LEGAL PROBLEMS OF HOME OWNERSHIP IN THAILAND

[Brit Jim]

Jimmy Greaves:

If the Thai Co owns the land that your house is built on then ideally your Co address should be registered here so effectively the Co owns / Leases the house. A solicitor or Notary can do this for for a few thousand. They simply register the new address.

It seems to be common practice cos the people selling you the Co will have no or little interest in the house sale. Also most people make the Thai Co first and later buy the house. You will probably find that most of the Thai Compnaies do NOT reflect the home address of the Farang unless its a legitimate Company.

SSS: I totally agree with your thoughts concerning registering the house due to un wanted attention from the Land Dept and cost. That said I would be interested in hearing from anyone who has managed to register their house on Thai Co land. Is it Possible...Cost? etc..

As for the construction permit in one s name. I was told wrongly or rightly that I needed a yellow Book or proof of residence in LOS and that Thai Co at the time 3 yrs ago was not a helathy option! Maybe things have changed but I doubt it??

Once again the joys of the Thai Co!!

[Jim]

honest lawyers.

[JimmyGreaves]

If you have a drivers licence you must have a registered address, yes as that's what I had to do in my rented house.

[pitsch]

My experience is:
My Thai-lady bought the land with my money and I leased it from her. Then I wanted to build the house on my name, the building permit would cost 30 000 Baht. So the house is on my Thai-ladies name, the building permit costed 3000 Baht. I think there is some corruption involved, but if I had tried to go through it, I would not have a permit until now.

[JimmyGreaves]

Jimmy Greaves:

If the Thai Co owns the land that your house is built on then ideally your Co address should be registered here so effectively the Co owns / Leases the house. A solicitor or Notary can do this for for a few thousand. They simply register the new address.

Will get this sorted when the house is complete, as we don't even have an address yet, the company address is still the same as the lawyers in Bangkok

SSS: I totally agree with your thoughts concerning registering the house due to un wanted attention from the Land Dept and cost. That said I would be interested in hearing from anyone who has managed to register their house on Thai Co land. Is it Possible...Cost? etc..

I have asked this question before without response

As for the construction permit in one s name. I was told wrongly or rightly that I needed a yellow Book or proof of residence in LOS and that Thai Co at the time 3 yrs ago was not a helathy option! Maybe things have changed but I doubt it??

hmmmmm waiting on this one

Once again the joys of the Thai Co!!

[JimmyGreaves]

30 days later go back to land office, with landowner, pay the taxes and house is registered in your personal name.
SJ

SJ

Still interested to know what taxes you have to pay on registering. Fixed Fee or % of something or lottery?

[Super Joe]

JG,
Taxes at land office would be same as a.n.other house registration, same property taxes.
Currently as rates are reduced its been 8,500 Baht for a 1.2m Baht declared build. When rates are not reduced it would be around 45k. SBT is the big one normally at 3.3%.
Not sure tax implications for company and its not a good idea or advantagous I'd of thought if it's your Ltd Co anyway.

SJ

[JimmyGreaves]

JG,
Taxes at land office would be same as a.n.other house registration, same property taxes.
Currently as rates are reduced its been 8,500 Baht for a 1.2m Baht declared build. When rates are not reduced it would be around 45k. SBT is the big one normally at 3.3%.
Not sure tax implications for company and its not a good idea or advantagous I'd of thought if it's your Ltd Co anyway.

SJ

So when you register a house with the land office they want 0.708 % of the cost of the build. Sounds about right for the land office, just give them a cut down price, another grey area

Would like to see this % figure somewhere official. Anyone have any ideas?


Tracked this down but seems to be about transfers i.e selling your property.

Temporary Thailand Property Tax reduction (2008/ 2009/ 2010)
Update April 20 2009: In order to boost the real property sales business and the real property development business the Thai government has extended the tax breaks for property buyers for another year till 2010. The temporary reduction on the transfer fee rate from 2% to 0.01% has been anounced and is currently applied at the local land offices in Thailand (the previous tax reduction expired on March 2009).

