Condo Ownership - A Business?

[ChiangMaiFun]

I know many, many people who own several condos and receive rents - and are on retirement visas - what's the position? anyone had a problem?

[JR Texas]

I know many, many people who own several condos and receive rents - and are on retirement visas - what's the position? anyone had a problem?

I tried to get people to answer this same question earlier.........no response. It seems to me that they are breaking the law. Maybe the police don't care.

[JR Texas]

I know many, many people who own several condos and receive rents - and are on retirement visas - what's the position? anyone had a problem?

I tried to get people to answer this same question earlier.........no response. It seems to me that they are breaking the law. Maybe the police don't care.

Interesting.........no answer to your question from those that know the law.

Interpretation: IT IS ILLEGAL TO OWN AND RENT OUT A CONDO FOR PROFIT WITHOUT HAVING A WORK PERMIT.

If true, a lot of foreigners are breaking the law. Maybe somebody will give us a definitive answer.

[flying]

I know many, many people who own several condos and receive rents - and are on retirement visas - what's the position? anyone had a problem?

I tried to get people to answer this same question earlier.........no response. It seems to me that they are breaking the law. Maybe the police don't care.

Interesting.........no answer to your question from those that know the law.

Interpretation: IT IS ILLEGAL TO OWN AND RENT OUT A CONDO FOR PROFIT WITHOUT HAVING A WORK PERMIT.

If true, a lot of foreigners are breaking the law. Maybe somebody will give us a definitive answer.

I have no idea but....It does seem to fall into a category that is grey even in the States.

For instance if you sell more than one car a year by law your suppose to get a dealer license. Do you think anyone does?

Do Falangs sell cars & bikes from time to time there? Do they need a permit?

Same for renting homes & apartments in the States but does anyone bother?

I am betting it is along the same lines in TL & who is that hurting anyway?

[JR Texas]

I know many, many people who own several condos and receive rents - and are on retirement visas - what's the position? anyone had a problem?

I tried to get people to answer this same question earlier.........no response. It seems to me that they are breaking the law. Maybe the police don't care.

Interesting.........no answer to your question from those that know the law.

Interpretation: IT IS ILLEGAL TO OWN AND RENT OUT A CONDO FOR PROFIT WITHOUT HAVING A WORK PERMIT.

If true, a lot of foreigners are breaking the law. Maybe somebody will give us a definitive answer.

I have no idea but....It does seem to fall into a category that is grey even in the States.

For instance if you sell more than one car a year by law your suppose to get a dealer license. Do you think anyone does?

Do Falangs sell cars & bikes from time to time there? Do they need a permit?

Same for renting homes & apartments in the States but does anyone bother?

I am betting it is along the same lines in TL & who is that hurting anyway?

You are seeing it from a common sense perspective. In Thailand common sense often does not apply.

A good example is the Tsunami event a few years ago. There were lots of well-meaning, hardworking "volunteers" that wanted to come here and help. But the govt. started insisting on work permits for them.

The visa rule changes over the past ten years have been expat unfriendly. I see no reason to assume that the bar will not eventually be raised on foreigners who rent out their condos to other foreigners for profit, and do so without a work permit.

No doubt, eventually, all the grandfathered in rules will be abrogated (that will be a reality check). They may even decide to ignore pensions as proof of income. Nothing would surprise me at this point. Good luck.......TIT

[ChiangMaiFun]

I know many, many people who own several condos and receive rents - and are on retirement visas - what's the position? anyone had a problem?

I tried to get people to answer this same question earlier.........no response. It seems to me that they are breaking the law. Maybe the police don't care.

Interesting.........no answer to your question from those that know the law.

Interpretation: IT IS ILLEGAL TO OWN AND RENT OUT A CONDO FOR PROFIT WITHOUT HAVING A WORK PERMIT.

If true, a lot of foreigners are breaking the law. Maybe somebody will give us a definitive answer.

I have no idea but....It does seem to fall into a category that is grey even in the States.

For instance if you sell more than one car a year by law your suppose to get a dealer license. Do you think anyone does?

Do Falangs sell cars & bikes from time to time there? Do they need a permit?

Same for renting homes & apartments in the States but does anyone bother?

I am betting it is along the same lines in TL & who is that hurting anyway?

In the UK people buy and sell houses - and rent houses out - they are never classified as a 'business' now tax is a different thing but notpart of this debate. If they ever decided to classify as such 1000s of us would have a real problem - I doubt this will ever happen but interesting to hear views.

[cat5]

In the UK people buy and sell houses - and rent houses out - they are never classified as a 'business' now tax is a different thing but notpart of this debate. If they ever decided to classify as such 1000s of us would have a real problem - I doubt this will ever happen but interesting to hear views.

I think you are talking about where people sell their home (or "principal residence") which is not what the original poster is talking about.

[ChiangMaiFun]

In the UK people buy and sell houses - and rent houses out - they are never classified as a 'business' now tax is a different thing but notpart of this debate. If they ever decided to classify as such 1000s of us would have a real problem - I doubt this will ever happen but interesting to hear views.

I think you are talking about where people sell their home (or "principal residence") which is not what the original poster is talking about.

No... second homes etc.

