How To Rent Out A Condo In Thailand

[channarong80]

Hi

I have a Condo in Bangkok and I want to rent out my Condo to a thai person.

Can a foreigner rent out his Condo in Thailand?

I have bought this Condo in my own name and I would like to know if I should open a Thai Company to rent out my Condo.

Is Thai Company strictly requested to rent out just one condo?

What should I do to rent out my Condo in the legal way?

Thank you for your help

Edited February 1, 2010 by Alex971

[SAMCHAROEN]

I'm not a legal expert or an accountant... but from my knoledge you can rent your condo to anyone thai or foreigner.

You dont need to set up a company to rent out your condo. You can show your rent income in the income tax returns you file (I belive its called por nor dor 50 - pls reconfirm this with your accountant).

However, if you set up a company you can show expenses such as monthly mentainence, advertising fee, repairs/renewals as an expense and the remaining amount would be the actual income you earned . You cannot show expenses as a deduction if you are filing the rent income under your personal income statement.

At the same time having a company will incur expenses for you such as accountant fees.

There are other legal requirement as well . Few which come to mind are :

1. VAT tax - You will need to add 7% VAT on the rent you charge. Who will pay this ? If you insist that the rentee pays then you run the risk of over-pricing your condo. ("The condo next door does not charge vat")

2. As a registered company employing foreigners need to employ a certain ratio of Thais. The current ratio is 4 Thais for each foreigner, I belive. You will need to pay monthly salaries for 4 people + yourself + company's share of social insurance

Obviously, If your yearly income falls below the tax bracket you do not have to pay any taxes - this applies to both ways (company / personal); but having a company will cost you a lot unless you have many condos under the same company.

Also, mind you, its very easy to open a company in Thailand but very difficult to close it.

Its simpler to show your rental income in your personal income tax return unless you own a number of condos/properties.

Some other information which maybe useful for you :

You need to draw up a formal rental agreement. Most property agents can draw up this agreement in english.

You dont need to register this agreement with any govt. dept. You may do so if wish with the land dept - but its not required of you.

Normally the lessee pays a deposite of 2 months rent and the rent of the current month at the time of signing the agreement.

After that all you need to do is collect the rent either in cash or the lessee transfers to your bank account.

In case the lessee wishes to terminate the agreement before the expiary of 1 year the deposite amount is forfeited.

[123ace]

Few Thai's rent. they almost only rent a the low end of the market (sub 15k) and you will be wasting your time possibly. Wealthy young locals tend to live at home or owner occupy. Renting a home from a farang would be abhorrent to them.

[channarong80]

Few Thai's rent. they almost only rent a the low end of the market (sub 15k) and you will be wasting your time possibly. Wealthy young locals tend to live at home or owner occupy. Renting a home from a farang would be abhorrent to them.

I'm not agree with you, many farang rent their condo to farang or thai people but i don't understand in which way they do it because i know it isn't possible for a farang have an income from a Condo without open a Thai Company and pay taxes.

Nobody can help me more?