Tor Tor 3 Is Required To Buy Condo In Foreign Name?

[CrossBones]

Hi

Im a bit confused with the TT3 thing.

Can you use my funds already in Thailand (without TT3) to purchase a condo in foreign name?

Is it possible/legal/above board?

If i dont have a tt3 what happens when i sell condo in future? Do i have to pay extra catches?

Im confused by other posts and various farang agents who claim to be experts offering conflicting advise.

Could i transfer existing funds in thailand into an international share dealing/bullion account and then send them back to get the tt3? But then there will not be a note saying its for condo purchase

Thanks

[CrossBones]

is the minimum $20,000 or $50,000?

[CrossBones]

i read this but its 9 years out of date http://www.thaivisa.com/buy_condo_thailand.0.html

[PattayaParent]

You need to transfer foreign currency into Thailand to get the TT3 / FETF to purchase a condo in your name. The instruction for transfer should state 'for condo purchase'. Your bank may ask you for the purchase contract as proof.

The amount is the equivalent of about $20k (600,000 Baht) unless there has been a recent change?

If you transfer less than that you get a 'bai rap rong' from the bank stating the amount(s) transferred.

The incoming transfer only needs to be for the sales value declared to the land office, any extra can come from funds within Thailand (but don't tell them that).

[AyG]

I could be wrong, but when I tried to get a tor tor 3 a few years ago I was told that the system had changed and that such documents were no longer issued.

[PattayaParent]

^They're called Foreign Exchange Transfer Forms (FETF) now but your bank should know that already.

[pkrv]

Go to the locked and pinned moderator controled thread

http://www.thaivisa.com/forum/topic/147540-transfering-money-to-thailand-for-property-purchase/

And print our the FETF on the LAST post (there are only a few posts to go through) It's now 50,000 USD

Show this form to your bank. This always works. It helps them understand what you are after.

Check the pinned threads they are there for a reason....

[aussiebebe]

^They're called Foreign Exchange Transfer Forms (FETF) now but your bank should know that already.

I bought a condo three years ago and discovered these forms haven't been called TT3s for years. I confused the heck out of the poor bank staff who hadn't a clue until one of them realized I wanted a FETF. Makes me smile that even now, 2011, foreigners are reading outdated info on the internet - maybe even the same sites I used.

[pkrv]

^They're called Foreign Exchange Transfer Forms (FETF) now but your bank should know that already.

I bought a condo three years ago and discovered these forms haven't been called TT3s for years. I confused the heck out of the poor bank staff who hadn't a clue until one of them realized I wanted a FETF. Makes me smile that even now, 2011, foreigners are reading outdated info on the internet - maybe even the same sites I used.

Personaly I think we should start a "remove me tor tor 3, TT3 campaign". It's just bloody well confusing. Sorry technical term.

[wpcoe]

When I was condo hunting about six years ago, I asked a friendly real estate sales person about what to do if/when I wanted to sell a condo in Thailand and buy another one.

He said that you take the THB cash proceeds from the sale to a money exchanger and change it into foreign currency (USD in my case probably, since I'm American). Then you take that suitcase full of USD cash to a bank (or maybe it was at a money exchanger, as well?) to convert to THB. When the second exchange -- the USD-to-THB one -- was transacted the appropriate form (TT3? FETF?) could be generated and then I could buy a new condo with the funds. The agent claimed to have done this for clients personally several times, and had recommended money exchanges in mind.

It apparently is cheaper to lose out on the currency-exchange differences (buy vs sell currency) than to pay to wire the money out of Thailand and back into Thailand. There may also be tax consequences by alerting your home country of a possible real estate transaction with taxable profits?

Can anybody confirm that the above process is viable? Is it *legal*?

[Sophon]

When I was condo hunting about six years ago, I asked a friendly real estate sales person about what to do if/when I wanted to sell a condo in Thailand and buy another one.

He said that you take the THB cash proceeds from the sale to a money exchanger and change it into foreign currency (USD in my case probably, since I'm American). Then you take that suitcase full of USD cash to a bank (or maybe it was at a money exchanger, as well?) to convert to THB. When the second exchange -- the USD-to-THB one -- was transacted the appropriate form (TT3? FETF?) could be generated and then I could buy a new condo with the funds. The agent claimed to have done this for clients personally several times, and had recommended money exchanges in mind.

It apparently is cheaper to lose out on the currency-exchange differences (buy vs sell currency) than to pay to wire the money out of Thailand and back into Thailand. There may also be tax consequences by alerting your home country of a possible real estate transaction with taxable profits?

Can anybody confirm that the above process is viable? Is it *legal*?

I don't know if it's legal or viable, but I very much doubt that it's cheaper doing what you suggest since the bank's spread on cash is much larger than on SWIFT transfers.

The current exchange rates for USD are:

Super Rich:

Sell rate for USD cash (100$ bills): 30.4

Buy rate for USD cash (100$ bills): 30.3

Bangkok Bank:

Buy rate for USD cash (50/100 bills): 29.92

Sell rate for USD SWIFT transfer: 30.42

Buy rate for USD SWIFT transfer: 30.17

So doing as you suggest for each 1 mio THB you would get USD 32,894.74 in cash at Super Rich, which when you sold it to Bangkok Bank would give you THB 984,210.

Transferring the money back to your account in the U.S. would result in a transfer of USD 32,873.11, which Bangkok Bank would buy back for THB 991,781 when the money returns to Thailand. Of course, you would have to pay fees in both banks for two SWIFT transfers, but with a difference of THB 7,500 per mio THB there should be plenty of room for the fees (especially for larger transactions). There would obviously be an exchange rate risk between the time the money is transferred out of Thailand and until it returns, but that could go both ways.

If, on the other hand, you could do both the selling and buying at Super Rich then there would be money to save because their business model operates with very narrow spreads. You might even negotiate better rates since they will basically be making money on doing nothing. But I'm not sure if only banks can issue you the FETF, and (if we are in a grey zone) doing it this way could possibly also make it a little to obvious that you are trying to circumvent the rules.

Sophon

[wpcoe]

Thanks for doing the math! I guess the agent was probably helping folks in unique situations, like no bank accounts in their home country? Or, folks who want to conceal their real estate transactions from possible scrutiny of taxation bureaus in their home country? Hmmm, that latter comment might be appealing -- why pay capital gains tax, if applicable?

But I'm not sure if only banks can issue you the FETF, and (if we are in a grey zone) doing it this way could possibly also make it a little to obvious that you are trying to circumvent the rules.

That triggers a memory: I think the reason he went to his preferred money exchanger was that they gave a good rate from THB to USD, but then had to go to a bank to get the TT3/FETF. I also suspect he got a commission from the money exchanger, but that still overall, it was a good rate for the customer.

Thanks for the food for thought.

[yankee99]

The bottom line is you absolutely need to show the money came from abroad to purchase in a foreign name....A letter from the bank or a FETF

[Darrel]

I find it hard to believe that the strange people who seem to spend most of their waking moments buying and selling condos in Pattaya actually go to the trouble of moving all the money in and out of the country each time they buy and sell anything here. And what does it achieve anyway? Apart from letting the banks earn more fees, of course.

[ThaiBob]

The bottom line is you absolutely need to show the money came from abroad to purchase in a foreign name....A letter from the bank or a FETF

Well, kind of sort of. FETF's can be purchased from money changers if you have a legal sales contract.