[thaiwanderer]

its certainly a commercial activity (even with a single condo)

tax of course applies

work permit required? depends on the circumstances

if you are not in country - not required

if in country (even temporarily) - any activity however small in managing the investment can be considered work and hence a work permit would technically be required, and of course the activity would likely then fall under a reserved profession

not sure how UK analogy is relevant?

[ChiangMaiFun]

its certainly a commercial activity (even with a single condo)

tax of course applies

work permit required? depends on the circumstances

if you are not in country - not required

if in country (even temporarily) - any activity however small in managing the investment can be considered work and hence a work permit would technically be required, and of course the activity would likely then fall under a reserved profession

not sure how UK analogy is relevant?

Which is why I go through an agent everytime - UK analogy probably not relevant I was just trying to show that if you live in UK and have a second house and collect rent you are not considered a business - grey area methinks

[chiangmaibruce]

not sure how UK analogy is relevant?

not relevant at all, TIT, and also the OP's point concerns the activities of people who are not citizens of the country

[ChiangMaiFun]

not sure how UK analogy is relevant?

not relevant at all, TIT, and also the OP's point concerns the activities of people who are not citizens of the country

Partly relevant (but im getting bored with defending it) because many foreign nationals buy several homes and rent them out - can we NOW GET BACK to the subject?

[thaiwanderer]

not sure how UK analogy is relevant?

not relevant at all, TIT, and also the OP's point concerns the activities of people who are not citizens of the country

Partly relevant (but im getting bored with defending it) because many foreign nationals buy several homes and rent them out - can we NOW GET BACK to the subject?

you started the OT

anyhow my answer is further above, anyone else want to take a view?

[Heng]

It's this 'in the box' mentality that keeps many foreigners (not all of course, there are plenty of multinationals and SMEs that do "get it") from breaking free and establishing anything more than a toehold in the local economy.

You can do whatever the heck you want to do by proxy.

[harrry]

You can do whatever the heck you want to do by proxy.

But some things are more fun when you do it yourself.

Edited April 24, 2009 by harrry

[Heng]

[ChiangMaiFun]

Anyway... I have several condos here and always use an agent to do the contracts and paperwork - they also 'witness' it all etc. just in case... so I am very hands-off. I think 'flying' has it right but it could be argued, technically, that it is a business but so could a myriad of other activities that Khun thaiwanderer pointed out - and that could be argued in any country. Maybe we are 'thinking too much' as there is no sign of any problems thus far and over half the farangs in Thailand would be hit if there were.

[yabaaaa]

Rent out 5 units oooops I mean "the wife does" hahahaha Im only there for 3 months at a time and when the door to the units is closed they mysteriously get painted by someone????

[thaiwanderer]

behind closed doors has little to do with the legality of the situation (my earlier answer referenced 'technically')- though of course we all tend to live the more important parts of our lives behind closed doors

It's this 'in the box' mentality that keeps many foreigners (not all of course, there are plenty of multinationals and SMEs that do "get it") from breaking free and establishing anything more than a toehold in the local economy.

You can do whatever the heck you want to do by proxy.

as can your proxy

their use is actually perfectly safe if done properly - however most farangs tend to try to do it on the cheap

[Heng]

behind closed doors has little to do with the legality of the situation (my earlier answer referenced 'technically')- though of course we all tend to live the more important parts of our lives behind closed doors

It's this 'in the box' mentality that keeps many foreigners (not all of course, there are plenty of multinationals and SMEs that do "get it") from breaking free and establishing anything more than a toehold in the local economy.

You can do whatever the heck you want to do by proxy.

as can your proxy

their use is actually perfectly safe if done properly - however most farangs tend to try to do it on the cheap

Yeah, the key is the selection of partner(s)/proxy*. You simply do business through your spouse or partner until generation 2, where your children are completely legal and can do and own whatever they like. That's what immigrants do in many countries and most certainly what the Indians and Chinese did here before they became Thai Indians and Thai Chinese.

*hint: if they've only finished Por 3, can barely read, have an affinity for toys as opposed to making investments, can't calculate net profit, etc. ...then they are likely not a good choice.

[yabaaaa]

behind closed doors has little to do with the legality of the situation (my earlier answer referenced 'technically')- though of course we all tend to live the more important parts of our lives behind closed doors

It's this 'in the box' mentality that keeps many foreigners (not all of course, there are plenty of multinationals and SMEs that do "get it") from breaking free and establishing anything more than a toehold in the local economy.

You can do whatever the heck you want to do by proxy.

as can your proxy

their use is actually perfectly safe if done properly - however most farangs tend to try to do it on the cheap

Yeah, the key is the selection of partner(s)/proxy*. You simply do business through your spouse or partner until generation 2, where your children are completely legal and can do and own whatever they like. That's what immigrants do in many countries and most certainly what the Indians and Chinese did here before they became Thai Indians and Thai Chinese.

*hint: if they've only finished Por 3, can barely read, have an affinity for toys as opposed to making investments, can't calculate net profit, etc. ...then they are likely not a good choice.

Bugger!! u mean only over age 35 then??

[Heng]

hint 2: most folks who didn't complete Por 3 by age 10.... likely still haven't completed it by age 25, 35, 45, etc. either