Foreign Exchange Transaction Form

[Arndt777]

We intend to buy a condo in Hua Hin. We have been informed, that will have to show a Foreign Exchange Transaction Form to the Land Department. 

 

So far I have transfered money from by German account to my account at Bangkok Bank in Hua Hin via Transferwise. I am very satisfied with Transferwise, because they are reliable, fast and cheap. And their exchange rate is always very good.

 

But I doubt that it is wise to transfer the purchase price for a condo with Transferwise. As far as I know, they use an intermediary in Thailand. So I assume that Bangkok Bank will receive the amount in THB. And therefore they might not give us the required Foreign Exchange Transaction Form.

 

So, is a bank to bank transfer the only way to receive the Foreign Exchange Transaction Form? I don't like this kind of transaction, because the costs are substantial, and the exchange rate is a black box.

 

Or has someone managed to receive a Foreign Exchange Transaction Form after using Transferwise or other alternative transfer methods?

 

[Moonlover]

Sorry to reinforce  your fears, but you right about TransferWise regarding FETs.

 

When I did my extension recently, I was able to get these docs from Krungsri for my direct pension deposits, but not for T/W deposits. I had to rely on the T/W transfer slips that they issue with each transaction.

 

Given that you should be able to provide a complete 'paper trail' of the transfer from your home bank to you account here via T/W, I would have thought that that would be sufficient evidence, it was for the Immigration officer.

 

But as you know, bureaucracy here tends to 'run on rails' the Land Department might not be so cooperative. I would suggest you do a dummy run with them by demonstrating with a small amount that you can prove your case, before committing to the 'big one'.

 

There is also this much talked about FFT coding which indicates a foreign deposit. Doesn't that apply to Bangkok Bank?

 

Good luck. hope it works out for you.

 

 

[Arndt777]

I will follow your advise. Right now I am in Germany. But I will involve a lawyer who was already helping me with other issues.

 

I also just made a test transfer from my German bank to Bangkok Bank in order to see whether it will show up as foreign transaction.

[Arndt777]

Hhm. 

I tested a transfer bank to bank versus the use of Transferwise with 100 €.

The bank to bank transfer from by German Sparkasse to Bangkok Bank took two days (very fast). I had to pay additional costs of 10 € to my German bank. The 100 € have been exchanged to 3100 THB. The transaction showed up as international transfer in my Bangkok Bank account.

The transfer by TransferWise took two days, too. I had no additional costs to be paid to my German bank. The 100 € have been exchanged to 3300 THB. The transaction showed up as interbank transaction in my Bangkok Bank account.

So, from a financial point of view, the bank to bank transfer is no good choice to transfer money for the purchase of real estate. But the use of TransferWise is not regarded as international transfer.

I have to discuss this with the Land Department.

[Lebua]

The Transfer must be in Foreign Currency!!!

I will follow your advise. Right now I am in Germany. But I will involve a lawyer who was already helping me with other issues.
 
I also just made a test transfer from my German bank to Bangkok Bank in order to see whether it will show up as foreign transaction.

[Arndt777]

Yes, but what does this mean?

 

How has the transaction to be done exactly? Which transfer method do you recommend?

[The Fat Controller]

Using Transferwise from the UK, the maximum you can transfer at one time is 2 million Baht.

 

Using TW and making sure that it is recorded as a foreign transaction with Bangkok Bank requires you to select the correct reason for transfer "For long stay in Thailand" which people need for visa issues, so not sure this would work for a condo purchase.

 

There is a lot of discussion on the TW issues on this Facebook group, "TransferWise Solutions"

 

https://www.facebook.com/groups/TWSOL/

 

Your best bet is to make one SWIFT transfer for the whole amount in your HOME currency from your bank.