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Patong condo owners told work permits needed to rent out units

PHUKET: Owners of units at the Phuket Palace condominium development in Patong have been warned that they must be issued work permits in order to legally rent out their units.

land, property, patong, tourism,


The Phuket News

Saturday 9 July 2016, 03:56PM


The warning was delivered by a notice posted inside the condo building, at the southern end of Patong, earlier this week.

“The notice is live on the noticeboard in reception and has been sent out to all owners. The notice states that any foreign owner who is renting his/her unit must by law obtain a work permit, even if the person uses a real estate broker, they still have to get a work permit,” one tenant told The Phuket News.

Management at the Phuket Palace Condominium in the notice 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.”

The notice 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.

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“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.

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”.

The notice comes amid a crackdown by officials against properties not registered under the Hotel Act being rented out for periods of less than 30 days. (See story here.)

 

 

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Kurt | 12 July 2016 - 17:48:35

For decades Phuket palace administration was renting out apts for the owners, who were elsewhere. Owners who were in their respective countries, paid administration fees for work done by Phuket Palace administration, well known by thai authorities!  So, that work permit thing holds no ground. Many owners of apts in Phuket Palace can proof that.

Did Phuket Palace Condominium did act 15 years or more unlawful? Thought you can trust them, acting according the thai laws concerned.

Look forward for matters concerned properly and transparent explained by respected thai authorities.
So far, matters are just hanging in the air for foreign owners who trusted they were doing things respectful according the thai laws, as told by thai.
All these foreigners not read thai, they trust the thai authorities, and the project people who charge the foreigners for the 'rent out service'.
So, now, thai authorities have to go after the thai people first, clear this!  
It is a thai-thai matter in first place.
Than tell foreigners what to do, but not with a anonymous message on a bill board.
Be fair to every one  ( as the police always says).

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Pauly44 | 12 July 2016 - 14:20:56

Ed Sanders, totally agree, one can't imagine the environmental impact all this unnecessary & unregulated development will have on this area as there is no town planning, no fore thought or steps in place to manage the sanitation and cleanliness of the area, it's just a build and fix methodology. Total over supply allowed by totally incompetent, corrupt, greedy developers & authorities. Only someone who doesn't like money would invest in these developments as there will be very little demand for them due to over supply & once the s**t hit's the fan (literally).

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Christy Sweet | 12 July 2016 - 14:02:17

I am now of the opinion Thai authorities  want to generate complaints, not to improve anything  but to use as opportunities to  line their pockets.   

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Ed Sanders | 11 July 2016 - 16:58:05

Pinot is correct, the endless condo development is an environmental disaster being placed on top of a festering environmental crisis, with no signs of stopping.  You think there is a water supply problem now? Wait until this mega Mont Azure disaster eliminates about 180 acres of existing wetland and groundwater recharge area and replaces it with more ugly ass square pop-up condos and villas.  Remover a water source and replace it with more water demand.  Short-sighted foolishness on a grand scale...OH...and lets not think about the additional sewage load added to a community that has !ZERO! infrastructure to treat it.  Kamala Bay already has some of the most foul water on Phuket, and by the time all these new developments are completed... nobody is going to want to rent a condo here anyway.  One would have to be a shortsighted fool to invest in this place, particularly with the new condo rental rule.  Then again, this will create a new condo corruption industry to get around this stupid new law backed by the hotel industry.

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Kurt | 10 July 2016 - 16:32:38

Pinot: Really? 3-4000 new condos? My mouth is falling open.
How would the occupants/renters travel after 6 pm, when the pre historic lorries transferred into wooden bench smoke/fume blasting 'busses' stop their irregular service?

When you live in Kamala, visit Central festival, leaving there at 8 PM, you are condemned to take a rip off taxi back to your condo. ( if there is any available)
Oh boy.

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Joe12 | 10 July 2016 - 11:57:31

Pinot...I wish you would have told me that before...lol. I just bought 4 of them. But then again my decision to fork out large sums of money was based on extensive due diligence, not on the say so of a market stall vendor or fortune teller.

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Pinot | 10 July 2016 - 10:29:42

I hope enforcement of the laws has serious impact on the developers building thousands of new condos in Kamala alone. 3-4000 new condos about to hit an already moribund market. 3-4000 completely unneeded and unwanted new condos are an environmental disaster. I don't even have to write it anymore..."DON"T BUY PROPERTY IN PHUKET." Rent. 

The Phuket News

Kurt | 10 July 2016 - 03:35:38

Yes Ericdekegel: I agree with you.
Point to consider is: rent out 31 days, and all is legal even when the guest stay just 28 or 29 days?
Than you have a nice 2 days for cleaning, preparing for next guests. Right?
Put it right on the paper, than it's ok for thai.
Today with being flexible on internet, pay in Germany ( or any other country)and enjoy here, the whole thing is just a bowl with many legal holes.
The thai law is not equipped to handle that.
And the thai authorities dislike/hate law enforcement.
That means work! Catching up since year 2004? Will not happen.
Actually things already got out of hand since the Hotel Act BE 2004 ( 12 years ago!)was not handled. ( no law enforcement)
Very hard now to get the ghost back in the bottle.

Sure thai authorities go to do a bit here and there, but once they realize the enormity of the task they will drop it. ( no man power, to hot, many other things to do).

Just a little monsoon wind needed to blow it all over.
A committee, some years to study the subject, etc. TIT.

Paper is patient, and thai, well know as being paper tigers, are already happy with a paper or 2 you produce.
When they don't understand the context, the saying is: many laws are involved.

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Jeff Weston | 10 July 2016 - 03:32:52

Is Phuket Palace Condominium run by those (deleted) at CBRE Thailand by any chance?

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Joe12 | 09 July 2016 - 23:49:22

Ben..."It appears that Phuket Palace Condominium Juristic Person have got a little bit confused about a foreigner providing labour and a foreigner having income in the Kingdom of Thailand."
The notice to which you refer, is correct in that regard only. (Some parts of the notice are not correct)

As a foreigner, one will be subject to the Working of Aliens Act, B.E. 2521 (The Act), which requires one to have a work permit. The only exceptions are those set out in section 4 of The Act. Section 5 of The Act defines work as: "work" means engaging in work by exerting energy or using knowledge whether or not in consideration of wages or other benefit." Receiving income such as a pension doesn't fit into the section 5 definition. Rental income does.

If you want to use a company, The Foreign Business Act 1999 regulates the business activities of foreigners in Thailand. Because the directors and company are separate legal entities, as a director you are regarded as an employee of the company so it's back to the Aliens Act again. But, if you are a director living in the condo - even for one day - your company will be liable to pay House and Land Tax.

To complicate matters further, the lease of condos in Thailand is governed by the Civil and Commercial Code (ss, 537 - 574) not the Condominium Act. Leases in Thailand are not regarded as a real property right as they are western property law, but are a hire of property contract.

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