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Transfer of land ownership & taxes


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Hi guys

My wife and I are based in the UK. We have been given the opportunity to purchase a plot of land which is currently for sale but we wont actually be back in Thailand for a few more months. If we decide to go for it, my wife has suggested her Sister would buy in her name and then transfer the chanote into my wife’s name when we are in country. Sounds simple enough, but then I was thinking, wouldn’t that mean we’d have to pay the 2% land tax twice? Initially when her sister “buys” the land and then again when it’s transferred into my wife’s name? It’s not mega money we’re talking (and from what my wife has said the seller is potentially prepared to pay the fees for the sale) but it’s still a decent chunk for what I guess is essentially just stamping a bit of paper? 
Failing that is there another way she could purchase the land in her own name without being in country?


Thanks

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You could be up for 2.5% (2% tax + .5% stamp duty) on the 2nd transfer and a possible 'business tax' component (3%?) for transferring within 5 years.

Why not engage a lawyer to handle a delayed settlement wherein you pay a token deposit, the lawyer holds the chanote and final settlement takes place in say, 2 months.  The lawyer may also be able to complete the sale on your behalf and delay registration until your wife is able to sign documents.

Beware, if it's a large sum of money involved, be very cautious regarding clear title (have a lawyer conduct a title search) and ensure absolute trust in the lawyer himself.  Title deeds are often on-sold or used as collateral for loans from 'sharks'.

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8 hours ago, KaptainRob said:

You could be up for 2.5% (2% tax + .5% stamp duty) on the 2nd transfer and a possible 'business tax' component (3%?) for transferring within 5 years.

Why not engage a lawyer to handle a delayed settlement wherein you pay a token deposit, the lawyer holds the chanote and final settlement takes place in say, 2 months.  The lawyer may also be able to complete the sale on your behalf and delay registration until your wife is able to sign documents.

Beware, if it's a large sum of money involved, be very cautious regarding clear title (have a lawyer conduct a title search) and ensure absolute trust in the lawyer himself.  Title deeds are often on-sold or used as collateral for loans from 'sharks'.

Wise advice and indeed do a PoA (Power of Attorney) but this can actually be towards your wife's sister.
 

Second piece of advice is... Why the heck would you actually buy it on her name (What I meant was a company can be used here - like many foreigners do)... but that's up to you.

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I believe you can execute a PoA  (for the sister) through the Thai Embassy.

This would enable her to handle the transaction on your wife's behalf.  

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From what I gather in your original post, Its not a major land purchase, I would simply agree to the purchase when you get over here. Would advise against buying it without the missus at the Amphoe office so she can be clear with the seller about all or any caveats.

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On 3/18/2022 at 1:19 PM, Naanlaew said:

I believe you can execute a PoA  (for the sister) through the Thai Embassy.

This would enable her to handle the transaction on your wife's behalf.  

This is exactly what we’re looking at now. Thanks 

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  • 2 months later...

POA, are you 80 years old? 2months? Land prices are down heaps in the last 10 years, Don't do it. don't get family involved in your finances.

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  • 5 months later...

I had my Thai lawyer whom I have known and worked with for years here set up a company and the land is owned by the company. I am an attorney myself. I own 49%, my Thai wife owns 49% and 2% is held by a Thai business associate. Make sure you use an experienced Thai lawyer on this. Don’t listen to posters here or foreign lawyers who actually don’t know the way things actually work here in practice or are just trying to solicit your business with scare tactics. These companies are used all the time but you have to do it the right way to avoid problems. 

Edited by Nace
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