Transferring Funds to Thailand to Purchase a Home. Best practice?

[CrashTestDummy]

Greetings,

 

I know this has been discussed plenty here, but I’m hoping I can get some guidance regarding best practice for transferring a large amount of money from the US in order to buy a home in Thailand. I’ll be transferring several million baht into Thailand from a US account, so I’d like to confirm I’m on the right track here. Also, I want to ensure I can get this money out of Thailand if we ever decide to sell the house. 

 

A couple things to note: My wife has Thai citizenship. We have an account with Kasikorn bank. We’d gladly open a new account with another bank (Bangkok Bank?) if it’s in our benefit. 

 

Here’s what I’ve read from other posts, some of them quite old. Please advise if this is no longer accurate:

-Do a SWIFT transfer from my US account to our Kasikorn Bank account. 

-Send the money as US dollars and and convert "onshore" through Kasikorn Bank. 

-Get a Transfer Certificate which lists details of the property we’re buying

-Also, I’ve read about “intermediary” banks, but don’t really understand what that’s all about.

 

Am I missing anything here? Is the exchange rate negotiable when dealing with large transfers like this? Thanks.

 

-CTD

[The Fat Controller]

If you wish to buy a condo in your own name (foreign allocation) you will need to transfer your funds in US$ and have the conversion done at the Thai bank.

When making the transfer, add "condominium purchase" in the "reason for transfer" box, this is essential !

You will require a Foreign Exchange certificate to present at the land office.

 

If you are buying a house, then you are into the nightmare of not being able to own the land as a foreigner.

 

You could just transfer the money to your wife and let her buy it all in her name (land and house) but you should still transfer in US$ and a FE form is required for amounts greater than 50,000 dollars.

 

I recently transferred an amount larger than that to my wife at Krung Thai Bank, we called the main branch and agreed the money would be held on arrival.

 

We were able to negotiate a little on the rate when she called them from her local branch when she went to complete the form.

 

 

[Pib]

OP,

   You got it right.  Just send the money, include a reason for the transfer, get a transfer certificate from the Thai bank.   

 

    Definitely do the transfer in USD and let the Thai bank do the conversion.   DO NOT let your sending bank do the conversion as you'll get a significantly lower exchange rate....possibly several percent lower which is a lot on large transfers.

 

    An intermediary bank is just a middle man your sending bank "may" need to use to get the money to your Thai bank.   That intermediary bank may charge a fee but it will only be around $5 to $20.  

[CrashTestDummy]

On 4/15/2017 at 9:19 AM, The Fat Controller said:

If you wish to buy a condo in your own name (foreign allocation) you will need to transfer your funds in US$ and have the conversion done at the Thai bank.

When making the transfer, add "condominium purchase" in the "reason for transfer" box, this is essential !

You will require a Foreign Exchange certificate to present at the land office.

 

If you are buying a house, then you are into the nightmare of not being able to own the land as a foreigner.

 

You could just transfer the money to your wife and let her buy it all in her name (land and house) but you should still transfer in US$ and a FE form is required for amounts greater than 50,000 dollars.

 

I recently transferred an amount larger than that to my wife at Krung Thai Bank, we called the main branch and agreed the money would be held on arrival.

 

We were able to negotiate a little on the rate when she called them from her local branch when she went to complete the form.

 

 

Thanks for the responses. Good to hear we're on the right track. Regarding the nightmare of not being able to own land as a foreigner, we'll be avoid that by putting the property in my wife's name. 
 

Does anyone have any input regarding using Bangkok Bank rather than another bank (such as our current Kasikorn bank)? I've heard that there may be benefits to using Bangkok Bank because they have branches in the US.

[johnjohn2]

Not sure about Kasikorn bank but BKK Bank posts their exchange rates and money transfer charges on their website (incredibly reasonable). Ive read here that the rates are much cheaper than the other banks. A few years ago I did alot of research and did my big money transfer through BKK bank. After everything was said and done Bangkok Bank was by far the easiest. Easy to transfer money online through my US bank website to my BKK Bank account in a couple min too. Transferring money out no idea. Im sure its much more difficult. 

