Property Transfer Taxes

Property transfer taxes in Thailand for foreigners is an important step. When you are buying property in Thailand it is always best to speak to us as real estate lawyers Bangkok before you sign any documents. It is also advisable to ensure that you do a due diligence report on the property you are buying. This to ensure that that title deed is correct and that the owner. Also that the property sizes as described are correct. Property fraud and unscrupulous estate agents are not uncommon. The Thai property market is not well regulated. See also the page on buying a condo in Thailand

Property Transfer Taxes

Property Transfer Taxes

Transfer Fee

The withholding tax is always paid for by the seller. The withholding tax is 1% of the sale price or the municipal value whichever is higher if it is a company selling the property. This is to avoid the lowering of the price to pay less transfer taxes. If the market value is THB 1m and the municipal value is THB 500,00 then the taxes will be calculated on the highest amount. If it is a person selling the property then there is a progressive scale for the tax which the property lawyer in Thailand will calculate for you when due diligence gets done on the property.

Property tax in Thailand for foreigners is explained below and you will need to take legal advice on this. Land transfer tax in Thailand is also complex as it is going to be based on value as well as how long the owner had the property before. This was introduced a few years back to avoid property speculation. The additional property taxes has been used well to keep the market very stable. If you are selling property in Pattaya or Bangkok, speak to us about the transfer process.

Property Transfer Process

The property transfer taxes in Thailand needs to be calculated beforehand. This so you know what the transaction is going to cost you. Also, who pays for each part of the transaction. There are no fixed rules when it comes to who pays for which fees. But there is a basic understanding in Thailand and to who would normally pay for each part of the transaction. See the property tax in Thailand. You will find this further down with the land transfer taxes in the country.

This is a very basic overview of the property transfer fees in Thailand. Normally this is also what is called conveyancing fees in the West. If you need more information about property in Thailand then email us or call us toll-free for more information. These are the conveyancing formalities in Thailand. Selling property in Thailand can become complex when dealing with foreigners. Property tax in Thailand and transfer taxes does become more complex. Consult our real estate lawyer in Thailand online for more information as well as guidance. You can also see the conveyancing formalities in the country.

Business Tax

The business tax in Thailand is 3.3% of the appraised value of the property or the sale price of the property whichever is the highest. Normally the sale price is higher so this would what the business tax would be based on. The business tax is based on 3% specific business tax and a municipal tax of 10% of the specific business tax which is 0.3%. The business tax of 3.3% is normally paid for by the seller of the property. A special note on business taxes. The specific business tax does not need to be paid if the seller is a person and not a company under the following conditions:

  • The property is being transferred (gifted) to a church, temple or mosque;
  • Also the property is transferred (gifted) to a government agency;
  • The property is transferred to a legitimate child not an adopted child;
  • Also the property is transferred to a legal heir or heir in a will in an estate;
  • The seller had the property 5 years or more and it was his place of residence and in his name in the house papers for at least 1 year before the sale.

The last in the above conditions is very important as the Thai government introduced this to dampen property speculation in Thailand or what is called ‘property flipping’ in the West. The seller normally pays this tax in Thailand. Selling property in Thailand and property tax in Thailand are important factors so understand them well. 

Note also that property taxes are different when it comes to a biological child compared to an adopted child. You will need to consider this if you have married a Thai and have legally adopted her or his child. When you move property into the name of the child, there will be the business tax to be considered. This might not sound very fair, however this is the current law. If however you have a child with a Thai and it is your biological child then the business taxes are not likely to be an issue. See further selling property in Thailand as well as property tax in Thailand for foreigners.

There will always be property tax in Thailand and it can be a major issue so speak to us only for more information.

Speak to us today!

You can also walk into our offices in Bangkok or Phuket for more information about your property purchase in Thailand. Property transfer taxes in Thailand for foreigners as explained who pays which taxes of the property transfer taxes. Speak to our property lawyer about your condominium transfer fee for more information.

You can read further on land ownership in Thailand if you are considering this. Those who are interested in property investment Thailand will need to consider many other issues when it comes to buying a condo in Thailand. Investment property can become very complex and risky. Make sure that you understand the title deeds in Thailand as there is only the Chanote which expats should be interested in. If you want to see the  land transfer tax Thailand then search this website or speak to us.

Also ensure that you understand the conveyancing fees as it is known in the west as well as the condominium transfer fees and if the buyer or seller pays which fees. Always ensure that you have done your due diligence on the property with a land title search Thailand.

Property Transfer Taxes FAQ

HOW MUCH IS PROPERTY TAX IN THAILAND?

Currently under the new tax system in Thailand there will be 3 maximum rates of property taxes. For commercial property it will be 0.5% of the appraised value. Private residence is 0.1% of praised value and agricultural land at 0.05% of appraised value. Check with a lawyer for any updates.

HOW DO I SELL MY PROPERTY IN THAILAND?

If you are going to sell your property in Thailand then most people tend to place a for sale notice on the board in the lobby of the development they live in. Others will use an estate agent to sell their property. Those are the two most common methods.

HOW DO YOU CALCULATE THE TRANSFER TAX?

The transfer fee in Thailand is 2% of the appraised value and the business tax in Thailand is 3.3% of the appraised value. There is also 0.5% stamp duty if specific business tax is charged. Then the withholding tax is 1% of the sale price.