Will Thai condo sales to foreigners become seasonal because of tax enforcement??

[Jingthing]

Correct me if I'm wrong, but here goes.

For a foreigner to buy a Thai condo, she must import the funds from abroad.

It is my understanding that if the foreigner is a Thailand tax resident during the year of such large imports, they will be tax liable for that transferred in money (according to the specific sources of the money) if they are a Thai tax resident that year.

Yes there is the exclusion of being able to bring in BANKED money up to December 31, 2023 anytime later even if a tax resident without Thai tax consequence, so for those with condo funds like that, of course that would be OK.

But assuming going forward, most imported money for condos will not be exempted for that as that kind of money will eventually be drained for most.

So given that, it would be rather crazy to be a Thai tax resident during such a purchase year if there is any choice.

So people MOVING to Thailand will likely purchase their condos in the second half of the year only, waiting to move to Thailand long enough to NOT be tax resident that year (the 180 day rule). 

Other people buying at different times may find it wise to be away during that year over 180 days.

But it seems to me the new to Thailand buyers would be more predictable, causing a seasonal bulge in demand for the second half of the year.

Won't this be a major downer for the condo market segment that caters to foreigners overall if it becomes much more seasonal?

Never mind this if transfers to buy condos are exempt already, but if they're not exempt, shouldn't the real estate industry be lobbying to make them exempt?

[scubascuba3]

Looks like guys with Thai wives and girlfriends will just suck it up, they are going nowhere, the rest of us can do anything and live away 6 months a year, that can be any time. Maybe better to have another life elsewhere for 6+ months. Ridiculous taxing money for a condo, car etc as income 

[Yumthai]

9 hours ago, Jingthing said:

Never mind this if transfers to buy condos are exempt already, but if they're not exempt, shouldn't the real estate industry be lobbying to make them exempt?

When they'll feel the drop in the property market, it's highly probable rules will timely be made to exempt foreign remitted money for investment purpose from tax.

[Jingthing]

3 hours ago, scubascuba3 said:

Looks like guys with Thai wives and girlfriends will just suck it up, they are going nowhere, the rest of us can do anything and live away 6 months a year, that can be any time. Maybe better to have another life elsewhere for 6+ months. Ridiculous taxing money for a condo, car etc as income 

Well the import money thing is one time on purchase.

For expensive condos of course the tax bracket would be high. 

I think a foreigner can import the money to a Thai to gift the real estate in the Thai's name without import tax but then you don't own it. 

[chiang mai]

I expect funds used to buy property will be exempt, subject to a minimum holding period of say 5 years or more.

[Jingthing]

4 minutes ago, chiang mai said:

I expect funds used to buy property will be exempt, subject to a minimum holding period of say 5 years or more.

I don't think it is exempt NOW unless someone can rebut that.

 

[Jingthing]

57 minutes ago, Yumthai said:

When they'll feel the drop in the property market, it's highly probable rules will timely be made to exempt foreign remitted money for investment purpose from tax.

I guess that depends on the economic impact and power of real estate industry lobbyists,

As said for those moving to Thailand there already is that fairly easy loophole of timing your move. Also for wealthy foreigners there is the tax exempt LTR visa.

[chiang mai]

7 minutes ago, Jingthing said:

I don't think it is exempt NOW unless someone can rebut that.

 

It isn't, I wrote that I expect it WILL be, as in, in the future.

[mdr224]

Like everything in thailand, it will not be enforced very well. So youll have people that get away with paying no taxes and then others that will be shafted. There will be no justice behind it

[ChipButty]

Down here in the south of Phuket it doesn't seem to be slowing down anytime soon, What is it with Russians and Condo's? I've just found out about a new project that will start soon, and judging by the offices they, built they are not messing about, no doubt the chainsaws will be starting soon as the land has all rubber tree's on there, 

[Jingthing]

7 minutes ago, mdr224 said:

Like everything in thailand, it will not be enforced very well. So youll have people that get away with paying no taxes and then others that will be shafted. There will be no justice behind it

Consider that someone making a very large transfer that will be subject to the highest tax bracket IF the person is a Thailand tax resident that year will likely be at the top of the file of potential audits if not reported. I think it would crazy to count on non enforcement in such cases.

[Jingthing]

1 minute ago, ChipButty said:

Down here in the south of Phuket it doesn't seem to be slowing down anytime soon, What is it with Russians and Condo's? I've just found out about a new project that will start soon, and judging by the offices they, built they are not messing about, no doubt the chainsaws will be starting soon as the land has all rubber tree's on there, 

I suppose most foreigners are not even aware of the new tax rules and why would sellers tell them? 

[henryford1958]

I guess you have to move to Thailand on the 2nd July and buy your property in the remainder of the year. Easy, if you know the rules. Does anyone know the rules yet?

[mdr224]

5 minutes ago, Jingthing said:

Consider that someone making a very large transfer that will be subject to the highest tax bracket IF the person is a Thailand tax resident that year will likely be at the top of the file of potential audits if not reported. I think it would crazy to count on non enforcement in such cases.

