Is the usufruct a good alternative for the Thai company route?

Since the Thai holding company route is more or less closed by the government is a usufruct the way to go when investing in real estate in Thailand. Is the usufruct currently the best option for investing in real estate in Thailand nowadays?
Category: Other questions
Asked 7 years ago
William

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The idea behind ownership of real estate with a Thai company is that you more or less own the property outright, but on the name of the Thai company, a sort of freehold ownership because you control the company. With usufruct you only obtain the right to use the property. You do not own it and you have responsibilities towards the freehold owner, for example, the responsibility to maintain it and take good care of it. You cannot sell the property under usufruct, and you cannot leave it to for example your heirs, and it (usufruct) ends at death of the person having the right of usufruct. The rights you obtain under usufruct rights, other than to use the immovable property, are very limited. With a company (that you control) you do not have to deal with a Thai owner and you do not have responsibilities towards a Thai freeholder. Usufruct is not an alternative for the company route, it is something completely different, it is like comparing tenancy with ownership, you cannot.

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Answered 7 years ago
Consultant

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