Thai govt urged to ease rules on condo transfers for foreigners

[webfact]

File photo: REUTERS

 

The Thai government has been urged to ease the rules regarding money transfers for foreigners buying condos in Thailand.

 

Currently, foreigners are required to show proof of money transferred from overseas in order to buy a condo in Thailand.

 

However, Atip Bijanonda, vice-chairman of the Board of Trade of Thailand and honorary president of the Thai Condominium Association described the process as being complicated for foreign buyers.

 

He said that in some cases, foreigners living in Thailand, particularly those who ran businesses here, were required to transfer money out of the country and then back in order to meet the overseas money transfer requirement.

 

Mr Atip said the process presented an obstacle for foreigners wanting to buy property in Thailand. 

 

Mr Atip added that inbound money transfers for condo purchases should not be a concern for the Thai government.

 

Mr Atip also rejected claims that Thailand’s proposals to relax laws surrounding foreigners owning property in Thailand were treasonous. 

 

He said that Thai people were largely free to buy property in other countries without restrictions.

 

Thailand easing its restrictions on property ownership are one of several measures the Thai government is considering in order to attract a new wave of foreign expats.

 

Other measures include possible 10 year visas and allowing eligible foreigners to work in Thailand without needing a work permit.

 

Previously it had been reported that the government planned to attract one million foreigners to become expats in Thailand.

 

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[mokwit]

Everything here is so one sided - just nothing is equitable, only if a Thai/Thailand benefits. That in some ways is natural, but they take it to extremes - doesn't the money have to be converted onshore by a Thai bank to count for condo purchases? In other words a Thai bank has to get to wet it's beak (yes I know onshore rates are better, but that is not why they are making this requirement, so that you get a better deal, I mean, come on.....).

[lapamita]

old story i angry so long time about ( ok before 2016 you could solve it easy by fake docs)

 

when you sell legaly a condo in thai, get your tax receipt ( blue receipt-bill) from landoffice ( for buissenes tax and transfer tax) 

YOU CANT USE THIS AS PROOF TO BUY A NEW ONE, even the money is legally taxed. only choice send money out and send it back in , whats costing a lot of money in exchange and transfer fees

 

long ago , ok , was easy just buying a fake TT3 , whats today not possible more

[BKKTRAVELER]

About time they changed the draconian proof of funds from abroad. It makes no sense for expats working here. As mentioned above, makes also no sense if you're selling your condo and buying a new one.

[Pedrogaz]

I am sure you will sign a contract when you buy the condo that enables the developer or owner of the condo block to rape you and your family if you ever want to sell. Land is a pretty good investment here, but second hand property returns nothing, nada, zilch, NOTHING.

[Pravda]

Getting desperate

[klauskunkel]

2 hours ago, webfact said:

Mr Atip said the process presented an obstacle for foreigners wanting to buy property in Thailand. 

But what's more to the point: It presents an obstacle for Thai businesses and by extension the government to profit from foreigners wanting to buy property in Thailand (except banks, they always profit).

[BKKTRAVELER]

34 minutes ago, Pedrogaz said:

I am sure you will sign a contract when you buy the condo that enables the developer or owner of the condo block to rape you and your family if you ever want to sell. Land is a pretty good investment here, but second hand property returns nothing, nada, zilch, NOTHING.

Bought some units in Bangkok, Sukhumvit back in 2011, sold them in 2017. Made 30% profits after paying taxes and fees at land department and agent commission. Not crazy profits compared to some other big cities in that period of time, but not too bad either. Rented them for almost the whole duration and got just under 4% net per year after agency fees and yearly maintenance fees.

 

And I didn't get raped either luckily ????

Edited October 28, 2021 by BKKTRAVELER

[Kinnock]

As the rich get richer and the poor get poorer, the Thai middle class in shrinking - reducing domestic consumption.

 

Hence the calls to ease restrictions on land ownership and foreign funds.  Need to find ways allow Chinese, Indian and Middle Eastern buyers to spend their off-shored grey funds in Thailand.

[nobodysfriend]

2 hours ago, webfact said:

He said that Thai people were largely free to buy property in other countries without restrictions.

That is right and just shows how open minded foreign governments are .

Thai government appears narrow minded and xenophobic by sticking to quasi racist rules regarding foreigners who , after all , financially benefit the country .

 

[Jerno]

Finally someone in this inept govt proposing a common sense policy.  And who is the retarded moron that called it treasonous?  Sheesh!

