Friday, September 26, 2008
THAILAND PARADISE
Greetings from Thailand for all investors and businessmen. In 2005 Committee of United Nations voted Thailand the third country mostly attractive in the world for direct investments from foreign countries.
Thailand is strategically situated right in the heart of Asia, which is considered to be one of the most fast-developing market in the world at the present time. Thailand is also accessible to deal with China, India and other Asian countries. Thailand has known as a charter member of ASEAN (Association of South East Asian Nations).
Thailand is known as a community of social and political stability. Constitutional Monarchy as a form of government is favorable to democracy processes and reforms, keeps it in balance within traditional values of Thai people, respect to the Monarch and devotion to doctrine of Buddha.
Economic advance. Thailand with population over 64 million people is characterized by stable GDP growth, trailing China as a world leader 0,2%.
Modern transport and communication facilities, computer network guarantee best conditions for conducting a business and making a living in the country. Bangkok Airport as the perfect air communication serves 45 million people per year. In the world Thailand is recognized to be the special cultural center, in which mixture of exotic oriental aromas combines with amazing friendliness of living people. Thai culture makes attitude towards foreign businessmen, working and living in the territory of Kingdom, more kindly.
Educational standards of Thailand are acceptable in most countries in the world. Excellent country for raising and educating children.
Thai Medicine has an excellent record all over the world and famous for its world-class doctors, modern equipment, high and effective service. Alternative medicine is famous in the world as well.
Thailand is strategically situated right in the heart of Asia, which is considered to be one of the most fast-developing market in the world at the present time. Thailand is also accessible to deal with China, India and other Asian countries. Thailand has known as a charter member of ASEAN (Association of South East Asian Nations).
Thailand is known as a community of social and political stability. Constitutional Monarchy as a form of government is favorable to democracy processes and reforms, keeps it in balance within traditional values of Thai people, respect to the Monarch and devotion to doctrine of Buddha.
Economic advance. Thailand with population over 64 million people is characterized by stable GDP growth, trailing China as a world leader 0,2%.
Modern transport and communication facilities, computer network guarantee best conditions for conducting a business and making a living in the country. Bangkok Airport as the perfect air communication serves 45 million people per year. In the world Thailand is recognized to be the special cultural center, in which mixture of exotic oriental aromas combines with amazing friendliness of living people. Thai culture makes attitude towards foreign businessmen, working and living in the territory of Kingdom, more kindly.
Educational standards of Thailand are acceptable in most countries in the world. Excellent country for raising and educating children.
Thai Medicine has an excellent record all over the world and famous for its world-class doctors, modern equipment, high and effective service. Alternative medicine is famous in the world as well.
property purchase in Thailand. The property right
Foreign aliens have the right to get the following kinds of real estate for their name without whatsoever restrictions as: villas, apartments in condominiums, buildings, yachts etc.
Non-residents of Thailand, foreigners can not have the right to ownership of the land plots.however, in accordance with the legislation of Thailand, some legal schemes for land purchase had been developed on which completion, the foreigner has the right to ownership of the land plots.
Your company, had been registered in accordance with legislation of Thailand has the right to purchase and sell the land plots.
The registration of your company.
There must be 7 persons for company registration. There are 6 Thai shareholders except for you. As a foreigner you allowed to own 49% of the shares and the rest 51% of shares are belong to Thai shareholders.
In accordance with legislation of Thailand, incorporation documents of the Company are assigned as follows:
1. The foreigner in the company owns the privileged share, which has 10 votes under making decision at the meeting of shareholders. Each of Thai residents has only one share (one vote). Whereby, the decisions on the matter concerning the competence of the shareholders are made the owner of privileged share. The foreigner does not forfeit the right to own the privileged share.
2. Thai shareholders assign their shares by making endorsement, after that you have the right to use the shares as you wish. As a variant – assign shares to other residents.
3. You or your authorized person shall be the director of the company with the primary authority to sign. The proper officials, making registration of your company vouch this fact by signing certificate.
