scubachild Posted October 30, 2015 Share Posted October 30, 2015 I am UK citizen thinking of buying land and house in Thailand - it can be under the Thai partners name, that is not a problem. The owner of this property lives in the UK. My money is still in the UK. If I was to make payment in the UK that would solve many currency exchange costs and other transaction fees for both parties. BUT where would that leave me in the future if I wanted to sell the property and take the money back overseas?? Your learned thoughts much appreciated Link to comment Share on other sites More sharing options...
meatboy Posted October 30, 2015 Share Posted October 30, 2015 (edited) first of all there are tax issues for you and the seller,also have you seen the deeds to the land,is there any monies oweing to the property,there will be more along with some definate answers,but me i wouldnt touch it with a barge pole. as for if you wanted to take the proceeds of a sale out of thailand the wife or partner would have to prove where the money came from, eg.an international money transfer certificate from the recieving bank. TREAD CAREFULLY. Edited October 30, 2015 by meatboy Link to comment Share on other sites More sharing options...
trogers Posted October 30, 2015 Share Posted October 30, 2015 (edited) And you are sure you would get the property or proceeds of a sale back when the name on the title deed is not yours? My Thai maid just volunteered the use of her name on this title deed... Edited October 30, 2015 by trogers Link to comment Share on other sites More sharing options...
crazykopite Posted October 30, 2015 Share Posted October 30, 2015 I would suggest you stay clear of this deal ! unless your friend is married to a Thai and it is in her name then he would need her signature on all document to sell it if this is not the case then he either owns the property by way of a Thai Ltd Company or he has it on a 30 year lease you need to find out a lot more information before anyone can give you an opinion if the property was in a Thai Ltd Co then a sale of transfer of shares could be done ,however you say your wife is Thai so really there is no need to go down the company route it could be put in her name and then she in turn could lease it to you to protect your interest I think it would be unwise to give your frien any money until all taxes have been paid for at the land office and that all due diligence has been carried out ! Link to comment Share on other sites More sharing options...
crazykopite Posted October 30, 2015 Share Posted October 30, 2015 To repatriate any monies from Thailand you must have proof by way of a bank note / statement that you brought the money into the country for means of buying a property in other word if you paid for the property in £s it would be very difficult to send it back , the only way it could be done is that you could send it in small tranches of around 300,000 baht which would cost a lot of money in transaction fees and currency rates . Link to comment Share on other sites More sharing options...
condobrit001 Posted October 30, 2015 Share Posted October 30, 2015 Really!! Steer well clear of this. There are so many ways in which you could lose your money! Link to comment Share on other sites More sharing options...
condobrit001 Posted October 30, 2015 Share Posted October 30, 2015 I have a bridge in London I can sell you! Link to comment Share on other sites More sharing options...
mankondang Posted October 30, 2015 Share Posted October 30, 2015 Don't do it Link to comment Share on other sites More sharing options...
blackcab Posted October 30, 2015 Share Posted October 30, 2015 I see less problems than others. Get a UK solicitor to draw up a contract agreeable to both parties and get the solicitor to hold the funds until the Thai transaction is complete (or not). I would very strongly suggest you and your partner are present at the land office in Thailand when this sale happens. On no account complete this transaction by proxy. Listen to me when I say this. If the land and house was sold at a later date you could not repatriate the funds easily. The first reason is that the funds from the sale would not be yours. For you to buy property (a condo) you would have to remit the funds to a Thai bank in foreign currency. You would receive proof you did this and this proof would enable you to take the funds outside Thailand at a later date. As you cannot own land this can never happen anyway. It's not impossible to get funds out of the country in this situation, it just takes slightly longer. Link to comment Share on other sites More sharing options...
condobrit001 Posted October 30, 2015 Share Posted October 30, 2015 Seriously though, the land department requires that you and your nominees attend at the time of transfer along with a cashiers cheque in Thai baht along with proof of transferring the money into Thailand. You can't pay him in UK pounds. Link to comment Share on other sites More sharing options...
blackcab Posted October 30, 2015 Share Posted October 30, 2015 (edited) Seriously though, the land department requires that you and your nominees attend at the time of transfer along with a cashiers cheque in Thai baht along with proof of transferring the money into Thailand. You can't pay him in UK pounds.When buying a condo the land office needs the FET form.In this situation his Thai partner could pay cash or gold. They could pay in any currency that is accepted. Fact is the land office do not look at or count the payment in any way for a Thai national. His partner could hand over a blank piece of paper and it would work (assuming the vendor accepted it of course!) All the land office care about is the assessed/declared value and the taxes and fees derived from that. Edited October 30, 2015 by blackcab Link to comment Share on other sites More sharing options...
condobrit001 Posted October 30, 2015 Share Posted October 30, 2015 You will receive all sorts of advice on this forum - some good, some bad and some just plain daft. This is not the place to base your decision on. Be very careful and avoid the "yea, no problem" posters. Link to comment Share on other sites More sharing options...
