Selling My Condo, Receiving Payment, Purchasing A New Condo

[scd]

Hello All

I have two questions which I would greatly appreciate some answers to.

1) When I purchased the Condo, I brought the funds in to my Thai bank account from a bank in my own country, which i believe is the norm. The bank produced a letter for me, to that effect, and I was able to proceed with the purchase. I now wish to sell my Condo.

My question is: With the money that I receive for my Condo from the purchaser, I am able to use that to purchase another Condo here in Thailand, without having to go through the process again of bringing money in to Thailand from an external source? Or will I have to deposit the money from the sale back in to my foreign account, and then transfer it back in to my Thai account again when I'm ready to make my next purchase?

2) I understand there will be tax (separate to to the transfer fee) payable to the Thai government upon the sale of my condo. When and who do I pay this to? Is it at the Land Office on the day of the transfer of ownership, title deeds etc?

I hope that all made sense and look forward to any replies.

Kind regards

scd

[BlackPuddingBertha]

1) Yes

2) Yes

Just be sure to keep all your original documents to present at the Land Office.

[scd]

1) Yes

2) Yes

Just be sure to keep all your original documents to present at the Land Office.

Thank you for your reply.

Sorry, i should of worded my 1) Question better.

To clarify, can i use the sale money from the first Condo to buy another, without the money leaving the country?

With thanks

scd

Edited March 10, 2013 by scd

[BlackPuddingBertha]

1a) Yes

[scd]

1a) Yes

Chaars!

[jack1964]

1) Yes

2) Yes

Just be sure to keep all your original documents to present at the Land Office.

I am in the same situation, but know one can point out the legal aspects here...On another post in relation to this subject, people were saying that funds have to be sent out of the country and then back in. Can any realestate experts who have travelled this road please advise. Its nice to hear a "YES YOU CAN" but there must be a statute or law explaining the fact that if you have transmitted funds into the country once for the purchase of a condo, that funds dont need to be sent out of the country and returned to purchase again. Someone must have done this on this forum at some stage, and have an exact answer? Help would be of assistance. You cant google it, as every answer comes back that funds must be shown to come into Thailand via a foreign currency, and the Thor whatever produced to the land office. HELP!!!!!

[balo]

I am also interested in this question. Recently purchased a Jomtien condo and will try to sell it for a bigger condo . If the money from the sale has been transfered to my Kasikorn account , and I have the papers to prove it , no need to transfer more money from foreign bank accounts ?

[scd]

I asked a guy at the Land Office about this, and he said with a little hesitation that the money had to go out, and be brought back in, each time you wish to buy a condo. He didn't seem 100% confident with the answer.

Tomorrow I am banking the funds from my sale in to my Thai bank account. I shall ask the bank about this matter and will post the results.

[scd]

So I asked the same guy again at the Land Office today, and got the same answer - yes the money has to go out and come back in again every time.

I also asked at my Thai bank. I'm not sure if the girl quite understood what I was getting at, but she also said that the money has to go out and come back in every time.

[BlackPuddingBertha]

Then you will just have to export the money and reimport it.

But it seems very odd and is not what friends of mine have done in identical circumstances. Maybe the rules have changed (again) recently?

[balo]

But can you transfer 2 mill baht out of Thailand without any problems ?

Before transfer it back ?

[BlackPuddingBertha]

Yes, if you have the certificate showing it was imported in the first place.

[hagler]

Yes, if you have the certificate showing it was imported in the first place.

ahhh but there potentially is the rub.

Lets use this as an example.

I bought an apartment in Chiang Mai in 1998 for 420 000 baht. Funds "imported" with certificate blah blah blah.

Now if I was to sell the apartment today I would probably get say around 3 500 000 for it . Not interested in selling it so the figures are just numbers.

So my original cert says 450 000 but I want to re-export 3 500 000 out of the country.

what happens?

[wpcoe]

I've been told you can take a suitcase of the cash proceeds (in Thai baht) to a money exchanger and they will convert it to [your native homeland's currency] and then back to Thai baht. It's the latter half of the process - converting it back to baht - that allows the money exchanger to issue the coveted FET document which is required by the Land Office to register a sale in the 49% foreigner's allocation.

You pay two commissions to the money exchanger: one for conversion from baht, and the another for converting back into baht. But, it might be cheaper than the costs involved with exporting the money overseas and reimporting it, considering exchange rates and bank fees. Also, for citizens of some countries -- the USA comes to mind -- it can shield them from potential exposure to taxation for any capital gains.

It's been a few year since I heard that option. Is it still a viable alternate?

[BlackPuddingBertha]

I think that if I was in this situation I would go and talk to my Thai bank manager. I'm sure he could sort something out.

[wpcoe]

My understanding (at the time when this was explained to me a few years ago) was that banks can't do it because the FETs are issued at the headquarters office and are more likely to be subject to government audit, whereas local money changers can play more loosely with the rules. I don't think my local Thai bank manager would have much to say in the process? I'd be pleased to be proven wrong!

[BlackPuddingBertha]

I don't think my local Thai bank manager would have much to say in the process? I'd be pleased to be proven wrong!

I have found that when bank staff say something is impossible and cant be done, a word with the manager can make the impossible become simple. They seem to have a lot more power here to interpret the rules as they see fit than they do in the West. And there is certainly nothing to be lost by talking to him.