What is Better-than-Freehold - Definition and Legal Guide

• Quick Definition
• How It Works
• Legal Compliance
• Key Benefits
• Implementation
• FAQ Section
• Expert Insight

Quick Definition

Better-than-Freehold™ is a legally compliant structure enabling foreign property investment in Thailand through registered lease agreements and regulated offshore beneficial ownership rights. The structure eliminates nominee company risks while providing enforceable property rights and access to finance in full compliance with Thai property law.

How It Works

Better-than-Freehold™ operates through four commercially contracted entities, ensuring compliance whilst delivering ownership rights benefits:

Thailand Investor Network (TIN) holds the legal title as a genuinely independent Thai company without foreign funding or control. This eliminates all nominee classification indicators under current enforcement standards.

Siam Property Holdings (SPH) functions as a regulated Labuan trust company holding lease rights and options on behalf of foreign investors. The trust structure provides beneficial ownership rights whilst maintaining regulatory compliance.

Clear Blue Security Agents (CBSA) registers all contracts with Thai authorities and provides independent mediation and enforcement of TIN and SPH contractual obligations without court dependency. This ensures rapid remedies to protect foreign investors' interests through registered security.

Siam Venture Capital (SVC) provides offshore financing up to 50% loan-to-value secured by trust assets. This enables leverage unavailable through traditional leasehold or nominee arrangements.

Foreign investors become beneficial owners of trust assets, obtaining broad property rights through registered contracts rather than prohibited ownership structures.

Legal Compliance

Thai Property Law Framework

The structure operates within established Thai legal boundaries, ensuring complete compliance:

Land Code Compliance: TIN holds title as a legitimate Thai entity without foreign funding, eliminating nominee classification under which enforcement agencies are currently targeting tens of thousands of cases.

Foreign Business Act Adherence: No foreign shareholding, funding, or control indicators exist. The structure avoids all red flags identified by current prosecution patterns.

AMLA Requirements: Beneficial ownership operates through regulated offshore entities without concealment. Enhanced transparency meets current standards whilst preparing for Cabinet-approved amendments.

Revenue Code Adherence: All transactions occur at market pricing with tax declarations and payments made at prescribed rates, avoiding evasion indicators.

Key Benefits

Compliance Security

Complete elimination of nominee risks ensures legal certainty under current enforcement and pending statute amendments. The structure provides sustainable ownership and occupation rights without criminal exposure.

Asset Protection

Registered security interests prevent administrative seizure, whilst CBSA enforcement provides streamlined remedies. Insured, professional structure shields investments from personal litigation exposure.

Financing Access

Trust assets enable offshore financing up to 50% LTV through regulated credit providers. International lenders recognise beneficial interests as legitimate collateral.

Tax Efficiency

Offshore beneficial ownership minimises capital gains realisation without Thai taxation upon non-remittance. Resale through beneficial interest assignment minimises land transfer tax.

Succession Planning

Beneficial interests are transferred through offshore mechanisms without Thai probate requirements. Inheritance operates independently of local property law restrictions.

Implementation

Process Overview

Implementation can be completed in a matter of weeks, including legal documentation, registration procedures, and compliance verification. Professional coordination ensures seamless completion across multiple jurisdictions.

Initial Assessment: Evaluation of investment objectives and structure suitability.
Legal Documentation: Preparation of trust agreements, lease contracts, and security interests. Registration: All rights are secured through agreements registered with Thai authorities, ensuring transparency and enforceability.
Ongoing Compliance: Regular monitoring ensures continued legal adherence.

Professional Requirements

The multi-entity structure requires comprehensive legal documentation and ongoing compliance monitoring. Professional guidance is essential for proper implementation, ensuring continued regulatory adherence.

FAQ Section

Related Terms

• Nominee Company - Illegal structures using Thai proxies
• Thai Land Code - Property ownership restrictions
• AMLA Compliance - Anti-money laundering requirements
• Beneficial Ownership - Ultimate investment control

Expert Insight

Better-than-Freehold™ represents an evolution beyond legacy nominee companies and limited leasehold arrangements. Current enforcement prosecution of tens of thousands of cases demonstrates the necessity for compliant alternatives providing legal certainty.

The structure's effectiveness derives from the adoption of and adherence to fundamental compliance principles ensuring transparent operations without concealment. Foreign investors gain enforceable property rights through recognised legal mechanisms rather than prohibited structures.

Professional implementation ensures sustainable benefits and rights that stay within regulatory boundaries whilst delivering occupation and income security. The Better-than-Freehold™ solution provides an optimal balance between legal compliance and investment objectives.

For assessment of Better-than-Freehold™ implementation, contact our expert team today.

Legal Disclaimer

This content is for educational purposes only and does not constitute legal advice. For specific guidance, consult qualified legal professionals familiar with Thai property law and Better-than-Freehold™ structures.