transferring company owned house to Thai girlfriend

[Tonyt00]

Has anyone transferred their company owned property to Thai wife or girlfriend? I have a two bed room house in a village, and thinking about transferring it to my girlfriend. Original price ten years ago was 1.2m Baht. Im now paying about 10k per year, for tax. If I transfer it to gf, what will the transfer cost, and will she have to pay yearly? What are the advantages and disadvantages? 

[KittenKong]

That would count as a sale, and normal sales taxes and transfer fees would be due at the Land Office. If you ask them they will tell you the exact amount.

And assuming that your company has no other reason to exist, you would also have a fee to close it down. This can be quite high.

There would be no extra annual fees from then on though, so you would save the 10k accounting fee.

 

The obvious downside is that your GF would own your house, and so you may want to consider some sort of legal arrangement to ensure that you can live in it for as long as you want even if you fall out.

[Peterw42]

Is the 10k Tax the cost to run the compamy each year ?

 

You could simply tranfer your 49 % share in the company to GF, all the ongoing costs would be the same but she owns 100% of the company that owns the house.

Or the company could sell the house to the GF, all the land office transfer fees and taxes would apply (around 6%) like a normal sale. There would be a cost to then shutdown the company (20k up) and stop paying the ongoing costs.

[Tonyt00]

Does she actually have to have money to pay, or can we just come up with a good price? Of course she has no money, except what I give her. Does the land office or any other entity need proof? 

[Guderian]

On 8/11/2019 at 7:28 AM, KittenKong said:

 

And assuming that your company has no other reason to exist, you would also have a fee to close it down. This can be quite high.

 

 

Interesting, are you sure about that?

 

A friend tells me he is transferring his company-owned house in Pattaya into his Thai wife's name, partly to avoid inheritance issues if he dies, but also to avoid the Pattaya City annual council tax which Thai nationals do not have to pay on their first property. His lawyer has advised him that, if he simply ignores the company after the sale is completed and all the relevant property transfer taxes are paid (close on 200K Baht, I gather), and then doesn't submit a balance sheet or any other paperwork for the company for three years then the DBD will strike the company off. I'm pretty sure he assumes this will not cost him anything.

[KittenKong]

1 minute ago, Guderian said:

Interesting, are you sure about that?

 

A friend tells me he is transferring his company-owned house in Pattaya into his Thai wife's name, partly to avoid inheritance issues if he dies, but also to avoid the Pattaya City annual council tax which Thai nationals do not have to pay on their first property. His lawyer has advised him that, if he simply ignores the company after the sale is completed and all the relevant property transfer taxes are paid (close on 200K Baht, I gather), and then doesn't submit a balance sheet or any other paperwork for the company for three years then the DBD will strike the company off. I'm pretty sure he assumes this will not cost him anything.

My knowledge of Thai companies is minimal. However I do think that one is supposed to close down companies that no longer function. Whether that actually happens or not is another matter, of course, as is whether or not any penalty is ever applied for not doing it.

And I can see that accountants/lawyers could well have an ulterior motive for telling clients that closing the company is a requirement.

[jpduggan]

Don't be a fool. 10,000 per year is better than having nothing!

[BritManToo]

On 8/11/2019 at 3:33 AM, Tonyt00 said:

Has anyone transferred their company owned property to Thai wife or girlfriend?

Tax is lower for property transfers between family members.

But not for a Company, and not for a girlfriend.

[crazykopite]

For the sake of 10k for accounts keep it, if you sell it to your GF it will cost a lot in in sales tax and then to close your company down is also expensive . What happens if you sell it to your GF and within a year she dumps you it will cost you a lot more than 10k to rent . Don’t wish to be sarcastic but have you been sitting in the sun to long or been smoking something to strong if you want to get rid then sell it on the open market with the company to a foreigner it’s just a case of a simple transfer of shares.

[crazykopite]

25 minutes ago, KittenKong said:

My knowledge of Thai companies is minimal. However I do think that one is supposed to close down companies that no longer function. Whether that actually happens or not is another matter, of course, as is whether or not any penalty is ever applied for not doing it.

