It is a good tradition in Thailand, that main investment ventures require Thai partners. This does not mean that the foreigner needs to lose half of his investment if he acquires property or sets-up a limited company to do business in Thailand. However, he can’t do it alone and sooner or later the Thai participation shows its benefits – or vice versa.
If the foreign property investor enters into a leasehold interest, the Thai landlord retains a significant influence. Without his consent, no transfer or restructuring is possible. He has to give his consent if the heir wants to take over the property because the lessee passes away.
The similar situation is given in case of a corporate property investment. The foreigner needs a Thai company, at least two majority Thai shareholders and is tightly forced into this corset of Thai company and foreigner legislation.
The article “Sap-Ing-Sith — Real estate investments without Thais” describes the character of the Sap-Ing-Sith as game-changer for this. There is no longer any Thai individual or corporate person required to secure his piece of paradise.