Selling our condo after buying it a year earlier

[soistalker]

My farang wife and I bought a condo in a very desirable condominium complex in Jomtien a year ago. We are considering selling it and moving to the countryside back in Farangland, where we can get land and a house for not all that much more than what we could get for the Jomtien condo. 

My question is: are there any adverse Thailand tax penalties for buying than selling after a year or so? Any difficulties?

[GinBoy2]

The answer is Yes.

Since you've had it less than 5 years you will be subject to the Business tax, which as I recall is either 3 or 5%.

I got stung by the same thing on one of my condo's too

[Delight]

  This calculator which calulates  transfer cost may be of use.

 

http://www.acuterealty.com/calculator.asp

[moonseeker]

All explained here: https://www.samuiforsale.com/real-estate/condominium-transfer-tax-and-fees.html

 

Fees & taxes are usually 50:50 as outlined in Sales Agreement or however the parties agree. Have bought  units in all 3 versions, all incl. 100% by Seller, 50:50 or 100% by Buyer.

The extra business tax for short-term holding/sale really is not much of an issue, if you sell a quality

condo at a fair price. Contrary to common comments, I think good units in good location and well managed 

buildings sell pretty fast. Regards.  MS>

[newnative]

9 hours ago, moonseeker said:

All explained here: https://www.samuiforsale.com/real-estate/condominium-transfer-tax-and-fees.html

 

Fees & taxes are usually 50:50 as outlined in Sales Agreement or however the parties agree. Have bought  units in all 3 versions, all incl. 100% by Seller, 50:50 or 100% by Buyer.

The extra business tax for short-term holding/sale really is not much of an issue, if you sell a quality

condo at a fair price. Contrary to common comments, I think good units in good location and well managed 

buildings sell pretty fast. Regards.  MS>

Agree.  My partner and I have sold a number of condos after only owning them for a year or less and almost all of them were sold with 50/50 transfer and the extra fees weren't an issue.

[soistalker]

So, the 50/50 transfer fee would include the penalty for selling before 5 years? I would basically be sharing the penalty with the buyer?

[Henryford]

I would like to know where you can get a house and land in Europe for the price of a Jomtien condo?

[soistalker]

2 minutes ago, Henryford said:

I would like to know where you can get a house and land in Europe for the price of a Jomtien condo?

I'm from the States.

[BritManToo]

19 minutes ago, Henryford said:

I would like to know where you can get a house and land in Europe for the price of a Jomtien condo?

Southern Spain has many houses for sale at around 20,000E (800,000bht) with plenty of land.

I'd buy a wreck, camp in it white rebuilding, this one 11,000E

http://www.spanish-inland-properties.com/property/1766-rural-property-sale-don-pedro.html

 

But if you want a place you can move right in for 20,000E

http://www.spanish-inland-properties.com/property/2375-town-house-sale-quesada.html

Edited September 16, 2018 by BritManToo

[PoorSucker]

39 minutes ago, Henryford said:

I would like to know where you can get a house and land in Europe for the price of a Jomtien condo?

I can get you a house with one hectar of land in northern Finland, above the Arctic circle. 

[Destiny1990]

Example sale condo of lets say 4 M bht.

 

what be the business tax after 

1 year

2 year

3 year

 

not the other taxes only that extra tax for sell within 5 years.

[Queen4ADay]

18 hours ago, GinBoy2 said:

The answer is Yes.

Since you've had it less than 5 years you will be subject to the Business tax, which as I recall is either 3 or 5%.

I got stung by the same thing on one of my condo's too

If they live there and the Thai wife is in the blue book then they will not pay the 3% Business tax

 

[bobnuts]

27 minutes ago, Queen4ADay said:

If they live there and the Thai wife is in the blue book then they will not pay the 3% Business tax

 

OP said farang wife.

[Suradit69]

30 minutes ago, Queen4ADay said:

If they live there and the Thai wife is in the blue book then they will not pay the 3% Business tax

 

Did you read the o/p?

 

20 hours ago, soistalker said:

My farang wife and I bought a condo in

 

[BigT73]

So from your previous thread "large man moving furniture all hours of the morning" this is the reply that won?

 

And what you going to do with the cat you dont own?

Edited September 16, 2018 by BigT73

[khunPer]

15 hours ago, moonseeker said:

All explained here: https://www.samuiforsale.com/real-estate/condominium-transfer-tax-and-fees.html

 

Fees & taxes are usually 50:50 as outlined in Sales Agreement or however the parties agree. Have bought  units in all 3 versions, all incl. 100% by Seller, 50:50 or 100% by Buyer.

The extra business tax for short-term holding/sale really is not much of an issue, if you sell a quality

condo at a fair price. Contrary to common comments, I think good units in good location and well managed 

buildings sell pretty fast. Regards.  MS>

It's normally that seller pays tax(es), and buyer pays transfer fee.

[khunPer]

21 hours ago, soistalker said:

My question is: are there any adverse Thailand tax penalties for buying than selling after a year or so?

