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Sunbelt Asia Weekly Column 15 September 2017

Sunbelt Asia Weekly Column

15 September 2017

Question from a client:
I purchased a Condo in Bangkok in 2008
I live in the UK and use the Condo for a holiday home and occasional rental to an agent in the building. I have someone in Bangkok who wishes to purchase the Condo.
The person is willing to pay my asking price and there will be a difference of THB 500,000 in my favour between the purchase price and the selling price.

My questions are.

1.Will I have to pay tax on the profit bearing in mind that I have been paying a considerable sum in interest on my mortgage in the past 9 years.

2. Now seems a good time to sell as the Condo is tired and the Baht to Pound rate is low so this means I will get a better return on my exchange rate when it comes to transferring the sale proceeds to my UK bank account. Is there any reason I may not be able to transfer the money from my Bangkok Bank to my UK bank.

3. I am being paid a deposit and the final sale will take place at a later date. My Thai friend will accompany the agent to the bank to place the cheque into my account and will send me a copy of the receipt. I am happy with this arrangement.

4. I have to sign a Power of Attorney for the agent to act on my behalf and I have been provided with an Agreement to Sell a Condominium Unit to also sign and send this back to the agent with a copy of my passport etc.

5. Am I correct in assuming that by signing this Power of Attorney that the agent cannot actually sign over the apartment on my behalf. I intend being in Bangkok when the date of transfer takes place to attend at the Land Registry. Can you confirm that at that point only I can sign the Condo over.

6. I believe on the day of signing over at the Land Registry I will be presented with a cheque to cover the remaining sale proceeds less the deposit. Is it safe to sign over and then take the cheque to the bank or does the cheque get banked before signing over the apartment. Would the cheque be a special cheque like a cash cheque ? Is there any guarantee I need to ask the agent to ensure the cheque doesn’t bounce and I am left without being paid and without my Condo.

7. As I will be in Bangkok for only a few days to sign the Condo over is there anything I need to do from the UK to ensure this goes smoothly. I do not want to be in Bangkok only to find that something is going to take 2 weeks to process before the transfer can be completed.

Sunbelt Asia Legal Advisors responds:

To address your questions point by point:

1. Going to be some fees and tax involved. I surmise you own this in your name and not in a company.   

*  Transfer Fee... 2%  fee of sales price or the appraised value.  ( Either the buyer pays or it's a split expense between buyer and seller in most cases. ) 

* Stamp Duty... 0.5% of the sales or appraised value. (usually paid by seller) 

*  Withholding Tax... The withholding tax for an individual is charged based on the progressive tax rate, based on the appraised value and years owning the condo. You own it more than 9 years and if the appraised value or sales price  is 5 million. The deduction factor is 50%. Your net taxable income is 277,778  Baht per year of ownership.  When using the progressive tax scale it would be 5%  WHT on the 277K or 13,888 baht per year. If you owned it 9 years, the total withholding tax owed then is 125,000 Baht. ( Usually the seller is solely responsible for this tax)  As you can see,  if the condo was being sold at the same price you bought it at. You still would be paying withholding tax regardless if no capital gains occurred. As a non resident seller, the WHT is usually the final tax. Mortgage or any expenses has no bearing on the WHT. A resident seller usually accepts this WHT also as the final tax and not use the WHT on their personal income tax return and declaring the net profit. 

2. You can transfer money from your personal bank account in Thailand to your personal bank account abroad however, you will need to submit the purchase and sales contract and ownership title documents. In this case, the maximum transfer amount would be the selling price for the condominium.

3. There is no problem for your friend to place the deposit check into your account as long as you get a copy of it. 

4. The Power of Attorney has to be specific as prescribed by the Land Department. If you are outside Thailand then POA has to be notarized by a notary public.

5. However, usually the point of the Power of Attorney is that the agent acts on your behalf for the transfer of the condo at the Land Office and by signing a Power Of Attorney the agent can act on your behalf to transfer the condo. Why do you need to give a power of attorney if you will be at the land department yourself ? 