And I can see that accountants/lawyers could well have an ulterior motive for telling clients that closing the company is a requirement.

If he doesn’t close down his company he still has to pay his 10k per year accounts . To close down a company is very expensive best to sell it separately as a share transfer sale for about 15k to another foreigner the new owner then has his / her name put on it for a couple of 1000 baht 

[NightSky]

I think you are allowed to make considerable tax free gifts to a spouse but not sure about a G/F.

 

As a side note to close a company Ive just been quoted 25K Baht including final accounts and audit and winding everything up (all inclusive).

 

[crazykopite]

32 minutes ago, KittenKong said:

My knowledge of Thai companies is minimal. However I do think that one is supposed to close down companies that no longer function. Whether that actually happens or not is another matter, of course, as is whether or not any penalty is ever applied for not doing it.

And I can see that accountants/lawyers could well have an ulterior motive for telling clients that closing the company is a requirement.

6 minutes ago, crazykopite said:

If he doesn’t close down his company he still has to pay his 10k per year accounts . To close down a company is very expensive best to sell it separately as a share transfer sale for about 15k to another foreigner the new owner then has his / her name put on it for a couple of 1000 baht 

Bad Bad idea think your friend is being led into a trap if he dies the company will go to his wife anyway as for taxes since when  has taxes been collected on properties a friend did something similar signed the property over to his wife 1 year later he was shown the door with a new fella moving in and there was nothing he could do but to swallow his pride and go back home.

[natway09]

You will get all the "don't do it" brigade on here but I know many guys who have done this with their apartments so as to ensure she gets it wth no hassles after death & I agree.

You can fudge the sale price a bit but there will be a transfer payment required

[khunPer]

On 8/10/2019 at 10:33 PM, Tonyt00 said:

If I transfer it to gf, what will the transfer cost...

What is the Land Office's appraised value?

Say the value has doubled in 10-years from 1.2 million baht to 2.4 million baht – that's less than 10 percent increase a year, only about 7% – then your transfer costs could be around 150,000 baht, as the company will sell the property to your girlfriend.

 

Tax calculator here.

 

In theory the money is company income, if the company is owner and seller...

[TG911]

3 hours ago, jpduggan said:

Don't be a fool. 10,000 per year is better than having nothing!

Why, it's in her village ... it's her's already. (if I read the OP correctly)

 

He's not going to live there alone, or with another girl, if anything changes in future. And no one is going to buy it either.

 

Better safe 10k per year and let it go the way it goes. Reduce your expenses, risk mitigation, it makes sense financially

 

Let her pay the cost of transfer, at least. That's not much for owning a house. I wish someone would offer this to me, and 

I'm more than happy to cover the transfer costs ????

 

If it would be a condo, I would say keep it on your name and pay those 10k yearly company admin fees. But for a condo you don't have to, it's on your name already, no company needed. 

 

It's always the same things coming up later, one point in time ... you took the red pill or blue pill? ???? 

 

 

 

[emptypockets]

Make an honest woman of her. Do the right thing and marry the girl. You may at least get something back if the relationship goes belly up.

[Stevemercer]

As someone previous suggested, get the Land Office to make an appraisal. Their appraisal will be very pessimistic (normally one quarter of the price a seller might ask for) and do the deal at this price to keep transfer costs low.

[TG911]

47 minutes ago, emptypockets said:

Make an honest woman of her. Do the right thing and marry the girl. You may at least get something back if the relationship goes belly up.

5555 How does marriage make it better? 

 

If it's a house in her village, it's not yours, it's her's. Safe any future costs. Better for your bank account.

 

If it's a house somewhere in a more popular area, with more potential buyers around, keep it on your name, pay the 10k admin fees per year and sell it at least for half price if you have to.

 

How difficult of a decision can it be. Your advise was the worst of the day ???? Unless you were joking, sarcasm, and it flew just right over my head ???? Oh, just see your nickname is empty pockets. It was sarcasm, sorry I missed it! Too funny ????

