Foreigner with a work permit buying a condo

[lomtalay]

I work in Thailand and have a work permit. I will retire in a couple of years and want to buy a condo in Rayong for 2.5m baht. If I want to put the condo in my name, rather than my Thai wife's, do I still need to transfer funds over from abroad? Or, can I prove the fact that I am working here legally & use my local funds? If I do need to prove that I am a resident here, do I need to get a letter from immigration or will my work permit suffice?

I would really appreciate some advice from anyone in the know. I have looked at the many threads on the forum but there seems to be some conflicting views. Thanks!

[Langsuan Man]

Is the condo within the farang quota ?

That determines everything

If it is in the farang quota I don't really know if the funds must be imported from abroad in order to obtain the Foreign Exchange Certificate, but I have my doubts if you can obtain an FEC for funds earned here (there are shady services that will provide a FEC but beware)

I do know that if you die and leave the condo to a Thai they must sell it within a year to a foreigner, who must remit the funds from overseas in order to keep the condo in the foreign quota. If you leave it to a foreigner then they must remit the funds from overseas to legally inherit it or sell it within a year

[lomtalay]

Thanks for your reply.

Yes, the apartment is within the farang quota & I need to get a letter from the condo to take to the Land Office in the area of Rayong I am buying it. I have a very close Thai friend who lives in the area & used to work at the Land Office. Her contact at the Land Office said that I just need a letter from immigration & my work permit to buy the apartment. I asked whether I need to bring in money from overseas & obtain an FEC but I was told this is not necessary.

It is only after reading about the issue online - including this site - that I have started to worry. When I die I intend to leave the condo to my Thai wife.

Perhaps, all things considered, I should just put it in my wife's name anyway?

Any more constructive comments welcome...

[Langsuan Man]

Thanks for your reply.

Yes, the apartment is within the farang quota & I need to get a letter from the condo to take to the Land Office in the area of Rayong I am buying it. I have a very close Thai friend who lives in the area & used to work at the Land Office. Her contact at the Land Office said that I just need a letter from immigration & my work permit to buy the apartment. I asked whether I need to bring in money from overseas & obtain an FEC but I was told this is not necessary.

It is only after reading about the issue online - including this site - that I have started to worry. When I die I intend to leave the condo to my Thai wife.

Perhaps, all things considered, I should just put it in my wife's name anyway?

Any more constructive comments welcome...

If it were me, I would spend a few baht and consult with a Thai lawyer who deals with property law to be absolutely sure, remember that if it is in your wife's name then the resale value will be considerably less

Another apartment in the same building, not in the farang quota, may be considerably less right now

[MadDog2020]

I went through this less than 2 years ago. I had to get a letter from the bank Kasikorn to the DLT confirming the money had been sent from abroad. They provided the proper paperwork but it took 3 trips to the bank. The local bank had to consult with the HQ before the did it correctly. I also have a work permit but they would not allow me to use the funds from "in" country to purchase the condo. That was my experience.

[Naroge]

It is very clear that you can only use local funds for a condo if you have a Certificate of Residence, which you appear not to have. So only choices for you are

1. Bring in funds from abroad

2. Put in Thai wife's name.

I'm a bit surprised about you indicating that certain units are in the "Farang quota" while others are not. I don't believe this is the case, unless the "Farang quota" is already filled, which is seldom the case (but could of course happen). Only important thing is that max 49% of the units (area) is used by Farangs.

[blackcab]

Forrigners must bring funds in from abroad to buy a condo. There is only one exception: Foreigners who have permanent residency can use funds earned within Thailand.

As such you have two realistic choices. 1. Get the bank to an out and in with the money, which will cost. 2. Put it in your wife's name and save her the transfer fees later on.

[KittenKong]

.... remember that if it is in your wife's name then the resale value will be considerably less

Another apartment in the same building, not in the farang quota, may be considerably less right now

Very unlikely in Rayong. I cant remember seeing any buildings there in which the 49% farang quota was full, or even close to full, so any farang could simply buy from a Thai in those buildings.

Units can form part of either quota depending solely on who owns them. There is nothing about the units themselves that makes them specifically farang or Thai.

[KittenKong]

Thanks for your reply.

Yes, the apartment is within the farang quota & I need to get a letter from the condo to take to the Land Office in the area of Rayong I am buying it. I have a very close Thai friend who lives in the area & used to work at the Land Office. Her contact at the Land Office said that I just need a letter from immigration & my work permit to buy the apartment. I asked whether I need to bring in money from overseas & obtain an FEC but I was told this is not necessary.

