Buying A House In Thailand

[bangkokrick]

Hi guys,

I know that this subject has been covered many times on this forum, but there seems to be conflicting information. I am seriously considering buying a house in my wifes name and i was wondering what is the best way to transfer money from my UK account to my Thai bank account. Have there been any changes to the legislation regarding this type of transaction?

I would really appreciate knowing the correct procedure for doing the above and also the bank charges (ball park) involved at either end. i am aware of the usefruckt and also the fact that I can't own land in Thailand.

Any advice will be appreciated.

Cheers, Rick

[Soutpeel]

Hi guys,

I know that this subject has been covered many times on this forum, but there seems to be conflicting information. I am seriously considering buying a house in my wifes name and i was wondering what is the best way to transfer money from my UK account to my Thai bank account. Have there been any changes to the legislation regarding this type of transaction?

I would really appreciate knowing the correct procedure for doing the above and also the bank charges (ball park) involved at either end. i am aware of the usefruckt and also the fact that I can't own land in Thailand.

Any advice will be appreciated.

Cheers, Rick

SWIFT......around $30-50, the issue is not sending money into Thailand....It usually getting it out thats the problem

Edited August 4, 2009 by Soutpeel

[doodee]

Transfer the money in usd or gbp,then get it converted to baht by the bank.I would suggest getting 2 last will and testiments sorted also,depending on how much money you are going to invest.There is also that strong rumour regarding the legality of your thai wife buying property(land) with your money,so please check that also.

Happy hunting and wishing you all the best.

[bangkokrick]

Good advice guys thanks for your input. I am correct to assume that my Thai bank will give me the correct forms for the transfer. I have read that there is a need to state the reason that you are bringing in the money. ie to buy property?

Cheers, Rick

[Soutpeel]

Good advice guys thanks for your input. I am correct to assume that my Thai bank will give me the correct forms for the transfer. I have read that there is a need to state the reason that you are bringing in the money. ie to buy property?

Cheers, Rick

Rick not trying to be funny, but you have never done this before have you ??...

you are transferring from the UK to Thailand, so the "forms" need to be provided by the UK Bank, not the Thai bank, this is not a condo purchase, so you dont need to provide a reason for bringing the money in, in- fact in your case its better you dont, as if you are using the money to buy a house and this is technically "illegal"....in fact you should be putting the money in the wifes banks account as a "gift"

Also when dealing with Thai banks...Dont Assume anything...

[bangkokrick]

Good advice guys thanks for your input. I am correct to assume that my Thai bank will give me the correct forms for the transfer. I have read that there is a need to state the reason that you are bringing in the money. ie to buy property?

Cheers, Rick

Rick not trying to be funny, but you have never done this before have you ??...

you are transferring from the UK to Thailand, so the "forms" need to be provided by the UK Bank, not the Thai bank, this is not a condo purchase, so you dont need to provide a reason for bringing the money in, in- fact in your case its better you dont, as if you are using the money to buy a house and this is technically "illegal"....in fact you should be putting the money in the wifes banks account as a "gift"

Also when dealing with Thai banks...Dont Assume anything...

Hi Soutpeel,

Correct mate I have never done this before, so thats why I am asking the questions on this forum. I transfer money every month over the internet, so that is no problem. I just want to avoid any extra costs and do this in the correct way. I can transfer the money to the wifes bank account no problem and I thank you for your advice on this. Is there any problem if I use my Thai bank account for the transfer of the deposit and then transfer the bulk of the money to my wifes account when its needed?

Thanks again,

Cheers, Rick

[givenall]

Hi guys,

I know that this subject has been covered many times on this forum, but there seems to be conflicting information. I am seriously considering buying a house in my wifes name and i was wondering what is the best way to transfer money from my UK account to my Thai bank account. Have there been any changes to the legislation regarding this type of transaction?

I would really appreciate knowing the correct procedure for doing the above and also the bank charges (ball park) involved at either end. i am aware of the usefruckt and also the fact that I can't own land in Thailand.

