Integrity Legal

The government of the Kingdom of Thailand has announced that they will be launching investigations into the buying of agricultural Thai real estate by foreign nationals in the Kingdom of Thailand.  Apparently there have been rumblings among the Thai farming community concerning an influx of foreigners buying land in Thailand in order to grow crops for eventual sale on the open market.

Many individuals are concerned that a foreigner will use a Thai company to own land and thereby circumvent the laws on the books regarding foreign real estate ownership. The Nation Newspaper in conjunction with ThaiVisa.com is reporting on the issue, to quote their article:

“Concerned Thai officials will continue monitoring whether foreigners have violated law on buying or renting farmland to engage in agriculture in the kingdom although initial investigation found that such a practice does not exist, Deputy Commerce Minister Alongkorn Ponlaboot said on Saturday…Farming as an occupation is reserved for Thais only and the probe was conducted following an outcry by some farmers that foreigners have bought numerous plots of farmland here and hired farmers to provide the labour.”

People moving to Thailand or wishing to live part time in the Kingdom should be aware of the somewhat xenophobic attitude of many Thai people when it comes to the subject of Thai property law. Regulations regarding Thai real estate reflect a negative attitude toward foreign ownership of Thai property. Many Thai people consider Thai property ownership to be a right that ought to be held in reserve for Thai citizens. That being said, there are exceptions to this general mood. Most Thai people do not see a problem allowing foreign nationals to own a Thai Condo in freehold. Further, obtaining a Yellow Tabien Baan (foreign house registration booklet) is becoming somewhat commonplace. However, this nonchalance does not extend to feelings regarding ownership of farm land and Thai government policy is a reflection of these feelings.

Evidence of this attitude can be found throughout the Thai foreign business act. A Thai company that is owned by a foreign national is specifically barred from engaging in business activities involving Thai farming. Even the US-Thai Treaty of Amity specifically precludes land ownership and agricultural activity. An Amity Treaty Company, although accorded preferential “national treatment,” is still subject to somewhat stringent regulation regarding Thai agriculture.

With the current global economy still in a somewhat less than optimal condition, it seems logical to assume that these restrictive measures will remain part of the law of the Kingdom of Thailand. It does not seem likely that the Thai government will allow foreigners to engage in farming activities in the near future.

Tags: Amity Company, Amity Treaty Company, Tabien Baan, Thai Company, Thai Farm land, Thailand Property Law, Thailand Real Estate Law, US-Thai Treaty of Amity
Posted in General Legal Information, Legal Opinion, Thailand Business, Thailand Property, Thailand Real Estate | No Comments »

In recent weeks there appears to be an upward trend in the Thai property market. Looking at the situation strictly from the standpoint of a foreign attorney, more people seem to be looking into purchasing Thai property. That being said, what type of Thai property is seemingly in demand?

There seems to be renewed interest amongst foreign nationals in obtaining a Thai Condo. These Condos often have the benefit of conferring foreign freehold ownership to the foreign national in the Thai Title Deed. Further, by obtaining a foreign freehold Title deed, the foreigner would likely be able to obtain a Yellow Tabien Baan, which is a house registration specifically designated to non-Thai nationals. Although somewhat difficult to obtain, there are many benefits associated with a Tabien Baan. Another benefit to the owner of a Thai condo: easier obtainment of a Thai O visa.

Aside from the legal benefits of purchasing Thai real estate, it would also appear as though the property market has stabilized and demand is on the rise. Many people take the view that the Thai property market has “bottomed out,” although we cannot make speculations as to the accuracy of this claim, the plausible argument could be made that the seemingly continuous descent of the property market is at an end.

What does this mean for the potential buyer? For starters, it means that one should carefully weigh all options before making a decision to buy property. Further, a prospective buyer should conduct due diligence in order to ensure that the property in question is valuable and the seller does in fact have the right to the property he wishes to sell.

Often when buying Thai Condos, it is wise to wait until a building is actually built before putting any money down as a deposit. Unfortunately, Thailand is rife with stories of unsuspecting buyers who put up a down payment on a property development only to see the developer go bankrupt before the building was completed thereby leaving the prospective buyer with a deposit down on an unconstructed untitled piece of property. in order to avoid situations such as this it may be wise to retain a property lawyer.

