how to transfer condo in foreign name to foreigner

[manarak]

I would like to know how a condo registered to a foreigner can be transferred (donated) to another foreigner without performing a sale?

[KittenKong]

It cant!

Even if you die and leave it to someone it's treated as a sale and tax will be charged.

The Thai revenue people arent daft: tax on property sales is very high here, it's a good earner for them and it can not be avoided (unless you delve into company ownership which has its own taxes and drawbacks).

[blackcab]

As previously stated, it cannot.

You have to pay taxes and fees on the assessed value as a minimum.

[Suradit69]

As previously stated, it cannot.

You have to pay taxes and fees on the assessed value as a minimum.

Anyone know the tax rate? More interested in the tax cost for a Thai to inherit a condo than for an actual sale. Since, in the case of inheritance, no cash changes hands until & if it is sold, would the tax be charged when it is sold and dependent on the actual price paid or at the time of inheritance at some assumed market value?

Thanks in advance.

Edited July 9, 2016 by Suradit69

[ballbreaker]

As previously stated, it cannot.

You have to pay taxes and fees on the assessed value as a minimum.

Anyone know the tax rate? More interested in the tax cost for a Thai to inherit a condo than for an actual sale. Since, in the case of inheritance, no cash changes hands until & if it is sold, would the tax be charged when it is sold and dependent on the actual price paid or at the time of inheritance at some assumed market value?

Thanks in advance.

Tax rates normally applied when ownership is changed:

Transfer Cost

Transfer fee rate= 2% the buyer usually or 50/50 split Specific Business Tax rate= 3.3% the seller (only paid if owned less than 5 years) Stamp duty rate= 0.5% the seller (only paid if owned more than 5 years) Withholding tax (income) rate= 1% or progressive rate the seller (this relate to the seller's personal or corporate income tax)

[blackcab]

This is based on the land office assessed value, or the declared price. Whichever is higher.

[jippytum]

No one has mentioned the person receiving the condo will have to import foreign currency equivalent to the purchase price to transfer ownership

[dotpoom]

The replies I have read talk only about the tax situation.....which suggests that apart from that there is no problem?...Like, if I wanted to give my condo to a friend all that is needed is the taxes to be paid, Would it not have to go through the books like a sale and the money being shown as coming in from outside Thailand for the transfer to happen?

[ballbreaker]

Any condo being registered in foreigners name must have a FET form issued by bank to show funds came from outside Thailand. It does not matter if purchase, gift or inheritance the funds must be transferred into Thailand.

[blackcab]

Q: Would it not have to go through the books like a sale?

A: Yes it would.

Q: Would the money being shown as coming in from outside Thailand for the transfer to happen?

A: Yes. The declared purchase price (Or the assessed value, whichever is higher) would have to be imported, exchanged and a FET form given to the Land Office to prove it.

Your friend doesn't actually have to give you the money. He can hand you a cheque for 1 dollar or even an empty envelope at the Land Office - nobody checks.

[manarak]

No one has mentioned the person receiving the condo will have to import foreign currency equivalent to the purchase price to transfer ownership

this was actually my point.

I don't care about the taxes, as taxes are normal with every change of owner in the official registrar.

[trogers]

Any condo being registered in foreigners name must have a FET form issued by bank to show funds came from outside Thailand. It does not matter if purchase, gift or inheritance the funds must be transferred into Thailand.

Not true for inheritance of a foreigner owned condo unit to a foreigner heir. No FET is required, but the executioner of the deceased's will needs to submit and get a court order to execute the will.

[Berty100]

It cant!

Even if you die and leave it to someone it's treated as a sale and tax will be charged.

The Thai revenue people arent daft: tax on property sales is very high here, it's a good earner for them and it can not be avoided (unless you delve into company ownership which has its own taxes and drawbacks).

Tax on property sales are very high here?

Where I came from, and believe that is the case for most European countries, those costs are a five fold from Thailand.

[Delight]

Not true for inheritance of a foreigner owned condo unit to a foreigner heir. No FET is required, but the executioner of the deceased's will needs to submit and get a court order to execute the will.

Where have you got this idea from.?

If a Foreigner buys / acquires a condo (in a foreign name) in any circumstances a FET is required.

If you have evidence to disprove my statement then please advise.

If ,however,a condo is in a Company -then no requiremnent for FET and no transfer taxes. no involvement with the Land Office.

Easy!

[KhonKaenKowboy]

This is based on the land office assessed value, or the declared price. Whichever is higher.

I recently read that transfer fee is based on their value. The rest is based on the higher value..so even if you are playing straight up; you get a little bit of a break. Also breaks for owner occupied units, who are registered in Blue Book...don'y know about owner occupants in Yellow Books.

[KhonKaenKowboy]

Not true for inheritance of a foreigner owned condo unit to a foreigner heir. No FET is required, but the executioner of the deceased's will needs to submit and get a court order to execute the will.

Where have you got this idea from.?

