Confused and ignorant about transferring money to a Thai bank from abroad

[Hanaguma]

Title says it all.

 

I am planning to buy a condo, and send the cash from my bank in Canada.  About 2.2 million THB altogether.  

 

Now my bank offers free overseas transfers up to $50,000 CAD per day, so I would make two transfers. It takes about 2-3 days for the money to hit my bank account in Thailand (Bangkok Bank).  My question is whether this is the best way to transfer the money.  How do I get screwed using this method- bank fees for receiving the transfer? Poor exchange rate converting CAD to THB?  What will the catch be?   

 

I hear all over that using Wise is the way to go, but perhaps that is only for making monthly transfers of relatively low amounts. My case is just once and a relatively large amount.   So, advice and wisdom from those smarter than me would be appreciated!

[Mike Lister]

The funds for your condo purchase must be received in Thailand by your bank in foreign currency, NOT in THB plus you will need a Foreign Exchange Transaction form from your Thai ban to prove the transfer to the Land Office. For me, that rules out using WISE and means you should do a SWIFT transfer which means you can make the entire transfer in one go.

[KhunBENQ]

23 minutes ago, Hanaguma said:

How do I get screwed using this method- bank fees for receiving the transfer? Poor exchange rate converting CAD to THB?  What will the catch be?   

As above. Sent CAD in any case!
Conversion will be done at the receiving Thai bank (which one?).

The fee for that will be 500 Baht.

Exchange rates are not top end. Kasikorn e.g. shows 26.526 while currency market rate is 26.8883.

 

WISE: they offer special contact/advice for transferring high amounts.

Never tried so can't tell what it's worth.

[Stocky]

2 minutes ago, KhunBENQ said:

WISE: they offer special contact/advice for transferring high amounts.

Never tried so can't tell what it's worth.

Wise is peer to peer money transfer, matching someone's need for Canadian Dollars with someone else's desire for Thai Baht, so they won't be able to supply CAD in a Thai bank. Swift transfer is the way to go.

[Henryford]

Use SWIFT and transfer all in one go.

[Mike Lister]

26 minutes ago, KhunBENQ said:

As above. Sent CAD in any case!
Conversion will be done at the receiving Thai bank (which one?).

The fee for that will be 500 Baht.

Exchange rates are not top end. Kasikorn e.g. shows 26.526 while currency market rate is 26.8883.

 

WISE: they offer special contact/advice for transferring high amounts.

Never tried so can't tell what it's worth.

Plus an FET from WISE seems doubtfully

[delgarcon]

1 hour ago, Hanaguma said:

Title says it all.

 

I am planning to buy a condo, and send the cash from my bank in Canada.  About 2.2 million THB altogether.  

 

Now my bank offers free overseas transfers up to $50,000 CAD per day, so I would make two transfers. It takes about 2-3 days for the money to hit my bank account in Thailand (Bangkok Bank).  My question is whether this is the best way to transfer the money.  How do I get screwed using this method- bank fees for receiving the transfer? Poor exchange rate converting CAD to THB?  What will the catch be?   

 

I hear all over that using Wise is the way to go, but perhaps that is only for making monthly transfers of relatively low amounts. My case is just once and a relatively large amount.   So, advice and wisdom from those smarter than me would be appreciated!

So far, you haven't found anyone smarter than you on here, mainly guessers as far as I can see. Talk to Wise, talk to the banks and check the regulations with the land office before you do anything.

[Mike Lister]

2 minutes ago, delgarcon said:

So far, you haven't found anyone smarter than you on here, mainly guessers as far as I can see. Talk to Wise, talk to the banks and check the regulations with the land office before you do anything.

Maybe not smarter but certainly more knowledgeable on the subject!

[Hanaguma]

53 minutes ago, KhunBENQ said:

As above. Sent CAD in any case!
Conversion will be done at the receiving Thai bank (which one?).

The fee for that will be 500 Baht.

Exchange rates are not top end. Kasikorn e.g. shows 26.526 while currency market rate is 26.8883.

 

WISE: they offer special contact/advice for transferring high amounts.

Never tried so can't tell what it's worth.

Hi fellow refugee from Canuckistan!

 

For me, the money will be sent from Royal Bank of Canada to Bangkok Bank, at least that is the plan. Send in CAD and let Bangkok Bank do the currency conversion.    RBC says an International Money Transfer is free, takes 2-3 days to appear in the receiving bank, and can be up to $50,000 per day. 

[norbra]

If you are a Thai tax resident you are looking at an extremely high tax bill , this depends on the origin of your funds

[johnnybangkok]

DO NOT just transfer the money over before you have spoken to your bank as they will just give you the bog standard exchange rate. You can negotiate preferable exchange rates directly with your bank (I do it all the time with Bangkok Bank). If they refuse just shop around to see who is offering the best rate. Then tell your bank you will take your business elsewhere unless they match or do better.

The only caveat is how much they want your business. I use BB for my business as well as personal so they are always bending over backwards to accommodate. Just remember they are a business like any other business and should act accordingly.