Finally, with the Thai property market apparently on the upswing, transaction taxes and fees may be on the rise as well. Since the Thai government imposes land transfer fees based upon the price of the Real Estate rising prices may create an environment of rising fees.

(Nothing Contained herein should be construed as legal advice. No attorney client relationship, express or implied, is created by reading this piece.)

Tags: Tabien Baan, Thai Condo, Thai O Visa, Thai Property, Thai Real Estate, Thai Title Deed, Thailand Property, Thailand Real Estate
Posted in General Legal Information, Legal Opinion, Miscellaneous, Thailand Business, Thailand Property, Thailand Real Estate, Thailand Visa | No Comments »

On this blog and in other places on our site we have discussed the US-Thai Amity Treaty and how it can be beneficial for those doing business in the Kingdom of Thailand. However, most of these writings have made the assumption that one would be setting up a Thai Limited Company as an entity certified by the Foreign business office as protected under the Treaty.

One aspect Thai corporate law that is of some interest to American operators in Thailand is the notion of establishing a sole proprietorship and obtaining Amity Treaty certification. In theory, this is possible, although in practice it can be somewhat difficult to arrange and has some drawbacks from a legal viewpoint.

One positive aspect of Treaty Certification on a sole proprietorship is the fact that income garnered by the sole proprietor can be taxed as if it were personal income. Therefore, issues of so-called “double taxation” do not come into play when dealing with some sole proprietorships. Also, with regard to a sole proprietorship the paperwork necessary to establish the entity is far less substantial. In the case of proper Thai limited companies, it may be necessary to promulgate meeting minutes of shareholders and directors. Sole proprietorships generally do not require meeting minutes because the sole proprietor is the only person with authority to make decisions on behalf of the company.

One of the major warnings that any legal professional will give to one seeking to establish a sole proprietorship is to think about the ramifications of a lack of limited liability. Sole proprietorships do not have limited liability and therefore, should an adversely affected party wish to sue the sole proprietorship, then the sole proprietor’s personal assets could be placed in jeopardy. Thai limited companies do not have unlimited liability which means that should one sue the company, then the company would only be liable up to the amount of their registered capital.

Finally, from a practical standpoint there are some professions for which a foreigner cannot obtain a work permit to perform. Therefore, it may be possible to set up a sole proprietorship to engage in the entertainment business, but not be able to get a Thai work permit in order to perform the activities inherent to the business. In some ways setting up a limited company sidesteps this problem because the Thai company is viewed as a separate legal entity in the eyes of the law and therefore, the activities that the company engages in may not be the same as the foreigner’s actual job within the organization. Therefore, the Ministry of Labour might authorize the work permit for one working for a Thai Limited Company with Amity Treaty Certification.

(Nothing contained herein should be acted upon as legal advice. No attorney-client relationship is created between author and reader.)

Tags: Amity Treaty, Amity Treaty Company, Thai Company, Thailand company, Thailand company registration, US-Thai Treaty of Amity
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As the movement towards the eventual repeal of the Defense of Marriage Act (DOMA) continues, it appears that proponents of repeal may score a minor victory by enlisting Senator Russ Feingold to introduce repeal legislation.

The Washington Blade reports,

“[Senator] Feingold is an attractive ally to introduce a DOMA repeal bill because he chairs the Senate Judiciary Committee’s Constitution Subcommittee, which hold jurisdiction over DOMA, she said.”

Concurrently, it would appear that Jerry Nadler, Democratic Member of the House of Representatives, is preparing to introduce a bill to repeal DOMA. Under the provisions of the DOMA repeal currently being considered, states would not be forced to recognize same-sex marriages conducted in other states, but the Federal government would be required to recognize these marriages and provide federal benefits.

Allison Herwitt, legislative director of the Human Rights Campaign, was quoted as saying, “You could, if you lived in Oklahoma, travel to Massachusetts, or one of the other [five] states get married and [go] back to Oklahoma,” she said. “The state would not have to recognize your marriage, but federal benefits would flow.”