If a Foreigner buys / acquires a condo (in a foreign name) in any circumstances a FET is required.

If you have evidence to disprove my statement then please advise.

If ,however,a condo is in a Company -then no requiremnent for FET and no transfer taxes. no involvement with the Land Office.

Easy!

For smaller purchases, there is no FET; just a letter from the bank. I think it is 50K USD. I only had a letter.

[Delight]

Not true for inheritance of a foreigner owned condo unit to a foreigner heir. No FET is required, but the executioner of the deceased's will needs to submit and get a court order to execute the will.

Where have you got this idea from.?

If a Foreigner buys / acquires a condo (in a foreign name) in any circumstances a FET is required.

If you have evidence to disprove my statement then please advise.

If ,however,a condo is in a Company -then no requiremnent for FET and no transfer taxes. no involvement with the Land Office.

Easy!

For smaller purchases, there is no FET; just a letter from the bank. I think it is 50K USD. I only had a letter.

I think that you will find 'a letter from the bank' is a FET

[Happy Grumpy]

The Thai revenue people arent daft: tax on property sales is very high here, it's a good earner for them

The transfer costs (taxes and fees) of the condos I've bought have been tiny % compared to the West.

[trogers]

Not true for inheritance of a foreigner owned condo unit to a foreigner heir. No FET is required, but the executioner of the deceased's will needs to submit and get a court order to execute the will.

Where have you got this idea from.?

If a Foreigner buys / acquires a condo (in a foreign name) in any circumstances a FET is required.

If you have evidence to disprove my statement then please advise.

If ,however,a condo is in a Company -then no requiremnent for FET and no transfer taxes. no involvement with the Land Office.

Easy!

My deceased dad and I are both foreigners and I had just got my name put into the title deed of his condo on 28/6.

I was the heir and executioner of his will.

Edited July 10, 2016 by trogers

[Delight]

Not true for inheritance of a foreigner owned condo unit to a foreigner heir. No FET is required, but the executioner of the deceased's will needs to submit and get a court order to execute the will.

Where have you got this idea from.?

If a Foreigner buys / acquires a condo (in a foreign name) in any circumstances a FET is required.

If you have evidence to disprove my statement then please advise.

If ,however,a condo is in a Company -then no requiremnent for FET and no transfer taxes. no involvement with the Land Office.

Easy!

My deceased dad and I are both foreigners and I had just got my name put into the title deed of his condo on 28/6.

I was the heir and executioner of his will.

Sorry to hear about your family loss

If you achieved a transfer without a FET-then that is amazing and completely contrary to section 19 of the Condo Act.

[manarak]

Not true for inheritance of a foreigner owned condo unit to a foreigner heir. No FET is required, but the executioner of the deceased's will needs to submit and get a court order to execute the will.

Where have you got this idea from.?

If a Foreigner buys / acquires a condo (in a foreign name) in any circumstances a FET is required.

If you have evidence to disprove my statement then please advise.

If ,however,a condo is in a Company -then no requiremnent for FET and no transfer taxes. no involvement with the Land Office.

Easy!

My deceased dad and I are both foreigners and I had just got my name put into the title deed of his condo on 28/6.

I was the heir and executioner of his will.

ok, can you please describe more precisely the process?

was the change of owner the consequence of a court order?

Edited July 10, 2016 by manarak

[trogers]

Not true for inheritance of a foreigner owned condo unit to a foreigner heir. No FET is required, but the executioner of the deceased's will needs to submit and get a court order to execute the will.

Where have you got this idea from.?

If a Foreigner buys / acquires a condo (in a foreign name) in any circumstances a FET is required.

If you have evidence to disprove my statement then please advise.

If ,however,a condo is in a Company -then no requiremnent for FET and no transfer taxes. no involvement with the Land Office.

Easy!

My deceased dad and I are both foreigners and I had just got my name put into the title deed of his condo on 28/6.

I was the heir and executioner of his will.

ok, can you please describe more precisely the process?

was the change of owner the consequence of a court order?

My late dad made his will 7 years ago, drafted by a Thai lawyer who actively attends court.

Upon his demise, I engaged this same lawyer to process the will and obtained the initial court order in May this year.

I first thought that I had to get a FET to make the title transfer and asked this lawyer to incorporate my rights on the court order into my own new will.

A week later, he advised that such a court given right may not be transferable on my will, and it would be better to effect the title transfer and then incorporate this condo into my will.

He made a check with the central land office in Bangkok and told me that the property was already purchased with an FET, and can be passed on to the heir without another.

He processed the title transfer for me at the Prakhanong land office in Srinakarin on 28/6. The documents required were, the final court order, my dad's will, original title deed, debt-free certificate and percentage of foreign ownership from the condo Juristic, and originals (returned after checking) and copies of documents that were submitted to the court.

I had to pay 2% of assessed value as transfer fee.

Edited July 10, 2016 by trogers

[manarak]

ok, can you please describe more precisely the process?

was the change of owner the consequence of a court order?

