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Work permit not required to rent out condos, confirms Phuket labour chief

PHUKET: 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.

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The Phuket News

Friday 15 July 2016, 03:29PM


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. Photo: Tanyaluk Sakoot
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. Photo: Tanyaluk Sakoot

“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.

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“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. (See story here.)

 

 

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Joe12 | 20 July 2016 - 20:38:34

Christy...there ya go. You have actually provided some comment that confirms some do become rich. It is certainly plain for all to see why you are not successful in business. Perhaps I could give you some lessons? - many people do and have become successful.

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Christy Sweet | 20 July 2016 - 07:09:42

Joe12 The FBA is set up to facilitate "whitey" investment in large industries, that's how "whitey" get rich,  exploitation of cheap migrant labor which Thailand taxes. For the small, individual business owner, the rules, or rather the inconsistencies in application of rules between The Labor Department  and Immigration just makes for headache after headache. 
For example, I gave up  when Immigration informed me, although all paperwork was perfect, all taxes were paid up, etc., etc., I "did not make enough profit to allow a one year extension.." on my visa. I think my lack of an overpaid "agent" was the real problem.
It was the last straw.
So... four workers lost good jobs, and now I spend time on the internet making critical remarks about Thailand so other "whitey" might rethink a decision to settle here. See how it works?

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Joe12 | 19 July 2016 - 17:06:39

Ed... Lots of farang succeed and prosper ... millionaires even .. so your blanket comment is wrong. Only those with their head in the sand will never get anywere... anywhere in the world.

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Ed Sanders | 17 July 2016 - 11:22:35

I doubt it t.findt... the Thai way is not the "right" way...and by doing it to the books just excludes the well connected people that prefer to under-the-table payola method...and nothing will EVER be done that allows farang to succeed and prosper.

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t.flindt | 16 July 2016 - 19:23:14

Thai Law "is only allowed for personal dwelling and not for business or income". This is very clear.
But what about them how having more than one condo ? They can only live in one at  time.
What about us how have doing all after the books, paid our taxes and having the right licenses etc. Now the easy "cheating" living style is getting to a end, so dont be surprised about it. 
Hopefully this is gonna benefiting us who did the right way.

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Christy Sweet | 16 July 2016 - 08:13:13

So I can charge for rides on my private horses as it's a "personal arrangement"? I was told otherwise.  I think it should be noted according to this report, Chief Pitool Dumsakorn is making a statement the Labor Dept "will not be investigating...," not that it's legal. Beware a future sudden implementation of existing rules. Hook 'em on line and reel it in...

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TTT TonyTheTiger | 16 July 2016 - 08:05:42

So, now that we are all again confused.  ???????We ask, do you need a work permit if you own a condo and rent it out?

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Kurt | 15 July 2016 - 15:40:17

Well, as expected.
A foreigner who let a condominium administration rent out his condo, and pays the condo administration a fee for that work(!)does not need a working permit. 
I already wrote that.

The Patong palace condominium anonymous 'juristic' person did overplay his hand.
Was he panicking about not legal behavior regarding renting out condo's so far (many years) belonging to foreign condo owners?
Again we see here a lot of contradictive bla bla.
But,...many different laws involved, yes?  ( laugh)

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