Taxes in Thailand – Property Taxes on transfer of ownership
If you plan to buy or sell a condominium unit, villa or have taken out a lease on a landed property in Thailand, or own a Thai registered company which has bought or sold land and property you or the company will be required to pay taxes on that sale or purchase. The relevant taxes are: Transfer Fee, Lease Registration Fee, Specific Business Tax (SBT) Stamp Duty. All of the taxes and fees are payable at the Land Department on the day of registration.
This fee is usually divided equally by the seller and buyer as agreed by both parties. The transfer fee is 2% of the official appraised value not the sale price of the freehold land and property or building.
Lease Registration Fee
This is paid on the total rental payable over the lease term. This cost is often paid equally by the lessor and lessee but is the respective actual payments are usually stipulated in the lease. The fee is 1% of the total value of the lease payment registered in the land office.
Specific Business Tax
The Specific Business Tax is payable by companies in all cases and individuals who own a property for less than 5 years. The Specific Business Tax is payable on sale-purchase of property and set at 3.3% of the official appraised value or the sale price, whichever is the higher. This levy is paid by the seller or equally split based on mutual agreements.
Stamp Duty is levied at 0.5% of the official appraised value or the sale price, whichever is the higher. Where leasehold land is being sold, a stamp duty of 0.1% of the remaining value of the lease is payable. It is paid by the seller or equally split based on mutual agreements.
Please Note: Information provided in this article is meant as a general introduction and guide only. Topics discussed are based on the situation at the time of publication. As tax laws and regulations do change and actual payments may depend on complex exemptions and other deductions Sunway Samui strongly recommends you contact a reputable law firm and/or accounting firm, and tax consultant for personalized and professional advice.