Transferring funds from the UK

[jakestevernson]

Hi Guys,

 

I will be transferring around 100,000 pounds from my UK bank account to my Thai bank account. I hope to buy a condo in Bangkok or possibly Phuket later this year (buy to let).

 

I was wondering if I will be taxed on this amount or if I need to declare this in some way.

 

Any info would be appreciated.

 

Many thanks.

 

JS

 

 

[metempsychotic]

You have 100,000 pounds to spend, why not live large and seek out competent legal advice??!! 

[Peterw42]

The transfer is the declaration, a swift bank to bank transfer has all the information where it came from/to and you usually include a reason (to buy a condo etc) that gets sent off to the bank of Thailand. There is no tax liability as you are transferring savings not income (not transfered in the same year you earned it), and probably covered by a Thai-UK tax treaty anyway.

 

Unfortunately, You will have to ignore the 127 replies you will get advising not to move here, not to buy a condo, they dont want us here etc etc.

Edited March 25, 2019 by Peterw42

[jakestevernson]

Thanks for the quick reply Peter, much appreciated.

 

Metempsychotic, Lol. I would love to do that, but think it's more wise to invest the money in property at this point in my life. However, as you suggested I will be speaking to a lawyer/accountant once I have found a good one.

 

JS

[YT3k72Em]

Be careful about considering a Thailand condo an investment.  It is unlikely the value of a 5 year old condo will increase and your rental return is likely to be low.  Do a lot of reading before you decide.

 

 

[Pilotman]

1 hour ago, jakestevernson said:

Thanks for the quick reply Peter, much appreciated.

 

Metempsychotic, Lol. I would love to do that, but think it's more wise to invest the money in property at this point in my life. However, as you suggested I will be speaking to a lawyer/accountant once I have found a good one.

 

JS

Notwithstanding the warning you have just had from PeterW42,  that you will hear from lots of people telling you not to do it; the best bit of advice I can give you, having bought property here, is to write off the investment on day one and expect no return.  The property market here is not at all like the UK.  It is volatile, unpredictable and saturated with new builds. It is also loaded with scammers, lairs, money launders and fraudsters.  If you buy here to live, that can be a different decision, but buy to let here, I have to say, is a huge risk and gamble. If you can afford to write off £100K then good luck to you, but don't invest thinking that you are going to get any kind of return on that investment, either by rent, or by property appreciation, it isn't going to happen.    

[marcusarelus]

I put my money in the bank and my wife got a loan for our house a few years ago.  It will be paid off in 5 years.  I believe this course of action to be advised given the state of immigration in Thailand. 

[beautifulthailand99]

To note if you tell the UK bank that you are transferring the money to by a property overseas they may have to tell HMRC which can have tax implications. 

 

A. Anyone who is buying an additional residential property for £40,000 or more. This could mean a holiday home, buy-to-let or even a main residence you plan to live in (more detail on this later). 

Even if you already own just a share in another property, it will count so long as the share is worth £40,000 or more.

Properties anywhere in the world are considered too. So, if you own a 30% share of a £300,000 ski chalet in Bulgaria and are buying your first home in the UK, you could be stung with the extra tax.

Read more at https://www.zoopla.co.uk/discover/buying/q-a-new-3-stamp-duty-surcharges/#g3jHo2jA4QYivYAo.99

 

[baansgr]

3 hours ago, Peterw42 said:

The transfer is the declaration, a swift bank to bank transfer has all the information where it came from/to and you usually include a reason (to buy a condo etc) that gets sent off to the bank of Thailand. There is no tax liability as you are transferring savings not income (not transfered in the same year you earned it), and probably covered by a Thai-UK tax treaty anyway.

 

Unfortunately, You will have to ignore the 127 replies you will get advising not to move here, not to buy a condo, they dont want us here etc etc.

If its as a home here a foreign named condo is far better than paying rent to live in, however the OP is purchasing for buy to let. 100,000 Sterling is only four million baht so in these locations wont get much more than a 40sqm studio which rental is probably no more than 17k a month if that.....far from the best investment for buy to let. Would do better on a 60.000 flat in Torquay. Take into account buying/selling taxes, maintenance and of course Sterling being at an all time low it really isn't a good idea at all.

[BritManToo]

6 minutes ago, baansgr said:

Would do better on a 60.000 flat in Torquay

Can you get a flat that cheap in Torquay?

 

Edited March 25, 2019 by BritManToo

[baansgr]

52 minutes ago, BritManToo said:

Can you get a flat that cheap in Torquay?