Any advice will be appreciated.

Cheers, Rick

SWIFT......around $30-50, the issue is not sending money into Thailand....It usually getting it out thats the problem

Make sure to get a certificate from the bank showing this money was transferred from over sea. Then it is not a problem to send the money out of Thailand

P.S. I highly recommend Condo instead of house, then you can buy it yourself

[bangkokrick]

Hi guys,

I know that this subject has been covered many times on this forum, but there seems to be conflicting information. I am seriously considering buying a house in my wifes name and i was wondering what is the best way to transfer money from my UK account to my Thai bank account. Have there been any changes to the legislation regarding this type of transaction?

I would really appreciate knowing the correct procedure for doing the above and also the bank charges (ball park) involved at either end. i am aware of the usefruckt and also the fact that I can't own land in Thailand.

Any advice will be appreciated.

Cheers, Rick

SWIFT......around $30-50, the issue is not sending money into Thailand....It usually getting it out thats the problem

Make sure to get a certificate from the bank showing this money was transferred from over sea. Then it is not a problem to send the money out of Thailand

P.S. I highly recommend Condo instead of house, then you can buy it yourself

Thanks for the information regarding the certificate. I will make sure i get one just in case required. We have lived in a condo for around 11 years now and just want to have more space and a garden.

Cheers, Rick

[doodee]

Good luck mate and have a happy life in your new property

[jackdanielsesq]

I am not sure if it has been rescinded, but there was a very heavy piece on nominee owners a couple years back, ie. Wife, TGF, minority director, etc. Make a couple calls to realtors & associated attorneys.

BR>Jack

[justcruisin]

I am not sure if it has been rescinded, but there was a very heavy piece on nominee owners a couple years back, ie. Wife, TGF, minority director, etc. Make a couple calls to realtors & associated attorneys.

BR>Jack

Jack,no offence but the Thai lawyers and realtors work together ,simply to make a sale.

It is Illegal for a farang to own land in thai,unless you have a business visa and (requiremt 20M Bht.)

The Thai goverment land office recently decreed that they will sieze propety that has been purchased this way,IE funds transferred to a Thai nominee G/F or wife etc.

There are ways around it I'm sure.

IMO better to get an apartment in your own name and can transfer if you die,to family overseas.

If you are not familiar with the system here....cover your backside ok?

[Maestro]

jackdanielsesq, that was about companies with nominee shareholders. It does not apply to bangkokrick.

bangkokrick, the UK bank charge will be whatever you UK bank has on it's list of charges. In Thailand, most banks have a fee for incoming remittances of 0.25% but minimum 200 Baht, maximum 500 Baht.

For inward remittances equivalent to USD 20,000 or more, you can get from your bank the Foreign Exchange Transaction Form (FETF), formerly known as Tor Tor 3. Some bank employees are not familiar with this form and I enclose a copy for your information.

FETF_Foreign_Exchange_Transaction_Form.pdf

--

Maestro

[Maestro]

...The Thai goverment land office recently decreed that they will sieze propety that has been purchased this way,IE funds transferred to a Thai nominee G/F or wife etc...

I have my doubts about this. Do you have a link to a web page with this decree? Or do you have a copy of it and can upload it here?

Possibly, you are referring to a thread on ThaiVisa about an ignorant Thai government official who was talking to the press and gave wrong information. If so, this is not a decree.

The Thai wife of a foreigner who buys real estate with money declared as her money, with a written confirmation (government form) from her husband that he recognises that money as being her money, runs no risk of having her land and/or house confiscated.

--

Maestro

[LennyW]

]

Jack,no offence but the Thai lawyers and realtors work together ,simply to make a sale.

It is Illegal for a farang to own land in thai,unless you have a business visa and (requiremt 20M Bht.)

The Thai goverment land office recently decreed that they will sieze propety that has been purchased this way,IE funds transferred to a Thai nominee G/F or wife etc.

There are ways around it I'm sure.

