Land, property and real estate portal for Krabi province in Thailand

IN our new monthly column, our "Property Doctor" Robert C. Reynolds answers your questions about buying real estate in Krabi

July 2008

Robert C. Reynolds answers:
Over the past year, the laws governing company formation and investment in land and real estate have come under close scrutiny by the government. In the past, a foreigner wishing to circumvent the laws in Thailand forbidding foreign ownership of land would open a Thai corporation to purchase the property.

The foreigner would have Thai shareholders act as “nominees” to hold the 51% of shares necessary to become a Thai company, and the foreigner would control the other 49%. The foreigner, with the issuance of preferred voting shares, could control the management of the company as well.

The government is closing this loophole in the Foreign Business Act by requiring Thai shareholders in a company with foreign investors purchasing land to show they purchased their shares and are not just illegal nominees. In addition, legislation is being written that will outlaw the issuance of preferred shares with different voting rights to circumvent the 49% maximum shareholding by foreigners.

As a result, the setting up of a corporation by a foreigner to purchase land is no longer available. Beware of those “friends” who say that they can take care of it for you. These new regulations are issued by the Ministry of the Interior, and the local provincial offices have no leeway in their interpretation. The best route to follow if to take possession of the land is currently through a 90 year lease.

Robert C. Reynolds is a director of Krabi Consultants, Tel: 075-695091. To email him a question, please send your query to info AT yourkrabi DOT com. We regret that only questions chosen for publication will receive a reply.

R E S O U R C E S > > >

KNOW YOUR RIGHTS
Intro to your property rights
UPDATE! Your new property rights as a company owner
Land titles 101
The price of land in Krabi
Krabi Property Clinic: your questions answered

SCAMS AND HOW TO AVOID THEM
Common pitfalls when buying real estate in Krabi
Beware of bogus agents!

CHOOSING A PROPERTY
Where to buy your home: a guide to the different areas
The Krabi holiday home checklist
Self-build or off-plan?
Focus on Had Yao: Krabi's next big thing?

DESIGN & INTERIORS
Design tips from a Krabi architect
Creating a modern Thai-style interior
Planning a tropical garden
Should you install a swimming pool?

SHORT STAYS AND RENTAL PROPERTY
Renting a house in Krabi: a guide to the different types of houses available, prices, and where to look
Long term hotel stays

LIVING IN KRABI
Case study: retiring to Krabi
Expat life in Krabi
(Practicalities for the long-term resident)
Expat testimonials: moving to Krabi - how was it for you?

KRABI PROPERTY LISTINGS
Homes and land for sale and rent in Krabi

Krabi property news - new developments, infrastructure etc.

WHO WE ARE('nt)
Krabi Property is not a real estate agent - we do not sell houses, land, or property of any kind, nor are we affiliated with anyone who does. We provide the only honest and independent information about the housing scene and the legal process of property purchase in the Krabi area, because we are not trying to sell you anything. Though you will find listings of Krabi villa projects and developments on our site, these are paid for as normal advertising and we do not receive any commission or kickbacks for sales. Finally, we regret that we cannot provide help for individual customers; those interested in property purchase should contact our advertisers directly, not us. More about us.

More from our partner sites - for your complete guide to Krabi Province:
Your Krabi (Ao Nang, Krabi Town, Railay and the mainland coast)
 
Phi Phi Islands Guide
 
Lanta Islands Guide