MaeJoMTB Posted October 30, 2015 Share Posted October 30, 2015 (edited) When you buy a house in Thailand, you go to the land office with the seller and pay cash (or bank draft). Chances of the sale being recorded without you there, almost nil! You can't own a house (that is already built)in Thailand, and you can never own the land it sits on. You gf can, but the chances of you ever taking the money out of the country again are almost NIL. So no need to worry. Edited October 30, 2015 by MaeJoMTB Link to comment Share on other sites More sharing options...
Mr Wonderful Posted October 30, 2015 Share Posted October 30, 2015 Paying offshore is probably the best way to do it. I have bought and sold a house like that and bought another one using local funds in Thailand. the vendor came crying to me asking me to remit the funds outside Thailand and the bank says, sure can do, but 20 percent withholding tax (the vendor didn't keep records of incoming funds). Link to comment Share on other sites More sharing options...
namarupa Posted October 30, 2015 Share Posted October 30, 2015 I bought a house in Mae Rim two years ago at The Spa resort. The owner was a Brit and I sent her UK funds from my bank in Canada. The property manager (Thai)had power of attorney and the transfer of the house at the land office went without a hitch. I leased the land the house was on for 30 years (renewable twice). I sold it this past August. The buyer paid me in my Canadian bank with Canadian dollars from a UK bank. Not a problem. I gave the same property manager power of attorney to transfer the house title to the buyer. No problem. I don't know what all the talk it can't be done is all about. Just go ahead. Do it. Link to comment Share on other sites More sharing options...
Mr Wonderful Posted October 30, 2015 Share Posted October 30, 2015 Seriously though, the land department requires that you and your nominees attend at the time of transfer along with a cashiers cheque in Thai baht along with proof of transferring the money into Thailand. You can't pay him in UK pounds.When buying a condo the land office needs the FET form.In this situation his Thai partner could pay cash or gold. They could pay in any currency that is accepted. Fact is the land office do not look at or count the payment in any way for a Thai national. His partner could hand over a blank piece of paper and it would work (assuming the vendor accepted it of course!) All the land office care about is the assessed/declared value and the taxes and fees derived from that. That is correct. Also if the house is under a company name then you will have to watch out for property tax owing from the day it was built. Insist on a municipal tax clearance certificate and insist that the vendor cover all property tax owing to date. This invariably comes as a surprise and agents hide this. Link to comment Share on other sites More sharing options...
blackcab Posted October 30, 2015 Share Posted October 30, 2015 The reason I advised being present is that I personally know someone who had 15 million stolen from them by a solicitor in Thailand. The solicitor was acting on a power of attorney and simply kept the money. I know that the money in Thailand is not at risk in this situation, but nonetheless I would still advise being present. Link to comment Share on other sites More sharing options...
condobrit001 Posted October 30, 2015 Share Posted October 30, 2015 You have provided no background info - where you are now, married or not etc. etc. To avoid a whole lot of grief, if you want a house in the suberbs or country then rent it. For a condo in town buy it. You will be able to sleep at night! There are no problems with these choices. Link to comment Share on other sites More sharing options...
scubachild Posted October 30, 2015 Author Share Posted October 30, 2015 Thank you all for advise. Perhaps I did not give enough background information hense so much doom and gloom in so many replies (but I thank you for them anyway). I live in Thailand so yes I would be present at the transaction here. Yes I would have a solicitor here to represent me and one in the UK if necessary. All taxes and fees will be checked and paid. My same sex marriage to a Thai person is not recognised in Thailand so that does not matter one way or the other. I am happy for the land and house to be in his name. I don't need to be reminded of the risks with that. It's not what this thread is about. Lets just say at the price I would be paying for this property I can afford to walk away. And if I can't ever take the money back to the UK I can still afford my noodle soup every night. The house seller is not asking for this by the way. It was purely my idea as a way to avoid transfer fees and seems logical since my money is in the UK where the seller will need it eventually. So it was the practical issues I was most interested in like dealing with the Land Registry office Thank you all again for your time Link to comment Share on other sites More sharing options...
scubachild Posted October 30, 2015 Author Share Posted October 30, 2015 When you buy a house in Thailand, you go to the land office with the seller and pay cash (or bank draft). Chances of the sale being recorded without you there, almost nil! You can't own a house (that is already built)in Thailand, and you can never own the land it sits on. You gf can, but the chances of you ever taking the money out of the country again are almost NIL. So no need to worry. Why can't I own a house that is already built? Link to comment Share on other sites More sharing options...
