Asset protection and structuring outside Europe - strategies for Thailand & ASEAN

Many of our clients have grown over years or decades - often with a strong focus on Europe and, in particular, on a single country. Among other things, this leads to:

• political and regulatory concentration risk
• increasing dependence on taxation and jurisprudence
• one-sided bank and currency exposure in the euro area
• potentially limited ability to act in times of crisis

A well-thought-out international structure does not create a “free pass,” but it can spread risks and open up additional options.

Depending on your personal situation and objectives, Thailand and selected ASEAN countries offer interesting approaches for:

• Residence and residence design
• Property investments
• Company and holding structures
• Bank accounts and currency diversification

It is important to note that:
Thailand and ASEAN are not a complete replacement for everything you have built up in Europe. Rather, they are often a complementary component in a broader international strategy.

In our consulting services, we follow a number of strict guidelines that differ significantly from short-term and often risky “workarounds.” You determine your risk tolerance, and we act accordingly. If we identify avoidable risks, we will explicitly point them out to you. This applies in particular to components that involve Bitcoin or other crypto systems.

• Planning within the framework of applicable legal and tax regulations in Germany and abroad
• no setting up of illegal or deliberately non-transparent structures
• Compliance with your declaration and reporting obligations (e.g., in the country of origin)

• Focus on economically viable structures with real substance (residence, activities, assets) 
• No artificial “mailbox solutions” that are not viable upon closer inspection.

• Planning for a multi-year timeframe – with an eye on possible legislative changes
• Structures that can be adjusted as your life, assets, or regulatory environment changes

Depending on your individual circumstances, different elements may be relevant to your personal solution. The specific details are always determined as part of an individual strategy tailored to your needs.

• Examination of whether and in what form residence in Thailand or another ASEAN country makes sense for you
• Assessment of various residence and visa options (e.g., for retirees, investors, or entrepreneurs)
• Harmonization with the tax treatment in the previous country of residence in cooperation with specialized advisors

• Establishment or adjustment of holding structures that sensibly bundle investments in Thailand and ASEAN
• Review of the integration of companies in other jurisdictions (e.g., holding locations, depending on double taxation agreements and substance requirements)
• Organizing operational units (e.g., service companies, trading companies) in line with local conditions

• Selection of suitable bank accounts outside the EU, including in Thailand and, if necessary, other countries
• Establishment of a rational liquidity structure (e.g., separation of operating liquidity reserves and investment funds)
• Consider compliance, KYC, CRS, and FATCA to avoid problems later on

In terms of structure, the question of where and how assets can be invested in the region plays a key role. Here too, there are no blanket patterns, only individual choices.

For a lot of our clients, real estate is the first thing that comes to mind when they think about investing in Thailand. Possible options include:

• Condominiums in selected locations
• Long-term rights of use (leasehold) and alternative models for land
• Investment in high-quality projects (e.g., residential, hospitality, mixed-use)
• Focused diversification by location (e.g., Bangkok, selected coastline areas, up-and-coming secondary locations)

Important - please note:

• Clear separation between lifestyle properties (own use) and investment properties
• Legal framework for foreigners
• Currency risks, running costs, exit scenarios

Real estate definitely deserves a spot in any proper portfolio, but it's especially important in Thailand to take your time when choosing properties. Let's work together to create a list of criteria so we can make the perfect choice.

Depending on your experience and risk profile, investments in companies in Thailand or other ASEAN countries may also be of interest:

• Minority or majority stakes in existing companies
• Joint ventures with local partners
• Establishment or acquisition of operating units (e.g., Service or Trading Companies)

The focus here is on:

• Careful due diligence
• Legislative and fiscal structuring
• Governance regulations
• Clear regulations for entry and exit

In some cases, it may make sense to focus on Thailand, but at the same time:

• Commitments in other ASEAN countries (selected markets with particular growth potential)
• If necessary, consider involving other jurisdictions for holding or investment vehicles

Which countries and regions are suitable for you depends on the volume and structure of your assets as well as your specified goals.

Many of the problems arise not from the idea of internationalization itself, but from its sloppy implementation.

Designs that only exist on paper,

• “Nominee” solutions, in which local third parties formally act as owners without the legal substance being clarified
• Missing or incorrect contracts in the background

Such approaches may appear “practicable” in the short term, but are often not sustainable in the long term - neither legally nor fiscally.