[Borzandy]

6 hours ago, CrashTestDummy said:

by putting the property in my wife's name

Very good idea khap khun Khap

[simoh1490]

The OP doesn't necessarily require an FET form, any official bank receipt showing the banks Treasury Department deal number and the conversion from a foreign currency to THB will suffice.

Edited April 17, 2017 by simoh1490

[Pib]

Better to get the FET....Thai land office personnel are use to seeing that form.  Plus, the FET will make it much easier to repatriate the funds in the future if needed.

[simoh1490]

2 minutes ago, Pib said:

Better to get the FET....Thai land office personnel are use to seeing that form.  Plus, the FET will make it much easier to repatriate the funds in the future if needed.

Over forty transfers into Thailand and twelve transfers back out again over a fifteen year period, two condo's and three house purchased and I've never actually been issued with an FET and neither have I ever been asked to provide one by the Land Office, just the bank letter confirming the transaction.

[Pib]

Sounds like the bank letter equivalent data to the FET certificate does.   When the wife and I sent over $200,000 over to buy our house/dirt no letter or FET was automatically generated by the bank, which was Bangkok Bank in this case 9 years ago.

 

I went in asking for the FET....they gave a fancy looking bank letter with transaction info.   But this letter was not the formal FET form as shown at this Bangkok Bank webpage for amounts of over $50,000.

http://www.bangkokbank.com/BangkokBankThai/Documents/Site Documents/GPSD/FXTransactionForm_15032011.pdf 

 

If the land/house/condo is being put in the name of a Thai the land office shouldn't ask for an FET/letter.

[helloagain]

Dont bother just rent. U can move on when you want. You can leave wife in your will

[onemorechang]

Just now, helloagain said:

Dont bother just rent. U can move on when you want. You can leave wife in your will

Not if you have just spent it all on rent

for the past 15-20 years.

There you go girl, you get nothing when i die.

Great stuff

[12DrinkMore]

 

21 minutes ago, onemorechang said:

Not if you have just spent it all on rent

for the past 15-20 years.

There you go girl, you get nothing when i die.

Great stuff

 

Or...

 

Not if you have given it to your ex-wife.

There you go man, you get nothing when you leave.

Bad stuff.

 

Even with the best of intentions at the beginning, based on considerable experience and observation over the last 60 plus years, investing a large part of a lifetime's earnings in a woman is not a good move. YMMV.

[onemorechang]

18 minutes ago, 12DrinkMore said:

 

 

Or...

 

Not if you have given it to your ex-wife.

There you go man, you get nothing when you leave.

Bad stuff.

 

Even with the best of intentions at the beginning, based on considerable experience and observation over the last 60 plus years, investing a large part of a lifetime's earnings in a woman is not a good move. YMMV.

Im sure you have a complete and fulfilling life

 

Or are  you are trying to tell me your Gay ?

 

Edited April 17, 2017 by onemorechang

[12DrinkMore]

8 minutes ago, onemorechang said:

Im sure you have a complete and fulfilling life

 

Or are  you are trying to tell me your Gay ?

 

 

It has its ups and downs. It is not complete yet, and I have never worked out what "fulfilled" means.

 

No.

 

I was responding to the statement that suggested after paying rent for 15 to 20 years there would be nothing left to leave the deal old misses. If that is really the case, then dropping it in one chunk into the control of a woman is not the best move. IME.

[Leung Falang]

When my wife who is Thai and I wanted  second house outside Thailand (we live in the US),  we sent the money in several installments to Bangkok bank via wire transfer.   I found out several years ago that I could have arranged a "domestic" transfer by establishing via Bangkok Bank New  York where the fee is only $20 to forward to our Thai branch. (We transfer that way now with a few clicks at my US bank.)  Land and house are in her name and no worry from me in this 25 year marriage.  I do have a Christian lawyer friend in Thailand that helps mixed couples like us-the land is purchased in the wife's name and then gives her husband a long term lease, 30 years I believe.  If my marriage was "new", I would have chosen that route.  Good advice above about proving you brought money in to purchase home so it is easier to transfer out if you decide to do that.