I dont think your friend knows what she is talking about. No surprise there in Thailand.

You never need a WP to buy a condo here, but you always need an FEC (to buy in farang name).

[akentryan]

Also consider what happens if it is your wife's name and she dies before you. If without a will and her parents are alive you will inherit two-thirds of the FMV of the house (technically you inherit half and share the other half equally with the parents) and you will have to buy the other third from Mom and Pop if you wish to remain in the house. In addition you will have to pay tax on the "amount" you inherited. Just went through this last year. Same holds true if a vehiclle is in her name.

[iggie]

I have a Work Permit but am told that I need to do the usual Transfer from Overseas to show money coming into Thailand.

Agree that Banks take awhile to process the Tor Tor 3. 2 trips to the Bank is a minimum to get the paperwork right.

[gandalf12]

It is very clear that you can only use local funds for a condo if you have a Certificate of Residence, which you appear not to have. So only choices for you are

1. Bring in funds from abroad

2. Put in Thai wife's name.

I'm a bit surprised about you indicating that certain units are in the "Farang quota" while others are not. I don't believe this is the case, unless the "Farang quota" is already filled, which is seldom the case (but could of course happen). Only important thing is that max 49% of the units (area) is used by Farangs.

I thought it was 40%

[KittenKong]

I thought it was 40%

49/51

[lomtalay]

Thanks to all of you for taking the time to give this info & advice. Very useful indeed! I'm going to put the condo in my wife's name & make out wills for both of us.

[Langsuan Man]

Thanks to all of you for taking the time to give this info & advice. Very useful indeed! I'm going to put the condo in my wife's name & make out wills for both of us.

Even with a will if she dies before you , since you cannot own property in Thailand, you will only have 1 year in which you must sell it. This will be ordered by the Probate Court

The only way to protect yourself is to purchase it in the foreign quota and if you die before her, then she will have to option to either sell it to a farang or place it back into the Thai quota, flexibility that you will not have

Once again, I urge you to check with a Thai lawyer before you spend your money

[blackcab]

Thanks to all of you for taking the time to give this info & advice. Very useful indeed! I'm going to put the condo in my wife's name & make out wills for both of us.

Even with a will if she dies before you , since you cannot own property in Thailand, you will only have 1 year in which you must sell it. This will be ordered by the Probate Court

The only way to protect yourself is to purchase it in the foreign quota and if you die before her, then she will have to option to either sell it to a farang or place it back into the Thai quota, flexibility that you will not have

Once again, I urge you to check with a Thai lawyer before you spend your money

The OP was talking about a condo, which he can own.

I think there is sometimes a misunderstanding about the foreign quota in condo buildings. To make it clear, units are not pre allocated into either the foreign or the Thai quota. It simply depends who buys the unit. It is quite possible that a condo building with 100 identical units has 100 Thai owners, and that none of the foreign quota is used.

It could also be possible in the same building that 49 of the units are owned by foreigners and 51 of the units are owned by Thais.

In reality, the vast majority of buildings never reach the 49% foreign quota, or anything close to it. Let's use the previous fictional building of 100 identical units, with an ownership of 70% Thai and 30% foreigners.

In this scenario, a foreigner could buy from a Thai, and the ratio would change to 69% / 31%. No problem at all.

The only time things change is when the foreign quota is maxed out at 49%. If this is the case and the person selling a unit that is part of the 49% receives multiple offers, they could ask a premium based a. on demand and b. on limited supply.

In reality though, in my experience there are very few units with 49% foreign ownership, and very few that have crowds of people knocking down the doors to buy them.

[Langsuan Man]

Read the whole thread and you will understand the OP's dilemma. Foreign quota's has been dealt with

[blackcab]

I don't see a dilemma. This is the same situation others face on a frequent basis.

Option 1. Put the condo in his name. If he dies first the wife can transfer it to her name or sell it on.

Option 2. Put the condo in the wife's name. If she dies first he can transfer it to his name or sell it on.

All assuming each spouse leaves the property to the other spouse in a will. Also recognising that to transfer from wife to husband, the husband has to bring in the correct amount of foreign currency.

[thedemon]

Foreign exchange dealers like Super Rich can provide the document showing that the funds were remitted from abroad for a fee. I don't recall how much but certainly less than the banks margins on buy/sell plus remittance fees.

I can't see why that isn't legal. As a WP holder, you are entitled to remit funds abroad. There is no check made to ensure that the funds you are remitting abroad are commensurate with your salary.