Investing in Chiang Mai Property as a Company vs Individual — What Are the Differences?

Investing in Chiang Mai Property as a Company vs Individual — What Are the Differences?

Many Chiang Mai property investors wonder whether to invest in their own name or through a registered company. This article compares all aspects in detail.

Key Comparison: Company vs Individual

Income Tax

Individual: Progressive rates 5-35%, 30% flat expense deduction or actual expenses
Company: Corporate tax 20% on net profit, broader expense deductions (interest, depreciation, management)

Example Comparison

Net rental income THB 1,000,000 per year

Individual (no other income): After deductions, tax approximately THB 80,000-100,000

Company: After broader expense deductions, corporate tax plus dividend tax = approximately THB 168,000 total

Note: In this example, the company pays more tax due to double taxation. But for very high income, a company structure may be more favorable.

Operating Costs

Individual: No administration costs, no annual accounts required
Company: Registration THB 10,000-20,000, annual accounting THB 15,000-40,000, annual shareholder meetings

Flexibility When Selling

Individual: Can sell immediately without board approval — simpler transfer process
Company: Requires shareholder resolution before sale — more complex transfer — some buyers prefer not to buy from companies

When Is a Company Better?

Company is better when
- Multiple properties with high combined value
- Very high total rental income (over THB 2 million/year)
- Complex inheritance planning through corporate structure
- Multiple investment partners
- Need broader expense deduction options

Individual is better when
- Investing in 1-2 properties
- Rental income is not very high
- Prefer simple administration
- Want maximum flexibility to sell in future

Recommendation: This article provides only a general overview. The decision depends on your specific situation. Always consult a qualified accountant and lawyer before deciding.

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