[riclag]

9 hours ago, CrashTestDummy said:

Thanks for the responses. Good to hear we're on the right track. Regarding the nightmare of not being able to own land as a foreigner, we'll be avoid that by putting the property in my wife's name. 
 

Does anyone have any input regarding using Bangkok Bank rather than another bank (such as our current Kasikorn bank)? I've heard that there may be benefits to using Bangkok Bank because they have branches in the US.

Would appreciate if you would post your dealings after you successfully complete your transaction especially if it's through Bangkok Bank

Thanks

[onemorechang]

 

1 hour ago, 12DrinkMore said:

 

It has its ups and downs. It is not complete yet, and I have never worked out what "fulfilled" means.

 

No.

 

I was responding to the statement that suggested after paying rent for 15 to 20 years there would be nothing left to leave the deal old misses. If that is really the case, then dropping it in one chunk into the control of a woman is not the best move. IME.

Fair enough

But dont drop it on her,  there are ways round that

 

Bit off topic  , but don't see any harm.

I just have a bit of an issue with the guys who intend to  leave them nothing when  they go.  in Falang land there is usually an insurance policy or pension or  some trust, or cash,   over here there is bugger all for them, when your gone.  and most are to old to go shake there money maker anymore.

I personalty know a lady that got left like that. she took care of the old sod for years, and got no thanks for it.

Bit of a bummer that one. 

 

 

 

[Peterw42]

On 4/15/2017 at 11:19 PM, The Fat Controller said:

You could just transfer the money to your wife and let her buy it all in her name (land and house) but you should still transfer in US$ and a FE form is required for amounts greater than 50,000 dollars.

That is a Thai buying Thai property , no requirement for an FET

[inf]

Interesting thread and useful information ... since I'm also a foreigner hoping to buy an apartment in Thailand, maybe this or next year.

I live in Taiwan, where Bangkok Bank has a well-known branch, so I will be looking to open an account there and one at a Bangkok Bank branch in the Thai city where I eventually plan to buy. I guess that would make the transfer easier, I suppose.

The only difference I have with the OP is that my wife is Taiwanese, i.e. we're both foreigners, so we'll definitely have to stick by all the rules, the 49% ownership, the FE form with the condo purchase mention etc.

[fordguy61mi]

4 hours ago, Borzandy said:

Very good idea khap khun Khap

My buddy just lost a house he built and a Thai restaurant he bought. Everything was in his wife's name. He had sent her to culinary school and became a chef at their restaurant. Now she's taking the business, the house, and marrying another foreigner. I would NEVER do what he did. But that's me. There are some trusting souls out there. Oh and he never thought it would happen to him or that she would do that. Imagine that.

[elgordo38]

10 hours ago, CrashTestDummy said:

Regarding the nightmare of not being able to own land as a foreigner, we'll be avoid that by putting the property in my wife's name. 
 

Just to mention yet again the property is in your wife's name. Time has a way of eroding things. Enough said. 

[elgordo38]

30 minutes ago, fordguy61mi said:

My buddy just lost a house he built and a Thai restaurant he bought. Everything was in his wife's name. He had sent her to culinary school and became a chef at their restaurant. Now she's taking the business, the house, and marrying another foreigner. I would NEVER do what he did. But that's me. There are some trusting souls out there. Oh and he never thought it would happen to him or that she would do that. Imagine that.

Sadly so many of these cases happen. PYOA always applies. If she owns the house get the 30 year occupancy paper or take back a written mortgage for the value of the house from her. Never have that "it will never happen" mindset. Life is a long journey people change. 