 

P.S. Talking to the right person is also key.  

[Hanaguma]

2 minutes ago, norbra said:

If you are a Thai tax resident you are looking at an extremely high tax bill , this depends on the origin of your funds

Thanks for that. Fortunately, I am not a resident of Thailand for any purpose at the moment. Just looking for a refuge from winter, and eventually from the world. 

[Mike Lister]

1 minute ago, norbra said:

If you are a Thai tax resident you are looking at an extremely high tax bill , this depends on the origin of your funds

Not necessarily, it depends on the source of the funds he intends to use, when they were earned and the wording of the CAN/THAI DTA. That said, the op does need to consider this point, given that the tax laws have changed this year. Perhaps reading the following guide will help him better understand.

 

 

 

[gamb00ler]

1 hour ago, Hanaguma said:

Now my bank offers free overseas transfers up to $50,000 CAD per day, so I would make two transfers. It takes about 2-3 days for the money to hit my bank account in Thailand (Bangkok Bank).  My question is whether this is the best way to transfer the money.  How do I get screwed using this method- bank fees for receiving the transfer? Poor exchange rate converting CAD to THB?  What will the catch be?   

 

I hear all over that using Wise is the way to go, but perhaps that is only for making monthly transfers of relatively low amounts. My case is just once and a relatively large amount.   So, advice and wisdom from those smarter than me would be appreciated!

Don't assume that your bank's "free" transfers will be a good deal.  They may charge no fees but give you a haircut on the exchange rate.  Banks typically are not very charitable.

 

I would recommend that you use a single SWIFT transfer for the total amount you need.   Make sure your bank explains all fees that will be applied, including any by an intermediary bank.  The receiving Thai bank will also apply a fee of .25% which will be 500฿ for a 2.2M฿ transfer.

 

The money should be in C$ when it arrives at the Thai bank.  That bank will apply their TT Buying rate when converting to ฿.

 

If the money you're planning to send was in your possession prior to Jan. 1, 2024, there will be no Thai tax due.

 

 

 

 

Edited March 31 by gamb00ler

[ChaiyaTH]

2 hours ago, KhunBENQ said:

Exchange rates are not top end. Kasikorn e.g. shows 26.526 while currency market rate is 26.8883.

Ehh, that is about as reasonable as it gets.

[Chivas]

If it goes via Swift it lands at Telegraphic Transfer rate plus 500 Baht landing fee (for that size of transfer)

 

TT rate will be somewhat less than Wise's full interbank rate but then you have sending fees and has been mentioned will Wise provide the appropriate documentation for the Condo

 

Rare occasion where I'd suggest Swift would be better than Wise

[brianthainess]

3 hours ago, Hanaguma said:

Title says it all.

 

I am planning to buy a condo, and send the cash from my bank in Canada.  About 2.2 million THB altogether.  

 

Now my bank offers free overseas transfers up to $50,000 CAD per day, so I would make two transfers. It takes about 2-3 days for the money to hit my bank account in Thailand (Bangkok Bank).  My question is whether this is the best way to transfer the money.  How do I get screwed using this method- bank fees for receiving the transfer? Poor exchange rate converting CAD to THB?  What will the catch be?   

 

I hear all over that using Wise is the way to go, but perhaps that is only for making monthly transfers of relatively low amounts. My case is just once and a relatively large amount.   So, advice and wisdom from those smarter than me would be appreciated!

Seems pretty straight forward send in Canadian dollars,  Max I have been charged by Thai banks was 500b. It may also help to put message to bank 'do not exchange funds' as rarely but can happen it gets sent to a Holding bank here that exchanges it at their rate then forwards it to your bank, it has happened twice to me. Just saying.

[Lacessit]

2 hours ago, norbra said:

If you are a Thai tax resident you are looking at an extremely high tax bill , this depends on the origin of your funds

The above post assumes:

 

1/ The OP is a tax resident of Thailand.

 

2/ The funds are income, and not savings accumulated prior to January 1, 2024.

 

I have found transferring up to 40,000 AUD via SWIFT transfer gave me the sacred FET notation.

 

My bank in Australia charged me $30. Bangkok Bank exchanged the funds at 0.5 baht under the cross-rate.

 

I do all my transactions with WISE now, as I get charged a flat fee, and exchange for baht at the prevailing cross-rate. The OP should check if WISE transfers get a FET notation.

[Neeranam]

Join an exchange like Bitkub or Binance and send cryptocurrency. 

You can use Binance P2P to get cash straight into your Thai bank account. 

[Stocky]

20 minutes ago, Neeranam said:

Join an exchange like Bitkub or Binance and send cryptocurrency. 

You can use Binance P2P to get cash straight into your Thai bank account. 

The OPs buying a condo, so needs a bank Foreign Exchange Transaction form for the Land Office.

[JackGats]

6 hours ago, Hanaguma said:

Title says it all.

 

I am planning to buy a condo, and send the cash from my bank in Canada.  About 2.2 million THB altogether.  

