Buying house for Thai daughter

[thai999]

Hi,

I would like to buy a house for my Thai daughter (4 year old). She has a passport from my home country as well. I am not married to the mother. The construction company told us that my girlfriend should buy the house for our daughter. Why can I not buy it for her? If I move money to my girlfriend, do we have to pay gift tax because we are not married?

Thanks for any help in advance!

[stigar]

I would never ever do that..just an advice..dont invest more then u can afford to loose

[VocalNeal]

I believe there is a minimum age for home ownership. Not sure what it is but it is not 4.

[BritManToo]

11 minutes ago, thai999 said:

The construction company told us that my girlfriend should buy the house for our daughter.

I'd choose a more co-operative construction company.

One which doesn't have any prior contact with your gf.

 

I've always suspected the guys saying 'no' have conspired with the Thai lady.

Edited October 11, 2021 by BritManToo

[userabcd]

Read this info of Sherrings they have posted on the web.

 

https://sherrings.com/gift-tax-law-in-thailand.html

 

Suggest you consult a qualified lawyer to get the info you need.

[mvdf]

3 minutes ago, stigar said:

I would never ever do that..just an advice..dont invest more then u can afford to loose

Why?? She's his daughter. He can give her anything he can afford to give or buy. Why is it a loss to give something to a daughter, whether he's married or not to her mother? I don't calculate when i give something to my children. I never see it as a loss. Love is never selfish.

 

[vinny41]

1. There is no law to limit the age of the owner of the land. So technically, your son could be the owner of the land. However, the land departments have a lot of discretion to accept or not transactions. Because your son is a baby, they might want the mother to be the owner first, and then, the mother can give the land to the child.

2. However, once a child is the owner of the land, a child can NOT lease it to anyone EXCEPT with the authorization of the Court. You will find these limitations about real estate and children at clause 1574 of the Thai Commercial and Civil Code. Yours is 1574 (1).

A lease between husband and wife might also be refused by the land department. Few years ago, it was easier, right now, the land department will normally agree on the registration of a usufruct but will refuse a lease between legal spouses.

https://www.thaicontracts.com/ask/28-other-questions/62-is-it-possible-to-buy-house-in-my-thai-son-s-name-and-then-lease.html

[stupidfarang]

Also note that a parent has legal control over a child until they are 20 years old, so your gf can sell the house even if it is in the daughters name. Maybe better to set up a company with you in control and have the ownership of the house passing over to the daughter when she is 20 years old (even if you have passed away). You as the father have no legal rights or say over your child in anyway or form. If you were married and had joint custody then you would have a legal say, yet once again even married things maynot go your way. Seek legal advice

[thai999]

11 minutes ago, userabcd said:

Read this info of Sherrings they have posted on the web.

 

https://sherrings.com/gift-tax-law-in-thailand.html

 

Suggest you consult a qualified lawyer to get the info you need.

I have read that already. As far as I understand it all the exemptions do not count for me and the 100m baht only counts in case of inheritance, not gift. Is that right?

[BritManToo]

5 minutes ago, stupidfarang said:

so your gf can sell the house even if it is in the daughters name.

Would point out under Thai property law, only a court order would allow the gf to sell her daughters house. And the courts never allow that sort of sale.

Edited October 11, 2021 by BritManToo

[thai999]

13 minutes ago, BritManToo said:

I'd choose a more co-operative construction company.

One which doesn't have any prior contact with your gf.

 

I've always suspected the guys saying 'no' have conspired with the Thai lady.

I chose the construction company, not her. My girlfriend was not even with me. The manager didn’t even know what the rules are, so they called in the land department office and asked what we have to do. The lady on the phone told her that my daughter can own the house but the money should come from the mother.

[KhunLA]

Silliest thing I've read in a long time.  Buying a house for a 4 yr old.

 

Buy yourself a condo, and if she is still in your life when she is 20 yrs old, give it to her.

[thai999]

3 minutes ago, KhunLA said:

Silliest thing I've read in a long time.  Buying a house for a 4 yr old.

 

Buy yourself a condo, and if she is still in your life when she is 20 yrs old, give it to her.

We want to live in a house, you understand? And I can’t own a house, but my daughter can. Of course there are some risks, I know that. But another option I don’t have. Leasing is not an option for me too.