IMO better to get an apartment in your own name and can transfer if you die,to family overseas.

If you are not familiar with the system here....cover your backside ok?

Utter ball locks!

[Soutpeel]

Make sure to get a certificate from the bank showing this money was transferred from over sea. Then it is not a problem to send the money out of Thailand

P.S. I highly recommend Condo instead of house, then you can buy it yourself

The OP is not buying a Condo, therefore the certificate you are talking about doesnt apply, as technically what the OP intends to do is illegal, ie purchase house/land, therefore cannot state this on the incoming bank transfer...reason for money transfer is "gift" to wife, after which wifey can do what she pleases with it...ie purchase a house...

[Crossy]

Plenty of good answers here.

I'll move this to the housing forum where there will (may) be more

[katabeachbum]

Good advice guys thanks for your input. I am correct to assume that my Thai bank will give me the correct forms for the transfer. I have read that there is a need to state the reason that you are bringing in the money. ie to buy property?

Cheers, Rick

If your wife has an overseas account, I would transfer the money to her outside LOS first. Then she transfers the money to LOS, in forreign currency. Bangkok bank is good at large currencies like pound, usd, euro. Ayudhua is best at smaller currencies.

[katabeachbum]

]

Jack,no offence but the Thai lawyers and realtors work together ,simply to make a sale.

It is Illegal for a farang to own land in thai,unless you have a business visa and (requiremt 20M Bht.)

The Thai goverment land office recently decreed that they will sieze propety that has been purchased this way,IE funds transferred to a Thai nominee G/F or wife etc.

There are ways around it I'm sure.

IMO better to get an apartment in your own name and can transfer if you die,to family overseas.

If you are not familiar with the system here....cover your backside ok?

Utter ball locks!

Nothing true in this

[stgrhe]

]

Jack,no offence but the Thai lawyers and realtors work together ,simply to make a sale.

It is Illegal for a farang to own land in thai,unless you have a business visa and (requiremt 20M Bht.)

The Thai goverment land office recently decreed that they will sieze propety that has been purchased this way,IE funds transferred to a Thai nominee G/F or wife etc.

There are ways around it I'm sure.

IMO better to get an apartment in your own name and can transfer if you die,to family overseas.

If you are not familiar with the system here....cover your backside ok?

Utter ball locks!

I agree to that.

Nothing true in this

[bangkokrick]

Thank you all very much for your helpful replies. I will be paying a visit to my lawyers today to get their input and if they bring up anything that could be useful to others I will post it here.

Cheers, Rick

[pnustedt]

The cash transfer procedure is quite simple - as previously said, instigate a telegraphic transfer from your UK bank, you will be required to state reason for transfer, just put "Purchase of Property", you can transfer in Baht or Pounds and change in Thailand, it's up to you, check best exchange rates. When a large sum hits your (or your wife's) Thai bank a/c you will probably get a call from your bank asking what it is for.

You cannot own or have an interest in the ownership of land in Thailand and when you purchase the property you will have to sign at the land office that you understand this and that the money for the purchase is your wife's.

Solicitors are not normally involved in property purchase in Thailand, you just go along to the land office with the vendor of the land and get the names changed on the land ownership documents and house book.

One advantage of owning property in Thailand (albeit in your wife's name) is that there are not large ongoing costs involved (rates and taxes) but, if buying a condo, particularly in Bkk, check for service/maintenance charges.

[bangkokrick]

The cash transfer procedure is quite simple - as previously said, instigate a telegraphic transfer from your UK bank, you will be required to state reason for transfer, just put "Purchase of Property", you can transfer in Baht or Pounds and change in Thailand, it's up to you, check best exchange rates. When a large sum hits your (or your wife's) Thai bank a/c you will probably get a call from your bank asking what it is for.

You cannot own or have an interest in the ownership of land in Thailand and when you purchase the property you will have to sign at the land office that you understand this and that the money for the purchase is your wife's.

