borderlesshomes

Boarderless homes Logo
Menu

Author: Chris Wyatt

How To Choose The Best Place To Invest in Property Abroad?

How to choose the best location to buy property abroad

To most people, the word “luxury” in real estate implies great comfort within 4 walls and the grounds that surround them; however, to a few people, this word means so much more! This word for a few transcends materialistic comforts into a green world of eco-friendly and sustainable homes or a life that gives them […]

Can Foreigners Invest in Bangkok Real Estate

Can you Invest in Bangkok Real Estate

Bangkok is a beautiful place, not only for a vacation but also for living a retired life. Irrespective of your age, whether you are 30 or 50 years old, Bangkok has something in store for everyone. There is no doubt that most foreigners visit Bangkok and carry home with them fond memories of their travels […]

Top 10 Things To Do In Bangkok

Things To Do In Bangkok

Bangkok is a place of fun and frolic for people of all age groups and with various passions in life. Bangkok is not only the capital of Thailand but also a port for connecting to various other destinations in Thailand by ferry, train, and cab. If you are visiting Bangkok for the first or the […]

Different Types of Property in Thailand For Foreign Buyers

Thailand is one of the top travel destinations in the world for foreigners looking to vacation frequently and stay for extended periods in their vacation homes. Like most countries that have laws for foreigners who wish to invest in real estate, Thailand has a certain set of laws that have changed over time. Thai laws […]

Differences Between Bare Shell & Warm Shell Properties

Differences Between Bare Shell & Warm Shell Properties

What is a bare shell property? Quick answer! A bare-shell property is a property that comes equipped with walls and ceilings and has completed the final stage of construction, however, that is all it is. You will find that there will be no furnishing that a warm-shell property would give you. Bare-shell properties give the new owner […]

Gifting Your Spouse A Condo In Thailand

Gifiting you spouse a condo in Thailand

Weddings are a beautiful occasion that marks the love between 2 people who vow to stay together for a lifetime. Weddings in Thailand on the island of Phuket or at a private beach resort may also make you wish that you had your own vacation home in Thailand. To begin with, congratulations on your big […]

Thailand Condominium Act: Succession and Inheritance Laws For Foreigners

Inheritance Laws For Foreigners

Thailand as a Kingdom and country is considered to be foreigner-friendly wherein travellers from all over the globe are warmly welcomed into the land and made to feel at ease and at home. More often than not, Thailand turns out to be the perfect destination for travellers for short stays and even for Work From […]

