Payment for condo

[Ook]

Dear AN members,

 

Few questions here for a friend of mine regarding a purchase of condo.

What are the current requirements for funding and making the payment? He used to work and saved some money from employment in Thailand. So money will most likely come from employment in Thailand and savings abroad. Would this be possible? Or does the money have to come from abroad? And if so, does it need to be full amount in one transfer or can this be split over a few transfers instead? Also does the money have to come from the same bank account from purchaser or can there be also an amount coming from account of parents (part of a gift)? 

 

Last but not least, considering there's a new foreign income tax requirement active since 01 Jan 2024, would this mean I will be also taxed in Thailand on the amount that has been remitted?

 

A zillion thanks guys!

 

Best regards,

Ook

 

 

[Liverpool Lou]

26 minutes ago, Ook said:

Few questions here for a friend of mine regarding a purchase of condo ...
Last but not least, considering there's a new foreign income tax requirement active since 01 Jan 2024, would this mean I will be also taxed in Thailand on the amount that has been remitted?

"Few questions here for a friend of mine..."

"...would this mean I will be also taxed..."

What makes you ask if you will be taxed in respect of "your friend" bringing in funds?

[Ook]

Anyone info ???

[tomazbodner]

20 hours ago, Ook said:

Anyone info ???

Not from me. I used money earned in Thailand but I have PR. No idea about your case. Also no idea if any money you transfer into Thailand for buying a condo would get taxed...?

 

Just thinking about this last bit. Let's say (for easy numbers) that condo costs 1 million. And that personal tax bucket is (let's ignore deductions) at 20%. You transfer 1 million and get that paper from bank that 1 million was transferred from abroad. Can you use that paper to buy 1 million condo? Or would it be considered that amount is insufficient as you had to pay 200k in tax? Am I thinking too much? Probably...

[Delight]

 If the condo is in a company then you can pay the seller any way you please.

The land office is not affected by this transfer of ownership.

Of course this does not apply to a new condo.

 

In the regular way you have to submit a FET to the land office as part of the purchase process.

You bank will issue this FET but will only do as confirmation that the funds come in from abroad.

FET means  'Foreign Exchange Transfer' certificate .

 

As far as tax is concerned _the situation is not clear.

Some say the if you transfer funds from abroad direct to the developer -then no tax applies

That then begs the Q  -how do you obtain the FET -not clear

[MrJ]

FET can be "purchased" for a fee of 1% via banks and/or money exchanges 

[Delight]

7 minutes ago, MrJ said:

FET can be "purchased" for a fee of 1% via banks and/or money exchanges 

Is this 100% legal?

[BangkokHank]

On 6/5/2024 at 10:33 PM, Ook said:

Last but not least, considering there's a new foreign income tax requirement active since 01 Jan 2024, would this mean I will be also taxed in Thailand on the amount that has been remitted?

Don't worry. You will NOT be taxed on money remitted by your friend.

[MrJ]

2 hours ago, Delight said:

Is this 100% legal?

there is no prostitution in TH

[JBChiangRai]

A cautionary note for anyone buying any kind of property in a company.

 

Let's assume you have 49% of the shares and you have Thai nominees holding 51%.

 

You cannot leave the property in your will, because you don't own it.  It will have to be sold and 51% of the proceeds will go to the Thai nominees and the 49% will be distributed as you wished in your will.

[donx]

On 6/16/2024 at 8:05 AM, JBChiangRai said:

A cautionary note for anyone buying any kind of property in a company.

 

Let's assume you have 49% of the shares and you have Thai nominees holding 51%.

 

You cannot leave the property in your will, because you don't own it.  It will have to be sold and 51% of the proceeds will go to the Thai nominees and the 49% will be distributed as you wished in your will.

Why can't the 49% shares be willed? 

[JBChiangRai]

8 hours ago, donx said:

Why can't the 49% shares be willed? 

 

That may be possible, it is at risk if the other shareholders get to hear of it and lodge an objection.  It would be important that your will specifically mentioned the shares and not the property.

 

There was a case recently where a French lady left a house in a company to her Thai maid and the court said the property has to be sold and the 49% given to the maid.