Investment Consultancy

 

Despite or maybe because of (!) one of the most profound and long lasting economical crises that the world has ever seen, more and more western nationals continue moving to and invest in Thailand. 

For several reasons Pattaya, in particular, is a very popular destination to relocate, to spend long holidays and generally a good place to invest both in commercial activities (business) and in the real estate market. 

We all noticed how, nowadays, Pattaya is not anymore what it used to be in the past just an ideal destination for western single men in search of eternal youth and exotic women; it has rather become a very popular resort for families and mature couples coming from all over the world. It's a beach resort still much cheaper and far more pleasant, (especially in the winter), then most of the cold western towns and, most of all, Thailand benefits of a taxation system not as oppressing as in the west.

 

Here follows the "Dictatum Papae", our "Check List", a few, essential rules to avoid bad surprises whether you decide to invest in real estate (biens immobiliers) or in a business (activités commerciales).

 

1) Real estate investments Conveyancing

Real estate market has been for eons (I learned it since birth...quite a while ago I'm afraid!) one of the most reliable, secure and satisfactory way to invest our money. Thailand is not an exception. Moreover, investing in the Thai real estate definitely doesn't mean being doomed to pay an unfair, often iniquitous tax for the rest of your life.

Let's then come to the Check list:

- Always Ask for the title deed (chanot) of the property you wish to buy and check it accurately, better if with the help of a trustful law firm.

- Always draw a contract, signed in all its pages at the presence of two witnesses, specifying all details of the transaction and mentioning the method of payment.

- Ask for a translation in your native language.

- Pay with cashier checks or draft, never in cash.

- Never make a "home made" contract. Laws are different here; ask for the assistance of an expert or of a serious real estate of your trust.

- Do not pay huge deposits without an absolute guarantee. Do as the Thais do: "money in one hand, the property in the other."

- Ask how much is the maintenance- fee. Tax on properties can be little or none, but maintenance fees can be huge. 

- Remember that to transfer a condominium in your own name you need to show evidence that the money arrived from abroad, the so called T.T.3 bank statement.

- Buying a condo in a company name could be not such a bad idea as many people might think. It is usually cheaper and properties in the names of companies are more attractive for buyers that cannot produce a bank statement T.T.3 and for the local Thai market.

- nevertheless if you wish to buy a house or a condo that can not be registered in your name, ask a lawyer of absolute trust to advice you on what are the best solutions at your disposal: formation of a new company, taking over of an old one, long lease, mortgage, etc. 

- Ask for a copy of the condominium or compound statute and read it carefully. 

 

2) Commercial investments:

- Check the length of the rental contract.

Usually commercial contracts have a length of only Three years, mainly due to the fact that for longer rental periods the Thai law requires the registration of the contract. In most rental contracts you will possibly find a clause where the landlord promises and "guarantees" to renew it for a further three year period. Even though the Thai landlords usually do respect it, such a promise is legally void and meaningless. The title IV, Section 538 of the Civil Code clearly states that "If the hire is for more then 3 years....it is enforceable only for 3 years unless it is made in writing and registered by the competent official"

- Always demand the presence of the landlord of the premises and ask him/her to endorse the transaction between you and the seller of the business making sure that he will also endorse the rental contract without charging you ...the moon! 

- if you are going to take over a working company, ask an expert and licensed accountant to proceed to a thorough audit. Tax in Thailand are fair, but transgressions are severely punished.