holidays)

Permanent residency categories

The following is a list of categories under which a person may apply for permanent residency:

  • Investment purposes
  • Employment
  • Humanity – supporting wife and/or children who are Thai citizens
  • Expert or academic research
  • Other reasons, decided on a case to case basis

The Immigration Bureau provides detailed information: Click here

Some of the requirements that must be satisfied

Depending on the category of application there are different requirements to satisfy. To be eligible to apply for permanent residency a foreigner should be able to show the following:

  • That they have stayed in Thailand on a Non-Immigrant visa that has been extended over a period of at least three years. At time of application they must have a legitimate Non-Immigrant visa.
  • That they have no criminal record: fingerprint and identity information will be handed to the Thai police. A certified letter from the applicant’s Embassy that the applicant has no criminal record is also needed
  • The applicant must provide information regarding income, assets, knowledge, vocational ability, family status, criminal record, and anything else regarding their current situation in Thailand
  • The applicant is required to be able to understand and speak Thai

In addition, each applicant must have qualifications based on the criteria of the category under which they have filed their application.

Evaluation of Applications

Applications are evaluated based on some or all of the following criteria:

  • Income
  • Assets
  • Investment in Thailand
  • Knowledge
  • Vocational ability
  • Family status: marriage to a Thai national
  • Retirement status
  • Criminal Record
  • Others: based on the current economical and social situations

Having said all the above, applicants may possess all the qualifications and yet their application may be rejected. The final decision will be based on economic, social, and political factors and what is decided by the Ministry of Interior and Immigration Committee. If an application is rejected, according to Thai law, there is no obligation to disclose the reason.

People Who May Not Enter Thailand

According to the Thai Immigration Law, there are people who may not enter Thailand or be granted permanent residency:

  • criminals
  • those with certain diseases or health conditions
  • those who have intentionally broken Thai immigration law
  • those who have been deported
  • those with not enough money
  • those whose presence is a threat to Thailand

These people will not be allowed to gain permanent residency:

  • Anyone who has been sentenced to imprisonment, unless the offence was minor
  • Anyone who cannot earn money because of mental or physical disability
  • Anyone suffering from the following diseases (unless the applicant is the parent, spouse or child of a person living in the country and that person can support the applicant):
    • leprosy
    • tuberculosis
    • elephantiasis
    • narcotic addiction
    • alcoholism
    • tertiary syphilis
Naturalisation

When a foreign citizen has been granted Thai permanent residency for a period of five years, they may apply for naturalisation.

Applicants must:

  • Have full legal status in Thailand and their home country
  • Show good behaviour with no convictions
  • Have excellent Thai language skills
  • Be employed and paying all legal taxes

The application must be filed with the Special Branch Police Division of the police department. A Naturalisation Committee will evaluate the application, and the Interior Ministry will announce the final approval. The process takes up to three years.

Reproduced courtesy of Angloinfo http://thailand.angloinfo.com/countries/thailand

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Marriage in Thailand

December 9th, 2010 doctor

Marriage in Thailand by non-Thai couples or Thai National and foreigner couple is easy to arrange and can be quickly accomplished. The legal marriage registration can be done at any district office in Thailand on any working day between 8am and 3pm.To marry you need passports and proof that you are single. If you have previously been married which ended in divorce or death you need the original certificates. If never been married you need to show the Ministry of Foreign Affairs a statutory statement of non-attachment notarized by your embassy in Bangkok. Your Embassy may require proof of evidence to this fact.

A statutory statement required by the Thai authorities will cost 1,000 Thai Baht each (US$25). Your embassy will normally charge a fee for notarizing it and the Thai Ministry of Foreign Affairs makes a nominal charge for registering it and issuing a certificate to enable you to legally marry anywhere in Thailand. A further fee will be required to have the document officially translated into Thai.

Special attention should be made about pre marriage planning. Assets of the foreigner should be protected. A prenuptial agreement is highly recommended and should be made before marriage. Prenuptial Agreements should be prepared in both the Thai and English languages. If, for example, the foreigner is a US Citizen with assets in USA and Thailand, the prenuptial agreement should be prepared in such a manner that it is recognized and legally binding in both USA and Thailand. Prenuptial Agreements are less likely to be contested when prepared and signed well in advance of the marriage date.

