Property taxes in Thailand. If you are going to buy a condo in Thailand, then you would have to speak to a property lawyer in Thailand about the property taxes during the transfer. Transfer taxes in Thailand is normally split between the buyer and the seller. Note that the taxes will be more if the current owner has not held onto the property long enough. The government introduced this levy to avoid property flipping.
The first tax
… that get paid is the transfer tax of 2% on the appraised value of the property. This is done on what the Land department considers the value of the property to be. In the West this is what you would call the Municipal evaluation of the property. The Land Department is Thailand is similar in this nature. Normally the buyer of the property would pay for this but is can be split between the buyer and the seller. Speak to a lawyer in Thailand for more information.
The second tax
… would be the business tax in Thailand. The business tax is 3.3% of the property being either the appraised value or the sale price – whichever is the highest. This is where is become important as to how long the property had been held. The business taxes are based on 3% of the specific business taxes and 10 % of the business specific tax is a municipal tax of 0.3% of the taxes.
The specific business taxes are not payable if it is a person and not a company and the property being sold is as a donation or where the property has been held for more than 5 years by the seller. This was introduced to avoid property flipping in Thailand and inflating the property market. This tax is also not payable when it is part of an inheritance. The seller would normally pay this tax for the property transfer taxes or what you would call conveyancing fees in the UK.
The next tax
… would be the stamp duty taxes. You will note that the stamp duty is 0.5% and it is paid with the specific business taxes. The seller of the property would normally pay this tax with the sale of the property.
The withholding taxes is paid by the seller. This is 1% of the value of the property whichever is the highest be this the sale price or government assessed price. There is a difference when it is a company selling the property or a person. With an individual there is a progressive tax that your attorney will calculate for you if you are selling the property.
You will note that this is just a basic overview of property sales in Thailand. If you are looking at property investment, then always take proper legal advice before you deposit money for property or sign any sales agreement.
Also note that before you decide on a property always check the location before signing the documents. This means visiting your property or viewing your property in Thailand before you purchase. You will find more information on the link website. This about buying real estate in Thailand and what you need to know.