MaeJoMTB Posted October 30, 2015 Share Posted October 30, 2015 You can't avoid transfer fees as the land office will have a valuation for the house. Mainly based on the land area. You have to pay tax on their estimate. Link to comment Share on other sites More sharing options...
MaeJoMTB Posted October 30, 2015 Share Posted October 30, 2015 When you buy a house in Thailand, you go to the land office with the seller and pay cash (or bank draft). Chances of the sale being recorded without you there, almost nil! You can't own a house (that is already built)in Thailand, and you can never own the land it sits on. You gf can, but the chances of you ever taking the money out of the country again are almost NIL. So no need to worry. Why can't I own a house that is already built? Once land and house are registered as one unit at the lad office, they won't split ownership. Link to comment Share on other sites More sharing options...
scubachild Posted October 30, 2015 Author Share Posted October 30, 2015 When you buy a house in Thailand, you go to the land office with the seller and pay cash (or bank draft). Chances of the sale being recorded without you there, almost nil! You can't own a house (that is already built)in Thailand, and you can never own the land it sits on. You gf can, but the chances of you ever taking the money out of the country again are almost NIL. So no need to worry. Why can't I own a house that is already built? Once land and house are registered as one unit at the lad office, they won't split ownership. I understand the land is in a company name so perhaps land and house are not registered as one unit... Link to comment Share on other sites More sharing options...
blackcab Posted October 30, 2015 Share Posted October 30, 2015 If you are buying from a Thai (person or corporate entity owned by Thai people) I would wager that the house and land are in the same name. Splitting ownership only benefits non Thai people, and in reality it only happens in a tiny fraction of cases. Thai people can own what they want. They don't need the security of owning the house separate from the land. Link to comment Share on other sites More sharing options...
Mr Wonderful Posted October 30, 2015 Share Posted October 30, 2015 Thank you all for advise. Perhaps I did not give enough background information hense so much doom and gloom in so many replies (but I thank you for them anyway). I live in Thailand so yes I would be present at the transaction here. Yes I would have a solicitor here to represent me and one in the UK if necessary. All taxes and fees will be checked and paid. My same sex marriage to a Thai person is not recognised in Thailand so that does not matter one way or the other. I am happy for the land and house to be in his name. I don't need to be reminded of the risks with that. It's not what this thread is about. Lets just say at the price I would be paying for this property I can afford to walk away. And if I can't ever take the money back to the UK I can still afford my noodle soup every night. The house seller is not asking for this by the way. It was purely my idea as a way to avoid transfer fees and seems logical since my money is in the UK where the seller will need it eventually. So it was the practical issues I was most interested in like dealing with the Land Registry office Thank you all again for your time Link to comment Share on other sites More sharing options...
emilymat Posted October 30, 2015 Share Posted October 30, 2015 The only thing I can add is this. If you are buying the property to eventually live here, then my advice is to come and rent first. I may be wide of the mark in your intentions, but, as other posters have stated, exercise great caution and don't be influenced by the fact the current owner is a Uk citizen - or even a friend. Link to comment Share on other sites More sharing options...
Mr Wonderful Posted October 30, 2015 Share Posted October 30, 2015 If it wasn't the vendors idea and the vendor doesn't have any documents to repatriate the funds tax free then perhaps you can offer him a 10 percent payment reduction to pay overseas. Paying overseas you are running the risk of the next purchaser wishing to settle in THB and you will be the one paying 20 percent withholding tax on outward transfers. Link to comment Share on other sites More sharing options...
scubachild Posted October 30, 2015 Author Share Posted October 30, 2015 If you are buying from a Thai (person or corporate entity owned by Thai people) I would wager that the house and land are in the same name. Splitting ownership only benefits non Thai people, and in reality it only happens in a tiny fraction of cases. Thai people can own what they want. They don't need the security of owning the house separate from the land. They are not Thai - they are British. Link to comment Share on other sites More sharing options...
scubachild Posted October 30, 2015 Author Share Posted October 30, 2015 If it wasn't the vendors idea and the vendor doesn't have any documents to repatriate the funds tax free then perhaps you can offer him a 10 percent payment reduction to pay overseas. Paying overseas you are running the risk of the next purchaser wishing to settle in THB and you will be the one paying 20 percent withholding tax on outward transfers. NOW there's a wonderful idea. Link to comment Share on other sites More sharing options...
BlindMagician Posted October 30, 2015 Share Posted October 30, 2015 Get legal advice, from UK ad Thai lawyers on YOUR payroll. End of. Link to comment Share on other sites More sharing options...
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