Reform real estate business laws Supports foreigners with high potential Choice or treason?

Unlocking restrictions in ownership or leasehold rights of real estate in Thailand according to this offer I believe it will be beneficial to Thailand in the long run. and is not considered treason in any way But it is a choice that must be made for the future of Thailand.

            I would like permission to bring up the topic of reforming real estate business laws to support foreign investment with high potential. According to the regulations of the Office of the Prime Minister on stimulating the economy and investment by attracting foreigners with high potential in Thailand, 2565, to tell the reader this is an interruption to the article about looking back at the past of the financial and banking business. and the Thai capital market Looking forward to the future Which is not finished yet.

            The reason for bringing this topic to write about because I had just been appointed Expert committee In the committee supporting measures to stimulate the economy and investment by attracting foreigners with high potential to Thailand (NCDC), in addition to the NCDC committee that comes from heads of government agencies with the Deputy Prime Minister as chairman. and 9 high-ranking government officials, plus 3 other experts, including me. That comes from the private sector, including M.L. Chayothit Kridakorn, Mr. Sanan Angubolkul, and Mr. Kriangkrai Thiennukul, in order to determine measures to attract four main groups of foreign investors. to enter Thailand

            With the goal that Within those five years There will be no less than 1,000,000 investors from these four groups coming to Thailand. Currently, in the space of 1 month, there have been more than 1,000 foreign investors from these four groups submitting applications before the official announcement.

            Promoting Long Term Residence (LTR) investors divided into 4 main groups as follows:

            Group 1 World population with high wealth (Wealthy Global Citizen)

            – Have assets with a total value of not less than 1 million US dollars.

            – Have an income of not less than 80,000 US dollars per year

            – Invest in Thailand not less than 500,000 USD in Thai government bonds. direct investment or real estate in Thailand

            Group 2: Retirees from abroad (Wealthy Pensioner)

            – Must be 50 years of age or older and have retired status on the date of application submission.

            – Must receive a pension or have an income of not less than 80,000 US dollars per year.

            In the case of receiving pension or income less than $80,000 per year but not less than 40,000 US dollars per year Must invest no less than US$250,000 in government bonds. direct investment or real estate in Thailand

            Group 3: People who want to work from Thailand (Work-From-Thailand Professional)

            – Must have an income of not less than 80,000 US dollars per year.

            – In case of income less than 80,000 US dollars per year but not less than 40,000 US dollars per year Must have a master's degree or higher. or possession of intellectual property or receive Series A funding

            – The current employer must be a company listed on the stock exchange in any country. or the company has been in operation for at least 3 years and has a total income in 3 years of not less than 150 million US dollars as of the date of application submission.

            Group 4: People with special skills (High-Skilled Professional)

            – Must have an income of not less than 80,000 US dollars per year.

            In case of income less than 80,000 US dollars per year but not less than 40,000 US dollars per year Must have a master's degree or higher. in the field of science or technology or have expertise in the field of work that comes to work in Thailand

            This must be working in a business that is in Target industries include the modern automotive industry. intelligent electronics industry Quality tourism industry Agricultural and biotechnology industries Food processing industry with high added value robot industry aviation industry Biofuel and Biochemical Industry digital industry Integrated medical industry defense industry Industries that directly and significantly support the circular economy

            For example, producing fuel from waste. Human resource development and research and development for target industries Other target industries That is in line with the 20-year national strategy according to the Policy Committee to increase the country's competitiveness. for target industries give approval

Tax benefits for foreign investors

            1. Exemption from personal income tax on income from the previous tax year.

            2.Salary after withholding tax

            3.Pay tax at the rate of 17% of assessable income. (reduced from the progressive rate of 5-35%)

Category 1 – Group of retirees from abroad

Type 2 – Groups that want to work in Thailand

• Exemption from personal income tax on income from the previous tax year.
• Such income It is income from work or business abroad or from assets abroad. and brought assessable income into the country

            Improving real estate business laws in Thailand It is one important measure. To support the entry of these four groups of investors. to be able to spend and live in Thailand Including acquiring personnel with skills and expertise in various fields. Come to work in Thailand To be able to develop business in Thailand in target businesses such as Startup business, BCG business, Health and Wellness business, etc.

            In addition, on September 28, 2565, I had the opportunity to give a speech at the association's event. Real estate in Thailand In the topic called “Is legal reform to promote real estate an alternative to treason?”