Jerry Nadler is notable for having introduced federal legislation known as the Uniting American Families Act (UAFA). This proposed legislation would have granted US Immigration benefits to the same-sex “permanent partners,” of American Citizens or Lawful Permanent Residents (holders of US Green Card).

This proposed DOMA repeal would likely have the same effect as the provisions under the UAFA because it would theoretically accord the same sex spouse of an American Citizen the same privileges granted to different sex couples unde ramerican Immigration law. For example, if a bi-national same sex couple was validly married in Massachusetts and then the American Citizen filed an I-130 petition on behalf of his or her spouse, then the federal government would be compelled to recognize the marriage for the purposes of granting the Immigration benefit.

Further, one could argue that an American citizen could file a K1 visa application based upon the couple’s intent to travel to a jurisdiction in the United States which recognizes same-sex marriage and execute a valid marriage. It is thought that should this form of the DOMA repeal pass, then a fiance visa application filed for the above outlined purpose would be approved. That being said, as the bill has not been legalized and the contents are subject to change, it any analysis of USA visa implication is simply an exercise in speculation at this time.

(This is information provided for educational purposes. An attorney-client relationship should not be construed to exist between author and reader.)

Tags: Defense of Marriage Act, DOMA, DOMA repeal, I-130, Jerry Nadler, K-1 Visa, K1 Visa, K1 visa application, uafa, Uniting American Families Act
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This blog has been keeping track of the US Immigration implications of recognition of Same Sex Marriage under United States Federal law. Currently, a US law known as the Defense of Marriage Act (DOMA), precludes the United States Federal government from recognizing same sex marriage (even when the marriage was validly executed in one of the fifty US States). Also, DOMA provides American states with the option of not recognizing same-sex unions in other states (although this provision has been question on Full Faith and Credit grounds).  Since the United States government does not recognize same sex marriage, same sex bi-national couples cannot obtain US Immigration benefits based upon a marital relationship.

There are currently movements to provide immigration benefits for same-sex couples. One pending bill is known as the Uniting American Families Act which has apparently been reborn under a new moniker: the Re-Uniting American Families Act. There is also a movement gaining a great deal of steam that seeks a full repeal of the Defense of Marriage Act. It is this author’s opinion, that eventually the Defense of Marriage Act will be repealed. The upshot of DOMA’s repeal will be an increase in family immigration benefits for same sex couples.

This pending legislation and political movement has been the focal point of many posts previously written on this blog, but since this blog is also concerned with Thai law, it begs the question: does Thailand recognize same sex marriage? The short answer: No. It should be noted that Thailand is one of the most tolerant cultures in the world, particularly regarding gay rights. That being said, there is no process under Thai law for legalizing a relationship of two people who are of the same sex. In many countries, a legal partnership known as a “civil union” is used to legitimize a relationship between two people of the same sex.  In Thailand, there is no “civil union” mechanism for providing legal protection for a same sex couple. That being said, Thailand marriage registration is often not a method employed by a couple who wishes to have an ongoing relationship. It is quite common in Thailand for a couple to have a marriage ceremony (customary or religious), but never actually register a marriage in Thailand with the local Amphur office (District Office). Therefore, as a practical matter Thai same sex couples can maintain a domestic relationship in a manner similar to different sex couples who choose not to legalize their union.

At the present time there does not appear to be any political movement to legalize same sex marriage in Thailand. For those who wish to protect their same sex loved one, legal mechanisms such as a Thai will can assist in providing legal benefits usually accorded to those in a different sex relationship.

For more information please see: Bangkok Lawyer, or Visa Lawyer Thailand.

(Please note that the information contained herein is intended for educational purposes only. No lawyer-client relationship is created by reading this piece.)

Tags: Civil Union, Defense of Marriage Act, DOMA, Marriage Registration Thailand, Same Sex Marriage, Same Sex Marriage Thailand, Thai Will, Thailand Marriage Registration, uafa, Uniting American Families Act
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The government of the Kingdom of Thailand has erected many protectionist economic measures. One of the most prevalent legal restrictions imposed upon foreigners in Thailand is the de facto prohibition on land ownership under Thailand Real Estate Law. There is a common misconception that foreigners are not allowed to own land. Technically, this is not the case. In reality, the law states that a foreigner may purchase Thai Real Estate if he or she obtains approval from the Minister of the Interior of Thailand. As a practical matter, obtaining this approval is extremely difficult, if not impossible. The upshot of these restrictions is a virtual bar on foreign ownership of Thai Real Estate.

