Dan SG

Have any of you fellow Bangkok condo owners received requests from tenants to pay for their hotel accommodation while they choose not to stay in the condo until it's confirmed safe? What is the approach you've taken?

Yes, TiT and it doesn't work like that - unlike most countries that tax the gain, Thailand basically taxes the sales proceeds, so the cost of acquisition and any renovation costs are irrelevant. There is a set formula to calculate the income tax based on the appraised value and length of ownership.

I don't think this is right. If the cheque has not been drawn, it can be cancelled.....say it got lost would it not be able to be cancelled? In fact, I've asked the bank the exact same question and they have confirmed it can be cancelled. However, if your buyer cancelled the cheque then you would of course have a legal remedy. I think the chance of someone going through that entire process only to cancel after the chanote was changed would be so slim and practically never happens

I too have terrible sleep (I never have trouble falling asleep but wake up in the middle of the night most nights) but I would personally resist taking anything. I just try and put at the back of my mind that a bad nights sleep will ruin me the next day and just try to get a nap after lunch which tends to get me through the whole day!

Yes I totally agree in the past but you need to understand where things are heading to understand why its not worth taking any risks now - financial transactions are all becoming digital and tax authorities are working with central banks so they see transaction real time. So, it will be very hard to hide anything in the future which opens up risk around what happened in the past - the tax authorities have the right to go back many years if they suspect someone of tax evasion; in your case all they need to see are your bank statements and they'll see past monthly payments into your account. It's either salary or rent. Either way they can tax it plus interest, penalties etc.

Because despite what you think, the tax authority now have loads of big data at their disposal that they could easily use to identify people that rent out their property! Not worth not declaring especially if most your costs cover the rent.

Hi, I think the 100k deduction is just a general deduction anyone can take to encourage home ownership - irrespective of whether they have a home they live in or rent out (sort of like what the UK had years ago - MIRAS). If you're renting out a property you have two options - either a deemed deduction (30%) or actual expenses - based on my discussions with tax advisors the interest would be an expense of renting out the property and in theory deductible. However, they always recommend taking a deemed deduction since a claim for actual expenses will be scrutinised and require documentation etc. Of course, if you can support it - which I am sure you can - then no reason to not claim if gives you a better outcome but given the uncertainty at the moment re offshore income remitted etc you may not want the tax office sniffing around your tax return but that really depends on your circumstances.

Dee money (sorry response wasn't clear)

I don't think anyone would risk using them anymore....have you seen the reviews? seems like a big scam. For a large amount I would never risk cash and possible issues with customs.....go through your bank.....bangkok bank process my international payments despite many people saying you need to fall in a certain category e.g. have a work permit etc

Many thanks for clarifying that CM. I had always wondered what happens over the weekend

I'm not sure if it's just a glitch with XE but seems to be moving downwards quite a bit over the weekend....hoping it doesn't start Monday down and continue that trend.....have a large transfer this week

Agree. Basically, all they have done is preserve the old rule that income earned in a previous tax year and remitted in the current year is not subject to tax; that does not mean that income earned in current year and remitted in the current is not taxable. You would think if someone has the funds to qualify for this visa they also have the funds to always be one year ahead of themselves in generating passive income. What is not clear is how the rules would apply if they move to residence based taxation - in theory, the remittance rules should trump residency but we'll need to see how they draft the law - if they ever manage it.

Hi all, I'm in the process of buying a condo and due to complete the transfer at the land office in a couple of weeks' time. In the SPA it's agreed that each party separately bears the 1% transfer fee and that any other taxes are borne by the seller. The agent has sent me a breakdown of the payments required on the day of transfer and basically he / the seller wants me to net off from the balance payable the sellers taxes and the commission he needs to pay the agent. I still end up paying the same net amount but just wondering if there is any risk in doing this? The agent assures me it's commonplace as sellers don't necessarily have the money in their accounts to stump up these costs upfront? The commission seems fine as i don't need to hand that over until we transfer but how about the taxes? I understand the process at the land office is that these are first paid at a counter and after that is done, the transfer of the deed takes place, so I could have ended up paying the seller's taxes before he formally transfers to me, although I think the risk of him pulling out at that point is miniscule and presumably if he does they will just give me my cashier's cheque back (lol perhaps wishful thinking!). He also needs to pay me 2 months deposit he is holding for the current tenancy that gets transferred and is refusing for this to be deducted and instead insisting he will give this to me in cash on the day of transfer which is odd. Presumably we can all hold onto our respective cheques / cash until all amount settled and my name entered into the deed? Any practical experience those who have gone through this process can share would be most appreciated. I purchased a condo about 10 years ago but it was entirely handled by a lawyer and i have no memory of the different cheques that I cut.

Sounds like a lot of work / hassle to save 1m. Would it not be worth trying to negotiate the ones held under foreign quota down (even if you close the gap by half) or wait a bit longer until a foreign buyer who needs to sell can sell for a comparable price. Owning through a company adds an additional layer of risk and complexity in my opinion.

thanks.......yes have an appointment at 1pm....first one after lunch.....wow hadn't realised it could take 3 hours or even longer.

Can't see that happening - too much vested interest in not wanting to crash the market, but never say never!

Thanks. it would be the one in Phra Khanong

For those of you who have bought or sold a condo before how long does it take to sort everything out at the land office? I have a 1pm appointment and need to catch a flight that evening, so trying to assess whether things generally run smoothly and it can all be sorted in an hour or so or takes much longer? I will have a lawyer with me but don't want to entrust them with the whole process and want to be present myself.

While things are generally behind the times, tax authorities are generally getting access to big data. They will be able to run algorithms that see immigration records and transfers in and out of the country, spending patterns etc (especially looking forward to digital ledgers / currencies) and will be easy for them to track all this.

This will replace remittance basis taxation which they would have come to realise is impossible to enforce / audit.

Thanks for the link to the article. Worth pointing out that there seem to be a couple of inaccuracies in the article. The main one is the authors belief that income from property is exempt under the UK - Thai treaty. I don't think that's right. The treaty says that income from immoveable property may be taxed in the state the property is situated; however, that doesn't preclude it from being taxed in the state the individual is resident too. Of course, though, the same income can't be taxed twiced under the treaty. I think all this underscores for those that qualify a long term resident visa is the way to go!

You're contradicting yourself. In an earlier post you've said the management / juristic were good; yet here have listed numerous examples of poor management. You have to buy in a condo with a strong management that enforces the juristic rules. They do exist. You can make money but yes it's not the sort of investment that is going to triple in a few years. It's a long term play.

You will need to engage a lawyer in the UK anyway to handle the whole conveyancing process. You can't DIY this. The buyer will have their own lawyer and you need a lawyer to handle their queries. It's not just the TR1 there are various forms that require your completion and you must have a lawyer assist you. As an aside, you will be asked to complete a property info pack and there will be a series of questions about existence of knotweed etc, put I 'don't know' to every single one of those. If you need assistance completing the TR1 just ask for a video call. If you're signing overseas a lawyer does not need to present; I've signed loads of these from overseas; they just go to the Land Registry and you don't state where you are when they are signed, you just need a witness and that can be anyone, not necessarily a lawyer, it could just be a next door neighbour!

Are you sure there are no fees to use overseas or that they don't give you a shocking exchange rate?

Thanks. How about just using one of the Thai banks - like Krungsri or Bangkok - if you're an account holder and using their online international remittance service? Does it normally go through or get blocked?