Tor Tor 3 (Tor Tor Sam)

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magsandbilly
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Tor Tor 3 (Tor Tor Sam)

Post by magsandbilly »

Hi folks

Moving on in our retirement plans could someone advise if we need to have a Tor Tor 3 when buying property?
If so this would mean us having to bring money in from abroad or could we use the money in our Thai Bank account?

Do we need a Tor Tor 3?

Does the Tor Tor 3 apply to new builds only or must we have it for a re-sale?

I am getting confused under Thai law if we do need a Tor Tor 3 or not.

Thanks in advance
Margaret
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Re: Tor Tor 3 (Tor Tor Sam)

Post by SydneyGuy »

Hi

i am assuming you are not Thai, if you are a foreigner then please see below:

One of the requirements for foreign ownership under the Thailand Condominium Act (section 19) is that a foreigner has remitted into Thailand the full purchase price of the condo in foreign currency. The handling bank in Thailand must upon request issue an official copy of the FET-form (Foreign Exchange Transaction Form) or a prepare credit note and bank letter of guarantee containing the same information as the foreign currency exchange transaction reporting form as proof of the remittance and exchange of foreign currency into Thai baht by the foreigner. These documents MUST be handed over to the land office in order to register the transfer of ownership of a condo apartment unit in the name of the foreigner. The foreign exchange transaction documents must show the foreign purchaser's name either as the sender or receiver of the money from the overseas bank. If the remittance from abroad is in Thai baht the bank will not issue a FET-form and the foreigner will not qualify for registration of foreign ownership at the land office, unless he qualifies on one of the other grounds for foreign ownership under section 19 of the Condominium Act.

the Tor Tor 3 is now called a Foregn Exchange Transaction Form and yes you will need one to purchase a condo in Thailand.
magsandbilly
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Re: Tor Tor 3 (Tor Tor Sam)

Post by magsandbilly »

Hi SydneyGuy

Thanks for this informative post. You are correct, we are not Thai but Western.

This seems to relate to when you buy a condo(apartment).

We will be looking to buy a villa. Am I correct in saying that we do not need a Foreign Exchange Transaction Form in that case?

Much appreciate this.

Regards
Margaret
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Nereus
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Re: Tor Tor 3 (Tor Tor Sam)

Post by Nereus »

magsandbilly wrote:We will be looking to buy a villa. Am I correct in saying that we do not need a Foreign Exchange Transaction Form in that case? Regards Margaret
Correct, it is not needed for a "Villa". You can buy a house, but where are you going to put it? You cannot buy the land, so you will either have to lease some land, if you can find somebody willing to do it, or you have to try and set up a company, which may or may not be legal. Caveat Emptor!
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Re: Tor Tor 3 (Tor Tor Sam)

Post by JamesWest »

this is interesting. i thought one of the reasons you need the FET form is so you can prove where the money came from WHEN YOU SELL and try to take the money BACK out of the country.

And if you don't need it for a house or villa or anything else but a condo, what does that tell you?

Is there another form you use for the money to form the illegal proxy company to get your money out?
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Re: Tor Tor 3 (Tor Tor Sam)

Post by SydneyGuy »

James

The FET form is used to prove where the money came from when you purchase the property.
As for setting up a company this can have potential risks, you just need to ensure you hire a reputable and trustworthy property lawyer to setup your company, which can have varying business entity structures, or you may find all your assets in your lawyers name further down the track:)
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Re: Tor Tor 3 (Tor Tor Sam)

Post by Pagey »

FET form is not needed to take money out of the country, different banks have different rules which has been discussed here before.

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magsandbilly
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Re: Tor Tor 3 (Tor Tor Sam)

Post by magsandbilly »

Hi

I was told it was for tax purposes when you sell. I.e you paid tax on the profit of the sale. Any truth in that?
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Re: Tor Tor 3 (Tor Tor Sam)

Post by JamesWest »

i guess i am thinking about taxes. lets say you sell a condo and the money shows up in your thai bank account. i thought the FET was ALSO proof of where the funds originally came from for tax purposes.

and on the other subject, if you are selling a house or villa, are you really selling a Thai company that owns the land? do you have to pretent to have a real company, like leasing the house out or some form of company income? how easy is it to tranfer that company to another farang buyer?
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Re: Tor Tor 3 (Tor Tor Sam)

Post by Nereus »

magsandbilly wrote:Hi
I was told it was for tax purposes when you sell. I.e you paid tax on the profit of the sale. Any truth in that?
No. That is a form of capital gains tax, which, at the moment, Thailand does not levy. (but there is tax applied at the land dept when you sell a property, but it is based on the value, not a set rate of tax).
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Re: Tor Tor 3 (Tor Tor Sam)

Post by magsandbilly »

Thanks all
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