To marry you need passports and proof that you are single. We offer complete legal services for marriage registration:

  1. Collecting and notarization of Embassy documents (Affirmation or Affidavit of Freedom to Marry).

  2. Translation of Affirmation or Affidavit documents in Thai language.
  3. Submitting documents to Thai Ministry of Foreign Affairs
  4. Register the Marriage at the District Office (Amphur)

Marriage Law in Thailand is governed by the “THAI CIVIL AND COMMERCIAL CODE”.

PROCEDURE

The Thai marriage can be solemnized with or without a Betrothal Ceremony in ritual manner and also through court. The betrothal ceremony is nothing but a promise to marry and in the form of an agreement. The agreement is effective only when the man gives engagement property to the woman as evidence. The injured party is entitled to claim damages in the event of breach of the betrothal agreement.

ELIGIBILITY

The man and woman who are wishing to marry should have the following eligibility to get married:

1.

 Either of them should not be less than 17 years of age. The Court may, in case of having appropriate reason, allow them to marry before attaining such age.

2.

 Either of them should not be an insane person or adjudged incompetent.

3.

 Both of them should not be in blood relations in the direct ascendant or descendant line, or brother or sister of full or half blood i.e. should no be with in the prohibited degrees of relationship.

4.

 Both of them should not have the same adoptive parents.

5.

 Either of them should not have a spouse at the time of marriage. If woman whose husband died or whose marriage has become terminated, the marriage can only take place after expiry of 310 days from such death or termination of marriage, but before such period if

(1)

 A child has been born during such period;

(2)

 The divorced couple remarry;

(3)

There is a certificate issued by a qualified doctor who is a lawful physical practitioner in medicine showing that the woman is not pregnant;

(4)

 There is an order of the Court allowing the woman to marry.

DOCUMENTS REQUIRED

FOR THAI NATIONALS

The bride and bridegroom who are wishing to marry should possess or arrange the following documents prior to their marriage so as to furnish on demand by the authority solemnizing the marriage at the time of marriage:

>>

Identification Cards of both parties.

>>

The House Registration Certificates of both parties

>>

Person filing has previously registered marriage – If divorced, proof of divorce must be shown; in the event of spousal death (the applicant is a widow or widower) proof must accompany application.

>>

Accompanied by witnesses

FOR FOREIGNERS

>> A copy of their passport along with arrival card
>> Affidavit regarding the marital status of the person from the respective embassy.
>> Translated copy of affidavits to Thai certified by an approved Foreign Ministry Translator.

MARRIAGE REGISTRATION

>>

A marriage can take place on declaration made by both the parties intending to marry by giving consent to take each other as husband and wife publicly before the registrar in order to have it recorded by the Registrar. Giving consent to the marriage may be made

1) By affixing signature of the person giving consent in the Register at the time of registration of the marriage;
2) By a consent document stating the names of the parties to the marriage and signed by the person giving consent;
3) By verbal declaration before at least two witnesses in case of necessity. The consent having been given cannot be revoked.

>>

An application for registration for marriage can be filed at any District Office or Minor District Office nationwide regardless of the birthplace of the couple.

>>

If the marriage registration is filed at the District Office located in female’s birthplace (where the name is registered on the House Registration Certificate), the title used with the forename and the last name of the female will be changed by the District Officer. The female is required to file for a new Identification Card within 60 days. If the marriage is registered elsewhere, the female is required to contact the local District Office to change her name and last name, as well as filing for a new Identification Card.
If both parties are unable to file for marriage at any District Office or Minor District Office, the couple can submit a request to the Registrar to register their marriage at any location under the supervision of that District Office. The parties filing for marriage are required to provide transportation for the Registrar. A service fee of 400 Baht is required by the ministry

>>

Marriage shall be affected only on registration being made. After registration is completed, a Marriage Registration Certificate to be obtained as evidence.

PROCEDURE FOR MARRIAGE BY FOREIGNERS

The foreigners who are wishing to marry shall appear in person with their respective passports and arrival card at their Embassy in Thailand to complete declarations attesting that he/ she is single and free to marry in accordance with Thai Law and the registration shall be effected by a Thai Diplomatic or Consular Officer.