[KhunLA]

3 minutes ago, thai999 said:

We want to live in a house, you understand? And I can’t own a house, but my daughter can. Of course there are some risks, I know that. But another option I don’t have. Leasing is not an option for me too.

I understand, do you understand how silly it is ?  Obviously you're not to confident in your relationship with the mother, since not married, and don't want to put it in her (mother's) name.  So why risk the finances at all.

 

Are you living in Thailand, or just a regular visitor ?  Long distances relationships usually fail.  Just a thought.  Mother is legal guardian, so daughter will not really own anything, in reality.  Mother tells the kid to sell the house, it's going get sold.  If mom wants to use it as collateral for a loan, that's going to happen also.

[thai999]

10 minutes ago, KhunLA said:

I understand, do you understand how silly it is ?  Obviously you're not to confident in your relationship with the mother, since not married, and don't want to put it in her (mother's) name.  So why risk the finances at all.

 

Are you living in Thailand, or just a regular visitor ?  Long distances relationships usually fail.  Just a thought.  Mother is legal guardian, so daughter will not really own anything, in reality.  Mother tells the kid to sell the house, it's going get sold.  If mom wants to use it as collateral for a loan, that's going to happen also.

I live here for 7 years, I am the legal father. But the risks you tell me are true and I am aware of that. I was married once, not planning to marry ever again. Not about the mother.

[Orinoco]

deleted, oops

 

Edited October 11, 2021 by Orinoco

[patman30]

dont speak to a builder, go speak to a lawyer
and see what your actual options are.

[Rampant Rabbit]

1 hour ago, vinny41 said:

the land departments have a lot of discretion to accept or not transactions.

Oh they WILL accept its  just  how  much they want to do it, years of experience with that through my Wife, corrupt as  hell

[thai999]

40 minutes ago, Rampant Rabbit said:

Oh they WILL accept its  just  how  much they want to do it, years of experience with that through my Wife, corrupt as  hell

Ok things like that really scare me off. I will think about it again. 

Just one more thing in general: If you move money to a Thai national (not family member), does he have to pay gift tax then? How I understand the law is that every Bath over the tax free income tax bracket is taxed at 10% gift tax or am I wrong? Is there really no tax exemption if I move for example 300,000b to a Thai national and it will be used to purchase something.

[1FinickyOne]

Bad idea that could be a total waste... but kind of you to be concerned. 

 

A home is a very personal item and you don't know at age 4 if you want a home in your village, or a condo in Bkk.. etc etc..

 

Keep the money well invested and when she is of age let her decide where she might best use that.

 

Maybe she might want to open a business... 

[steven100]

make sure you install the door handles much lower so she can reach them

[stupidfarang]

13 hours ago, thai999 said:

I live here for 7 years, I am the legal father. But the risks you tell me are true and I am aware of that. I was married once, not planning to marry ever again. Not about the mother.

you are the legal father on the birth certificate but if not married to the childs mother you HAVE NO legal rights. I have two children here and am not married so am in the same position and I checked it out with a friend who is thai and is Judge in the legal system here. 

[jimmym40]

Why don't you just send the money in to thailand and deposit in to your thailand bank account.     Then  at a later time, when needed, transfer whatever is required to your girlfriends bank.     Don't worry about any gift tax?

[LukKrueng]

15 hours ago, thai999 said:

Ok things like that really scare me off. I will think about it again. 

Just one more thing in general: If you move money to a Thai national (not family member), does he have to pay gift tax then? How I understand the law is that every Bath over the tax free income tax bracket is taxed at 10% gift tax or am I wrong? Is there really no tax exemption if I move for example 300,000b to a Thai national and it will be used to purchase something.

I don't know about gift laws, but many posts above give wrong information. 

1. There is NO minimum age for a Thai person to own property. As soon as a Thai child has a birth certificate he/ she can own property. 

2. When a Thai person buys property there is no need to show where the money came from. You either pay cash or cahier cheque, payment done at the land office usually. 

3. I only ever dealt with 2 land offices (6 transactions so far) and no problems were made, no bribes were asked for nor given. 