Additional acts
Thai residents sign the Agreement, concerning that nor for any reason whatsoever they shall not share the income of the company. The present Agreement does not contravene the legislation of Thailand.
Residents of Thailand draw up the will regarding their shares in authorized capital for your name or other person. After the death of Thai resident, the responsibility for drawing up of the will regarding the shares in authorized capital is devolved to the person accept the succession. That is to say, your or your relatives will control the shares in authorized capital.
Property purchase
The Agreement, which had been competently composed by professional lawyer is the main point of this stage. Sometimes one needs appropriate document from the bank, regarding sum of money, had been arrived on the account of the purchaser with the special purpose of destination as “ for real estate purchase”.
The land transferring is registered by Land Department within 3-4 hours. Under the completion of registration, the title deed on the real estate is given.
Due to stages, mentioned above you:
1. Are the owner of the Thai company.
2. Have all rights to ownership of the land plot, had been purchased by the company.
Land plot rent
The legislation of Thailand does not allow foreigners to rent land plots. Actually, Thai tenancy law borders on leasing conditions, had been prescribed by civil law of Russian Federation. The maximum leasehold period comes to thirty years. The leasehold period can be renewed a further two times giving a total of ninety years.
The kinds of title deed on the land plot
Under the purchase of the land plot, the Purchaser must be assure of the Seller’s rights to ownership of the land plot and the title deed must not be lower than CHANOTE.
The document proves the right to ownership of the land plot.
Taxation
If you intend to purchase the property it is necessary to obtain information relating to taxes and charges levied from all property transactions.
There are two types of taxes which are levied from proprietors: these are property tax and land tax.
These taxes, which are paid by the proprietor, are derived from income and property use.
Land Tax
Land Department taxes are determined from the sale price declared by Vendor but not less then established by the Land Department.
Transfer Fee - 2 % fee of the cost of property areas as declared or established by Land Department (Land office Appraised Value). The Fee for long term rental registration is 1 % of the contract for the duration of the agreement.
Special business tax is 3,3 % fee of the estimated property value ,this tax applies to the juridical entity . An individual is liable, if the property ownership period is less than 5 years, in other words if property had been resold within the preceding 5 years.
Duty Stamp Fee –charged only if the Vendor is not imposed by SBT tax (mentioned above) . Presently a free ownership transfer tax rate is 0,5 % of property cost . A Tenants rights transfer tax is 0.1 %.
Withholding Tax - 0.1 % fee of the property cost from juridical entity. The amount of the given tax payable by individuals is calculated on a modified percentage scale considered at the time of property ownership.
Taxes and fees payments are usually distributed between both parties, with the final amount defined in Land Department.
Income tax
The income tax is estimated from the following ascending scale( for companies with nominal capital not less them 5 m.B)
Received Annual Income Tax rate
1,000,000 or less then 1 000 000 15 %
2,000.000 up 25 %
3,000,000 up 30 %
4,000,001 up 37 %
The value-added tax (V.A.T).
For individuals tax bearers is 3 %
The rate for juridical entity is 7 %
Foreign aliens have the right to get the following kinds of real estate for their name without whatsoever restrictions as: villas, apartments in condominiums, buildings, yachts etc.
Non-residents of Thailand, foreigners can not have the right to ownership of the land plots.however, in accordance with the legislation of Thailand, some legal schemes for land purchase had been developed on which completion, the foreigner has the right to ownership of the land plots.
Your company, had been registered in accordance with legislation of Thailand has the right to purchase and sell the land plots.
The registration of your company.
There must be 7 persons for company registration. There are 6 Thai shareholders except for you. As a foreigner you allowed to own 49% of the shares and the rest 51% of shares are belong to Thai shareholders.
