Selling condo - re-using money possible ?

[baywatch82]

Hi !

I would be appreciate for the advise.

About 3 years ago I bought a condo in Chiang Mai for 2.8mln, however 1.6mln was the official selling price reported to the land office, for lower taxes and fees.

Obviously money transfer was made from abroad to purchase that condominium.

Now, I would like to sell this condo, and I have buyer for 3.2mln.

After selling this condo, I would like to buy another condo.

To buy that another condo, do I have to make money transfer from abroad again ? Or I can use money from selling condo, to buy another condo ?

That would be a big money loss if I have to transfer money from Thailand to abroad, and then transfer it back from abroad to Thailand.

Can anyone point me to the website that will explain that issue ?

Thanks !

[mcfish]

How dare you make a profit? This will really upset the renters here big time

[KittenKong]

This question comes up from time to time and I've never seen a definitive answer to it, yet one would think that the situation must be fairly common. If the declared value was less than the amount on your FET then at least you should be able to carry over the difference between the two for a new purchase, though that would probably depend on the mood of the Land Office people on the day.

At worst your bank should be able to arrange the (technical) export/import of the money for a modest fee. Maybe talk to your bank manager about it?

[questionsreplies]

just change the date on your money transfer document...

[gandalf12]

Why not keep the money and rent something. The way things are going in Thailand it may be impossible to actually live here soon or at best very difficult.

[wpcoe]

Quite a few years ago, a realtor in Pattaya said it was common to do currency export/import transactions "on paper" at a bank or currency exchange. At that time he said the overall cost was cheaper at currency exchanges, but that, of course, required physically carrying a potentially large amount of cash to/from the currency exchange, whereas you could avoid physical transport by doing it at your bank where the funds already resided. I've asked a few times on the forum about the legality of such transactions, and like KittenKong says above, there has never been a definitive answer.

[scorecard]

I recall a post on this topic from years back, the poster mentioned that Bangkok Bank could arrange this at a very low fee using their own bank branch in Singapore.

Maybe worth checking, but I would rather doubt that your local BBL manager would be very knowledgeable about these subjects.

[mjakob007]

Sale proceeds of a condo can be used to buy another one.

you will need the FETC to repatriate the sale proceeds out

[dotpoom]

You cannot use the money directly to buy another condo, but if you are buying the next condo through an agent he will be able to do it for you (if he is any use at all). There are ways of doing it.

[thaivisaismylife]

Why not keep the money and rent something. The way things are going in Thailand it may be impossible to actually live here soon or at best very difficult.

Very easy, just buy an Elite card an stay here as long as you want.

[Queen4ADay]

The definitive answer is YES you can use your sale proceeds to buy another condo.

You must go to the head office branch of Bangkok Bank. Take $20USD .Please in US currency.

Go to "Customer Service "New Accounts". Tell them that you want to set up an "International Account" to deposit the proceeds of your condo sale.

Tell them that you will be buying another condo with the funds.

You will go to the counter to deposit the $20USD. The account will be open.

YOU WILL NEED

1. Passport

2. Letter of certification from your embassy for your passport. Takes 10-30 minutes to get..

3. Bring your Chanote (Title Deed) from the property you are selling. If you have your original FET Letter you can bring it but it's not critical.

When the property sells bring the sales agreement to the bank with the cash /cashier's cheque.

They will register the sale and funds in the account.

When you're ready to buy again they will issue a Bank certification letter for the funds. You will need your Purchase & Sale agreement as proof for the bank.

Bangkok Bank Head Office on Silom is the ideal place to do this. I suspect there is a similar office in Chiang Mai.

The other banks aren't there yet.

[champken]

I'm quite sure I will be corrected if I'm wrong but I think I have read or heard somewhere that if you sell a condo for profit in under 4 years of ownership that you are liable for some form of tax, is that right?

[theguyfromanotherforum]

So.... How much tax will you pay on a condo you purchased for 1.6 million and sold for 100% more if you know what I mean

[KittenKong]

The definitive answer is YES you can use your sale proceeds to buy another condo.

You must go to the head office branch of Bangkok Bank. Take $20USD .Please in US currency.

Go to "Customer Service "New Accounts". Tell them that you want to set up an "International Account" to deposit the proceeds of your condo sale.

Tell them that you will be buying another condo with the funds.

You will go to the counter to deposit the $20USD. The account will be open.

YOU WILL NEED

1. Passport

2. Letter of certification from your embassy for your passport. Takes 10-30 minutes to get..

3. Bring your Chanote (Title Deed) from the property you are selling. If you have your original FET Letter you can bring it but it's not critical.