4. When a minor (under 20 years old) is registered as a property owner there are some restrictions and limitations such as: 

A. Property cannot be sold/ leased out/ mortgaged without family court approval. The court will only approve such requests if they are convinced that it is for the benefit of the child,  and AFAIK the courts are very strict about it. 

B. A guardian (adult) must be appointed for the property. The guardian does NOT have to be Thai, so you can be appointed as guardian. 

 

A separate issue: you mentioned you are registered as the legal father of the child. As you're not married, your name on the birth certificate carries no weight at all. Your parental rights must be granted by a family court or the district office - depending on the age of the child at the time of registration. But again, this has nothing to do with the issue of buying property under the child's name. 

 

Oh, regarding a lawyer - I never used one for any of the transactions or dealing with the land office. There's no need for it and it's a waste of money IMO.

Edited October 12, 2021 by LukKrueng
Typo

[stupidfarang]

18 hours ago, BritManToo said:

Would point out under Thai property law, only a court order would allow the gf to sell her daughters house. And the courts never allow that sort of sale.

You are correct, gf cannot sell the house (I was wrong) I just checked with my Thai friend who is a judge he confirmed cannot sell the house, If gf needs money to look after the child she can get with a loan, may need to get courts permission for the loan on the house 

 

[WhiteBuffaloATM]

Courts will simply not allow a child owner’s property here to be sold.period.

Heard farang / wife putting house in childs name with both parents legally attached somehow but makes no difference. back to first sentence. its done to avoid the thai wife otherwise having it all in her name and throwing out the farang husband who then loses the entire investment and his home……

[BritManToo]

8 minutes ago, stupidfarang said:

If gf needs money to look after the child she can get with a loan, may need to get courts permission for the loan on the house 

Would also point out you can't put a child in debt, no loans allowed on a property owned by a child.

[RafPinto]

Put the money you want to give her in a Share and Stocks account.

Buy shares in solid companies and reinvest the dividends (compount).

When she is 20, give it to her.

[thai999]

2 hours ago, LukKrueng said:

I don't know about gift laws, but many posts above give wrong information. 

1. There is NO minimum age for a Thai person to own property. As soon as a Thai child has a birth certificate he/ she can own property. 

2. When a Thai person buys property there is no need to show where the money came from. You either pay cash or cahier cheque, payment done at the land office usually. 

3. I only ever dealt with 2 land offices (6 transactions so far) and no problems were made, no bribes were asked for nor given. 

4. When a minor (under 20 years old) is registered as a property owner there are some restrictions and limitations such as: 

A. Property cannot be sold/ leased out/ mortgaged without family court approval. The court will only approve such requests if they are convinced that it is for the benefit of the child,  and AFAIK the courts are very strict about it. 

B. A guardian (adult) must be appointed for the property. The guardian does NOT have to be Thai, so you can be appointed as guardian. 

 

A separate issue: you mentioned you are registered as the legal father of the child. As you're not married, your name on the birth certificate carries no weight at all. Your parental rights must be granted by a family court or the district office - depending on the age of the child at the time of registration. But again, this has nothing to do with the issue of buying property under the child's name. 

 

Oh, regarding a lawyer - I never used one for any of the transactions or dealing with the land office. There's no need for it and it's a waste of money IMO.

I am the legal father granted by district office. 

If anybody knows the rules here for gift tax in general (giving money to a non family member to purchase something) please let me know. Don’t post links from all the sites which explain it, I read it already and as I understand it they have to pay gift tax of 10% for any baht you send to a non family member if it is over their 0% income tax bracket. 

[ThailandRyan]

19 hours ago, KhunLA said:

I understand, do you understand how silly it is ?  Obviously you're not to confident in your relationship with the mother, since not married, and don't want to put it in her (mother's) name.  So why risk the finances at all.

 

Are you living in Thailand, or just a regular visitor ?  Long distances relationships usually fail.  Just a thought.  Mother is legal guardian, so daughter will not really own anything, in reality.  Mother tells the kid to sell the house, it's going get sold.  If mom wants to use it as collateral for a loan, that's going to happen also.

Not Silly in the least.  It is his daughter and if he also has parental rights by doing the appropriate paperwork then who are you to make a judgement as you have.  Would you not ensure your children had a roof over their head or would you begrudge them just because you may have had a bad experience.