Is there a tax when you inherit a condominium?

When a foreigner dies and leaves his condo in Thailand to his children, do they have to pay any inheritance tax? and I read that we have to sell the unit within a year but I do not understand this because we are his children and only heirs and my father owned the condo in his own name, has a last will for the condo, he was not married, nor living with someone. Can you explain.
Asked 11 years ago

selling the condo within a year?

The problem with registration of ownership to a foreign heir is that a foreign successor must again personally qualify for ownership under section 19, but usually they do not qualify for ownership registration and must sell the condo unit. The fact that your father qualified for ownership does not qualify his children for ownership registration, this right of ownership under the condo act is granted to your father personally, not also any foreign successors. Pursuant to section 19 of the condominium act you must officially sell the condo within one year from the date of acquisition by inheritance, or the land department could apply the regulations for a forced sale issued under the condominium and the Land Code Act. In practice there are quite a few condo apartments, especially the cheaper ones in the tourist areas, still for more than one year on the name of a deceased foreigner. What sometimes happens, when the heirs cannot be found or they don't bother, or don't know, is that the condo juristic person or condo manager starts leasing these units out to cover the condo fees and maintenance costs (and more :)). Anyway the land department does not get involved with these condos, the one year period is required, but in practice not enforced.
Answered 11 years ago

inheritance tax

There is no general inheritance tax in Thailand but upon transfer of ownership of the unit taxes must be paid. Note the problem related to inheritance of an apartment unit for foreigners in section 19 of the condominium act: Section 19/5: The foreigner or juristic person as provided in section 19 (eligible foreigners for ownership) shall dispose of the apartment in the following cases: When a foreigner or juristic person stipulated in section 19 (eligible foreigners) have acquired apartments by legacy in the capacity of statutory heir or inheritor under will or by other means, as the case may be, and when include the apartment already held by such aliens or juristic persons stipulated in section 19 exceeding the ratio prescribed in section 19 bis. (meaning, the foreigner qualifies for ownership under section 19 but no foreign ownership is available in the 49% foreign ownership ratio of the condominium) Section 19/7: A foreigner or juristic person regarded by law as foreigner other than those specified in section 19 who acquires an apartment by inheritance as statutory heir or legatee or otherwise, as such case may be, shall notify in writing the Competent Official (contact the local land office branch or provincial office) within a period of sixty days from the date of acquisition of ownership of the apartment, and shall dispose of such apartment within a period of not exceeding one year from the date of acquisition of ownership of apartment. If disposition is not made within said period, the provisions of the fourth paragraph of Section 19 quinque shall apply mutatis mutandis. (meaning, only the few classes of eligible foreigners under section 19 first paragraph of the condominium act can register ownership, all other foreigners who obtain an apartment by iheritance must sell the apartment within a year, and pay taxes when ownership is transferred) Check reference links
Answered 11 years ago

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