[david555]

5 hours ago, johnjohn2 said:

Not sure about Kasikorn bank but BKK Bank posts their exchange rates and money transfer charges on their website (incredibly reasonable). Ive read here that the rates are much cheaper than the other banks. A few years ago I did alot of research and did my big money transfer through BKK bank. After everything was said and done Bangkok Bank was by far the easiest. Easy to transfer money online through my US bank website to my BKK Bank account in a couple min too. Transferring money out no idea. Im sure its much more difficult. 

https://www.kasikornbank.com/en/rate/Pages/Foreign-Exchange.aspx

[elgordo38]

1 hour ago, Leung Falang said:

When my wife who is Thai and I wanted  second house outside Thailand (we live in the US),  we sent the money in several installments to Bangkok bank via wire transfer.   I found out several years ago that I could have arranged a "domestic" transfer by establishing via Bangkok Bank New  York where the fee is only $20 to forward to our Thai branch. (We transfer that way now with a few clicks at my US bank.)  Land and house are in her name and no worry from me in this 25 year marriage.  I do have a Christian lawyer friend in Thailand that helps mixed couples like us-the land is purchased in the wife's name and then gives her husband a long term lease, 30 years I believe.  If my marriage was "new", I would have chosen that route.  Good advice above about proving you brought money in to purchase home so it is easier to transfer out if you decide to do that.

I like your "new" marriage comment. The mentality of "older" people can change and does change sometimes fast. Best to take trust out of the equation and insert PYOA clause. 

[Peterw42]

Its pretty straight foward, BKK bank has a booklet covering the process

 

http://www.bangkokbank.com/BangkokBankThai/Documents/Site Documents/GPSD/BuyingCondo_Booklet.pdf

[Pinchy1111]

I worked in Samui for 2 years and the business account was with bangkok bank. Bloody hell they were difficult to deal with!! For the last 3 months we were there we changed to kasikorn which was a dream. Our oersonal account is still with kasikorn and they are never anything less then helpful. One of the big locals on samui told me krungthai was a good bank to deal with also.

[12DrinkMore]

3 hours ago, onemorechang said:

 

I just have a bit of an issue with the guys who intend to  leave them nothing when  they go.  in Falang land there is usually an insurance policy or pension or  some trust, or cash,   over here there is bugger all for them, when your gone.  and most are to old to go shake there money maker anymore.

I personalty know a lady that got left like that. she took care of the old sod for years, and got no thanks for it.

Bit of a bummer that one. 

I agree. That is another aspect.

 

Most guys I know do take this issue seriously and make provisions. There are only one or two I personally know who just don't care and/or have no money apart from the pensions, which stop on death. However their gf's are aware of this.

[bazza73]

3 hours ago, onemorechang said:

 

Fair enough

But dont drop it on her,  there are ways round that

 

Bit off topic  , but don't see any harm.

I just have a bit of an issue with the guys who intend to  leave them nothing when  they go.  in Falang land there is usually an insurance policy or pension or  some trust, or cash,   over here there is bugger all for them, when your gone.  and most are to old to go shake there money maker anymore.

I personalty know a lady that got left like that. she took care of the old sod for years, and got no thanks for it.

Bit of a bummer that one. 

 

 

 

I spend 100,000 baht a year renting a condo with swimming pool in Chiang Mai. I keep 80% of my assets in Australia. The rental is a fraction of my investment income.

When I die, my Thai GF will inherit what assets I have in Thailand. I've calculated they will keep her in comfort until she's 90.

She has every reason to keep me alive for as long as possible.

I understand the point you are making, and agree it's not a good thing to be left destitute. However, there are other ways to provide for someone here apart from purchasing property for them.

[david555]

6 minutes ago, 12DrinkMore said:

I agree. That is another aspect.

 

Most guys I know do take this issue seriously and make provisions. There are only one or two I personally know who just don't care and/or have no money apart from the pensions, which stop on death. However their gf's are aware of this.

Does your country not keep paying the widow...? my country does if a genuine marriage is done and brought to their knowledge ....? May only not marry again ,and she shall become a widow pension equal to the single person pension for life .., no" freezing" like in old generous brexit country ...( +2 % in steps likewise living costs ...)

Edited April 17, 2017 by david555