6. Sunbelt Asia Legal Advisors recommends that you obtain a cashier’s check for the sale of the condo only, this way the check will not bounce and the funds are guaranteed. It's given at the land department when the transfer takes place. 

7. If you sign a Power of Attorney then again, you do not need to be in Thailand for the transfer. However, the most important thing to note is that if you are selling to a foreigner you should be ensure you have the correct documents from the condo juristic person; the Debt Free Certificate and Foreign Quota. He also has to have the Foreign Exchange Transaction Form (FET) which bears the record of the offshore funds transfer to buy your Condo with the name and room number of your condo on it. 

Sunbelt Asia Legal Advisors has extensive experience in assisting foreigners in condo sales and transferring money and can assist you in this matter.

Thai Lion Air is expanding to China, Korea and Japan with the purchase of three new Airbus wide-body jets that will offer a premium economy section with seats that lie flat and free in-seat entertainment. The airline expects to take delivery of the new planes by the end of the year and have already secured rights for flights to Shanghai. They have already submitted applications for Beijing and hope to have regular flights out of Don Mueang International Airport to these destinations as well as to Japan and South Korea. These routes are already served by low cost carriers Thai AirAsia X and NokScoot. Thai AirAsia X is also purchasing new planes and plans on adding routes to Eastern Europe and adding more flights to Japan and South Korea. The airline is hoping to add the flights once the International Civil Aviation Organisation (ICAO) removes the red flag from Thai-registered carriers that was put in place two years ago while the Civil Aviation Authority of Thailand addressed significant safety issues. The red flag is expected to be removed by October but the process of obtaining permission and routes could see flights to Eastern Europe in the second half of 2018.

The Department of Airports plan on adding one -stop service desks for tourists at all 29 of its provincial airports, allowing tourists to book accommodation, tour packages, rental cars and other services at the airport upon arrival. The booths will also offer free Wi-Fi and will offer local products at souvenir shops. The project will begin at Buri Ram, Nan, and Ranong due to their potential tourist destinations and is part of the drive to promote new, local destinations for Thai and foreign tourists.

A Hong Kong developer is keen on the Thong Lor area and is adding two new luxury developments in the area this month and in November. The newly founded company backed by a Hong Kong investor will be launching a a seven-storey condo project worth 1.6 billion baht on Thong Lor Soi 23 with 52 units priced from 17-65 million baht. The joint venture firm plans on launching 2-3 more projects in the area in the next five years. Another Hong Kong investor in a joint venture firm is planning on building a 43-storey condo with 338 units priced from 12 million baht a unit on Sukhumvit Road near the Thong Lor BTS station. Phahonyothin - Ladprao are also attracting developers seeking to take advantage of the growing popularity in the area. The Bang Sue station that will serve as a hub for electric train lines to connect with upcoming high speed trains is adding to the development in the area. Thai Military Bank (TMB) Analytics has raised its projected growth rate from 3.3 percent this year to 3.5 percent based on robust exports and predicted the GDP would reach 3.8 percent in 2018. The research unit raised its export growth forecast from 2 percent for 2017 to 5.8 percent due to strong export growth in the first seven months of the year. However, it forecasts a lower rate of 4.8 percent in 2018. The unit expects the Bank of Thailand to maintain its current policy rate of 1.5 percent this year but could raise it next year.

Business news on Sunbelt Asia

Special offer on serviced offices for October!!

Starting October 1 we have two types of serviced offices available at a special promotional offer

Office with space for two staff at 9,500 baht a month
Office with space for three staff at 11,000 baht a month
Happy anniversary from all of us at Sunbelt Asia!!

A "Thank you" gift for our clients new and old!

Sunbelt Asia has been offering our excellent service to our clients for 15 years! As our 15th anniversary gift we would like to offer our professional services on retirement and marriage visa extensions at the very special reduced rate of 7,500 baht as a thank you to our clients new and old for their support over the years.


Sunbelt Asia Legal Advisors can handle all your legal and business needs; from visas to work permits, prenuptial agreements to divorces, condo purchases and wills.

