Under the Sap-Ing-Sith legislation, investors in Thai real estate can enter into a registered agreement to obtain a protected right to utilize Thai land undisturbed for up to 30 years. Obviously, the new legislation is made for foreigners who have no option to acquire legal title in Thai land. Foreigners, who acquired in the past real estate through a landholding Thai corporation as well as foreigners who have unluckily fallen for so-called leasehold ownership will consider sooner or later to take advantage from the new options, that Thailand’s new real estate regime provides.
The LinkedIn article “Sap-Ing-Sith: Up and down, is it worth it?” discusses the legal and economical aspects of an upgrade from lease to Sap-Ing-Sith or from a downgrade from company ownership to Sap-Ing-Sith.
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.
Thailand’s new #SapIngSith legislation allows the merging of PropTech and FinTech innovations by the creation of a Sap-Ing-Sith Token which complies with SEC and foreigner legislation requirements in the land of smile.
The legal aspects and regulatory framework is described at “Tokenomics – Developing a new safe asset class“.