Buying a condo this year. Taxes?

[Bangkok Alex]

Hi everyone,

 

I apologize if it has been answered in other threads.

 

I am currently in the search for a new condo to buy in Bangkok.

 

From what I understand, I'll have to pay a 25% tax on the money i send here if I spend more than 180 days in Thailand in 2024.

 

Been living here a long time and not looking forward to spending 6 months abroad.

 

Can you please confirm if this is actually the case? French nationality if that even matters. 

 

I'm sorry if my post sounds naive, I haven't followed the tax news much as I didn't expect to purchase a new property until recently.

 

Also, I'm not interested in opening a company.

 

Thank you so much in advance.

[scubascuba3]

naively panicking about the 25%, maybe worry about something more worthwhile 

[WhatMeWorry]

Why buy a condo in Bangkok when so many condos are cheap to rent? Condos depreciate in Thailand as the Thais do not maintain their buildings. I made the mistake of buying a condo and really regret it. Live and learn I guess.

[msbkk]

6 minutes ago, WhatMeWorry said:

Why buy a condo in Bangkok when so many condos are cheap to rent? Condos depreciate in Thailand as the Thais do not maintain their buildings. I made the mistake of buying a condo and really regret it. Live and learn I guess.

It is not correct that buildings are not well maintained. It very much depends on the building. I bought one unit many years ago in a well maintained building and I am most happy with it. The value has definitely increased over the years as it is right in the central district. The good maintenance results however in high monthly common fees charged. And condos in Bangkok are not cheap to rent in my opinion. It all depends on location, size and standard (and maintenance as well).

[UWEB]

1 hour ago, Bangkok Alex said:

Hi everyone,

 

I apologize if it has been answered in other threads.

 

I am currently in the search for a new condo to buy in Bangkok.

 

From what I understand, I'll have to pay a 25% tax on the money i send here if I spend more than 180 days in Thailand in 2024.

 

Been living here a long time and not looking forward to spending 6 months abroad.

 

Can you please confirm if this is actually the case? French nationality if that even matters. 

 

I'm sorry if my post sounds naive, I haven't followed the tax news much as I didn't expect to purchase a new property until recently.

 

Also, I'm not interested in opening a company.

 

Thank you so much in advance.

That's correct. May be you have to pay Taxes on remitted Money to Thailand, may be not. If it's old savings prior to 01.01.24 you can transfer them Tax free to Thailand, is it income from this Year you have to pay taxes. But the amount of Tax is pending on the amount of Money you are transfer and your personal circumstances.(Thai Tax Resident,your Age,Married, etc)

There is a Thread from Mike Lister here on AN in the Finance Section, may be worth to have a look.

[Bangkok Alex]

29 minutes ago, UWEB said:

That's correct. May be you have to pay Taxes on remitted Money to Thailand, may be not. If it's old savings prior to 01.01.24 you can transfer them Tax free to Thailand, is it income from this Year you have to pay taxes. But the amount of Tax is pending on the amount of Money you are transfer and your personal circumstances.(Thai Tax Resident,your Age,Married, etc)

There is a Thread from Mike Lister here on AN in the Finance Section, may be worth to have a look.

Thank you for your post, I will look for that thread and hopefully it brings me the right answer

[Bangkok Alex]

1 hour ago, scubascuba3 said:

naively panicking about the 25%, maybe worry about something more worthwhile 

Can you please elaborate?

[ChaiyaTH]

Let's be real, who is gonna stay here if those taxes really are as they were introduced and enforced on people like us. It's would be insane to stay, unless earning almost nothing or for some other exceptions paying little to zero tax regardless when having to. I would pay less in my own country in Europe in that case + get all kinds of benefits. 

 

Would not worry too much about this with buying a condo for now. Not sure it is a smart time in general to buy property now though, I'd rent.

[J Branche]

Was this money you earned before or after Jan 1, 2024.

Can you prove this money was foreign sourced and earned prior to Jan 1, 2024?

https://www.rd.go.th/fileadmin/user_upload/lorkhor/newspr/2024/FOREIGNERS_PAY_TAX2024.pdf

Reference PDF Page 2 and Chart PDF Page 3.

Or Google thailand revenue department foreign-sourced income tax 2nd listing down

The way Interpret this clear statement is foreign sourced income earned Prior to Jan 1, 2024 is 0 No tax.

 

 

 

[J Branche]

5 hours ago, Bangkok Alex said:

Hi everyone,

 

I apologize if it has been answered in other threads.

 

I am currently in the search for a new condo to buy in Bangkok.

 

From what I understand, I'll have to pay a 25% tax on the money i send here if I spend more than 180 days in Thailand in 2024.

 

Been living here a long time and not looking forward to spending 6 months abroad.

 

Can you please confirm if this is actually the case? French nationality if that even matters. 

 

I'm sorry if my post sounds naive, I haven't followed the tax news much as I didn't expect to purchase a new property until recently.

 

Also, I'm not interested in opening a company.

 

Thank you so much in advance.

My advice as a Real Estate Investor and Landlord is Do Not Buy 1st.

Rent a similar unit in the building.  Any thing you like or dislike about this Condo will become clear only when living in building.  The transfer tax is paid each time condo sells so unless you have plenty of money and okay with possibility of renting out condo, Rent First.  Additionally if you are going to be in Thailand long time, Do not be in a rush to Rent or Buy.  Low Season may offer more availability.

[Bangkok Alex]

Thank you all for your advices.

 

I have been in Thailand close to 17 years. I used to buy and resell condos in the past here and still own a few.

 

I have been renting for myself since a year ago as I didn't want to invest here anymore. But the unit I am living in right now makes me really happy (been here 6 months) and I am considering buying it or a similar one within the building that I really love. It will be for long term living.

 

The money i earned was before 2024 and I should be able to prove it as it came from the sale of assets back in France.

 

I will get deeper into it to make sure I don't make any mistakes.

 

Any further tips or advices are always welcome!

[Delight]

 The following is my understanding.

 

You will pay tax on the income from overseas which you declare.

 

You can legally not declare funds for the purchase of a condo.

 

Also

 

Any tax paid in your home country will be classed as a credit  . This will reduce your liabilities in Thailand.

 

 

 

[RobertJNerder]

I thought on the contrary you must declare foreign funds remitted to Thailand for the purchase of a condo?

 

Tax credit probably only in case a double taxation agreement exists. For France this should be the case.

[Mike Lister]

8 hours ago, Delight said:

 The following is my understanding.

 

You will pay tax on the income from overseas which you declare.

 

You can legally not declare funds for the purchase of a condo.

 

Also

 

Any tax paid in your home country will be classed as a credit  . This will reduce your liabilities in Thailand.

 

 

 

There is no exclusion for funds intended to buy real estate and you cannot legally not declare remitted income

[Mike Lister]

A fair amount of incorrect information has been provided, I suggest you read the document linked below.

 

Any income earned prior to 1 January 2024 is free of Thai tax. If the funds you remit to Thailand to buy your condo are in that class of funds, you will pay no tax. 

 

 

[Bangkok Alex]

13 minutes ago, Mike Lister said:

A fair amount of incorrect information has been provided, I suggest you read the document linked below.

 

Any income earned prior to 1 January 2024 is free of Thai tax. If the funds you remit to Thailand to buy your condo are in that class of funds, you will pay no tax. 

 

 

Thank you so much for that. The money was earned a few years ago indeed.

 

I will read the link very carefully.