In Thailand, a freehold Title deed is known as a “Chanote.” Due to the aforementioned legal restrictions it is a virtual impossibility for a foreign national to obtain a Chanote for Thai property. That being said, some years ago the Thai government carved out a legal niche whereby a foreigner could obtain a Freehold Title to a Condominium in Thailand. This exemption is subject to certain conditions. First, the Condo must meet the definition of “Condominium” under the act which means that the paperwork for the building must be completely in order. Another very important aspect of this legislation is the fact that a foreign quota is imposed upon a condominium complex. The law states that foreign ownership may only account for 49% of a condominium’s total number of units. The other 51% must be set aside for those of Thai nationality.

This foreign quota provision can lead to a problem because Condos that are highly desired or in desirable areas are not available for foreign purchase. Further, it can be a great disadvantage to Condominium developers in Thailand because there is generally an income discrepancy between foreign and Thai property buyers. As a result, legal devices are sometimes utilized to circumvent the foreign freehold quota on a Thai condo.

For many years, the classic method of providing foreign control of Thai real property was through the use of a Thai Company to own land. In the recent past, the Thai parliament passed legislation which outlawed the use of “nominee shareholders” in ostensibly Thai companies to own real estate. This mechanism has been employed by Condominium developers to get around the freehold quota. Basically, the developer sets up a Thai company, sell the condo to the company, and then sells the company, that now owns an otherwise quota restricted condo, to a foreigner. As a result, the foreigner owns a company which owns a condo in freehold that could not be legally purchased outright. As with any corporate structure involving “nominees,” the use of nominees is prohibited, but the definition of “nominee” is left somewhat vague under Thai law. Specialized legal advice should be sought where corporate structures are utilized for property ownership.

For more on Special Exemptions under Thai law for foreigners please see Amity Company Thailand

(This article is not legal advice. For such advice contact a licensed lawyer. No Lawyer-Client relationship is formed by reading this piece.)

Tags: Property Lawyer Thailand, Real Estate Lawyer Thailand, Thai Company, Thai Company Registration, Thai Company Setup, Thai Condo, Thailand company, Thailand Condo, Thailand Condo Law, Thailand Property, Thailand Property Law, Thailand Real Estate, Thailand Real Estate Law
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Tuesday July 22, 2009 the website Thaivisa.com is reporting that the Royal Thai Consulate in Penang has apparently made a rule restricting issuance of multiple Thai tourist visas. As can be imagined, this is causing something of a stir among expats and long term vacationers in Thailand because the Royal Thai Consulate in Penang has long been a traditionally convenient post for those wishing to extend their stay in Thailand.

In recent years, the Royal Thai Consulate in Penang has tightened their regulations with regard to issuance of the Thai business visa. In many cases, applicants were continuously traveling to Penang, Malaysia in order to obtain visas for extended stays in the Kingdom with the bonus of having the right to petition for a Thailand work permit should it be deemed necessary at a later date.

The Thai Tourist visa is, by definition, not a visa intended for those wishing to engage in employment activities within the Kingdom of Thailand. Instead, it is a visa designed to allow foreign  nationals entry into Thailand for recreational purposes.  There have been cases where the Thai tourist visa was used to remain in Thailand and work illegally. A similar situation occurs in the United States when foreign nationals enter America using a US Tourist Visa and subsequently obtain employment. As the holder of a US Tourist visa does not have work authorization in the United States, this method of immigration is illegal. In both cases, the respective governments feel the need to crackdown on such activity in order to keep up enforcement of administrative and labor regulations.