 

 

 

[TG911]

People are non stop complaining about tightening immigration rule requirements, but never change to push all the Baht's up a Thai girls bum, just like that. No problem.

 

There you go honey, a 2 million property on your name. Everybody happy. And I safe 10k company fees per year. Really?

 

Funny reading all of this over the years. Amazing Farangs in Thailand ????

 

Get a grip on yourself and your wallet!

 

 

 

 

[TPI]

For god's sake man don't do it! 10K a year is chicken feed!

[wisperone]

Leave it to her in your will. Just don't tell her. You can always do something different later if you choose. Go on with your life as is.

[DJ54]

Is it a house with land or condo? 

[TG911]

They always say, the older you get the wiser you will be, but I can't really see it looking around me here in Thailand.

All pussy whipped, one way or another.

 

Stupid Farangs ????

 

 

[jimn]

I did what you are suggesting a few years ago and transfered house to my wife.

 

Close company 10,000 baht

Transfer land/house 180,000 baht

 

Expensive but I got fed up with paying 10k per year for false company accounta and the yearly letters asking me to prove the company was real.

[Tomahawk21]

13 hours ago, TG911 said:

Why, it's in her village ... it's her's already. (if I read the OP correctly)

 

He's not going to live there alone, or with another girl, if anything changes in future. And no one is going to buy it either.

 

Better safe 10k per year and let it go the way it goes. Reduce your expenses, risk mitigation, it makes sense financially

 

Let her pay the cost of transfer, at least. That's not much for owning a house. I wish someone would offer this to me, and 

I'm more than happy to cover the transfer costs ????

 

If it would be a condo, I would say keep it on your name and pay those 10k yearly company admin fees. But for a condo you don't have to, it's on your name already, no company needed. 

 

It's always the same things coming up later, one point in time ... you took the red pill or blue pill? ???? 

 

 

 

you read it incorrectly, it says ( in a village )

[justin case]

so she wants to GIFT it ????

[TG911]

2 hours ago, Tomahawk21 said:

you read it incorrectly, it says ( in a village )

And your point is?

 

If it's in 'a village', in a more popular area with more potential buyers ... keep it on your name and pay those small 10k fees. And sell it off for a sparkling discount if you have to. At least money back into 'your' pocket.

 

It's a no brainer ... unless you have no brain

 

 

[TG911]

5 hours ago, jimn said:

Expensive but I got fed up with paying 10k per year for false company accounta and the yearly letters asking me to prove the company was real.

Congratulations, less hassles and no yearly fees, but realistically, house gone. You never know your future and what can happen.

 

It could be her fault, kicking you out, it could be your fault, finding someone else, it could be no ones fault, a car accident (hope this will not happen).

 

If it's on your name, you wife will always have access to your house, she's a Thai in Thailand ... (or you simple state this in your will)

 

Now you have no leg to stand on if anything unexpected happens.

 

In any case, now she has exclusive access, and you zero. The only thing left for you is having to sell the house within a year (try that), should anything happen to her.

 

 

 

[TG911]

The point is, the law's and rights to own property in Thailand are already quirky and difficult enough, and against you, as they are.

 

Why give up your last bit of control you have, voluntarily?  ... and pay expensive transfer fees on top, to get you out of any power of your own home?

 

It just doesn't make any sense. You just shoot yourself in your own leg. 

 

[Tomahawk21]

1 hour ago, TG911 said:

And your point is?

 

If it's in 'a village', in a more popular area with more potential buyers ... keep it on your name and pay those small 10k fees. And sell it off for a sparkling discount if you have to. At least money back into 'your' pocket.

 

It's a no brainer ... unless you have no brain

 

 

my point is

Why, it's in her village ... it's her's already. (if I read the OP correctly)

 

He's not going to live there alone, or with another girl, if anything changes in future. And no one is going to buy it either. and ur so clever right ? 555