Tayida Posted May 10, 2022 Share Posted May 10, 2022 1) How it works if i want buy a condo from a Thai person? 2) What about taxes? Thank you. Link to comment Share on other sites More sharing options...
Peterw42 Posted May 10, 2022 Share Posted May 10, 2022 Foreigners can only buy 49% of any condo block, "the foreign quota". If a condo is already owned by a Thai person, its in the 51% thai owned half of the block. It would depend if there is foreign quota available (less than 49% already foreign owned) if you could purchase it as a foreign quota condo. If quota available in the block, its a straight forward normal sale. Transfer fees and taxes are around 2-5% (depending on seller circumstances) and usually shared 50/50, buyer seller. Link to comment Share on other sites More sharing options...
The Hammer2021 Posted May 10, 2022 Share Posted May 10, 2022 It works just the same as if you were burying off a foreigner Link to comment Share on other sites More sharing options...
Popular Post tomazbodner Posted May 10, 2022 Popular Post Share Posted May 10, 2022 (edited) Depends where you're buying. There's not much of a difference from buying as a Thai, but here's the procedure: - the juristic office will need to provide 2 letters, one is that the unit is free of debt and the other will be the list of all foreign owners with percentage of residential space they occupy (it's a table with owner name, nationality, size of unit in m2, and % of total space). With your unit included, the % must not exceed 49% of total residential space. - if you have PR you don't need this, but if you don't, you will need to transfer funds from abroad and get a slip from bank to attest to that - you would sign a contract and pay down-payment, probably stating in contract that the rest would be paid in 30 days or alike - If seller has a bank loan, you will need to get information on how much bank loan is outstanding. You would make cashier's cheque for outstanding loan to the bank's name, and the rest for the seller (and if any agent is involved, separate agent cashier's cheque) - On the day of transfer at the land department for the area, seller (and bank, if any involved) would meet up with all this paperwork, and inspected by the officer, and then type up official transfer document and update chanote. At that time you would pay taxes (2%, usually split 50/50), and if seller had property less than a year, a business tax (usually that's seller's responsibility). Pay that cash as there's fee to cash cashier's cheque. - You would get chanote and the transfer paper - The unit is now yours, and you'll need to go to EGAT office to change the name on the electricity meter to your name, and pay meter deposit - You would then inform the juristic office of condo that you are now owner of unit and present the paperwork so they register you in their system for the maintenance fees, voting rights, parking / entrance cards, condo apps etc. and remove the previous owner. If you have PR you do not need to get funds from abroad. Else it's the same procedure. You can also get bank loan to buy unit, in which case it's just like taking normal loan, but the difference would be at land department, you will only get copy of chanote, while the original will be kept with the bank until loan is paid off. Once all this is done, you can go to khet and put your name in yellow book (no PR) or blue book (PR) and get your pink ID card. Edited May 10, 2022 by tomazbodner clarification for first sentence: only areas extremely popular with foreigners would have challenge with exceeding 49% foreign quota 3 Link to comment Share on other sites More sharing options...
Delight Posted May 12, 2022 Share Posted May 12, 2022 Given that the foreign allocation is used up -and you do not wish to buy it in a Thai name -then the only option that I can think of is to put it into Thai company. Pros Very cheap when selling-no transfer fees. Much simpler and much lower cost should you wish to bequeath the apartment to a foreigner Cons The company has to be audited ever year . About 10,000 Baht Will the government outlaw the practice? I attach a document giving more detail of the procedure property via company - no third parties.docx Link to comment Share on other sites More sharing options...
scubascuba3 Posted May 12, 2022 Share Posted May 12, 2022 17 minutes ago, Delight said: Given that the foreign allocation is used up -and you do not wish to buy it in a Thai name -then the only option that I can think of is to put it into Thai company. Pros Very cheap when selling-no transfer fees. Much simpler and much lower cost should you wish to bequeath the apartment to a foreigner Cons The company has to be audited ever year . About 10,000 Baht Will the government outlaw the practice? I attach a document giving more detail of the procedure property via company - no third parties.docx 11.25 kB · 0 downloads Quite a big con if you sell the property out of the company, the cost is written down every year so when you sell there's much greater profit which you pay tax on Link to comment Share on other sites More sharing options...
Yellowtail Posted May 17, 2022 Share Posted May 17, 2022 On 5/12/2022 at 11:30 AM, scubascuba3 said: Quite a big con if you sell the property out of the company, the cost is written down every year so when you sell there's much greater profit which you pay tax on How does a company profit by selling an asset for the same or less than the book value? Link to comment Share on other sites More sharing options...
scubascuba3 Posted May 17, 2022 Share Posted May 17, 2022 3 hours ago, Yellowtail said: How does a company profit by selling an asset for the same or less than the book value? what's your definition of book value? Link to comment Share on other sites More sharing options...
Peterw42 Posted May 17, 2022 Share Posted May 17, 2022 3 hours ago, Yellowtail said: How does a company profit by selling an asset for the same or less than the book value? Because there is depreciation applied each year of ownership. Look up thai withholding tax, its a complex formula that involves years owned, depreciation etc. Link to comment Share on other sites More sharing options...
Yellowtail Posted May 17, 2022 Share Posted May 17, 2022 8 minutes ago, scubascuba3 said: what's your definition of book value? The value of the asset as listed in the company's book. For example, is a company buys an asset, it is listed with the rest assets at the full cost. The next year, the value would change to the cost minus one year's depreciation, and the year of depreciation could be deducted as an operation cost. Link to comment Share on other sites More sharing options...
scubascuba3 Posted May 17, 2022 Share Posted May 17, 2022 3 minutes ago, Yellowtail said: The value of the asset as listed in the company's book. For example, is a company buys an asset, it is listed with the rest assets at the full cost. The next year, the value would change to the cost minus one year's depreciation, and the year of depreciation could be deducted as an operation cost. Right so the cost would reduce each year, it's likely the sales proceed would be greater but if not you lose either way Link to comment Share on other sites More sharing options...
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