Renting and Selling Condos in Thailand: A Foreigners Guide to Laws and Taxes

Thailand is one of the most travelled destinations in South East Asia and for good reasons. Comfortable stay, beaches, shopping, dining, nightlife and work; Thailand offers something for everyone who visits this mystical land. An increasing number of Expats and foreigners are choosing to stay in Thailand for more than just a few days a year. Foreigners are actively investing in Thailand’s real estate market and purchasing condos for extended stays. While a large percentage of the foreigners investing in Thailand’s property market for staying there and working purposes, there are many investors who wish to rent out or sell the condos at a later point in time. Most lawyers will alert you that Thailand’s real estate laws are not foreigner-friendly, however, these laws do offer some concessions to foreigners who want to purchase, rent out and sell condos. However, the concessions are valid for qualified foreigners who are eligible for these perks. Continue reading to find out more about the laws and taxes for foreigners who plan to purchase, rent out and sell condos in Thailand. Purchasing Condos As A Foreigner In Thailand – Laws and Taxes What is the FET/Thor Tor 3 Form? Also known as the Foreign Exchange and Transaction Form, the FET Thor Tor 3 Form has to be prepared by a Thai bank when a foreigner is purchasing a condo. This form is mandatory for foreigners who are bringing USD$50,000 or more into Thailand to purchase a condo unit. The original copy of the FET form with the foreigner’s name as well as if they are the receiver or sender of the money is needed by the Land Department for the title deed. This falls under section 19 of the Thailand Condominium Act and is a must to legally own a condo in Thailand. If a foreign national married to a Thai citizen chooses to opt for joint ownership of the condo, then the property will be registered under the maximum 49% foreigners share of the complex. The only exception to this rule is if the Thai citizen provides a legally binding letter of confirmation that states that the entire money paid for the condo belongs to the Thai national. This letter has to be backed up with financial documents and proof to be considered eligible. Once considered genuine by the Land Department, the condo will be registered under the minimum 51% shares of the Thai quota. Read more about Gifting Your Newly Wedding Spouse A Condo In Thailand. Dream home Contact Silk Estate For Info on Thailand Properties Renting Condos Owned By Foreigners In Thailand – Private and Commercial Laws Each and every condo complex has its own by-laws. If foreigners have purchased only 1 condo unit in the complex and if the bylaws of the complex are a bit relaxed then a condo can be rented out periodically. Keep in mind that renting out condos as a regular practice can lead to issues as this would imply that the purchased condo registered to a foreigner is being used for commercial purposes. This is forbidden by the Thailand Condominium Act and can lead to penalties for violations. In case the freehold condo is being let out for commercial purposes such as but not limited to Air B&B then chances are that the by-laws of the complex might not permit this for more than a few months every year. Some condo complexes have stringent by-laws for such rentals and it is a smart move to check these bylaws before purchasing the condo unit. If a foreigner who owns a single condo unit in Thailand is renting out the condo for a maximum duration of 30 days at a time, yet repeatedly then he will have to do so following the Hotel Act. Exemptions may be given to single-unit owners renting out the condo for up to 30 days once or twice a year at the maximum. In case the rental pattern and rental trends are considered as commercial activities especially if he is a foreign investor then this may invoke the laws of either the Foreign Business Act or the Foreign Employment Act. If foreigners are renting out condos for short durations up to 30 days periodically and not very often, they still are liable to pay rental income tax that will be calculated based on their personal income slabs. If the condo is being rented out by foreigners in Thailand for commercial purposes and business activities then the condo owner will also be liable to pay additional Housing and Land Tax. Selling Condos In Thailand As A Foreigner – Transfer Fees and Government Taxes If the condo you have purchased has a value of lower than USD $50,000 then while purchasing the condo you would not have received a FET Form. Instead, the bank would have given you a Confirmation Letter with the same information as a FET Form. This letter would be registered with the Land Department for the Title Deed registration. While selling the condo to a Thai National you would need either the FET form or the Confirmation Letter given by the bank at the time of purchase. Condos cannot be sold freely from one foreigner to another, legal assistance may be required to sell your condo shares to a foreigner. More importantly, you would need the help of a real estate agent to find buyers for your condo. Choosing reliable and trustworthy real estate experts like Silk Estate can make your life a lot easier. Condominium Transfer Fees have to be paid while buying or selling a condo in Thailand. These fees are imposed by the Kingdom of Thailand through the government. They are payable at the local Land Office to the concerned authorized personnel. The types of fees that have to be paid include transfer fees, withholding tax, stamp duty and other taxes such as but not limited to specific business tax. It is important to note that if a specific business tax is charged to the buyer, then stamp duty does not have to be paid. The taxes that have to be paid for the transfer depend on the income tax bracket of the seller and this can range from 2% to a lot higher such as 10% of the condo’s total cost. In case of a resale of a developed and existing condo, the buyer and seller can agree to share these taxes. In the case of a newly developed off-the-plan condominium project which falls under contract-controlled projects, the developer can charge the buyer a maximum of 2% transfer fees. All other taxes, transfer fees and registration fees have to be paid by the developer, and not the buyer. Transfer Documents for Foreigners Buying and Selling Individual Condo Units In Thailand 1. Passport of The Foreigner Buying or Selling The Condo 2. FET Thor Tor 3 Form 3. Evidence through bank account statements supporting the information provided in Thor Tor 3 FET Form 4. In the case of Joint Ownership either marriage or divorce certificates 5. If the property is being represented by anyone other than the foreigner then a Power Of Attorney preferably in Thai language and written script as well as with the notarization of a Public Notary in Thailand. Alternatively if overseas then the notary has to be done by The Thai Consulate. 6. Identification proof and documents of all the authorized personnel involved in the purchase and sale. 7. Certified and if needed notarized copies of the condo registration of the buyer and seller. Important note – All the documents provided for the purchase, transfer, and sale of the individual condo units in Thailand should be valid on the date of registration and should preferably be less than 30 days old. Sale and Purchase Agreements of Thai Condos Owned by Foreigners To be eligible to purchase, rent out or sell a condo as a foreigner in Thailand, it is crucial to have a sale and purchase agreement. In case you wish to keep the condo as an investment for succession and inheritance for your children, then the it is recommended to get intouch with a profession lawyer who has experience with this for foreign inheritances laws in Thailand. If you are in doubt and need further guidance then contact us at Silk Estate, we have helped numerous Thai developers sell condos to Foreign buyers and we have also helped many foreign sellers get maximum value for their condos through quick and easy sales with our listed and unlisted property memberships. Contact Silk Estate today to know more.

Thailand is one of the most travelled destinations in South East Asia and for good reasons. Comfortable stay, beaches, shopping, dining, nightlife and work; Thailand offers something for everyone who visits this mystical land. An increasing number of Expats and foreigners are choosing to stay in Thailand for more than just a few days a […]

Your Guide to Renting Out A Condo in Bangkok As A Foreigner

Your Guide to Renting Out A Condo in Bangkok As A Foreigner

Bangkok real estate is believed to be a buyer’s market and a renter’s paradise, and in this article, we take a look at why buying a condo and then renting out your condo in Bangkok could be a very lucrative and positive return on your investment. Bangkok is considered a buyer’s market due to condos […]

The Best Areas to Live in Bangkok For Foreigners

Best Areas to Live in Bangkok

The best places to live in Bangkok for foreigners is a question we get asked often. Bangkok is a massive city with nearly 11 million people and is divided into 50 administrative districts.   Choosing the best place to live will depend on your preferences and the things that you love to do. However, we wanted to […]

A Foreigners Guide To Opening Bank Account in Thailand

Opening Bank Account in Thailand

Living in Thailand is a dream for most people, and if you plan on living in Thailand for an extended period of time, it’s a good idea to open a Thailand bank account there. This will make your life much easier if you decide to live in Thailand for more than a year. The good […]