[GeorgeCross]

48 minutes ago, Pedrogaz said:

I am sure you will sign a contract when you buy the condo that enables the developer or owner of the condo block to rape you and your family if you ever want to sell. Land is a pretty good investment here, but second hand property returns nothing, nada, zilch, NOTHING.

..strange, i must have imagined the 6 years free rent and 26% capital gain my last property returned.

 

(sold it to a thai family too)

 

[Chad3000]

Drop all proof of funds.

 

Certainly allow those employed in Thailand to show tax returns and use that full amount at minimum to purchase a condo.

 

Drop the stupid quota 51/49

 

Allowall interested parties to bring in money as they see fit also... provide a clear path to repatriate it.

 

Good move!

[hotchilli]

3 hours ago, webfact said:

He said that in some cases, foreigners living in Thailand, particularly those who ran businesses here, were required to transfer money out of the country and then back in order to meet the overseas money transfer requirement.

Thailand 50 years behind the rest of the world.

[hotchilli]

1 hour ago, BKKTRAVELER said:

About time they changed the draconian proof of funds from abroad. It makes no sense for expats working here. As mentioned above, makes also no sense if you're selling your condo and buying a new one.

Exactly, a long time Thailand resident with businesses over here and no business overseas needs to do this to buy property in the country they reside and work in.

Ridiculous red tape.

[rwill]

21 minutes ago, Jerno said:

Finally someone in this inept govt proposing a common sense policy.  And who is the retarded moron that called it treasonous?  Sheesh!

He does sound sensible.  He's probably due for some reeducation now.

[Pravda]

37 minutes ago, BKKTRAVELER said:

Bought some units in Bangkok, Sukhumvit back in 2011, sold them in 2017. Made 30% profits after paying taxes and fees at land department and agent commission. Not crazy profits compared to some other big cities in that period of time, but not too bad either. Rented them for almost the whole duration and got just under 4% net per year after agency fees and yearly maintenance fees.

 

And I didn't get raped either luckily ????

Completely irrelevant gloating post, but still I want to congratulate you as that was perfect timing. 

 

Did 30% profit also include baht appreciation during that time?

[spidermike007]

He said that in some cases, foreigners living in Thailand, particularly those who ran businesses here, were required to transfer money out of the country and then back in order to meet the overseas money transfer requirement.

 

Wait a minute. What this guy is suggesting would be progress. It would represent a smart move, and could actually boost the economy. And in addition, it would be something that actually helps, and does not hinder foreigners. 

 

Therefore, it will not happen. Creepy retrograde leaders defy wisdom, drag their feet like Neanderthals, when faced with an opportunity to improve things, especially for foreigners, and always choose the path of ignorance. That about sums up Prayuth. 

[JackGats]

Having too much cash piling up on my EU bank accounts, I was toying with the idea of buying a condo in TH. With so many hurdles however I have nearly given up the idea alltogether. Not being allowed to buy property on my terms is one of the reasons that might push me out of Thailand in the future.

[kiwikeith]

9 hours ago, mokwit said:

Everything here is so one sided - just nothing is equitable, only if a Thai/Thailand benefits. That in some ways is natural, but they take it to extremes - doesn't the money have to be converted onshore by a Thai bank to count for condo purchases? In other words a Thai bank has to get to wet it's beak (yes I know onshore rates are better, but that is not why they are making this requirement, so that you get a better deal, I mean, come on.....).

I do not understand this, if I was  to buy a condo in LOS ,I can sign the requires government transfer documents, to enable me to take money out from NZ to do this, its a legal transfer required by customs and banks for any amount over 10k NZ.

So if I transfer 4 million Bhat to Thailand to purchase a condo, what the hell is the fuss about.

The funds are clear , checked by ther nZ govt , clear of money laundering, what's the big deal here??

[mokwit]

2 minutes ago, kiwikeith said:

So if I transfer 4 million Bhat to Thailand to purchase a condo, what the hell is the fuss about.

The funds are clear , checked by ther nZ govt , clear of money laundering, what's the big deal here??

Where was it converted to THB from NZD? Perhaps those who know for sure will chip in, but as far as I remember it has to be converted ONSHORE to THB so that a Thai bank gets to make the fees and spread from conversion, not a foreign one offshore. If not, it doesn't count as a legitimate transfer for the purpose of condo purchase. If I wrong by all means someone says so provided you KNOW.