You would be due to pay income tax of a small part of the selling price – you'll have between 84% and 92% deduction – and business tax of 3.3% when transferring the property.

 

This calculator can give you an estimate of income tax.

[jkcjag]

Check this link for the complete details of all charges. There is a link there to download a pdf file  on the subject.

https://www.cbre.co.th/en/SubServices/thailand-land-property-tax

 

[watcharacters]

5 hours ago, BritManToo said:

Southern Spain has many houses for sale at around 20,000E (800,000bht) with plenty of land.

I'd buy a wreck, camp in it white rebuilding, this one 11,000E

http://www.spanish-inland-properties.com/property/1766-rural-property-sale-don-pedro.html

 

But if you want a place you can move right in for 20,000E

http://www.spanish-inland-properties.com/property/2375-town-house-sale-quesada.html

 

This covers some of the perils expats face in  buying  outside their  home country:  This is not a dig on Spain.   Builders all over the planet are capable of fraud.

 

 

 

5 hours ago, PoorSucker said:

I can get you a house with one hectar of land in northern Finland, above the Arctic circle. 

 

You don't mention the price of that paradise offer. 

 

Are you looking for roommates for their body warmth?          

 

And does a THV member get a discount for property   requiring extreme endurance capability?

[helloagain]

Good luck selling there are 1000's for sale there

[baansgr]

8 hours ago, Henryford said:

I would like to know where you can get a house and land in Europe for the price of a Jomtien condo?

condo prices in Jomtien range from 700.000 up-to 50million baht,  so without knowing what condo the OP has its hard to judge. 

[DrPhibes]

9 hours ago, soistalker said:

I'm from the States.

Don't forget to claim on your US taxes and take the Foreign Tax Credit.

[OneZero]

7 hours ago, Queen4ADay said:

If they live there and the Thai wife is in the blue book then they will not pay the 3% Business tax

 

If true (I'm not questioning your veracity) this is valuable information.  Thanks,

[MyFriend You]

14 hours ago, Henryford said:

I would like to know where you can get a house and land in Europe for the price of a Jomtien condo?

Portugal, Spain, Italy, Macedonia, Chisinau

[janclaes47]

11 hours ago, Queen4ADay said:

If they live there and the Thai wife is in the blue book then they will not pay the 3% Business tax

 

And what has the blue book to do with the business tax?

 

Business tax is based on the years you have owned it, not who owned it or who lived there. because blue book doesn't even show ownership

[smutcakes]

7 hours ago, janclaes47 said:

And what has the blue book to do with the business tax?

 

Business tax is based on the years you have owned it, not who owned it or who lived there. because blue book doesn't even show ownership

Not to mention the 1st 3 words of his post being "My Farang Wife"

[Andaman62]

When selling a property is the business tax on the full sale price or on profit above purchase price?

[khunPer]

11 hours ago, Andaman62 said:

When selling a property is the business tax on the full sale price or on profit above purchase price?

Quote

Specific Business Tax

3.3% for Specific Business Tax based on the government assessed price or sale whichever is higher.

– i.e. full price.

Source and read more...
https://www.siam-legal.com/realestate/thailand-property-transfer-tax.php (Siam Legal)

[janclaes47]

22 minutes ago, khunPer said:

– i.e. full price.

Source and read more...
https://www.siam-legal.com/realestate/thailand-property-transfer-tax.php (Siam Legal)

That calculation doesn't make any sense at all.

 

At the start of the article they state that the condo was pre-owned for 3 years, then at the end the calculate the full business tax on the full sales price.

 

Specific Business Tax

3.3% for Specific Business Tax based on the government assessed price or sale whichever is higher. In this case sale price is higher than government so 6,000,000 x 3.3% = 198,000.

Specific business tax is 198,000 Baht (C)      

I guess I have to correct myself. I was always told that the business tax was deducted par year that you lived in the property 3.3% / 5, but I now have seen other examples that say the 3.3% stays at that for the full 5 year.

 

I wonder why 2 different lawyers told me different

Edited September 17, 2018 by janclaes47

[khunPer]

10 hours ago, janclaes47 said:

That calculation doesn't make any sense at all.

 

At the start of the article they state that the condo was pre-owned for 3 years, then at the end the calculate the full business tax on the full sales price.

 

Specific Business Tax

3.3% for Specific Business Tax based on the government assessed price or sale whichever is higher. In this case sale price is higher than government so 6,000,000 x 3.3% = 198,000.

Specific business tax is 198,000 Baht (C)      

I guess I have to correct myself. I was always told that the business tax was deducted par year that you lived in the property 3.3% / 5, but I now have seen other examples that say the 3.3% stays at that for the full 5 year.

 

I wonder why 2 different lawyers told me different

Thanks for your reply.

 

To my knowledge, the 3.3% business tax is a static tax when private property is sold within five years of purchase. The income tax has deductions for length of ownership up to 8-years, i.e. 50%, which rate then become static.

 

A problem for some is, that they might not be able to sell their property with enough profit – or profit at all – to cover the taxes.