My late dad made his will 7 years ago, drafted by a Thai lawyer who actively attends court.

Upon his demise, I engaged this same lawyer to process the will and obtained the initial court order in May this year.

I first thought that I had to get a FET to make the title transfer and asked this lawyer to incorporate my rights on the court order into my own new will.

A week later, he advised that such a court given right may not be transferable on my will, and it would be better to effect the title transfer and then incorporate this condo into my will.

He made a check with the central land office in Bangkok and told me that the property was already purchased with an FET, and can be passed on to the heir without another.

He processed the title transfer for me at the Prakhanong land office in Srinakarin on 28/6. The documents required were, the final court order, my dad's will, original title deed, debt-free certificate and percentage of foreign ownership from the condo Juristic, and originals (returned after checking) and copies of documents that were submitted to the court.

I had to pay 2% of assessed value as transfer fee.

thank you for that informative post!

[KittenKong]

It cant!

Even if you die and leave it to someone it's treated as a sale and tax will be charged.

The Thai revenue people arent daft: tax on property sales is very high here, it's a good earner for them and it can not be avoided (unless you delve into company ownership which has its own taxes and drawbacks).

Tax on property sales are very high here?

Where I came from, and believe that is the case for most European countries, those costs are a five fold from Thailand.

Property transfer tax is about 6% here. In the UK the transfer tax on the average house would be about 1% or 1.5% (the first GBP125,000 is entirely exempt and the next GBP125,000 is taxed at 2%. Agents fees could be another 3-5% on top of that here whereas in the UK that would be 1.5% at most or even a fixed fee of just a few hundred GBP.

You say that transfer taxes are 5 times 6% were you come from? 30%? I know of nowhere on the planet where they are that high.

[KittenKong]

The Thai revenue people arent daft: tax on property sales is very high here, it's a good earner for them

The transfer costs (taxes and fees) of the condos I've bought have been tiny % compared to the West.

It's about 6% here and you say that is a tiny percentage of what you paid there? Seems unlikely.

[trogers]

It cant!

Even if you die and leave it to someone it's treated as a sale and tax will be charged.

The Thai revenue people arent daft: tax on property sales is very high here, it's a good earner for them and it can not be avoided (unless you delve into company ownership which has its own taxes and drawbacks).

Tax on property sales are very high here?

Where I came from, and believe that is the case for most European countries, those costs are a five fold from Thailand.

Property transfer tax is about 6% here. In the UK the transfer tax on the average house would be about 1% or 1.5% (the first GBP125,000 is entirely exempt and the next GBP125,000 is taxed at 2%. Agents fees could be another 3-5% on top of that here whereas in the UK that would be 1.5% at most or even a fixed fee of just a few hundred GBP.

You say that transfer taxes are 5 times 6% were you come from? 30%? I know of nowhere on the planet where they are that high.

Perhaps they have mistaken inheritance tax as transfer tax?

[KittenKong]

Perhaps they have mistaken inheritance tax as transfer tax?

That, or capital gains tax. Both can be avoidable to a great extent in Europe, depending on your individual circumstances and the nature of the property. In fact the average UK owner-occupier will be liable to neither and I believe the same applies in many EU countries.

[LukKrueng]

Any condo being registered in foreigners name must have a FET form issued by bank to show funds came from outside Thailand. It does not matter if purchase, gift or inheritance the funds must be transferred into Thailand.

That is to show that the money for purchase came from overseas - and the amount is the declared selling price, not the official valuation of the property. So basically they can declare a selling amount of 1000 THB. Problem is that the Land Department might see it as an attempt to avoid the transfer of money and might not accept the sale

[trogers]

Any condo being registered in foreigners name must have a FET form issued by bank to show funds came from outside Thailand. It does not matter if purchase, gift or inheritance the funds must be transferred into Thailand.

That is to show that the money for purchase came from overseas - and the amount is the declared selling price, not the official valuation of the property. So basically they can declare a selling amount of 1000 THB. Problem is that the Land Department might see it as an attempt to avoid the transfer of money and might not accept the sale

I think that portion about gift or inheritance applies to a property that is presently in a Thai name, eg. owner is a Thai mother gifting her foreign child a condo.

[Suradit69]

The Thai revenue people arent daft: tax on property sales is very high here, it's a good earner for them

The transfer costs (taxes and fees) of the condos I've bought have been tiny % compared to the West.

It's about 6% here and you say that is a tiny percentage of what you paid there? Seems unlikely.

Somewhat off topic, but where I come from in the US there is an annual tax on owned real estate. That tax can be quite a chunk of change and sometimes results in forced sales to recover unpaid taxes. If you have a mortgage, usually taxes and insurance are included in mortgage payments to protect the mortgage lender, but if you own the property "free and clear" it's up to you and it can be tough for retirees living on reduced, fixed income.

At least in Thailand they don't tax you every year just for owning property.