 

Now my bank offers free overseas transfers up to $50,000 CAD per day, so I would make two transfers. It takes about 2-3 days for the money to hit my bank account in Thailand (Bangkok Bank).  My question is whether this is the best way to transfer the money.  How do I get screwed using this method- bank fees for receiving the transfer? Poor exchange rate converting CAD to THB?  What will the catch be?   

 

I hear all over that using Wise is the way to go, but perhaps that is only for making monthly transfers of relatively low amounts. My case is just once and a relatively large amount.   So, advice and wisdom from those smarter than me would be appreciated!

I do SWIFT transfers from my EU bank to my Bangkok Bank account. On the form I tick "I pay only my own bank fees". I also tick "send notice to receiver bank", whatever that means. 

 

Very important: I choose to send Euros, not Baht.

 

Thai banks are very fair compared to banks eg in Africa or South America. Good exchange rate, hardly any bank fees.

 

The first time I sent money to Thailand I transferred a low amount to test in case there was a screw-up somewhere.

Edited March 31 by JackGats
Vocab

[delgarcon]

49 minutes ago, Mike Lister said:

I did notice that he wasn't a tax resident, that was why I gave him a copy of the Thai tax guide, that I wrote so that he could assess his potential tax situation, if he happened to become tax resident.

That's a good one, of course you noticed😉

And for the first time this year, a poster makes my ignore list, well done that man.

 

 

 

 

 

[metisdead]

Some troll posts and inflammatory posts contravening our Community Standards and the replies have been removed.

[jaideedave]

6 hours ago, Hanaguma said:

Hi fellow refugee from Canuckistan!

 

For me, the money will be sent from Royal Bank of Canada to Bangkok Bank, at least that is the plan. Send in CAD and let Bangkok Bank do the currency conversion.    RBC says an International Money Transfer is free, takes 2-3 days to appear in the receiving bank, and can be up to $50,000 per day. 

FYI, I'm a retired Canuck here, I'm a non resident and have a non res account with CIBC.A few years ago they began offering (so called) free overseas money transfers.I began having my pensions sent to my Kbank account for a couple years.The amount that actually arrived here was about 60-70 Cdn $ less than sent.CIBC gave me a <deleted>ty ex rate. (hidden fee) I then found Wise. Now the upfront fees are about 20$ using them.   

Follow "Lacessit"  suggestion and enquire around. See if Wise can provide the FET paper. Do your homework as it will pay off.

[treetops]

Several comments on FETs here and whether Wise can supply them. The answer is on Wise' website and is no they can't, as they are not authorised to do so.

 

That doesn't rule them out of the equation though as the FET would be available from the partner bank used by Wise.

 

https://wise.com/help/articles/2932335/guide-to-thb-transfers

 

[Tom100]

https://www.samuiforsale.com/condominium/foreign-exchange-transaction-form.html

 

 

[Thaibeach]

Watch out for RBC. It might sound like it's free, but it's not! Here's their strategy, which will only be revealed to you as you start processing the transaction:

• they convert your funds from CAD to USD at a horrible rate 
• they transfer USD to your Thai bank, where you may or may not be subject to a bad/decent/fair rate

That first step means that you effectively lose 2.5% (or more), so there are a bunch of better ways than RBC.

 

Not as popular here as some methods, but I use XE.com, which gives a very fair conversion directly to THB and charges no additional fees. They link directly to your bank account if you set it up that way. They're a little slower than some other methods (usually a week from start to finish).

 

I cannot speak to the implications of the money arriving to your bank in THB, which is how XE delivers.

 

Ultimately, my advice is just to avoid RBC. They suck.

[scorecard]

On 3/31/2024 at 10:29 AM, Henryford said:

Use SWIFT and transfer all in one go.

And ensure the sending bank add a comment re purpose of transfer: 'buy condominium'

[Srikcir]

Does Canada have a double tax treaty with Thailand?

 

The Thai government has signed double tax agreements with many countries worldwide, including the United States, Canada, France, the United Kingdom, Singapore, etc.Jan 30, 2566 BE

 

https://www.belaws.com › thailand

 

Double Tax Agreements in Thailand, What you need to know. - Belaws

 

If you stay in Thailand an aggregate of 180 days you will be considered a Thailand resident and possibly subject to income tax on currency transfers to Thailand. So check your tax status. There are other exceptions than described in a tax treaty. 

 

 

[scorecard]

3 hours ago, Srikcir said:

Does Canada have a double tax treaty with Thailand?

 

The Thai government has signed double tax agreements with many countries worldwide, including the United States, Canada, France, the United Kingdom, Singapore, etc.Jan 30, 2566 BE

 

https://www.belaws.com › thailand

 

Double Tax Agreements in Thailand, What you need to know. - Belaws

 

If you stay in Thailand an aggregate of 180 days you will be considered a Thailand resident and possibly subject to income tax on currency transfers to Thailand. So check your tax status. There are other exceptions than described in a tax treaty. 

 

 

And still not clear is whether the Australian Old Age Pension, transferred to Thailand, is exempt from Thai personal taxation, especially where the recipient has no other income.