Family Office & Wealth Structure Notarization for Foreigners — Foundation · Holding Co · IBC · PPLI · LTR Visa (Trust Act 2550 + CCC §§ 110–136)

Why can't you set up a real trust in Thailand?

Because Thai law does not recognise general trusts — the common-law trust has no foothold in the Civil and Commercial Code. The only statutory trust is the Trust Act B.E. 2550, limited to capital-market transactions (REIT / infra trust / ESOP / securitisation — see N15). A Thai family office therefore stacks a foundation + holding company + PPLI + IBC + LTR Visa + will + prenup to replicate trust functionality.

Can a Thai foundation exist purely for family legacy?

No. CCC § 110 requires a public-benefit purpose (education, religion, science, culture, charity). A foundation established for pure family trust purposes is a sham, is dissolved by the registrar, and exposes directors to criminal liability. The standard pattern is to use the foundation as a 10–20% philanthropic sleeve and place the balance in a holding company, PPLI, and the LTR stack.

BOI IBC vs ordinary holding company — which to use?

Choose **IBC** when you have group companies in at least one foreign country, a real treasury / IP / tech-support function, spending in Thailand of at least THB 60M / year, and need the 15% flat PIT for foreign experts. Choose a **plain holding company** when there is no group, you only need a single SPV over domestic assets, and cost matters. Most UHNW families end up stacking IBC + foundation + several sub-holdings.

Does the LTR Visa still exempt foreign-source income in 2026?

Yes — under Royal Decree LTR B.E. 2565 and EEC Office Notification 2/2565. Note that the Revenue Department's 2024 amendment of Orders Por. 161/162 made foreign-source income brought into Thailand taxable in the year of remittance (no longer only the year earned) — but **LTR holders are carved out** of that rule. Foreign-source income remitted by an LTR holder remains untaxed, which is currently the most powerful tax benefit available to UHNW residents in Asia.

Can PPLI really be used in Thailand?

Yes — via OIC-licensed insurers with PPLI approval under Notification 8/2562 (Allianz Ayudhya, AIA Thailand, FWD, Muang Thai Life). Benefits: investment growth inside the policy is tax-deferred; the death benefit is inheritance-tax exempt under § 14; switching the underlying fund is not a taxable event. Minimum premium ~THB 25M. Most efficient when paired with the holding company and the foundation.

How much of a Thai holding company can a foreign settlor own?

Normally up to 49% (Foreign Business Act § 8; Land Code § 86 where land is held). Exceptions: US citizens / US entities can hold 100% under the Treaty of Amity 1968; BOI-promoted entities can be 100%; ROH / IBC service companies can be 100%; carve-outs apply under JEPA / RCEP for certain sectors. Nominee shareholding to dodge the 49% cap is criminal and triggers forfeiture of possession.

Is a family constitution enforceable in Thai courts?

Not directly — a family constitution is soft law / a charter. Binding force flows through the shareholders' agreement (CCC § 1129 — enforceable in civil court), foundation bylaws (enforceable through the registrar), and the will + prenup (enforceable in probate court). Notarising the family constitution gives it evidentiary weight and cross-border recognition.

How do CRS and FATCA affect a Thai family office?

Thailand joined the CRS MCAA in 2566 and signed the FATCA IGA in 2559. Thai financial institutions (banks, insurers, securities firms, asset managers) must report account holders and UBOs who are foreign tax residents. A passive NFE foundation or holding company must disclose controlling persons. PPLI is reportable cash-value insurance. A well-built structure relies on substance and transparency — concealment is criminal tax evasion in both jurisdictions.

How does Thai inheritance tax hit a family office?

Threshold THB 100M per heir per lifetime (Inheritance Tax Act B.E. 2558). Rate is 5% for direct descendants / parents and 10% for other heirs. Spouse: 100% exempt. Public charitable foundation: 100% exempt. PPLI death benefit: exempt under § 14. Pre-mortem gifts made at least five years before death reduce the tax base. Standard moves: donate into the foundation, channel investment through PPLI, carve out the spouse via prenup, gift early to descendants.

How does a successor-trustee POA work in Thailand?

Thailand has no successor-trustee concept of its own (no trust). Practitioners use a **springing POA** under CCC §§ 797–844 that triggers on settlor incapacity (medical certificate + court order) and grants the successor power over the holding company, the foundation board, and PPLI surrender rights. The POA must be notarised and registered for real-estate transactions, and apostilled for cross-border use.

What does family-office notarisation cost?

Fixed fees: foundation charter + registration quote on request (phone / LINE / email); holding-company articles + SHA quoted on request; family-constitution notarisation quoted on request; BOI IBC application bundle quoted on request; LTR Visa application bundle quoted on request per applicant; PPLI documentation review quoted on request; concurrent will (TH + foreign) quoted on request; prenup / postnup quoted on request; successor-trustee POA quoted on request; MFA apostille quoted on request. **No % AUM, no contingency.**

How is confidentiality and PDPA compliance handled?

Attorney-client privilege under Lawyers' Ethics § 12; PDPA §§ 24 + 26 for beneficiary / family-member data; the family charter separates a public section from a confidential schedule; the UBO registry is shared only with AMLO and the relevant regulator (not public); cloud storage is ISO 27001 with AES-256; Lloyd's PI cover at THB 100M per occurrence; 10-year document retention under AMLO / Revenue / OIC rules.