Solicitors are not normally involved in property purchase in Thailand, you just go along to the land office with the vendor of the land and get the names changed on the land ownership documents and house book.

One advantage of owning property in Thailand (albeit in your wife's name) is that there are not large ongoing costs involved (rates and taxes) but, if buying a condo, particularly in Bkk, check for service/maintenance charges.

Thanks for your input mate. The running cost is an important part of this venture as I am paying a lot of rent/elec in Bangkok I will just feel better if I have a lawyer check the contract etc.

Cheers, Rick

[LennyW]

The cash transfer procedure is quite simple - as previously said, instigate a telegraphic transfer from your UK bank, you will be required to state reason for transfer, just put "Purchase of Property", you can transfer in Baht or Pounds and change in Thailand, it's up to you, check best exchange rates. When a large sum hits your (or your wife's) Thai bank a/c you will probably get a call from your bank asking what it is for.

You cannot own or have an interest in the ownership of land in Thailand and when you purchase the property you will have to sign at the land office that you understand this and that the money for the purchase is your wife's.

Solicitors are not normally involved in property purchase in Thailand, you just go along to the land office with the vendor of the land and get the names changed on the land ownership documents and house book.

One advantage of owning property in Thailand (albeit in your wife's name) is that there are not large ongoing costs involved (rates and taxes) but, if buying a condo, particularly in Bkk, check for service/maintenance charges.

DO NOT TRANSFER IN BAHT!!! Always transfer in Sterling, you get a far better ex rate at this end.

[Meridian007]

From the other thread about foreign ownership and nominees ( http://www.thaivisa.com/forum/Illegal-Thai...-L-t270261.html ), I think this clears up the issue plainly:

I have had my staff, who is well connected at the land and house department, seek clarifications on the statements made by Mr. Anuwat recently.

Unfortunately, this official refuses to be quoted by name, as for the obvious reasons.

In short, the following is his explanation:

If a Thai person is married to a foreigner, and wishes to register land in her name, it is required for both husband and wife to sign a statement, that the acquired property will remain the sole personal property (Sin Suan Tua) of the Thai partner, as opposed to common matrimonial property (Sin Som Ros) where the latter would normally be the case as per the civil law regarding marriages.

It is clear in this case that the Thai person is 100% owner, entirely on her own behalf, and as such can never be seen as a nominee holding land on someone else's behalf, as there is nobody who, under Thai civil law could make a claim to the land apart form said Thai owner.

There are however spouses who have kept on their Thai Maiden names (as they are legally allowed to do so), and neglect to state that they are married to a foreigner. As such the above mentioned statement does not get signed.

If in this case the funds used to acquire the land are supplied solely by the foreigner, and the foreigner would be able to prove that the funds have been acquired by him previous to the marriage, then according to the Thai civil law, the land would be the sole property of the foreigner (SIn Suan Tua), regardless of whose name the land is registered in. The Thai partner would only be owner of any increase in value acrued during the marriage on a 50% base (as this gain in value would be Sin Som Ros), or according to any pre-nuptial agreements.

In this case it is clear that the Thai partner in the marriage is a nominee, holding the land on behalf of the foreigner, as at all times, either during the marriage or after a divorce, the foreigner can lay claim to the land as per the laws on Sin Suan Tua/Sin Som Ros.

Mr. Anuwat also clearly states, that even if the Thai partner neglected to mention the fact that her husband is a foreigner, and never signed the statement, BUT she can prove that the land has been acquired with her own funds, then she can remain the legal owner of the land since per Thai civil law the land will be her personal property (Sin Suan Tua).

[rhapsody]

Hi guys,

I know that this subject has been covered many times on this forum, but there seems to be conflicting information. I am seriously considering buying a house in my wifes name and i was wondering what is the best way to transfer money from my UK account to my Thai bank account. Have there been any changes to the legislation regarding this type of transaction?

I would really appreciate knowing the correct procedure for doing the above and also the bank charges (ball park) involved at either end. i am aware of the usefruckt and also the fact that I can't own land in Thailand.