 

Yes....you can, for over 55s even cheaper at about 39,000

https://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION^1350&insId=1&maxPrice=70000&primaryDisplayPropertyType=flats&radius=15.0&googleAnalyticsChannel=buying

Edited March 25, 2019 by baansgr

[jakestevernson]

Thanks for all the replies guys. Really appreciate it. 

 

Lots to think about and with BREXIT possibly happening and the low pound, it could be worth me waiting before doing anything. Likewise, it could be worth not doing anything.

 

The terms below are for an off plan condo in Phuket seem very interesting. It would be great if anyone could let me know what they think.

 

 

Rental Guarantee Conditions:

• Special promotion 7% NET (subject to WHT) rental guarantee (no monthly fees, no electricity, no maintenance, no sinking fund...) for the first 15 years.
• The rental guarantee will be paid every year in advance.

 

---

Buy Back Option:

• After 10 years from the closing date, the buyer may apply for the buyback option and receive back all the money paid
• After 15 years possibility of renegotiating a new rental guarantee period.

Note: 

• Registration taxes shared 50%-50% between Buyer and Seller.
• Lawyer’s fee: 10,000THB

---

Payment Terms

• 200,000 baht reservation deposit
• 40% upon signing the Purchase Contract within 30 days from the signature of Reservation Agreement.
• 20% upon completion of infrastructure.
• 20% upon building foundation completion
• 10% upon building structure completion
• 10% (minus deposit) upon keys handover

 

---

Owner Benefits:

• Possibility for the Owner to use the unit 4 weeks in low season or 2 weeks in high season and 2 weeks in low season, free from the costs of electricity, water and monthly fee.
• The Owner can also obtain the Unit usage rights during Peak Season upon pay compensation equal to 50% of the official rental fee.

[BritManToo]

1 hour ago, baansgr said:

Yes....you can, for over 55s even cheaper at about 39,000

https://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION^1350&insId=1&maxPrice=70000&primaryDisplayPropertyType=flats&radius=15.0&googleAnalyticsChannel=buying

But my gfs only 32, so not a lot of use.

[KittenKong]

50 minutes ago, jakestevernson said:

The terms below are for an off plan condo in Phuket seem very interesting. It would be great if anyone could let me know what they think.

See my comment in the other thread you started about the same subject:

 

 

If it sounds too good to be true, it probably is.

[Pilotman]

1 hour ago, jakestevernson said:

Thanks for all the replies guys. Really appreciate it. 

 

Lots to think about and with BREXIT possibly happening and the low pound, it could be worth me waiting before doing anything. Likewise, it could be worth not doing anything.

 

The terms below are for an off plan condo in Phuket seem very interesting. It would be great if anyone could let me know what they think.

 

 

Rental Guarantee Conditions:

• Special promotion 7% NET (subject to WHT) rental guarantee (no monthly fees, no electricity, no maintenance, no sinking fund...) for the first 15 years.
• The rental guarantee will be paid every year in advance.

 

---

Buy Back Option:

• After 10 years from the closing date, the buyer may apply for the buyback option and receive back all the money paid
• After 15 years possibility of renegotiating a new rental guarantee period.

Note: 

• Registration taxes shared 50%-50% between Buyer and Seller.
• Lawyer’s fee: 10,000THB

---

Payment Terms

• 200,000 baht reservation deposit
• 40% upon signing the Purchase Contract within 30 days from the signature of Reservation Agreement.
• 20% upon completion of infrastructure.
• 20% upon building foundation completion
• 10% upon building structure completion
• 10% (minus deposit) upon keys handover

 

---

Owner Benefits:

• Possibility for the Owner to use the unit 4 weeks in low season or 2 weeks in high season and 2 weeks in low season, free from the costs of electricity, water and monthly fee.
• The Owner can also obtain the Unit usage rights during Peak Season upon pay compensation equal to 50% of the official rental fee.

God no, off plan is an even worse idea.  Never but never buy anything off plan in Thailand, not even if you live here and can keep your eye on it.   if you don't live here, you may as well pile your money on your drive and burn it.   

Edited March 25, 2019 by Pilotman

[Delight]

 The only purchase that makes any sense is to do a lot of work and find a distressed seller

£100,000 at current rates will buy you approx 4.15 Million Baht

You need to find a condo  (in  a location that you are happy with) with an asking price of say 7million Baht.

Then buy it a 4.15 Million Baht or less

Then you will be able to sleep easy -No buyers remorse.

At that price you will probably be able to sell at close to purchase.

What's the catch-finding the distressed seller.

For certain they exist -but do not advertise themselves as such.

 

 

Edited March 26, 2019 by Delight
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