            Article now Therefore, I would like to present a proposal for improving land ownership by foreigners in Thailand. What approach should Thailand take to improve the law? In order to promote such business to bring serious benefits to Thailand. Especially from potential foreign investors.

            Today, it is widely known that Thailand is one of the most livable countries in the world. If Thailand can make foreigners who want to live in Thailand their second home, or come to retire in Thailand or come to work in Thailand It will be beneficial to the Thai economy. Because Thailand is a country where the cost of living is not very high. and has a good public health system Able to take care of the health of foreigners who come to work and elderly people who come to retire in Thailand very well.

            It will also put Thailand in a position to compete with neighboring countries, especially in the current inflationary conditions occurring in the region and in the world. Including the Covid crisis and the Ukraine-Russia war. and the conflict between China and the United States. It is more likely to make Thailand a country for investors or foreigners with status. or workers who can work anywhere in the world can choose to work in Thailand I truly want Thailand to be a paradise for investors with high potential.

            I had the opportunity to travel to Singapore recently. It was found that Singaporeans felt that if they retired and living in Singapore would not be enough. Because of the higher cost of living If I have the opportunity, I would like to move to Thailand. Because Thailand is friendly to people from all countries.

            For this reason In addition to offering visa benefits to four groups to be more convenient and expeditious, By reducing the steps, whether it is requesting permission Including personal tax measures proposed for foreigners. These factors will make it easier for those foreigners to decide to come and live in Thailand. When there are more potential foreign investors coming in The real estate business should also benefit from this project.

Laws related to real estate ownership

            When the Tom Yum Kung crisis occurred in 2540, there were amendments to the Land Code and Condominium Law that increased the rate at which foreigners could purchase up to 49%, but with many conditions. Whether it is about borrowing money, it must be brought from abroad. You cannot borrow money in Thailand. or measures for purchasing land according to the land law that allows purchase as a residence. Can hold no more than one rai. But there is investment according to ministerial regulations that must bring in at least 40 million baht and there are conditions specified.

            which since the law came into force There were only 8 people requesting permission to own land, which shows that legal measures that stipulate various conditions It was not successful in attracting foreigners to invest in real estate in Thailand during that period.

            Currently, foreigners cannot own land for living or housing (except for BOI promotions). Therefore, when buying a vacation home in Phuket, Samui, there is a way to avoid this by setting up a company and sometimes setting up a company. It became an artificial Thai company with Thai shareholder representatives, which is illegal.

            However, the Land Department itself was unable to investigate in detail. It is also a channel for corruption by land officials in considering registration because it is an exercise of discretion. After using the discretion of the said official unable to supervise and ensure transparency In fact, foreign investors should have clearer and more transparent opportunities to own land directly.

            In addition, the registration of a lease according to the Civil and Commercial Law of Thailand requires that the lease be registered for only 30 years, but in some cases, in some districts, it can be registered for up to 60 years after the lease has been registered for a certain period of time. This caused confusion and uncertainty in the registration of each registrar. The government should therefore make it transparent.

            In 2542, a law was passed on the lease of real estate for commercial and industrial purposes with a lease period of no more than 50 years. Many conditions were set until only over 30 people registered such leases. Moreover, the law is not conducive to registering rentals for residential purposes in any way.

            Concepts of revising Thailand's real estate laws Whether it is ownership or rental, improvements should be made to accommodate the entry of potential investors from abroad. which will benefit Thailand as a whole It is not treason as has been accused. Because the said land is still in Thailand. Those people will come to spend money in Thailand.

Information on allowing foreigners to own real estate abroad in Asia

            1. In Malaysia, foreigners have the right to own land. If permitted by the government agency of each state

            2.Singaporean foreigners can own real estate without permission, such as apartments in commercial buildings. Unless permission is required if it is vacant residential land. A house that looks like a shophouse Vacation home or detached house. Permission will be considered on a case-by-case basis. For example, there must be economic support for Singapore.

            3.Indonesia Foreigners are allowed to rent for 30 years, extendable for 30 years, for a total of 60 years.