In accordance with legislation of Thailand, incorporation documents of the Company are assigned as follows:
1. The foreigner in the company owns the privileged share, which has 10 votes under making decision at the meeting of shareholders. Each of Thai residents has only one share (one vote). Whereby, the decisions on the matter concerning the competence of the shareholders are made the owner of privileged share. The foreigner does not forfeit the right to own the privileged share.
2. Thai shareholders assign their shares by making endorsement, after that you have the right to use the shares as you wish. As a variant – assign shares to other residents.
3. You or your authorized person shall be the director of the company with the primary authority to sign. The proper officials, making registration of your company vouch this fact by signing certificate.
Additional acts
Thai residents sign the Agreement, concerning that nor for any reason whatsoever they shall not share the income of the company. The present Agreement does not contravene the legislation of Thailand.
Residents of Thailand draw up the will regarding their shares in authorized capital for your name or other person. After the death of Thai resident, the responsibility for drawing up of the will regarding the shares in authorized capital is devolved to the person accept the succession. That is to say, your or your relatives will control the shares in authorized capital.
Property purchase
The Agreement, which had been competently composed by professional lawyer is the main point of this stage. Sometimes one needs appropriate document from the bank, regarding sum of money, had been arrived on the account of the purchaser with the special purpose of destination as “ for real estate purchase”.
The land transferring is registered by Land Department within 3-4 hours. Under the completion of registration, the title deed on the real estate is given.
Due to stages, mentioned above you:
1. Are the owner of the Thai company.
2. Have all rights to ownership of the land plot, had been purchased by the company.
Land plot rent
The legislation of Thailand does not allow foreigners to rent land plots. Actually, Thai tenancy law borders on leasing conditions, had been prescribed by civil law of Russian Federation. The maximum leasehold period comes to thirty years. The leasehold period can be renewed a further two times giving a total of ninety years.
The kinds of title deed on the land plot
Under the purchase of the land plot, the Purchaser must be assure of the Seller’s rights to ownership of the land plot and the title deed must not be lower than CHANOTE.
The document proves the right to ownership of the land plot.
Taxation
If you intend to purchase the property it is necessary to obtain information relating to taxes and charges levied from all property transactions.
There are two types of taxes which are levied from proprietors: these are property tax and land tax.
These taxes, which are paid by the proprietor, are derived from income and property use.
Land Tax
Land Department taxes are determined from the sale price declared by Vendor but not less then established by the Land Department.
Transfer Fee - 2 % fee of the cost of property areas as declared or established by Land Department (Land office Appraised Value). The Fee for long term rental registration is 1 % of the contract for the duration of the agreement.
Special business tax is 3,3 % fee of the estimated property value ,this tax applies to the juridical entity . An individual is liable, if the property ownership period is less than 5 years, in other words if property had been resold within the preceding 5 years.
Duty Stamp Fee –charged only if the Vendor is not imposed by SBT tax (mentioned above) . Presently a free ownership transfer tax rate is 0,5 % of property cost . A Tenants rights transfer tax is 0.1 %.
Withholding Tax - 0.1 % fee of the property cost from juridical entity. The amount of the given tax payable by individuals is calculated on a modified percentage scale considered at the time of property ownership.
Taxes and fees payments are usually distributed between both parties, with the final amount defined in Land Department.
Income tax
The income tax is estimated from the following ascending scale( for companies with nominal capital not less them 5 m.B)
Received Annual Income Tax rate
1,000,000 or less then 1 000 000 15 %
2,000.000 up 25 %
3,000,000 up 30 %
4,000,001 up 37 %
The value-added tax (V.A.T).
For individuals tax bearers is 3 %
The rate for juridical entity is 7 %
Thursday, September 18, 2008
BUYING PROPERTY IN BULGARIA
If you are going for an apartment - it is very simple - you don't need to set up a company to do that. However if buying houses or land and you will need to set-up company. Cost for company setup is approx. 600 Euro . A statutory bank deposit of 2500 Euro which you can withdraw back after the court decision of the company registration is out. The most common type of organization for foreign investors is a limited liability company.
