A foreigner owns 100% of a company, the company owns land, and next to it is a plot with the foreigner’s own house. Impossible? Yes. But if you really want it—then it’s possible. More precisely, if you are planning investment activities and receive support from the Board of Investment (BOI).
The BOI is a government agency that supports foreign investors by offering various privileges and incentives, provided that the investment activity meets certain requirements.
The types and scope of tax incentives depend on the type of business and its location. These may include:
- Exemption from import duties on machinery
- Exemption from import duties on raw materials for export production (up to 5 years)
- Corporate income tax exemption (up to 8 years)
- Double deduction of transportation, electricity, and water costs for tax purposes (up to 10 years)
In addition to tax holidays, companies and their owners may receive other benefits. For example, a company may be 100% foreign-owned and still legally own land. However, certain types of activities may still require Thai shareholders.
A foreigner who is both a shareholder and a director may also purchase up to one rai (1,600 square meters) of land for personal residence, but only near the company and only if at least 40 million baht is invested in the project.
A simplified process for hiring foreign specialists allows visas and work permits to be obtained within just one day.
What Are the Requirements for BOI Approval?
First, tax exemptions and other benefits must be justified from the BOI’s perspective. This means the planned business must be beneficial to the country. Priority is given to:
- Export-oriented manufacturing
- High-tech production
- Innovative industries
The more valuable your business is to the national economy, the more privileges and flexibility your company will receive. A full list of eligible activities, their priority classification, and project criteria can be found on the BOI’s official website.
If all requirements are met, an application and investment project proposal must be submitted. At the time of application, registering a company in Thailand is not mandatory—you can do it after approval. However, the application review process may take several months. If a company already exists, this time can be used to prepare operations, find partners, arrange premises, and purchase equipment.
The BOI program is generally designed for substantial investments. However, each project is evaluated individually, and the required investment size is assessed relative to the type of business. Smaller projects may also be approved if they meet the criteria.
Once the project is approved, you can proceed with implementing your business plan using the granted privileges—while strictly complying with all obligations to the BOI.
This scheme is suitable primarily for those whose main goal in Thailand is long-term business development. The BOI application process is quite complex and requires detailed marketing, financial, and investment planning. Therefore, before applying, it is important to fully understand both the advantages and the potential drawbacks.
Author: Alexandra Agapitova.
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