>>

l. Take the completed declaration to a reputable translation office to have the contents of the declaration translated into Thai.

>>

The documents together with translation and copies of passports have to be taken to the Legalization Division of Consular Affairs Department, where the Consular Official’s signature will be authenticated. This normally takes 2 days. The documents and translation are then ready for submission to the District Registrar who will register the marriage and issue the marriage certificate in Thai in accordance with and following the procedure led down in Thai Law.
Reproduced courtesy of  www.ThaiLaws.com


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Why Offshore?

November 25th, 2010 doctor
Why Offshore?

By informing yourself with respect to holding assets, doing business or residing offshore, you are taking a positive step toward preserving and developing your wealth.

What Offshore Really Means
The term “offshore” describes nothing more than a jurisdiction other than the jurisdiction in which you or your business is usually domiciled. Therefore, any jurisdiction can be an offshore jurisdiction with respect to another jurisdiction. The United States, for example, is one of the world’s largest offshore jurisdictions (for non-US persons). However, in most cases the word “offshore” is used to describe low or no-tax jurisdictions which usually have enacted special legislation to attract business from other countries. The British Virgin Islands is a good example for a typical “offshore jurisdiction”.
Significant Advantages

There are significant advantages to investing, holding assets, doing business or residing offshore. You have a broader access to global markets and therefore more investment opportunities, your assets are protected from frivolous lawsuits and unjustified claims, you enjoy privacy and personal security, and of course there are many possibilities to legally reduce taxes.
The Use of Offshore Structures

Companies, trusts and foundations set up in low- or no-tax jurisdictions (offshore trusts, offshore companies) are widely used in international business and investment transactions and offer many advantages. Although most offshore entities function as part of a tax avoidance or deferral plan, this is by no means the only objective. The following is an overview of the typical uses of offshore structures, and an explanation of why you should consider going offshore. The tax and other benefits which can be obtained by the use of offshore entities usually depend upon the country of residence (and in certain cases also on the country of citizenship) of the beneficial owners and directors and the respective anti-tax-avoidance legislation. One also has to consider the laws of any other country with which the offshore entity might carry on its business or in which it holds any substantial assets.
International Trading

International trading companies are often established in offshore jurisdictions. The offshore company takes orders directly from the customer, but has the goods delivered directly to that customer from the manufacturer or place of purchase. The profits arising out of the difference between purchase price and sales price is then accumulated in either a tax free or low tax area.
Investment and Holding Companies

Funds accumulated through investment companies can be invested or deposited offshore. Although generally returns or interest payable in respect of these funds will be subject to local taxation, there are many offshore jurisdictions in which funds may be placed either in tax-free bonds, mutual funds, shares or as bank deposits where interest is paid gross. Furthermore, in most offshore jurisdictions there are no capital gains taxes. Special consideration should be givien, however, to the Qualified Intermediary rules of the United States with respect to investments in US securities, in particular for US persons. Using a holding company incorporated in a suitable country may allow tax efficient business investments in a high tax country.
Asset Protection

The use of offshore trusts, foundations andcompanies to effectively shield a persons assets from unexpected third party litigation, or punitive damages or similar. In a litigious society such as the United States, where wealthy individuals and families are “moving targets,” an offshore trust is almost a necessity and provides exellent asset protection.
Probate and Privacy

A wealthy individual with real estate and other assets in many different countries may wish to hold these through a personal holding company ( an offshore company) , which in turn may be held in a trust. With such an arrangement, probate can be avoided, which saves substantial legal fees and avoids publicity. Also many of our clients wish to hold real estate and other investments through an offshore entity simply because of the privacy which such offshore arrangements provide.
Acquisition and Holding of Real Estate

There are often substantial advantages in using an offshore property holding company for the purpose of holding real estate. Advantages of real estate ownership using offshore structures include avoidance of inheritance tax, avoidance of capital gains tax, ease of sale which is achieved by transferring the shares in a foreign company rather than transferring the real estate owned by the company. The same is true for the acquisition, registration and holding of private yachts and aircraft.

Reproduced courtesy of Siam-Legal  www.siam-legal.com

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