Buying a property on a Thai company

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Land ownership through a Thai company - nhe most common way of acquiring property in Thailand

Establishment of the company

Land ownership through a Thai company is the most common way of acquiring property in Thailand. The company is set up with Thai shareholders who have a majority in the company. In a company, a foreigner has a shareholding of 49 % and 2 Thai shareholders must have 51% and they must be genuine investors, i.e. persons who have the appropriate amount of funds. The Thai shareholders are provided by a law firm or real estate agency or the investor himself. It costs about 100,000 baht with all fees to set up a company and takes about two weeks.

Table of costs of company formation:

*Costs of incorporation may vary depending on the situation

Contracts with Thai

In addition to contracts being made with the Thai as a shareholder so that he or she cannot withdraw against the foreigner, transfers of share certificates are bianco signed so that the foreigner can transfer the share to someone else at any time. The company is controlled by the foreigner because he is the director, the shareholder has no executive power. In addition, other procedures are applied to enhance the security of the investment, such as through the subsequent securing of a 30-year ground lease

Advantages of this procedure

This is the most common practice on Koh Samui. People own villas, hotels, apartments this way. If the necessary procedures are followed, no one can seize anything, take anything, because is everything legally backed up  In Thailand, legal enforceability is at European level. Investors' interests are protected here, especially when it comes to destinations like Koh Samui.

Other legal and official acts

There are other legal and official acts associated with the purchase of a house that need to be covered. Everything is arranged by a real estate agent or legal office. A deposit of 10 % is usually paid against the contract at the time of purchase, with payment of the balance usually on the day of the property transfer. Many properties are sold with the company already in place, making the process quicker and cheaper. It is of course also possible to set up a new company, as mentioned above.

See the total cost table for property transfer.

*Costs for these actions may vary depending on the situation


Land ownership through a Thai company is a reliable and safe way to acquire property in Thailand. This procedure is very popular on Koh Samui, and consequently in Thailand, and is recommended by foreign experts. However, it is necessary to take into account that this is a complex process and in many cases it is necessary to apply the "envelope method". The Thai authorities apply a different approach in different administrative areas, so it is necessary to enquire in advance. Procedures and costs may also vary depending on the situation and current regulations.

If you have any questions about setting up a Thai company please do not hesitate to contact us.

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