Except in special circumstances, formation of companies to hold land is not currently recommended. In a particular case, PLL can advise. PLL forms and manages companies, including arranging the necessary annual accounting procedures.
With the exception of some specific limited exceptions not applicable in Phuket, no foreign person or entity may own land in Thailand.
The only exception to this is ownership of a proportion (currently 49% in most cases) of the units in a condominium development, where subject to certain exchange control provisions, direct foreign ownership may be registered. In such a case, ownership of the unit is absolute and a co-ownership right is acquired in the land associated with the condominium.
Other than this, land can be leased, or control can be exercised through a properly formed Thai registered entity which in turn is effectively controlled by a foreign element.
Formation of a Thai registered company can be arranged through any lawyer but the intending purchaser is urgently advised to deal with one of the specialized law firms in Phuket dealing with local land issues and experienced in working with foreign clients. It is essential that the company be carefully formed to establish unambiguous control by the client over the Thai company or the client’s investment can be at risk. If the company is properly formed, that risk is removed and effective ownership can be established.