When the property sells bring the sales agreement to the bank with the cash /cashier's cheque.

They will register the sale and funds in the account.

When you're ready to buy again they will issue a Bank certification letter for the funds. You will need your Purchase & Sale agreement as proof for the bank.

Bangkok Bank Head Office on Silom is the ideal place to do this. I suspect there is a similar office in Chiang Mai.

The other banks aren't there yet.

If you have an FET from the original import of the money then other Thai banks should also be able to export it and import it again, as I mentioned previously. Presumably if you dont have the original FET certificate then they could do it in several smaller amounts also.

As far as I can see Bangkok Bank should also require the original FET certificate for doing what you describe for larger amounts.

No matter how it is done, it amounts to a technical export/import of the funds as I mentioned.

[KittenKong]

I'm quite sure I will be corrected if I'm wrong but I think I have read or heard somewhere that if you sell a condo for profit in under 4 years of ownership that you are liable for some form of tax, is that right?

There is always some sort of tax/fee to be paid even if you make no profit on the sale. The exact structure and amount of the tax/fee changes after 5 years of ownership but you can reasonably assume about 5-6% of the declared value in total (occasionally the government makes concessions on some of this, and indeed they did so very recently). The way this is split is often considered to be negotiable between the two parties but in theory the vendor is liable for the tax and the buyer is liable for the fee.

The details have been quoted several times on here.

[KittenKong]

So.... How much tax will you pay on a condo you purchased for 1.6 million and sold for 100% more if you know what I mean

I wonder how often that situation arises?

[Queen4ADay]

Quite a few years ago, a realtor in Pattaya said it was common to do currency export/import transactions "on paper" at a bank or currency exchange. At that time he said the overall cost was cheaper at currency exchanges, but that, of course, required physically carrying a potentially large amount of cash to/from the currency exchange, whereas you could avoid physical transport by doing it at your bank where the funds already resided. I've asked a few times on the forum about the legality of such transactions, and like KittenKong says above, there has never been a definitive answer.

[Queen4ADay]

It isn't necessary to send the money from your property sale out of the country on paper or through a bank. You get a "non-resident baht account " @ Bangkok Bank and they hsndke everything for you.

[Queen4ADay]

I'm quite sure I will be corrected if I'm wrong but I think I have read or heard somewhere that if you sell a condo for profit in under 4 years of ownership that you are liable for some form of tax, is that right?

There is always some sort of tax/fee to be paid even if you make no profit on the sale. The exact structure and amount of the tax/fee changes after 5 years of ownership but you can reasonably assume about 5-6% of the declared value in total (occasionally the government makes concessions on some of this, and indeed they did so very recently). The way this is split is often considered to be negotiable between the two parties but in theory the vendor is liable for the tax and the buyer is liable for the fee.

The details have been quoted several times on here.

[Queen4ADay]

I'm quite sure I will be corrected if I'm wrong but I think I have read or heard somewhere that if you sell a condo for profit in under 4 years of ownership that you are liable for some form of tax, is that right?

There is always some sort of tax/fee to be paid even if you make no profit on the sale. The exact structure and amount of the tax/fee changes after 5 years of ownership but you can reasonably assume about 5-6% of the declared value in total (occasionally the government makes concessions on some of this, and indeed they did so very recently). The way this is split is often considered to be negotiable between the two parties but in theory the vendor is liable for the tax and the buyer is liable for the fee.

The details have been quoted several times on here.

[Queen4ADay]

Regarding Taxes... There are 4 taxes/fees

1 Transfer Fee 2% of the sale price/ usually split 50/50

2. Withholding tax aka. Personal Tax 3% of the land office "assessed value" of the property.

3. Stamp Duty .05% of the sale price.

OR

4. Business Tax. This is also referred to as "investment tax". It is charged on all property that is owned less than 5 years and has not been" lived in" for at least 1 year prior to the sale. "Lived in"- your name must be in the house registration book and you must show proof of living there (mail, bills, etc)

Over 5 years this tax does not apply.

[Queen4ADay]

The definitive answer is YES you can use your sale proceeds to buy another condo.

You must go to the head office branch of Bangkok Bank. Take $20USD .Please in US currency.

Go to "Customer Service "New Accounts". Tell them that you want to set up an "International Account" to deposit the proceeds of your condo sale.

Tell them that you will be buying another condo with the funds.

You will go to the counter to deposit the $20USD. The account will be open.

YOU WILL NEED

1. Passport

2. Letter of certification from your embassy for your passport. Takes 10-30 minutes to get..

3. Bring your Chanote (Title Deed) from the property you are selling. If you have your original FET Letter you can bring it but it's not critical.

