Transfer of property

[limbu]

I intend to transfer ownership of my apartment in Hua Hin to two 10 year old Thai children not related to me. Advice and tips about the entire process would be welcome. For example, I believe this will attract a gift tax.

I'm seeing a lawyer in the coming weeks.
Thank you.

[HHTel]

If you haven't looked it up already, these are the exemptions of gift tax:

Gifts that are exempted from personal income tax are as follows:

Income from the transfer of immovable property received by a lawful child not exceeding THB 20 million in a tax year.

Maintenance income or gifts received by ascendants, descendants or a spouse in the amount not exceeding THB 20 million throughout a tax year

Maintenance income or gifts received by a person who is not an ascendant, descendant or spouse on occasions of tradition or custom in the amount not exceeding THB 10 million in a tax year

Income from gifts received by a person who intends to use the gift for education, religion or public benefit purposes according to the intention of the donor is exempt from personal income tax referred to in the Ministerial Regulations
Income or gifts in excess of the threshold listed above will be subject to personal income tax at a rate of 5%.

For the transfer of immovable property without consideration to a legitimate child, tax will be collected every time a transfer is registered through withholding tax at a rate of 5% on the amount exceeding THB 20 million.

https://thailand.acclime.com/guides/gift-tax/

[buksida]

As far as I know, children under 21 cannot own property so a Trust must be set up for them.

You cant do this without a lawyer. This Hua Hin firm handles such things: viewtopic.php?f=9&t=39977

[HHTel]

Kids can own property. A friend of mine had land and house in his children's name. When he opted to leave Thailand, he had to get permission from the court to sell the property. A child can own property but is unable to sell it until he/she becomes 20 years old.

There is no law to limit the age of the owner of the land. ... However, once a child is the owner of the land, a child can NOT lease it to anyone EXCEPT with the authorization of the Court. You will find these limitations about real estate and children at clause 1574 of the Thai Commercial and Civil Code.

[buksida]

Ok, yes, should have clarified that children can have their names on a title deed but cannot sell the property until they come of age. I still reckon you need a lawyer to draw up the contracts though, I know a couple of people that have done it this way.