“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. (See story here.)