When the property sells bring the sales agreement to the bank with the cash /cashier's cheque.

They will register the sale and funds in the account.

When you're ready to buy again they will issue a Bank certification letter for the funds. You will need your Purchase & Sale agreement as proof for the bank.

Bangkok Bank Head Office on Silom is the ideal place to do this. I suspect there is a similar office in Chiang Mai.

The other banks aren't there yet.

If you have an FET from the original import of the money then other Thai banks should also be able to export it and import it again, as I mentioned previously. Presumably if you dont have the original FET certificate then they could do it in several smaller amounts also.

As far as I can see Bangkok Bank should also require the original FET certificate for doing what you describe for larger amounts.

No matter how it is done, it amounts to a technical export/import of the funds as I mentioned.

[Queen4ADay]

The definitive answer is YES you can use your sale proceeds to buy another condo.

You must go to the head office branch of Bangkok Bank. Take $20USD .Please in US currency.

Go to "Customer Service "New Accounts". Tell them that you want to set up an "International Account" to deposit the proceeds of your condo sale.

Tell them that you will be buying another condo with the funds.

You will go to the counter to deposit the $20USD. The account will be open.

YOU WILL NEED

1. Passport

2. Letter of certification from your embassy for your passport. Takes 10-30 minutes to get..

3. Bring your Chanote (Title Deed) from the property you are selling. If you have your original FET Letter you can bring it but it's not critical.

When the property sells bring the sales agreement to the bank with the cash /cashier's cheque.

They will register the sale and funds in the account.

When you're ready to buy again they will issue a Bank certification letter for the funds. You will need your Purchase & Sale agreement as proof for the bank.

Bangkok Bank Head Office on Silom is the ideal place to do this. I suspect there is a similar office in Chiang Mai.

The other banks aren't there yet.

If you have an FET from the original import of the money then other Thai banks should also be able to export it and import it again, as I mentioned previously. Presumably if you dont have the original FET certificate then they could do it in several smaller amounts also.

As far as I can see Bangkok Bank should also require the original FET certificate for doing what you describe for larger amounts.

No matter how it is done, it amounts to a technical export/import of the funds as I mentioned.

[Queen4ADay]

Other banks do not understand this process. Bangkok Bank is the only one who currently does an "international non-resident bath account".

[WishWashMan]

So.... How much tax will you pay on a condo you purchased for 1.6 million and sold for 100% more if you know what I mean

at least the 400,000 baht gain..................hahahaha.

[KittenKong]

It isn't necessary to send the money from your property sale out of the country on paper or through a bank. You get a "non-resident baht account " @ Bangkok Bank and they hsndke everything for you.

A non-resident account is the technical equivalent, as I mentioned.

The last time I checked local deposits into a non-resident account were specifically prohibited (unless they also come from a non-resident account), though of course there are ways around this (ie the technical export and import of the money).

As far as I know, no matter how is it is achieved, the money will have to leave the country and then come back again, at least on paper.

[Queen4ADay]

So.... How much tax will you pay on a condo you purchased for 1.6 million and sold for 100% more if you know what I mean

Good Question.It depends on 3 things:

1.The Land Office "Assessed value"

2.How long you have owned it.

3.What you declare that you sold it for.

If you go to the land office website you will find a calculation tool where you can enter your chanote#..The tool does the rest.

[Queen4ADay]

It isn't necessary to send the money from your property sale out of the country on paper or through a bank. You get a "non-resident baht account " @ Bangkok Bank and they hsndke everything for you.

A non-resident account is the technical equivalent, as I mentioned.

The last time I checked local deposits into a non-resident account were specifically prohibited (unless they also come from a non-resident account), though of course there are ways around this (ie the technical export and import of the money).

As far as I know, no matter how is it is achieved, the money will have to leave the country and then come back again, at least on paper.

A "Non Resident Account" is designed to receive proceeds of transactions that are done in Thailand with funds that have already been properly cleared.

Funds do not have to leave the country..I manage this process with my clients regularly.

[jippytum]

I am in the same position .The land office and my bank BB confirm the total amount according to the condominium act 2008 must again be transferred from abroad and converted to Thai Baht . The documentation from the first purchase will only assist in the outward transfer of funds

[natway09]

I am presuming you have the official documents of bringing the money into Thailand.

If you do it is possible to take up to that amount out again.

Just go ahead & buy your new condo after settlement if that is your wish.

The government makes money on all these transactions so they are happy.

Queen for a day go & clean yourself 5555 it is Baht