Of all the ownership arrangements available to foreign property owners in Thailand, the Thai company structure is the most common, the most misunderstood, and the most complex to finance. Hundreds of thousands of foreigners hold Thai property through Thai limited companies, and most of them have never seriously considered what happens when they need to borrow against it.
If your Thai property is held through a company structure and you need financing, contact Donald Klip at Global Mortgage Group to explore your options.
Donald Klip | [email protected] | +65 9773-0273 | gmg.asia
Why Thai Company Structures Exist
The Thai Land Code prohibits foreign nationals from owning land in Thailand. Condominium units can be held freehold under the Condominium Act, but land, and the villas, houses, and commercial buildings that sit on it, cannot. The Thai company structure emerged as a workaround: a foreigner establishes or acquires a Thai limited company, ensures that Thai nationals hold the majority of shares as required by law, and the company purchases the land in its own name.
The foreigner then controls the company through directorship, preference shares, or other mechanisms that give them effective authority over the asset despite not holding majority equity. This structure has been used across Thailand for decades, particularly in Phuket, Koh Samui, Pattaya, and Chiang Mai where land-based foreign ownership is most concentrated.
The Legal Grey Zone
Thai company structures for property ownership exist in an acknowledged legal grey zone. The intent of Thai law is clear: land in Thailand should be owned by Thai nationals. Using a company structure to give a foreigner effective control of land is, at minimum, contrary to the spirit of that law. Thai authorities have periodically tightened enforcement, investigated suspicious company structures, and in some cases unwound arrangements deemed to be nominee schemes.
This legal uncertainty has direct implications for financing. A lender considering security over a Thai company-held property is also considering the regulatory risk attached to that structure. If authorities were to challenge the company structure, the underlying asset, the land and property, could be at risk. Most institutional lenders will not accept this risk at any price.
LEGAL NOTE
This article provides general information only and does not constitute legal advice. If you own Thai property through a company structure, independent Thai legal advice from a qualified practitioner is essential before making any financing decisions.
Can You Borrow Against a Thai Company-Held Property?
The honest answer is: sometimes, in limited circumstances, through specialist lenders who are prepared to navigate the complexity. This is not the same as saying it is easy, common, or cheap.
Thai banks will not lend against company-held property where the beneficial owner is a foreign national. This is consistent with their general position on foreign property lending, compounded by the additional complexity of corporate ownership and the regulatory risk of the structure.
Private lenders and specialist non-bank financiers will consider Thai company-held property on a case-by-case basis. The factors they assess include the age and cleanliness of the company structure, the share register and nominee arrangements, the underlying land title quality, the property type and location, the loan-to-value ratio requested, and the borrower's overall financial profile and exit strategy.
LTV ratios offered against Thai company-held property are typically lower than those available against freehold condos, reflecting the additional risk. Interest rates are higher. Due diligence is more extensive and therefore more expensive. And the number of lenders willing to consider the structure at all is significantly smaller.
"A Thai company structure does not close the door on financing entirely. But it does mean a smaller door, a more rigorous process, and a lender who genuinely understands the Thai legal landscape."
- Donald Klip, Global Mortgage Group
Global Mortgage Group has experience navigating company structure financing in Thailand. Contact Donald Klip to discuss whether your specific structure can support a financing arrangement.
Donald Klip | [email protected] | +65 9773-0273 | gmg.asia
What Lenders Want to See
If you are approaching a specialist lender about a Thai company-held property, the following documentation and structural clarity will significantly improve your prospects:
- A clean company register showing properly structured Thai majority shareholding
- Audited company accounts for the past two to three years
- Clear documentation of directorship and control arrangements
- The original land title (Chanote or equivalent) held in the company name
- Evidence of the purchase history and source of funds used to acquire the property
- A clear exit strategy for repayment, typically sale of the property or refinancing
- Independent legal opinion on the structure from a qualified Thai lawyer
Alternatives Worth Considering
For owners of Thai company-held property who need liquidity but find financing difficult to arrange against the Thai asset, there are alternative approaches worth exploring. Cross-border equity release, using assets held outside Thailand as primary collateral, with the Thai property as additional supporting security, can sometimes provide a route to liquidity that does not require direct lending against the company structure. This approach depends on the borrower having sufficient offshore assets and a lender willing to assess the cross-border picture.
In some cases, restructuring the ownership arrangement, converting from a company structure to a leasehold, for example, or consolidating ownership in a cleaner legal vehicle, can improve financing prospects. This requires legal advice and should be approached carefully, but it is an option worth understanding.
The key point is that owning Thai property through a company structure does not mean financing is impossible. It means it requires specialist knowledge, specialist lenders, and a clear-eyed understanding of the complexity involved. Global Mortgage Group operates in this space and can help owners of company-held Thai property understand what is genuinely possible for their specific situation.
Ready To Unlock Your Thai Property?
Global Mortgage Group specialises in cross-border property finance for foreign owners across Thailand.
Donald Klip | [email protected] | +65 9773-0273 | gmg.asia
