Validity of purchasing land and property in the name of an offshore company

[up2you2]

I quote from the current article from the Phuket Gazette 9-15,2011 - Low-down on offshore vehicles:

"It has become popular for property investors to acquire interest in land or property in Thailand under the name of an offshore company."

 

Of course the death nail of flouting the previously existing law, prohibiting the setting up of sham Thai companies with nominee shareholders but completely controlled by the "minority" foreign shareholders, was officially dusted down on 25th May 2006. And since then rigorously enforced.

Then the very expensive option of forming extra terrestrial offshore companies with foreign nominee shareholders, to purchase land and property gained favour.

The sole purpose of doing this is to circumvent these existing Thai laws, governing the ownership of land and property in the names of foreigners.

If this does not break the letter of the law, I certainly feel that it goes against the spirit of any existing laws on the subject.

So my questions are these:

 

1) Has there been any tests cases concerning the validity of such an offshore arrangement?

2) If so how long did they take, including any appeals?

3) Even though there is not a law of precedent in Thailand, what was the final verdict?

[WorldFun]

what offshore company???

 

only thais or thai companies can own land so which 'offshore' thai island r u thinking of using?? phuket lolz

[ozpharlap]

... If this does not break the letter of the law, I certainly feel that it goes against the spirit of any existing laws on the subject ...

You don't break the letter of the law if there is a loophole or they forget to plug the gaps, it is just lazy and inadequate drafting of the legislation. When converting these laws into an English translation lost in translation surely applies.

 

In English law the spirit of the law is read down when it burdens an individual, and given a wide interpretation if it benefits an individual, this doctrine has been around since the 1800's

[Mekong]

what offshore company???

 

only thais or thai companies can own land so which 'offshore' thai island r u thinking of using?? phuket lolz

 

Offshore companies can set up a Thai sub company,and even though the Thai company is 51% Thai the overall controlling interest is still your offshore entity checks and balance.

 

It can be done it cost you a few baht to cover local employees social and taxation payments plus the accountants fees says the man who has main company registered in Switzerland and a holding company in BVI. Tax dodger extrodinaire haha.

 

Cheers

Kong

[ozpharlap]

You can always meet up with a GTG and start a business, from scratch, and enjoy the profits as they come along but always bear in mind that if things change for the worst, that you had a good time for 1, 3, 5, 10 or more years and be prepared to walk away.

 

After all, you don't get rich from the money you make per se, it is from the money you make on the money you have made IMO

[WorldFun]

Mek & Ozp

I see what you mean & as always you're right on the money

[buffalo_bill]

Setting up offshore companies is not expensive as long as lawyers do not get involved . In case you are planning to proceed withe idea I may recommend the company Sovereign in Hongkong with lots of branches anywhere . Unless you have kind of taxation reasons it is not wise to use exotic shareholders from VI or similar .

 

In a country like Siam where you can never be absolutely safe with this sort of legal construction I would further recommend to " devalue " the property with a large mortgage . Talk to somebody who is an expert .