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Patong condo owners told work permits needed to rent out units

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.

By 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.

UWC Thailand

“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 ...

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 & authorit...

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.   

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.  Remo...

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 availab...

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.

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. 

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 ...

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

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

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), w...

ERICDEKEGEL | 09 July 2016 - 20:42:15

This is a good decision to stop this concurence against us hoteliers who pay there taxes,liscenes etc..if they rent out below 30 days. I know people who rent a 4 bedr villa and rent out the 3 resting rooms by day for a cheap price and pay there whole holiday with that income, I hope they start to catch these people who most of them advertise on air b&B who is another dubious organisation. That...

darka | 09 July 2016 - 19:51:54

If i already have a workpermit from my private business in export here in Phuket.
Will this be good enough?  

Kurt | 09 July 2016 - 19:48:18

Yes, Ben Smith. I agree with you.
Is it not funny that the Phuket palace publication is just signed by: Phuket Palace Condominium Juristic Person?

Who is that person? Is it a lawyer? 
Why he didn't undersign with his name?
He doesn't like to stand for his published statement?
And why is that?

Looks again like what happened here so much:
Do something first, and think about it lat...

RogerFox | 09 July 2016 - 19:04:30

This makes sense - renting a property is the conduct of business. It would seem that both a business license and a work permit should be required.

Wayne.Lucas | 09 July 2016 - 18:30:11

There is a bit more about this on our condo facebook page

jeroentak@hotmail.com | 09 July 2016 - 17:20:23

Are they getting totally crazy in Thailand. Why not kick out all the foreigners and become as second North Korea.

peter rawai | 09 July 2016 - 17:19:18

So how can some condo developers say you will get 6% to 8% return on investment if you purchase a condo, with the amount of condo's available on the rental market you would be lucky to rent one out at present, just wait to all the half finished ones come onto the market, fire season sales time is coming 

Kurt | 09 July 2016 - 17:11:53

Seen the photos, this  notice is not a Government directive/warning.
In it selves, it is here and there contradictive and not fully according the thai law.
Sloppy document.

( Thai directors are nominees, yes? )

Ben Smith | 09 July 2016 - 16:55:46

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.  Where a foreigner has Thai income but does not work to generate that income does not require a work permit as far as I know. Obviously the income should be reported to the tax authority as required by law.

No doubt...

Nasa12 | 09 July 2016 - 16:29:43

This is NOT created by government no TM NR on the paper and NO  stamp of some kind, false false and false again.Take it to the police and report the case and those who wright this.


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