THE PROCEDURE OF BUYING PROPERTY IN BULGARIA
Bulgaria has a very liberal foreign investment laws. The Bulgarian Constitution and legislation read that foreign persons and companies can purchase real estate in Bulgaria either personally or through a local legal entity. Foreigners as persons can acquire only buildings without land. If you are a foreigner and want to purchase a house or a flat with limited ownership rights, you can directly buy them as a person. However if your aim is to be an owner of real estate together with land, first you have to set up a company in Bulgaria. The process will take from 14 to 30 days. The price of the procedure is 600 Euro and the capital needed is 5000 BGN. In Bulgaria there are two terms you have to be familier with when buyng a property in our country. The terms are "tax estimation price" and "purchase price". The "tax estimation price" is for real estate taxation. It is much lower than the actual selling (purchase) price so it should not be a problem for you.
The purchase process is as follows:
A reservation deposit is paid to hold the property. (Usually 1000 Euros)
Preliminary contract is being signed /this is usually prepared by solicitors of the Estate Agent or Developer. If by developer it is being checked by our solicitor/
First instalment is to be paid usually within 30 days after the deposit is being paid (the instalment may vary between 10% - 30%, depending upon whether a completed development,re-sale or off plan).
When all the instalment are being paid a Title Deed is signed in front of the Public Notary .
In the case of an off-plan development the Notary Act is signed once the building is complete.
Expenses when buying a Bulgaria property from your home country In accordance to the type of property you are buying you have to expect the following expenses:
Once on receiving the Title deed
2% local taxes
0.5% counciller tax
1.5 notary tax
All above is paid only once
Expenses - annually:Counceller tax: 100 euro Expenses - monthly:
Water supplyElectricity supply Cable TV
Maintanance - green areas,security,swimming pools and internal cleaning
The entire above are included in the maintenance feethe figures for the expenses vary depending on what you are buying- a house, villa, apartment- studio or one bedroom.The smaller the property is, less the expenses will be.
THE PROCEDURE OF BUYING PROPERTY IN BULGARIA
Bulgaria has a very liberal foreign investment laws. The Bulgarian Constitution and legislation read that foreign persons and companies can purchase real estate in Bulgaria either personally or through a local legal entity. Foreigners as persons can acquire only buildings without land. If you are a foreigner and want to purchase a house or a flat with limited ownership rights, you can directly buy them as a person. However if your aim is to be an owner of real estate together with land, first you have to set up a company in Bulgaria. The process will take from 14 to 30 days. The price of the procedure is 600 Euro and the capital needed is 5000 BGN. In Bulgaria there are two terms you have to be familier with when buyng a property in our country. The terms are "tax estimation price" and "purchase price". The "tax estimation price" is for real estate taxation. It is much lower than the actual selling (purchase) price so it should not be a problem for you.
The purchase process is as follows:
A reservation deposit is paid to hold the property. (Usually 1000 Euros)
Preliminary contract is being signed /this is usually prepared by solicitors of the Estate Agent or Developer. If by developer it is being checked by our solicitor/
First instalment is to be paid usually within 30 days after the deposit is being paid (the instalment may vary between 10% - 30%, depending upon whether a completed development,re-sale or off plan).
When all the instalment are being paid a Title Deed is signed in front of the Public Notary .
In the case of an off-plan development the Notary Act is signed once the building is complete.
Expenses when buying a Bulgaria property from your home country In accordance to the type of property you are buying you have to expect the following expenses:
Once on receiving the Title deed
2% local taxes
0.5% counciller tax
1.5 notary tax
All above is paid only once
Expenses - annually:Counceller tax: 100 euro Expenses - monthly:
Water supplyElectricity supply Cable TV
Maintanance - green areas,security,swimming pools and internal cleaning
The entire above are included in the maintenance feethe figures for the expenses vary depending on what you are buying- a house, villa, apartment- studio or one bedroom.The smaller the property is, less the expenses will be.
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