That being said, in the case of restriction of Thai Tourist Visas one has to wonder if now was the appropriate time to make the rules more stringent. Currently Thai tourism is at one of its lowest ebbs in years. A combination of domestic turbulence, airport closures, and the world economic crisis has left much of the tourist sector in dire financial straits. Although, this author agrees that the Thailand immigration rules must be enforced, it seems an inopportune moment to begin such enforcement.

It should also be noted that this may not be a rule initiated by the Immigration authorities in Thailand. Consulates and Embassies abroad are governed under the jurisdiction of the Thai Ministry of Foreign Affairs. That being said, Consulates and Embassies are allowed to set their own rules with regard to who they will issue visas to and under what conditions. It would seem that the Consulate in Penang has exercised their discretion in order to clamp down on those abusing the Thai Tourist Visa.

(This is not legal advice, nor should it be used as such. A lawyer-client relationship is not created by reading this posting.)

Tags: Royal Thai Consulate Penang, Thai Business Visa, Thai Immigration, Thai Tourist Visa, Thailand Business Visa, Thailand Immigration, Thailand Tourist Visa
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There are certain misunderstood aspects of the Thailand Business Visa that may need to be cleared up in order to properly understand how Thai Immigration views those non-Thai nationals in possession of a Thailand B visa.

First, a Thai business visa should not be inferred to impart the right to work in Thailand. Those holding Thai B Visas (Business), must still obtain a Thai work permit before they will be allowed to enjoy employment rights. Even then, Thai law, which in this respect is similar to United States Immigration law, restricts work authorization to a specified geographic location, namely the official address of the employer. That being said, it may be possible to get a second employer stamped into one’s Thai work permit and thereby allow employment with multiple organizations by officially authorizing such employment.

One very difficult concept for many to grasp is the idea that a visa does not confer the “right” to enter the country. This causes some confusion particularly with regard to United States Immigration. A USA visa simply gives the bearer the right to seek permission to enter the United States of America.

The Kingdom of Thailand views visas and travel documents in a similar light. In fact, it may be possible to be turned away at a port of entry in Thailand even where the prospective entrant has what is otherwise considered to be a valid visa. This issue became of acute concern nearly 5 years ago when operators began springing up throughout Thailand who offered to send one’s passport out of the Kingdom and have it sent back in with a new valid visa issued from an Embassy or Consulate abroad. In this situation, even though the visas were issued legally, the Thailand Immigration authorities at the port of entry began not only turning prospective entrants away, but also nullifying visas issued to someone who was in Thailand when the visa was issued at a diplomatic post abroad.

Another common mistake regarding Thai Business visas involves the definition of “multiple entry.” Specifically, does a one year multiple entry Thai visa imply that the bearer may remain in Thailand uninterrupted without being forced to leave? Put simply: No. A Multiple entry visa holder must leave at least every 90 days in order to remain in legal immigration status in the Kingdom.  That being said, the multiple entry visa is commonly confused with the Thai visa extension. The extension allows the bearer to remain in Thailand for up to one year without being compelled to depart every 90 days.  The downside of the extension is the fact that one needs to obtain a reentry permit in order to leave the country. The multiple entry visa allows the person holding it to leave the Kingdom and return on the same visa so long as it remains valid. Hence the name, “multiple entry.”

For further information, Please see the US-Thai Treaty of Amity as certain Immigration rights are created under this bilateral agreement.

(This is not legal advice. For such advice contact an attorney. No lawyer-client relationship should be assumed to exist between author and reader.)

Tags: B Visa Thailand, Business Visa Thailand, Thai B Visa, Thai Business Visa, Thai Work Permit, Thailand B Visa, Thailand Business Visa, Thailand Work Permit
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The US-Thai Treaty of Amity is an agreement between the Kingdom of Thailand and the United States of America that provides benefits for Thai investors and businessmen in the USA and also provides economic benefits to Americans in Thailand. The most important benefit conferred by the Treaty of Amity is the right of Americans to form a Treaty of Amity Company. A Treaty of Amity Company is a corporate structure similar to a Thai limited company.

The major difference between a Thai limited company and an Amity Treaty company is the fact that an Amity Company can be one hundred percent owned by non-Thais provided the owners are American Citizens. Under Thai law there must be at least three shareholders, but one shareholder could virtually own the Amity Company outright by owning 99% of the shares in the company.  

