Sidebar

Recommend Print

Thailand Property - Taxes & Costs

Below is the information concerning tax system of the real estate market in Thailand. For any additional information, please contact us or a tax specialist lawyer.

Acquisition of a condominium in Thailand

Fees payable

Payer

Rates

Withholding tax

Seller

  • For juristic person: 1% of the declared amount or assessed value , whichever is higher
  • For individual: 5% to 37% of assessed value

Transfer fee

Buyer

2% of assessed value

Stamp Duty

Seller

THB1 per THB200 of declared amount, or an assessed value of 0,5% of the declared amount of assessed whichever is the higher 

Business tax

Seller

3% to the declared amount or assessed value, whichever is the higher

 

 

 

 

 

 

 

1. The « Withholding Tax »

This progressive tax is calculated considering:

  • the value of the property
  • the duration of the ownership
  • the personal tax rate

2. Transfer fee

The Thailand Land Department charges 2% of the assessed value of all the transfers of land and property. This fee is expected to be paid by the buyer when the day of the transfer of the ownership occurs.

3. The "Stamp Duty"

Transferred out by the Land Department of Thailand, this duty includes 0.5% of the value or the purchasing price, depending on the highest amount. This tax is not applied on the business tax and is normally paid by the seller.

4. The Business tax       

This tax is levied on companies and owners holding a property less than five years. Thus, the seller must pay the 3.3% fee.  
“On average, you may expect to share 7 to 8% of the property value between the seller and the buyer.”
The total amount is calculated considering the following:

  • the acquisition
  • the value-added
  • the use of the property

The average rate certified varies between 7 to 8% of the property value and is shared between the seller and the buyer.

Taxes on acquisition and transfer of property

Disposition of leasehold real estate

Fees payable

Rates

Lease Registration Fee

1% of the total lease consideration or the assessed rental value, whichever is higher

Municipal Tax

0.1% of the lease registration fee

Mortgage Registration Fee

1% of amount declared in the mortgage agreement, subject to a maximum of THB 200,000

Loan Agreement Stamp Duty

0,05% of Mortgage Registration Fee

Tax resident and nonresident


Tax resident

Based on your personal tax rate scale.  From 0 to 35% of your revenues declared. 

Non tax resident

Payment of the withholding tax. In case of double tax teaty agreement between your home country and Thailand, the withholding tax becomes a tax credit. (Flat rate of 15% can be applied in case you want to remit the income oversea.)

Tax resident in Thailand

The taxation in effect on the rental incomes is determined according to your personal tax rate scale.

  • Gradual scale from 0 to 35% on the revenues declared.

Example: Every month, you collect a rent of THB 25,000. If this rent is your only source of revenues, you have to pay off THB 15,000 per year. When the total amount does not exceed THB 150,000, you do not have to pay any taxes. Reversely, between THB 150,000 to THB 500,000, you must pay a duty of 10%.
*If you rent your property to a Thai company, this company should deduct several taxes as the "Withholding Tax" from the renting. Then, you will pay the further renting according to your tax rate scale.   
• 5% on the renting
• 3% service provisions.
Non-tax resident wishing to transfer your rental incomes to your home country:
Normally, you must pay off the withholding tax. If your home country has formed a collective bargaining agreement with Thailand, you may use it as a tax credit.

Legal costs

Buyers may be expected to pay THB 30,000 to THB 100 000 to complete their purchase. This includes three services: the control of the deed of property, the writing of the contract, and its transfer to the Land Department of Thailand.

*If you purchase condominium with Vauban, our legal team can take care it for you without additional cost.

 

Categories Legal | Property Guide

Search properties

  • Basic information
  • (THB). 0
    (THB). 0
  • Address
  • Details
  • -
  • Ordering
  •   Advanced search
Property management

We manage your properties in Thailand. Trust a professional with long track records. Reporting of expenses, maintenance, promotion...

Read more

Real Estate Agencies

Contact Us

Please fill the form and provide the maximum of details in order we can answer your inquiry efficiently. Usually your will get an answer within few hours (open days).