Be sure and contact our English speaking legal advisors for all your legal needs


We at Sunbelt Asia see many of our clients regularly ask us legal questions regarding living and running a business in Thailand. To help out we have set up a FREE Expert Answers for Your Questions in Thailand Facebook page; Sunbelt Asia Facebook Expert Advice Page



Sunrise Tacos franchise in newest Pattaya mall

Now is your chance to join the successful Sunrise Tacos franchise in the newest up and coming mall in Pattaya. This is just the place for one lucky restaurateur - a great location in the beautiful Terminal 21 mall in Pattaya scheduled to open next year. Centrally located right the middle of the third floor food court, this prime location in this new mall available only to Sunrise Tacos.

The opening of Terminal 21 Pattaya is highly anticipated and there is a huge waiting line for space in the food court. Terminal 21 has been a huge success with its unique concept in Bangkok and Khon Kaen and the buzz about the new mall in Pattaya is predicting another huge success for this uniquely branded mall. The owner of Sunrise Tacos is very excited about this new location, he loves the Terminal 21 concept and the Sunrise Tacos in Terminal 21 has proven to be very successful. This is a great location for great Mexican food.

This space includes enough area for seating, making it a proper restaurant for guests. Lease on the 77 sqm area is 2500 baht a square meter not including the Common Area Fees which are 360 baht per sqm. There is a 3 + 3 year lease available. Costs of the build out are not included - and will run around 6 million baht - but this prime space is only available for a new Sunrise Tacos franchise.

TOTAL RENT: 192,000 baht a month plus Common Area Fees plus franchise costs (BKK15789)

View this listing on Sunbelt Asia

Fine furniture & interior design business in Pattaya

Located in Pattaya, this high end furniture factory offers not just top quality fine furniture but also full service interior design for residential and commercial projects. The company has earned a reputation for attention to detail, unique and interesting design solutions and high quality products. Offering a wide variety of furniture, including stand alone and built-ins, the company has a full - service interior design solution for its customers.

The business has a 600 sqm showroom in a busy Pattaya area and a 2500 sqm factory on the outskirts. The company owns the land and showroom in town. There are 45 employees and the monthly payroll of 1 million baht includes the owner's salary. The business is open 6 days a week.

Sales last year reached 50.8 million baht and net profit over 2.6 million baht. The owners have spent a great deal reinvesting in the business including property to continue its growth.

The sale price includes the company with showroom, factory and land

ASKING PRICE: 60 million baht (BKK15797)

View this listing on Sunbelt Asia

Construction contracting business in Rayong

This construction contracting business offers services across the board including metal fabrication, insulation, construction and manpower. The company has been in business since 1997 and has earned a good reputation for quality work and has many large companies as customers including those in the gas, oil and chemical fields. This is a good business for someone looking for a turn key business that has a steady stream of customers.

The business is well-run and has 40 experienced full time employees with a total monthly payroll of 900,000 baht. Sales last year reached 50 million baht and net profit is around 10 percent. The company is established in the busy area of Rayong and the 10 rai of land the business is on is included in the sale. The land is market valued at 15 million baht.

The owner is moving back to his home country and so is looking to sell this well-established ongoing business.

ASKING PRICE: 33 million baht (BKK15703)

View this listing on Sunbelt Asia

Phang Nga resort complex with 44 rai of land

Located in the popular and growing tourist destination of Phang Nga on the Andaman Coast, this resort complex is set on 44 rai of land, of which only 3 rai have seen development, making this a tremendous opportunity to grow this business.

Currently there are three buildings on the property but the opportunities for villas, hotels commercial offices or condominiums is available. The business offers accommodation and a restaurant along with adventure activities, a popular tourist activity. Hosting events such as conventions and weddings has been a major source of income along with leisure tourists.

There are 40 full time and 10 part time employees with a monthly payroll of 500,000 baht. The property includes 44 rai of chanote land not far from the airport. Annual sales have reached 20 million since its inception in 2015 and profit reached 3 million per year.

The owner wishes to retire and so is seeking to sell this development with great potential.