 

They don't care how the money was made, just that they get to wet their beaks.

[Eric Loh]

20 minutes ago, JackGats said:

Having too much cash piling up on my EU bank accounts, I was toying with the idea of buying a condo in TH. With so many hurdles however I have nearly given up the idea alltogether. Not being allowed to buy property on my terms is one of the reasons that might push me out of Thailand in the future.

Happy hunting for a foreign property on your terms. 

[kiwikeith]

9 minutes ago, mokwit said:

Where was it converted to THB from NZD? Perhaps those who know for sure will chip in, but as far as I remember it has to be converted ONSHORE to THB so that a Thai bank gets to make the fees and spread from conversion, not a foreign one offshore. If not, it doesn't count as a legitimate transfer for the purpose of condo purchase. If I wrong by all means someone says so provided you KNOW.

 

They don't care how the money was made, just that they get to wet their beaks.

I am not sure, money I have transferred is sent in NZD, so the NZ banks can not clip the ticket, then when it lands in LOS I get the Thai bank rate and it goes into my account, with a small fee, if I convert to Thai Bhat in NZ I get clipped by the NZ banks/ exchange which is quite expensive.

But I dont know if I could send 4 mill Thai Bhat this way, have it in my bank with all the supporting NZ documents, and then use these funds to buy a condo? please enlighten me, thanks???

[BKKTRAVELER]

41 minutes ago, Pravda said:

Completely irrelevant gloating post, but still I want to congratulate you as that was perfect timing. 

 

Did 30% profit also include baht appreciation during that time?

There was no gloating, trust me. Turns out I would have been better off investing in other things. I just hate when people start talking about that there is no chance to make money buying condos here. Granted, selling now would prove difficult, but real estate usually works in waves and it's bound to go up at some point. If you buy from a reliable developer, wait for 5+ years and sell when the market is good, chances are that you'll make money. As any investment should...

 

No, I did not include the appreciation, which I bought when the euro was around 42 baht. If you factor in the yearly inflation though, I guess I made a bit less than the numbers show.

 

Going back on topic, the current rules didn't encourage me to buy more condos with the money I got from the sales and I kept it instead and did other things. That is one flaw of the market here that I hope they'll correct.

[newnative]

   Helpful but relax the foreign quota while you're at it. 

[IamNoone88]

Its the whole "how to work with foreigners" from foreign investment, foreign ownership of companies to real estate investment that needs a complete overhaul. The entire commercial system is so far behind other competitive nations.

[Rampant Rabbit]

2 hours ago, Pedrogaz said:

but second hand property returns nothing, nada, zilch, NOTHING.

not  true, havent lost money on a single  cond0  Ive sold here in 16  years

[Rampant Rabbit]

1 hour ago, Pravda said:

Completely irrelevant gloating post, but still I want to congratulate you as that was perfect timing. 

 

Did 30% profit also include baht appreciation during that time?

Facts eh,  no  gloating

[mokwit]

20 minutes ago, kiwikeith said:

I am not sure, money I have transferred is sent in NZD, so the NZ banks can not clip the ticket, then when it lands in LOS I get the Thai bank rate and it goes into my account, with a small fee, if I convert to Thai Bhat in NZ I get clipped by the NZ banks/ exchange which is quite expensive.

But I dont know if I could send 4 mill Thai Bhat this way, have it in my bank with all the supporting NZ documents, and then use these funds to buy a condo? please enlighten me, thanks???

It is/used to be the way to send as your home currency via SWIFT was to demand they included as an instruction "remit as currency" which was theoretically to stop any correspondent banks converting it into THB along the way to make their spread - if you were sending to a USD account in Thailand you would then have to pay again as the Thai bank would convert back from illicit conversion to THB. If your NZ bank has a branch here that is less likely to be an issue.

 

What I can say for sure is that Thai bank onshore rates are [surprisingly] better than any rate you get offshore. I am pretty sure conversion to THB onshore is a requirement for it being accepted for condo purchase. I always thought you had to give "property purchase" as the reason for sending when transferring, but somebody who seemed to know more than me said this was not required.

 

Maybe start a thread with your concerns as there are people who have done this and can give better advice than me.

 

 

[vVDB]

A foreigner must be able to buy housing.

It is not a financial investment.

The foreigner must occupy it and not be able to rent it for more than 6 months per year.