Property Tax Of To Be Levied By Local Authorities. Wef 1/1/11

monty · August 17, 2010

I would advise the landlady (if you are still in contact/you are still interested in the property) to go have a chat with the district office herself. Doing this through a lawyer will make it as expensive as the maximum they can get.

Doing it herself, armed with an "envelope" or a proper quality "bottled gift" will ensure the amount will be not even close to what the lawyer quoted her.

You know what I pay for my property!

Indeed, when the new system comes into effect, it'll become much more expensive as it will not depend on occupancy! Empty the whole year and you'll still pay full!

It actually has been mentioned in the press that one of the main reasons for the government doing it this new way, is to make the rich Thai (Chinese) think twice about buying up massive amounts of real estate, without doing anything with it, either as investments or as the Chinese like to do, just to keep it in the family. And generate revenue on those that already own more then they'll ever need.

Imagine what tax they will suddenly have to pay on all the massive idle real estate holdings some of them own!

So think twice when saying that it is targeted at houses owned by foreigners through companies. We are just suffering collateral damage

As they say, two things we are sure of in life, death and taxes!!!

Mobi · August 17, 2010

As ever, Monty I am sure you are correct and that I am just being a little paranoid that the moves are aimed at foreigners.

However, there is no doubt that foreigners will be caught up in this tax business big time, and it will even affect foriegners who are desperate to sell.

I understand that the Chinese/Thais have been buying up many properties in Pattaya at knock down prices for 'long term investments'. This activity may now be curtailed.

As far as my potential landlady is concerned, I have already told her not to trust her lawyer and that she should be able to find an accommodation with the district office.

She seems adamant in removing her property from the rental market so there is no point in me pursuing it further. It was already quite expensive, anyway.

I'm not in any rush to move and I'm sure I will find a house sooner or later.

Lovedog100 · August 17, 2010

She is so perturbed by this that she is now seriously considering removing the house from the rental market and will just try to sell the house instead.

She has been told that all house owners will have to pay a local property tax' date=' but that people who rent out will bear the brunt of the tax burden as they will be generating income.

[/quote']

The typical Thai wisdom in investment - rather to have zero income than to have income less 12% tax.

Selling the house? Which buyer need not pay tax like her?

She is only renting because she has been having a problem finding a buyer.

It is a very desirable property on sale for a very realistic price and I am quite sure it will sell eventually.

In the meantime she is living there and looking after it She doesn't actually need the money, but would like to move back to the South of Thailand.

If she ends up having to pay 60-80k per year in property taxes, I tend to agree with her that she is better of waiting for a buyer.

(You really shouldn't shoot your mouth off and bad mouth Thais before you have all the facts. She is actually a very intelligent, sensible lady.

In any case I did not open this thread so that people could have a go at Thais - I opened it to get more information on a serious subject. Why don't you post your ill-considered comments in Bedlam or the Farang pub/jokes forum?).

You were very rough on the person that replied to you. I tend to agree with them. It looks like typical Thai logic. There is no buyer, she would like to move south, could have an income, yet would rather stay where she doesn't want to be, and not have the income, while waiting for the property to be sold during a bad economy. She is going to do this to get out of 12% tax. This makes no business sense, and being that she would like to be south, makes no personal sense. Thai's do this, none of us understand why, but they do. I have 4 houses on my soi that have been for rent for well over a year. I looked at the houses before I moved to my house. I let them know why they were not rent able to me, and they have been told by many others in the last year why they are not renting. Thai logic: sit and wait, do not spend money for repairs, do not lower the price. All the while, not getting the income from the properties.

Mobi · August 17, 2010

She is so perturbed by this that she is now seriously considering removing the house from the rental market and will just try to sell the house instead.

She has been told that all house owners will have to pay a local property tax' date=' but that people who rent out will bear the brunt of the tax burden as they will be generating income.

[/quote']

The typical Thai wisdom in investment - rather to have zero income than to have income less 12% tax.

Selling the house? Which buyer need not pay tax like her?

She is only renting because she has been having a problem finding a buyer.

It is a very desirable property on sale for a very realistic price and I am quite sure it will sell eventually.

In the meantime she is living there and looking after it She doesn't actually need the money, but would like to move back to the South of Thailand.

If she ends up having to pay 60-80k per year in property taxes, I tend to agree with her that she is better of waiting for a buyer.

(You really shouldn't shoot your mouth off and bad mouth Thais before you have all the facts. She is actually a very intelligent, sensible lady.

In any case I did not open this thread so that people could have a go at Thais - I opened it to get more information on a serious subject. Why don't you post your ill-considered comments in Bedlam or the Farang pub/jokes forum?).

You were very rough on the person that replied to you. I tend to agree with them. It looks like typical Thai logic. There is no buyer, she would like to move south, could have an income, yet would rather stay where she doesn't want to be, and not have the income, while waiting for the property to be sold during a bad economy. She is going to do this to get out of 12% tax. This makes no business sense, and being that she would like to be south, makes no personal sense. Thai's do this, none of us understand why, but they do. I have 4 houses on my soi that have been for rent for well over a year. I looked at the houses before I moved to my house. I let them know why they were not rent able to me, and they have been told by many others in the last year why they are not renting. Thai logic: sit and wait, do not spend money for repairs, do not lower the price. All the while, not getting the income from the properties.

I wasn't rough at all.

I am the OP and I want to know about changes in local property taxes, not about how Thai land owners do their business.

I merely gave a bit of background on the owner, that I now regret doing. I did not expect everyone to dive in and talk about her, rather than answer the questions posed in my thread title.

I am not interested in any opinions on the vagaries of Thai landlords, and their business acumen.(we all have many varying opinions and if you want to spout on about it, open your own thread).

If I want to discuss Thais, their behaviour and the way they do business I can go to any local bar and get the benefit of all the perceived wisdom in the world, but it doesn't mean a thing and doesn't change anything.

And who's to say that Thai logic isn't correct?

So how many time do I, and the Mods, have to state on my thread that it is about changes in property tax collection and not about how Thai landlords think, before you understand?

FORGET ABOUT MY POTENTIAL LANDLORD!! She is long gone and is totally irrelevant to the subject under discussion!!!

Thank you.

monty · August 17, 2010

The original poster has had his answers, and since some posters seem to insist on arguing something which has no relevance on the original question he asked, I will now close this topic.

Shame really. Only about 6 posts out of 35 on topic.

----closed-----

Edited August 17, 2010 by monty