Approx cost of transferring condo to family member

[William Osborne]

I have a small condo  for over 10 years under company ownership... which i pay 12000 baht to lawyer every year to do the tax returns... I'm thinking of transferring it to my stepdaughter and closing the company down... Any idea of cost involved ?..... condo is 42 sq/m studio which i guess is worth about 1.2 mil and i just did the tax return last  month ... cheers

[padgebkk]

I don't understand ... you can own a condo outright in your name. You don't need to have a company, unless you own the land the structure is built on.
If I remember correctly, 51% of the condos in the development must be owned by thai nationals, the other 49% can be owned outright by foreigners


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[LongTimeLurker]

If the 49% foreign quota is sold then the remainder must be in a Thai name, or a company name.

[LongTimeLurker]

OP, you would have to pay the taxes on transfer of the condo to your stepdaughter.

 

Closing down the company you should ask your lawyer about.

[KittenKong]

1 hour ago, William Osborne said:

I have a small condo  for over 10 years under company ownership... which i pay 12000 baht to lawyer every year to do the tax returns... I'm thinking of transferring it to my stepdaughter and closing the company down... Any idea of cost involved ?.....

 

I think it's around 20,000B to close the company down plus you will have to pay transfer taxes on the sale which vary around 6% depending on your circumstances, so maybe another 70,000B on 1.2MB. As there is no real sale involved the taxes should be based on the land office estimated value, which may be lower than the price you mention. If you go to the land office they will tell you exactly what the taxes will cost.

[William Osborne]

... cheers for replies ...doing some looking and came across the below.... as the property is over 5 years old,  i should be able to avoid business tax for the transfer ?

 

THAILAND PROPERTY TAXES:
    a) Transfer fee: 2% of the registered value of the property
Stamp Duty: 0.5% of registered value. Only payable if exempt from business tax
    c) Withholding tax: 1% of the appraised value of the property
    d) Business tax: 3.3% of the appraised value of the property if selling within 5 years. This applies to both individuals and companies

[dotpoom]

Can you transfer a condo to a Thai person without them actually buying it?  What I mean is, would it not have to be shown as a sale....on paper at least?

[Briggsy]

With regards to closing down a company, somebody I know was charged 30,000 Baht a few years back. However that was an active trading company not just a shell for owning property.

[KittenKong]

2 hours ago, William Osborne said:

... cheers for replies ...doing some looking and came across the below.... as the property is over 5 years old,  i should be able to avoid business tax for the transfer ?

 

The actual amount is variable as I mentioned and from what you say I think you should be able to avoid that part. I would ask at the land office as that way you will be told the exact amount and also learn what the estimated value is.

[samsingsong]

I had to start a Thai limited company about 10 years ago to by a Thai condo. When I closed it down it cost about the same as it cost to start it! That was around 35,000 THB.

[KittenKong]

1 hour ago, dotpoom said:

Can you transfer a condo to a Thai person without them actually buying it?  What I mean is, would it not have to be shown as a sale....on paper at least?

 

As far as I know it's always treated as a normal sale and taxed accordingly. And the tax due is always based on the higher of the estimated or declared values, so you cant just sell it for 1000B either.

[William Osborne]

So if i did the transfer through the land office and paid whatever applicable tax ....what are the implications of just walking away from the company and never doing the tax returns again ?..... the actual tax is about 800 baht per year but lawyer fee is 12k :-(

[samsingsong]

1 hour ago, William Osborne said:

 ....what are the implications of just walking away from the company and never doing the tax returns again ?.....

As I understand it, as long as the company exists then you have to do tax returns every year. That's why I went to the expense of spending 35,000 THB to wind-up the company I had. My costa were also 12,000 THB a year.

[mrboats]

Instead of closing the company and paying the costs you can always give it away free....Im interested if you want to save the expense of closing it...it just means changing the directors...no comments please regarding liabilities and other nonsense....I'm smart enough to read the understand the yearly financial statements

[harrry]

5 hours ago, dotpoom said:

Can you transfer a condo to a Thai person without them actually buying it?  What I mean is, would it not have to be shown as a sale....on paper at least?

Efectively that is what it is.  Transfers of property.....cars..land are treated as sales even to family members though usually at the government assessed rate...and the tax has deductions based on the time of ownership.

[jacko45k]

15 hours ago, padgebkk said:

I don't understand ... you can own a condo outright in your name. You don't need to have a company, unless you own the land the structure is built on.
If I remember correctly, 51% of the condos in the development must be owned by thai nationals, the other 49% can be owned outright by foreigners


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You are looking at a different scenario which is not the question asked.

 

[Langsuan Man]

14 hours ago, William Osborne said:

So if i did the transfer through the land office and paid whatever applicable tax ....what are the implications of just walking away from the company and never doing the tax returns again ?..... the actual tax is about 800 baht per year but lawyer fee is 12k :-(

 

Just walk away and your taxes continue, until they have had enough and issue a warrant for your arrest

 

Like everywhere in the world, don't screw with the tax man.  The amount needed to legally close a company is peanuts compared with not closing it down and you will get caught.  They took all that information when you opened the company for a reason 

[jasonsamui55]

On 12/26/2016 at 8:38 PM, William Osborne said:

So if i did the transfer through the land office and paid whatever applicable tax ....what are the implications of just walking away from the company and never doing the tax returns again ?..... the actual tax is about 800 baht per year but lawyer fee is 12k :-(

Exactly. Just fail to pay to renew and the license expires and the biz is entialky closed. That's standard operating procedure for any company anywhere.

[William Osborne]

1 hour ago, jasonsamui55 said:

Exactly. Just fail to pay to renew and the license expires and the biz is entialky closed. That's standard operating procedure for any company anywhere.

 

yeh... this is what i'm thinking ?... even its a legit business and you're losing/ lost money... doesn't make sense to go off and pay another 35k on top of what you may have lost. ?... would like to know actual law on this thou.. done a search and cant find anything ?... 

[KittenKong]

9 hours ago, jasonsamui55 said:

Just fail to pay to renew and the license expires and the biz is entialky closed. That's standard operating procedure for any company anywhere.

 

Not in Thailand.

[Apiwan2]

 
Not in Thailand.

Is this true ?


I had a company set up 14 years ago, never bought anything or done anything.

Never paid tax or done accounts.

Is this company now closed or like some say they will get you one day ?

[Apiwan2]

Can you transfer a condo to a Thai person without them actually buying it?  What I mean is, would it not have to be shown as a sale....on paper at least?

It's considered a sale even if to family member.

Land office will value it and you pay fees on that.

Mate just done same to add another family member on the chanote

[William Osborne]

seems to be another racket devised up by the lawyers ?..... as there are plenty of links to thai lawyers with company closing down services.... i wouldn't mind leaving it run as is, but 12k per year to do a tax return of 800 baht is a bit of a pss take ?. and of this year they can do it online so only a handful of pages to sign....

 

Sounds like a good option is to give it away ... but im sure the lawyers have got in on that angle as well ??

 

 

[mrboats]

Like I said before....just give it away....you will get plenty of takers including myself..I'm happy to take it off your hands....all I need is the exit forms from all the shareholders....stop moaning about the cost ....you knew what you were doing when you entered into the deal

[William Osborne]

im sure the lawyers will gouge out a substantial fee for for transferring company ?

[mrboats]

Why do you need lawyers...your giving away the company

the fee at the DBD is about 600 baht to transfer the shareholders

the new shareholders would need to cover that fee and any due diligence that they require....it's all very simple