The content written heretofore begs the question: why is American ownership such a big deal? For those unfamiliar with the Thai legal system, a statute known as the foreign business act stipulates that a Thai company must either be majority Thai owned or an application for a foreign business license will be necessary. Foreign business licenses are somewhat difficult to obtain. That being said, the Amity Treaty preceeds the Foreign Business act and its provisions supercede the foreign business act.

A major issue regarding the Treaty is the fact that it only applies to Americans. No other group of foreign nationals is accorded the same level of economic protection as that conferred upon Americans doing business in Thailand under the Thailand Treaty of Amity. As a result, many prospective business owners from nations other than the USA often ask if it is possible to utilize nominee American shareholders in a Thai company in order to meet the technical requirements of the US-Thai Treaty of Amity.

In theory, such a scenario was once possible. However, amendments to the foreign business act have made nominee shareholders expressly illegal. Also, the Foreign Business Office of Thailand has determined that only an American or a Thai is allowed to be the Managing Director of a company with protection under the US-Thai Amity Treaty.  The upshot of both of these rules is that, as a practical and legal matter, only Americans or Thais can own a majority position of a Thai company with Treaty benefits.

For more details about US-Thai Economic Relations please see: Amity Treaty Thailand

(Nothing herein is meant to act as in the place of competent legal advice from a licensed attorney. No Attorney-Client relationship shall be formed between the writer and any reader of this piece.)

Tags: Amity Company, Amity Treaty Company, Foreign Business Act, Foreign Business License, Thai LLC, Thailand limited company, US-Thai Treaty of Amity
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There are many immigration options for those wishing to stay in Thailand on either a full time or part time basis. The Immigration option most familiar to short term travelers is the Thai visa exemption which allows a non-Thai national entry into the country without obtaining a visa. Many people who enter Thailand on a visa exemption believe they are actually on a visa. In reality, they have been granted lawful presence in Thailand without a visa.

Map to Thailand Immigration Bureau

Thai Education Visas

An Education visa in Thailand is very useful as a long term visa option particularly in light of the proliferation of affordable Thai schools that offer assistance in applying for a Thai ED visa. The major downside to the ED visa is the fact that there is no automatic right to work inherent to the visa. Also, the ED visa does not accrue time necessary to obtain Thai Permanent Residence.

Thailand Retirement Visa

A Thailand retirement visa is very useful for those who fit the criteria set forth under Thailand Immigration Law. One of the major criterion for obtainment of a Thai retirement visa is that the applicant be at least 50 years old at the time of application. Another requirement is that the applicant meet the minimum financial threshholds determined by the Thai Immigration Bureau’s internal regulations. A positive aspect of the Thai retirement visa is the fact that one holding such a visa does not need to go on “border runs,” every 90 days. However, a person present in Thailand on a retirement visa will not be able to secure a Thailand work permit.

Thailand Business Visas

As discussed in previous posts, a Thai Business visa is a very flexible option for those wishing to remain in Thailand in order to work, invest, or conduct business negotiations. The visa itself does not confer a right to work, a Thai work permit is still a necessity, but a work permit is usually easy to obtain where the visa holder has secured legitimate employment or has registered a Thai company.

Thailand Other Visas

The Thai “O” Visa, the “O” stands for other, is a designation for a visa that does not really fit into any of the aforementioned categories. The “O” visa is used for Thailand Family Immigration especially where a foreign spouse of a Thai national wishes to reside in Thailand. For those present in Thailand on an “O” visa, there may be some difficulty securing a work permit if the visa is not based upon filial realtionship to a Thai.

Thanks for Reading,

For information on US Immigration from Thailand please see:

multiple entry visa

Fiance Visa Thailand

Marriage Visa Thailand

US Embassy Bangkok

(No content written in this post should be used instead of consulting an attorney. No attorney-client relationship is created between the writer and any readers of this post).

Tags: Thailand B Visa, Thailand Business Visa, Thailand company, Thailand ED Visa, Thailand Immigration, Thailand Long Stay Visa, Thailand o visa, Thailand Other Visa, Thailand Visa
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