The Thai Longstay Program has been implemented to assist foreigners in purchasing their dream home in Thailand.
This new program introduced by the Thai Longstay Management Company will provide a secure structure for property ownership to the foreign buyer in Thailand.
As many foreigners already know, purchasing property in a foreign country can be confusing and frustrating experience, specifically the purchasing system operates differently than in their own country. Clearly the foreigner cannot own land in Thailand hence there is a need to have a solid method of ownership for the foreigner to build and live in their dream house.
Let’s explore the Thailand Longstay program and see what it has to offer.
Exchange Program
Foreigners who have established Thai limited structures under the old 49/51 percentage structure can now convert to a safe and legal structure as a VIP member.
Benefits of this program
- If the property was undervalued at the Land Office, VIP is able to raise the value to the current market price.
- Opportunity to become a TLM member for 30 years.
- 3.5 percent interest per year paid after the first 30 years term on the value of the property.
- Unlimited 1 year multiple entry visas for the member and their partner.
Benefits of Investors from VIP
- Investors of will become a member of TLM for 30 years.
- Investors will have access to TLM Fast Track Immigration Services and One Stop Service which will entitle holder to a one-year visa and assistance at Thai International Airports including Suvarnabhumi, Samui and Phuket.
- Investors will be able to request for special attention and care from Tourist Police.
- Investors will have access to the TML multilingual call centre which is available in English, Japanese, and Korean.
- Discounts and privileges from TLM partners including hotels, gold courses, spa, restaurants, shopping, hospitals and insurance. Partners offer between 5-50 percent discounts depending on conditions.
- TLM offers assistance with applying for work permits
- Investors will have the rights to received the revenue and profits from the sub-lease or resale of the invest properties.
- After the first 30 years, investors will receive 3.5 percent interest per year on the value of the property.
- TLP will offer mortgages for it VIP members
- TLP will offer members certain loans secured on their property.
Commonly Asked Questions
Why should I use the VIP when I can legally lease property in Thailand?
You can legal enter into a lease agreement for a 30 year period. However, it is uncertain if the land owner will renew the lease for another term. There is no guarantee that it will happen. What is the lessor dies? Is the heir required to honor the contract obligation of the deceased? Under the VIP structure, you can renew the lease with full confidence.
Isn’t this just another “nominee” structure like the 49/51 company?
No, this structure is an actual and legitimate investment for all parties. Under the old “nominee” structure, Thai persons were used to meet the 51 percent shareholding and promoter requirement. Those “nominees” received nothing in return for their participation and were inactive in the business.
I already have a Thai company now. What should I do?
If you currently have a Thai company set up using nominees, you can switch to the VIP structure. The Thai Government is rewriting the Foreign Business Act regarding foreign business activities in Thailand. However, the Land Code is even more restrictive with serve penalties for Thai persons and foreigners who violate this law.
Do current events have any effects on the VIP?
No. The current political issues can only strengthen buyer confidence through VIP since it was created via government departments. Its design was to create confidence in property investment in Thailand in a legal matter.
I am 45 years old. I am not married to a Thai nor do I have employment or a business. How can I buy a house and stay in Thailand?
Under the new immigration rules, you can only stay is Thailand if you have a valid visa issued by a Thai Embassy or Consulate since you are less than 50, not married to a Thai, and not employed by a Thai company. However, if you are a VIP member, you are automatically entitled to join TLM which will issue you and your partner a 1 year visa.
If I am a VIP member and I want to sell property, can I do this?
Yes, you would lease the property from VIP, but you would have your own name on the back of the Title deed. You can lease the property for 30 year period, forever. If you wish to sell your property, the new buyer is assigned a new 30 year period, forever and his/her name is place on the back of the Title deed.
What happens if I pass away?
In the unlikely event the buyer passes away, the title deed can be transferred to your relative. A new lease agreement for 30 years will be prepared and registered. In essence, this property can stay in your family forever.