            4. Korea and Japan, Taiwan have no restrictions on foreign ownership but cannot work. Or have residence or apply for a visa, which in practice would be difficult for foreigners who do not work in that country. Want to hold ownership of the land or real estate in those 3 countries

            Especially when considering the neighboring country that is our competitor, Thailand, which has a high cost of living. I believe foreign investors are in demand. Want to come and live in Thailand Because in addition to living comfortably Various expenses And the cost of living is cheap and Thai people are friendly to foreigners as well.

Proposals for improving the law

            Therefore, I would like to propose guidelines for considering improving the laws related to the real estate business as follows:

            1. Amend to allow land ownership by foreigners for residential purposes by amending the Ministerial Regulations issued under the Land Law in Section 96 bis, which previously set difficult conditions and had only 8 people exercising their rights.

            By now The Department of Lands has proposed a draft ministerial regulation on setting criteria, methods, and conditions for acquiring land not exceeding one rai, which must be a foreigner who enters according to the announcement of the Ministry of Interior according to this measure (LTR), bringing investment of not less than 40 million baht and must invest for not less than three years in the specified business or activity, such as investing in infrastructure funds established under the Securities and Exchange Act, funds in real estate investment trusts using such land are not permitted. more than one rai

            This condition will be beneficial to foreign investors who have not exercised their rights. investment promotion law This measure will allow foreigners to purchase a residence without needing to set up a company and have a nominee, or what is known as a fake Thai company.

            In addition to amending this draft ministerial regulation, it can be done quickly. Along with setting criteria to have practices that are convenient for foreigners to purchase land for residence, consideration should be given to allowing foreigners to access loans from financial institutions in Thailand for purchases or rentals. It is understood that the Bank of Thailand has relaxed the said criteria.

            To earn additional income, the government may consider increasing the registration fees for foreigners. In the case of sales by Thai people, including consideration of determining the maximum tax rate of property tax for residences for this group of foreigners. This will allow Thailand and local government organizations to have special income from land holdings of this group of investors.

            2. For the registration of a lease, currently the Civil and Commercial Code allows registration for 30 years, instead of amending the Civil and Commercial Code which would take a long time. The Land Department may issue an announcement on the practice for registering leases for 60 years, with the first registration for 30 years and the second registration for another 30 years because the current practice can already be done depending on the area. or each land office If the Department of Lands issues a clear announcement of procedures for registering leases, Many pieces of land that owners do not want to sell will be able to be developed to generate income.

            The government may also set a higher registration rate for foreigners' rentals than Thais, for example increasing from one percent of the rental to two percent or 1.5 percent, as the case may be, according to the specified rental contract value as well. In the case of buying and selling real estate above

            3. Amend regulations for foreigners who want to buy real estate or rent real estate. You can borrow money in Thailand with the collateral of a mortgage of land or condominium or leasehold rights as collateral with a financial institution in Thailand.

            4. Amending the Land Code in land allocation so that foreigners can purchase land not exceeding 49 percent of the total land allocated or the allocated land can be rented for 30 years but not more than 60 years. Benefits as well The minimum value of land and buildings is specified.

            5. Amend the Condominium Act to allow ownership of 100 percent of the project by specifying a minimum investment value.

            6. Amendments to the Civil and Commercial Code allow rentals for 60 years and a commitment to rent for another 30 years, for a total of 90 years, such as in Hong Kong.

            Unlocking restrictions To hold ownership or leasehold rights of real estate in Thailand according to the above proposal. I believe it will be beneficial to Thailand in the long run. And it is not considered treason in any way, but it is a choice that must be made for the future of Thailand.

            I see that the benefits of promoting the real estate investment business in Thailand by foreigners will be beneficial to Thailand in both business sectors, whether it be construction business, real estate development business. and related people The government can also have income from taxes from those people investing or coming to live in Thailand. Being afraid that Thai people will have no place to live and that foreigners will own land all over the country is probably not a matter of concern because those assets will still be in Thailand.

            It is probably a myth that Thai people are afraid of treason. I believe we must overcome such myths. Setting conditions for investment project values ​​or minimum prices of land and buildings It will help eliminate the problem of not having to worry about foreigners coming to buy cheap land to allow foreigners to come to live in Thailand. It is also beneficial and can solve the problem of nominee companies or fake Thai companies if the tax rate is improved. such The government can collect income taxes from fees. Including real estate taxes And property taxes have also increased.

            It's time for all Thai people to think together and help make Thailand a good country to live in for both Thais and foreigners. that will help develop Thailand further