The renewal of the temporary reduction of specific business tax from 3.3% to 0.11% on gross sales which also exipired on March 29 2009 has not yet been announced therefore must be paid (most property transactions are put on hold awaiting announcement). The amendment of the law has been approved, but not yet announced. It is a matter of time before the renewed period for the reduction of Specific Business Tax from 3% to 0.1% on commercial or profitable sale of immovable property will be announced and published in the Government Gazette.

[Super Joe]

So when you register a house with the land office they want 0.708 % of the cost of the build. Sounds about right for the land office, just give them a cut down price, another grey area[/b

I believe its Transfer Tax, Registration Fee and Special Business Tax (SBT) that is charged.
Land office have their own guideline values for land, not sure about houses its a bit trickier, but they can enforce a rate if they think someone's taking the pee. As you may be using the contract and payments/receipts as proof of ownership, you'd have to have a dummy set of them as well if changing the real cost, dodgy.

Yes they are still charging 3.3% SBT, if you have to transfer land now you can claim a refund from IRD (not land office) when confirmation of reduced % comes through. If registering house it doesnt hurt to hold off until its through.

SJ

[JimmyGreaves]

Cheers SJ.

Organised the build myself with a handshake. A recommendation that so far I am well pleased with.

Let's hope were happy today after the footie.

[Super Joe]

The renewal of the temporary reduction of specific business tax from 3.3% to 0.11% on gross sales which also exipired on March 29 2009 has not yet been announced therefore must be paid (most property transactions are put on hold awaiting announcement). The amendment of the law has been approved, but not yet announced. It is a matter of time before the renewed period for the reduction of Specific Business Tax from 3% to 0.1% on commercial or profitable sale of immovable property will be announced and published in the Government Gazette.

Update: The continuation of the SBT reduction from 3.3% to 0.11% has now been announced in the Gazette on 18th May (I think), back dated to end March 2009. Those who made transactions before this date and got hammered for the full 3.3% can claim refunds from the Inland Revenue Department, NOT from the land office.

SJ

[stgrhe]

The renewal of the temporary reduction of specific business tax from 3.3% to 0.11% on gross sales which also exipired on March 29 2009 has not yet been announced therefore must be paid (most property transactions are put on hold awaiting announcement). The amendment of the law has been approved, but not yet announced. It is a matter of time before the renewed period for the reduction of Specific Business Tax from 3% to 0.1% on commercial or profitable sale of immovable property will be announced and published in the Government Gazette.

Update: The continuation of the SBT reduction from 3.3% to 0.11% has now been announced in the Gazette on 18th May (I think), back dated to end March 2009. Those who made transactions before this date and got hammered for the full 3.3% can claim refunds from the Inland Revenue Department, NOT from the land office.

SJ

Actually, I do not think the announcement in the Gazette has been made yet.

[Super Joe]

Hi stgrhe,

Apologies if it hasn't been announced in Gazette yet but a letter has gone to all land offices to implement it. We're waiting to do a transfer and our solicitor rang HH land office today and they have confirmed to solicitor that they are today back to charging it at the reduced rate of 0.11%.

Cheers,

SJ

[g.tott]

yes thats right sj

[morts]

I am a Thai who lives overseas most of my life and am not too famaliar with the Thai real estate law. When I bought the new house from a developer last year, the developer gave me the Chanote showing that the developing company has sold me the land so the Chanote is registered under my name since. I have also received the document of the Building Permit which that developer applied on my behalf under my name. I am the owner of both the land and house and I have both the Chanote and The Building Permit paper under my name. Are these two documents along with records of payment for the sales good enough to ABSOLUTELY legally prove my ownership for both of my land and house assuming that the thai law automatically grant ownership of the house to the land owner. Do I still have to register ownership of the house at the land registration office?

Another question I have is on the Chanote the develop gave it to me on the transfer ownership day shows that the lean against the house put by the bank which the developer borrowed the money from has been lifted. Is that good enough as guaranteer that there are no other leans put on my land and home?

Thanks so much for any information.