ASKING PRICE: 375,000,000 baht (BKK15781)

View this listing on Sunbelt Asia

Fine furniture importer with showroom & warehouse on Sukhuvmit

This long-running high quality furniture company has been in the business of importing and supplying modern classic furniture and lighting for ten years. In addition to a large showroom for retail sales to the public, the business also supplies furniture and lighting to many of the five star hotels, restaurants and property developments. The company is a mature, well-known brand in Thailand and has earned a top reputation in its ten years of business.

The showroom/warehouse/office is in a good location on upper Sukhumvit, the 1200sqm space has a 140,000 baht month a rent and a 6 year lease. There are ten full-time staff with monthly wages of 250,000 baht. There is a large database of active customers and the company is a regular exhibitor at many of the furniture fairs in Thailand.

Sales have reached an average of 25 million baht a year for the past 3 years, with yearly earnings of 5.8 million for the same period. Inventory valued at 4 million baht is included in the sale.

The owner is moving back home and so wishes to sell the business

ASKING PRICE: 16 million baht (BKK15796)

View this listing on Sunbelt Asia

PVC foam board manufacturer with option to purchase land & warehouse

Located in Bangkok, the factory is in the Nhongjok area and manufactures PVC foam board for use in furniture, home and garden décor. The company has been in business for about a year and has been doing very well. Sales last year reached 26 million baht with a 10 million baht profit. The factory is 1900 sqm with a monthly rent of 50,000 baht and a 2 year lease. There are 10 full-time and 10 part-time trained employees in the business, monthly wages are 120,000 baht.

The owner has another business that takes up most of his time and so is wishing to sell the business. The buyer can purchase just the business or can also purchase the warehouse and 4 rai of land near the main road.

ASKING PRICE: 36 million baht 74 million baht including warehouse and land (BKK15795)

View this listing on Sunbelt Asia

Leading software specialist seeks investors to expand market

This leading specialist software provider is seeking investors to expand the business. Providing logistics and supply chain businesses with key software in Thailand, India, Malaysia and Indonesia for the past 12 years, the company is looking to expand further into Thailand and a total of eight countries and is seeking a committed investor to fund the centralized team that will manage the expansion The company already has joint venture partners in every country show share 49% - 50% in those countries. By the end of 2017 the company should be operation in 8 - 10 countries.

They are seeking a 49% investor for 122.5 million baht

ASKING PRICE: 122.5 million baht for 49% shares (BKK15742)

View this listing on Sunbelt Asia

Modern day spa in busy Thonglor area

Located near the busy and popular Thonglor area, this stunning modern day spa has been in business since 2013. The spa has four VIP rooms with a shower in each room, and four Thai massage beds and three foot massage chairs. Well reviewed on Trip Advisor and featured in a popular online magazine, this full featured spa also offers Swedish massages and aromatherapy treatments as well as body scrubs and facial treatments.

Rent on this gorgeous space is 100,000 baht on a 3 +2 year lease. There are eight staff with a total monthly payroll of 80,000 baht. Sales last year reached 2.8 million baht and broke even, with an active busy owner this business can easily grow.

The owner is selling as he is starting a new business.

ASKING PRICE: 2.5 million baht (BKK15727)

View this listing on Sunbelt Asia

Sunrise Tacos Franchise  

Interested in joining the most successful and popular Mexican restaurant franchise in Thailand? Sunrise Tacos is seeking qualified franchisees to join us in our commitment to quality and healthy, delicious food. Are you experienced in hospitality or business management but want to strike out on your own? Sunrise Tacos is seeking franchisees fully committed to the Sunrise Tacos way; with a hands on approach to running the business and experience in hospitality or business management. The leadership at Sunrise Tacos prides itself on maintaining a close and personal relationship with each of our franchisees and looks at franchising as a long-term business partnership. We are committed to our franchise partners and helping them grow.  

With the opening of the ASEAN Economic Community at the end of this year we at Sunrise Tacos see the potential for growth in the region. If you want to be a part of that potential let us know! We already have a branch in Phnom Penh and have added more around Thailand, including our new franchise in Chiang Mai, and are seeking committed, enthusiastic business minded people to join us. Contact [email protected] for more information.

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