Any advice will be appreciated.

Cheers, Rick

Hi Rick, a veritable minefield of conflicting information and as many responces as the number of people you ask.

I have heard that a new law suggests that 'they' can confiscate a house bought by foreigner's funds for a Thai resident. If the amount you are transferring is more than $20,000 then you will need a TT3 form from the bank and a covering letter stating that the funds are being brought in for 'House/Property purchase'.

If less then you just need a copy of the statement showing the foreign transfer and deposit.

The good news is that charges are reduced (until December 2009 I am told) to ensure the market is kept fluid.

This relates to transfer charges down to 0.01% (of appraised not purchase price).

Also, seller taxes are reduced from 3.3% (average) down to 0.1%

Stamp duty remains at 0.5%

I have just completed a purchase (last week) so this is as fresh as it gets.

Hope that it is helpful.

[katabeachbum]

The cash transfer procedure is quite simple - as previously said, instigate a telegraphic transfer from your UK bank, you will be required to state reason for transfer, just put "Purchase of Property", you can transfer in Baht or Pounds and change in Thailand, it's up to you, check best exchange rates. When a large sum hits your (or your wife's) Thai bank a/c you will probably get a call from your bank asking what it is for.

You cannot own or have an interest in the ownership of land in Thailand and when you purchase the property you will have to sign at the land office that you understand this and that the money for the purchase is your wife's.

Solicitors are not normally involved in property purchase in Thailand, you just go along to the land office with the vendor of the land and get the names changed on the land ownership documents and house book.

One advantage of owning property in Thailand (albeit in your wife's name) is that there are not large ongoing costs involved (rates and taxes) but, if buying a condo, particularly in Bkk, check for service/maintenance charges.

DO NOT TRANSFER IN BAHT!!! Always transfer in Sterling, you get a far better ex rate at this end.

Absolutely. DO NOT TRANSFER IN BAHT. Could loose 5-10% on exchanging outside LOS.

[katabeachbum]

Hi Rick, a veritable minefield of conflicting information and as many responces as the number of people you ask.

I have heard that a new law suggests that 'they' can confiscate a house bought by foreigner's funds for a Thai resident. If the amount you are transferring is more than $20,000 then you will need a TT3 form from the bank and a covering letter stating that the funds are being brought in for 'House/Property purchase'.

If less then you just need a copy of the statement showing the foreign transfer and deposit.

The good news is that charges are reduced (until December 2009 I am told) to ensure the market is kept fluid.

This relates to transfer charges down to 0.01% (of appraised not purchase price).

Also, seller taxes are reduced from 3.3% (average) down to 0.1%

Stamp duty remains at 0.5%

I have just completed a purchase (last week) so this is as fresh as it gets.

Hope that it is helpful.

You need an update on transfer taxes/stimulus package. The ones you mention are for some projects only. Not for property in general.

[malcolminthemiddle]

Rick,

Have you thought about keeping your funds offshore and funding if not all but some of the house purchase with a local mortgage?

If the land is paid for, your wife should be able to get an 80% mortgage subject to her qualifying.

[sadako]

Good idea to remember the hassles that come with selling it again later including taxes that will be due ...not to mention the fact that you will have to sell it fast to gain the benefit from it if you made a Will in his / her Thai name and he / her was to pass away .

Buy a condo ..always a better plan .....uncle sadsy wears many tshirts

[Gjk7777]

Didn't know about the new law stating that they can take land away from Thai people if they think it has been funded by a foreinger, i have been sending about £300-£400 per 2 weeks for the last 6 months and i have purchased in my girlfriends name a half rai of land(60,000 baht) and i am building a basic 2 bed bungalow for around 450,000 baht, its all in the rice growing region of Ubon Ratchathani a small village called Non Wang about 65kms from Ubon. I hope when its finshed in October no one knocks on my door saying " Sorry but the land has been confisacted" i won't be happy at all!