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Condo Clarification

Condo Clarification

Photo: Thailand Law

The Phuket News is reporting an update on the ‘condo-crackdown’. Last week it was reported that Condo Owners were going to require a Work Permit (not easy to get!) if they wanted to rent out their condos. Official clarification points out that that is no longer the case, at least in Phuket.

The rest of the story from The Phuket News….

The Chief of the Phuket Employment Office has confirmed that his office will not be investigating any foreigners who collect income from renting out their privately owned condos.

Despite the warning posted at Patong Palace condominium (inset), Phuket Employment Office Chief Pitool Dumsakorn says foreigners do not need work permits to collect rent from privately owned condos.

“It is a personal arrangement between the person renting out the condo and the person renting it – it does not concern the Employment Department,” Phuket Employment Office Chief Pitool Dumsakorn told The Phuket News this week.

The news follows owners of units at the Phuket Palace condominium development, at the southern end of Patong Beach, last week receiving a warning that they must be issued work permits in order to legally rent out their units.

In the warning, delivered by a notice posted inside the Patong Palace condominium building, management at the Phuket Palace Condominium said that their lawyers had confirmed with the Ministry of Labour “that the owner must have a work permit because there is money in exchange for rentals and proper taxation must be paid to Patong municipality too.”

“There were questions that the foreign unit owners have a contract with an estate agent, to my personal knowledge the unit owner still have to apply for a work permit but no documentation from Government departments have been sent to our Juristic Person office although we know for sure that the work permit is needed, it is up to foreign unit owners to decide,” the notice continued.

However, Mr Pitoon this week plainly said that work permits were not required – at least in Phuket.

Meanwhile, the notice at Patong Palace condominium also pointed out concerns for owners of units under the “foreign quota” – the number of units foreigners are allowed to own within condo developments in Thailand.

“In actual fact, according to Thai Law, foreigners allowed to purchase under foreign quota is only allowed for personal dwelling and not for business or income,” the notice read.

The Phuket News has yet to confirm the legal status of this issue.

Regarding rental of units at the development, the notice added, “Rentals can be done from 30 days up and not less. If you are a Thai company you need not have a work permit as you have Thai directors.”

The notice was marked as issued by the “Phuket Palace Condominium Juristic Person”.

Confirmation from the Phuket Employment Office that work permits are not required in order to receive income legal rentals comes amid a crackdown by officials against properties not registered under the Hotel Act being rented out for periods of less than 30 days.

Officials last week warned that renting out condos for periods less than 30 days may incur fines or even jail time.

FazWaz will always keep you fully informed with this issue, and others, that affect property ownership and investment in Thailand.

Source: The Phuket News

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Tim Newton has lived in Thailand for half a decade. An Australian, he has worked in the media, principally radio and TV, for nearly 40 years. He has won the Deutsche Welle Award for best radio talk program, presented 2,300 radio news bulletins in Thailand, hosted 300 daily TV news programs, produced 1,800 videos, TV commercials and documentaries and now produces digital media for FazWaz.com. He has also MC’d over 200 events in Australia and Asia and been a keynote speaker at numerous conferences and events.

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