buy property in phuket

Thai Company Or Freehold

Thai Company Or Freehold

Most of my foreign clients still don’t  know , when they want to purchase a condo,  if purchase  with a thai company or freehold. They want to know which way is better before to invest in a property.

Well, both  ways  have pro and con, and the final decision is mostly about what  the owner  wants to do with his property in the future.

Thai company:

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• The funds can be already in Thailand, don’t need to be remitted from overseas.
• Can use the  apartment as an asset  of the company for future investments  (ex. Loan)
• Can  use the company to obtain visa and work permit
• Will save a lot in tax (property tax, business tax) when he will re sell  his property, just selling the shares of the company

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• Need  thai shareholders
• Costs of the company set up, balance sheet  and accounting

Freehold:

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• No need thai shareholders, the property  is in the client’s personal name

• No company costs and other costs

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• Proof that the funds used to purchase the condominium were remitted from overseas in foreign currency (except from whom hold a resident status)
• When the client wants to re sell, will pay tax according with the  difference between purchase-selling price and  how long he owned the property (mitigation factor)
• Cant’ use the property as a collateral asset to obtain bank credit (can’t be financed from a Bank to purchase it, unless from whom hold a resident status)
• Usually purchase the same apartment costs more per square meter  if freehold vs. Company or leasehold

For more information regarding how to purchase a condominium freehold property don’t hesitate to contact Phuket Island Property.

We can help you to set up a Co., Ltd or to follow the Freehold steps to legally purchase your property.