Legal services and tax planning for real estate acquisitions and property developments

PUGNATORIUS Ltd. is the Bangkok-based specialist provider of transactional legal and tax advice on foreign investments in Thailand’s manufacturing and service industries as well as property developments and acquisitions. Real estate transactions, combined with secured corporate structures and tax-efficient cross-border transactions, are one of the four main activities of the law firm. PUGNATORIUS Ltd. provides real estate investment structures that are legally valid, in compliance with Thailand’s foreigner legislation and that sustainably protect the foreign investor.

The law firm’s assignments by foreign property investors cover future-proofed investment structures, comprehensive due diligence examinations, the drafting and negotiation of sales agreements, as well as leasehold schemes. It has particular expertise in complex condominium acquisitions, guaranteed rental schemes, fractional ownership models, and other structured property investments. PUGNATORIUS Ltd. is well familiar with PBT5 and other sub-Chanote lands.

For foreign investments in Samui, Phuket, Hua Hin, Pattaya or elsewhere, PUGNATORIUS Ltd. is the trusted counsel if the client intends to avoid that his lawyers are too closely linked, connected and integrated into the local property industry. Instead, the law firm offers professional integrity and unimpaired independence in an infested business environment with the dominance of property developers and local players. Never trust a local.

PUGNATORIUS Ltd. is located in Bangkok only. Professional assignments are accomplished by the firm’s own Bangkok lawyers. The policies, decisions, and legal viewpoints are solely made in Bangkok. No relevant aspect is outsourced, no journey to the project site, the land office, and local authorities is avoided, no external expertise, judgment or evaluation is trusted. Never trust a local.

Thailand’s real estate legislation is widely misunderstood, and property investment structures are notorious for their lightweight design. Protected structures are widely avoided for all the wrong reasons. PUGNATORIUS Ltd. provides real estate investment structures which are legally valid, in compliance with Thailand’s foreigner legislation and which sustainably protect the foreign investor.

Support and legal assistance for land acquisitions, villa constructions, condominium investments, hotel businesses, mixed-use developments

The Bangkok law office advises on various property developments and has an extensive work-product archive for each type of private and commercial real estate project. The law firm developed specialized knowledge, know-how, and experiences regarding the proper licensing of new, but also of existing illegal property developments:

#1. Investment structures for foreign property acquisitions: Obtaining full ownership is the real thing and preferable in all and any property transactions. The law firm advises and assists international clients in the acquisition of villas or undeveloped land through a landholding Thai company.

The law firm supports the acquisition of condominium units, especially in cases of (i) off plan acquisitions when the unit is not yet registered at the land office, (ii) second-hand purchases, (iii) condo leasehold structures and (iv) distressed condo projects of various scope and size.

#2. Property due diligence examination: The law firm provides comprehensive real estate due diligence examinations for developed or undeveloped land in seven steps at international standards. 

Specific requirements apply for due diligence examinations regarding rental guarantees, timeshares, and fractional ownership schemes. 

#3. Leasing transactions, protected lease schemes, sap-ing-sith structures: If it is not possible to obtain legal ownership, an alternative form of property investment is to rent the property on a long-term basis. The law firm advises

  • foreign residents to negotiate and agree on beneficial lease agreements and, as the case may be, villa construction agreements and service contracts.
  • resort and other property developers in the design of marketable lease arrangements, villa construction contracts and the comprehensive preparation of resort agreements for foreign residents.
  • in the arrangement of a secured lease agreement, aka. protected lease scheme to secure the lessee‘s interest like a full owner of the property.

The law firm has specific know-how in the design and registration of usufructs, superficies and other real rights resp. rights in rem.

#4. Industrial estates, resorts, factories: The law firm is experienced with mixed-use developments, industrial projects, factory constructions, and other commercial property developments.

#5. Hotel and hospitality projects: Hotel developments, hotel business licenses and the structuring of hotel management agreements are special fields of experience and know-how in Thailand’s hospitality industries.

Professional services for hotel businesses and Thailand’s hospitality ventures are available at “Legal services for the hotel and hospitality sector“.

#6. Property tax structuring: The law firms provides tax planning services to minimize the tax burden of the transaction, the ongoing tax obligations and the tax load of a later de-investment.

#7. Legal opinions and property investment reviews: The law firm provides foreign investors and local developers with professional legal opinions regarding legal and tax aspects of property investments in Thailand. This covers the legalidity under civil laws and foreigner legislation, the grade of investment protection, and possibilities to better protect and secure the foreign direct investment in the land of smile. 

Each case is different. Telephone inquiries and ad-hoc email requests on Thailand’s legal and regulatory framework without details and documentation are not accepted by the law firm. Individual support and professional advice are available under a paid consultancy agreement only.