Regardless of the money owed, if someone doesnt want to pay it then they will find a way around it. The only ones left paying most likely are the ones that deserve it the least

[Yumthai]

3 minutes ago, Jingthing said:

Consider that someone making a very large transfer that will be subject to the highest tax bracket IF the person is a Thailand tax resident that year will likely be at the top of the file of potential audits if not reported. I think it would crazy to count on non enforcement in such cases.

IMO it's unlikely to happen. Can you imagine what will be the consequences on the property market and foreigner residents community the day such people will be audited, fined and required to pay 35% marginal tax rate on their RE purchase?

[chiang mai]

8 minutes ago, Yumthai said:

IMO it's unlikely to happen. Can you imagine what will be the consequences on the property market and foreigner residents community the day such people will be audited, fined and required to pay 35% marginal tax rate on their RE purchase?

Absurd comment.....no country bases it's real estate market on the premise that all sales to resident foreign buyers will not tax funds used to purchase real estate.

[Elkski]

If people are really going to be leaving for 6 months then 2 people can share a condo? And alternate when they are out of country. 

[CallumWK]

52 minutes ago, chiang mai said:

It isn't, I wrote that I expect it WILL be, as in, in the future.

 

You actually should have written, I EXPECT it will, because it is nothing more than a wild guess from your side, unless you have some credible sources

[chiang mai]

Many countries impose a foreign buyers surcharge or tax, if no minimum holding period exists, in order to deter speculation.

[CallumWK]

38 minutes ago, Jingthing said:

I suppose most foreigners are not even aware of the new tax rules and why would sellers tell them? 

 

You are taxed on income, but savings are exempt, so if you can prove it are savings you will not be taxed.

[chiang mai]

Just now, CallumWK said:

 

You actually should have written, I EXPECT it will, because it is nothing more than a wild guess from your side, unless you have some credible sources

I try not to shout and rely instead on members ability to comprehend English. But yes, minimum holding periods are not uncommon, google it.

[CallumWK]

Just now, chiang mai said:

I try not to shout and rely instead on members ability to comprehend English. But yes, minimum holding periods are not uncommon, google it.

 

Not uncommon in Thailand? Maybe it is you who lacks comprehension, because this is the Thailand forum, and the RD after almost a year hasn't even clearly explained what their rules are about taxation, but you expect them to act same as some civilized countries

[Yumthai]

19 minutes ago, chiang mai said:

34 minutes ago, Yumthai said:

IMO it's unlikely to happen. Can you imagine what will be the consequences on the property market and foreigner residents community the day such people will be audited, fined and required to pay 35% marginal tax rate on their RE purchase?

Absurd comment.....no country bases it's real estate market on the premise that all sales to resident foreign buyers will not tax funds used to purchase real estate.

Instead of posting an irrelevant comment can you answer the question or your crystal ball is not working today?

[jas007]

So they automatically assume any money remitted into Thailand is income earned that tax year, even if it wasn't? 

[StraightTalk]

1 hour ago, mdr224 said:

Like everything in thailand, it will not be enforced very well. So youll have people that get away with paying no taxes and then others that will be shafted. There will be no justice behind it

While it’s true that certain rules and laws in Thailand may not always be strictly enforced, I would be extremely cautious about transferring a significant amount of capital based on that assumption. The Thai Revenue Department could still impose substantial fines, and this isn’t something trivial like a minor traffic violation—it’s a serious financial matter.

[mdr224]

19 minutes ago, StraightTalk said:

While it’s true that certain rules and laws in Thailand may not always be strictly enforced, I would be extremely cautious about transferring a significant amount of capital based on that assumption. The Thai Revenue Department could still impose substantial fines, and this isn’t something trivial like a minor traffic violation—it’s a serious financial matter.

Avoiding it can be as simple as staying one day less than six months out of the year, as an example. Expats with families have no way around it, as an example of those that will be shafted

[chiang mai]

33 minutes ago, CallumWK said:

 

Not uncommon in Thailand? Maybe it is you who lacks comprehension, because this is the Thailand forum, and the RD after almost a year hasn't even clearly explained what their rules are about taxation, but you expect them to act same as some civilized countries

I didn't say in Thailand, I refer to the industry globally. In fact, the chair of the Thai real estate association called for such a tax about two months ago, so as to put Thailand on line with common practice.....you can Google that too.

[StraightTalk]

5 minutes ago, mdr224 said:

Avoiding it can be as simple as staying one day less than six months out of the year, as an example. Expats with families have no way around it, as an example of those that will be shafted

Yes, I agree. However, let’s not jump the gun just yet. I believe - and hope - that the Thai Revenue Department will issue a formal announcement in due course.

[CallumWK]

54 minutes ago, chiang mai said:

I try not to shout and rely instead on members ability to comprehend English. But yes, minimum holding periods are not uncommon, google it.

 

I googled it and can't find any credible results. Maybe you can provide a credible source for your unsustained claims

[chiang mai]

13 minutes ago, CallumWK said:

 

I googled it and can't find any credible results. Maybe you can provide a credible source for your unsustained claims

Bangkok post,  It was posted on AN quite recently, which is how I heard about it. Don't care you believe or not, you want it, go look for it