Buying a condo with money already in Thai bank account? Can it be done?

[sikishrory]

The scenario is I want to buy a condo in Bangkok and already have the money in a Thai account.

Do I really need to transfer money out of Thailand and then back in? Apart from makong no sense at all, getting that much money out of Thailand without work permit or the like is also probably quite difficult. Not to mention losing money on 2 exchanges.

Suprisingly I am not seeing much about this anywhere. 

I asked my old property manager from when I was renting in Bangkok and she said you got to take it out of Thailand then back in. 

Then I noticed this info tonight http://www.siamrealestate.com/info/buy-thailand-property/transfer-funds-thailand/ that seems to suggest the only reason for doing this is so you enable yourself to transfer the money back out of Thailand again with no problem should you choose to sell the condo.

 

 

[chiang mai]

That article you posted refers to buying property through a developer and proposes a short cut which may or may not be legal, I suppose if you are buying off plan you may be able to cut a deal with the developer to circumvent the rules, none of which should prevent you from transferring the sale proceeds out of Thailand afterwards (that's a Land Office tax issue, not a currency transfer issue).

 

But back to your existing funds: How did those funds come into being, did you transfer them from overseas? If so, surely you are able to get a Foreign Currency Exchange Transaction (FET) after the fact? Assuming you did not and they are Thai based funds originally, I think a transfer out and back again is the only way to make that work since the bank letter is required by the Land Office at the time of condo. purchase.

[LukKrueng]

If I am not mistaken, according to the law there are 2 ways in which a non Thai can buy property in Thailand - 1 is by transferring the money from overseas, and the other for holders of work permit is to prove that they have legally earned the money while here. However, the 2nd way is more complex, and many times the Land Department won't accept it and still demand an official letter from the bank that the funds for the purchase were transferred from overseas. Without this letter the they will not register the property to your name. 

Usually the banks request that on the money transfer order there is a remark that the funds are being transferred for the purpose of buying property. If there is no such remark on the transfer papers the bank might give some trouble issuing the letter to the Land Department.

I personally know of some people that work here legally and in order to ease the process of buying property transferred the money out of the country and back in, with the said remark on the money transfer order.

 

[KittenKong]

3 hours ago, chiang mai said:

Assuming you did not and they are Thai based funds originally, I think a transfer out and back again is the only way to make that work since the bank letter is required by the Land Office at the time of condo. purchase.

 

Most banks here will "facilitate" this for a fee.

[bangkapi]

I have a friend who worked for an international school here in Thailand. He bought a small condo from a Thai Airways pilot without an inward transfer of money.  At the land office, the pilot was insistent that because the condo was under 500,000 baht, it did not fall under the transfer law.  Maybe he also greased some palms, but after 8 hours of standing his ground, the transaction was done. This happened 14 years ago. 

I have also heard of a couple instances that it is easy to buy a condo without an inward transfer in Pattaya because they are very flexible and creative with foreigners there regarding immigration and condo purchases.

[Siamfan]

Hi. There are various options depending on your situation. How much is the condo? Send me a PM....

[HampiK]

First of all, where your money in the thai bank is coming from?

If you transferded it some time ago from your homecountry, then you still can probably ask for a FET (Foreign Exchange Transfer) document, and prove of money outside of thailand.

 

As you not seems to work in thailand, I don't know how else you would have a bigger amount of money in Thailand, except you would bring always some cash into thailand. Even when I bring cash into thailand (only bigger sums than 10'000$) I will declare it at the airport and therefore have a prove from outside money :)

 

[sikishrory]

I have been getting my monthly offshore salary transferred into there. 

I might be getting married so want to ahow the 400,000 baht in there for the visa as well.

Maybe the funds for that can be shown from an overseas account. I don't know. Either way it is nice to have money already in Thailand as I spend so much time there.

I think I do temember reading somewhere that when transferring condo money into Thailand it needs to be stated in the transaction that it is for a condo. That makes me think that the money I have now cannot be used as that wasn't stated? Also does it not need to be done in one transfer all at once?

I don't understand the point of this. Seems illogical.

 

 

[MaxiMaxi]

Money have to enter officialy, or by decleared cash or bank transfer.

Can be also the money you have used to show earlier at immigration for visa purpose

In my case money came by many small bank transfers in about 1 year of time, without declearing that had to be used for condo, I asked my bank branch to print out the resume for each transfer to be ready to show when asking to issue the letter for land office at Bangkok bank Head Office and everything was fine.

