Property Taxes in Thailand

Property Taxes in Thailand

If you are buying property then always speak to a lawyer or solicitor first in Phuket for legal advice before you sign any document. Property fees when you buy property depends on the value of the property but buyer and seller normally pay certain fees themselves. We will explain the basics of the transfer taxes in Thailand on property.

Transfer Fee

The transfer fee is not really a tax but more of an administration fee which is paid and this is 2% of the value of the property. Not the market value of the property but that municipal value of the property. The municipal value is usually very low compared to the market value of the property. The Land Office holds the values of the property so they will be able to tell you what the transfer fee would be. Personal income tax on the value of the property is also calculated on this value.

Income Tax / Withholding Tax

This is payable by the corporate which owns the property as is normally 1% of the value of the property. This tax goes to the government as the withholding tax. The buyer normally pays this tax. The value of the tax is based on the sale price of the property. This tax is calculated on a formula which takes into account also how long the owner has had the property. This tax is to avoid a property bubble with people buying short term.

Stamp Duty

Stamp Duty is 0.5% of the value of the property. This would be the higher either municipal or market value of the property. This is payable by the seller of the property. There is also a Specific Business Tax if the stamp duty is not applicable and this is 3% of the value of the property. There is also a Local Development Tax of 3.3% on the transaction which the seller pays.

The property market in Thailand can be very complex as there are a number of variables when it comes to buying property. How long it has had one owner, value and location all play a role. Allow a property lawyer or solicitor in Phuket check the taxes for you when you take out a Due Diligence report on the property. This will ensure that your investment is safe and that you know what all the taxes would be and who will be paying what.

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One thought on “Property Taxes in Thailand

  1. Property Values & Taxes | Bangkok Attorney
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    […] a year or two to buy the condo they live in. This is where confusion might set in when it comes to transfer taxes with regards to property and how they have to be viewed. When taxes are paid on a property in […]

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