Property Taxes in Thailand: Rates and How They Are Calculated

Buying or selling property in Thailand involves several taxes and transfer-related fees. Understanding these costs in advance can help buyers and sellers prepare their budgets and avoid unexpected expenses on the ownership transfer date.

The following is an overview of common property taxes and fees in Thailand. The actual amount payable depends on the nature of the transaction and the applicable rules. For advice specific to your circumstances, consult a property lawyer in Thailand.

Common Property Taxes and Fees in Thailand

1. Transfer Fee

The standard transfer fee is generally 2% of the registered property value, calculated according to the applicable rules. The buyer normally pays this fee, although the buyer and seller may agree to share the cost.

2. Stamp Duty

Stamp duty is generally charged at 0.5% of the applicable value under the relevant rules. It is commonly payable when the transaction is exempt from Specific Business Tax. The seller normally bears this cost under common practice.

3. Withholding Tax

Withholding tax is calculated differently depending on the type of seller.

• If the seller is a company: The tax is generally calculated at 1% of the appraised value or registered sale price, whichever is higher, subject to the tax rules applicable to the transaction.

• If the seller is an individual: The tax is generally calculated using progressive rates, taking into account the appraised value, the holding period, and the applicable tax rules.

The seller is generally responsible for withholding tax.

4. Specific Business Tax

Specific Business Tax is generally charged at 3.3% of the appraised value or registered sale price, whichever is higher, when the transaction falls within the scope of this tax. The seller normally pays this tax.

Summary of Property Taxes and Fees

Tax or FeeParty Normally ResponsibleGeneral RateTransfer FeeBuyer2% of the applicable registered valueStamp DutySeller0.5% of the applicable valueWithholding TaxSellerVaries according to the seller's status and applicable tax rulesSpecific Business TaxSeller3.3% of the appraised value or registered sale price, whichever is higher

Note: This table provides general guidance only. The applicable rates, calculation bases, and responsibility for payment may vary depending on current law, the type of property, the transaction, and the agreement between the parties.

Plan Your Property Transaction Costs in Advance

Before buying or selling property in Thailand, make sure you understand the taxes and fees that may apply so you can estimate the total transaction cost. If you are unsure which taxes apply to your situation, seek advice from a qualified property lawyer or tax professional in Thailand.

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Source: Siam Legal — Thailand Property Taxes
http://www.siam-legal.com/realestate/thailand-property-taxes.php