[ballbreaker]

If you take your Thai account passbook to the bank and show them which amounts you need a copy of transfer order that deposited funds in your account.  This will be done at the desk that takes care of foreign transfers not a regular bank teller.  You may be referred to main branch for copies if more than than a few years since transfer.  Once you have enough copies to meet required amount present them at desk that issues FET (ThorTor 3), most likely main branch.  This method was acceptable with Bangkok Bank main office.

 

Anytime I transfer funds into my account now I always obtain a copy of transfer order within a month for my records.  Won't need to run around if I should desire to transfer funds out of Thailand.

 

[sikishrory]

3 hours ago, ballbreaker said:

If you take your Thai account passbook to the bank and show them which amounts you need a copy of transfer order that deposited funds in your account.  This will be done at the desk that takes care of foreign transfers not a regular bank teller.  You may be referred to main branch for copies if more than than a few years since transfer.  Once you have enough copies to meet required amount present them at desk that issues FET (ThorTor 3), most likely main branch.  This method was acceptable with Bangkok Bank main office.

 

Anytime I transfer funds into my account now I always obtain a copy of transfer order within a month for my records.  Won't need to run around if I should desire to transfer funds out of Thailand.

 

So basically if I head to the main Bangkok bank branch in Bangkok then they should be able to sort it all out so I can use the existing funds?

Not sure what a transfer order is but I guess they can tell me.

Thanks for answer

[balo]

16 hours ago, HampiK said:

If you transferded it some time ago from your homecountry, then you still can probably ask for a FET (Foreign Exchange Transfer) document, and prove of money outside of thailand.

 

Yes you can  ,  I did it myself.   But if the money is earned in Thailand then you have a problem. 

 

 

Edited September 26, 2016 by balo

[djlest]

and in 2017 you will be under even more strutiny at the banks... no work permit even if you have an FET they will make you feel like a criminal... and in my case say no for 5 different banks now. before the new year was no problem at all and just smiling staff. now i would seriously keep as much money and cash out of Thai banks as possible,...

[sikishrory]

I changed my mind about buying as I found a really good place for just 7k a month.

I did go to the pattaya branch though and they were very sure there was no issue with buying. He seemed to have a attitude that it is no issue whatsoever. Meanwhile a different pattaya branch told me 1 year is the limit for using the money after you transfer it. Although I had to ask her over and over to get an answer. At first she had no idea and couldn't answer so she might have just said that to get rid of me.

I was in there the other day and a farang basically got eacorted out because he was asking to see "terms and conditions" amongst other things. 

I am just waiting to get my kasikorn account sorted so I can cut ties with this buffalo bank. 

[sikishrory]

Also I know if you stay in thailand over 6 months per year you are taxed on foriegn income that you bring into thailand in 1 year. In other words you leave it out the country for a year if you dont want it taxed. That might be worth considering for some. 

[Langsuan Man]

13 hours ago, sikishrory said:

Also I know if you stay in thailand over 6 months per year you are taxed on foriegn income that you bring into thailand in 1 year. In other words you leave it out the country for a year if you dont want it taxed. That might be worth considering for some. 

source please, since if that was true how would anyone qualify for an initial Non Immigrant visa and subsequent extensions of stay 

[sikishrory]

2 hours ago, Langsuan Man said:

source please, since if that was true how would anyone qualify for an initial Non Immigrant visa and subsequent extensions of stay 

How does that have anything to do with getting a minimum amount of money together to get a visa? I got a marriage visa 2 days ago with required funds. It has nothing to do with tax. 

[Langsuan Man]

15 hours ago, sikishrory said:

Also I know if you stay in thailand over 6 months per year you are taxed on foriegn income that you bring into thailand in 1 year. In other words you leave it out the country for a year if you dont want it taxed.

 

1 hour ago, sikishrory said:

How does that have anything to do with getting a minimum amount of money together to get a visa? I got a marriage visa 2 days ago with required funds. It has nothing to do with tax. 

You made the claim, not me , now back it up 

[sikishrory]

No. You randomly wrote that somehow paying income tax means people will struggle to get visas. I can't really back that up as it makes no sense and I don't see how the two are related or what issue you are alluding to. 

[blackcab]

3 hours ago, Langsuan Man said:

You made the claim, not me , now back it up 

 

From the Thai revenue department website: http://www.rd.go.th/publish/6045.0.html

 

Quote

            Taxpayers are classified into “resident” and “non-resident”. “Resident” means any person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year. A resident of Thailand is liable to pay tax on income from sources in Thailand as well as on the portion of income from foreign sources that is brought into Thailand. A non-resident is, however, subject to tax only on income from sources in Thailand.