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Thailand Property taxes and transfer fees

Thailand Property taxes and transfer fees

Below is the information concerning the 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 a juristic person: 1% of the declared amount or assessed value, whichever is higher
  • For the individual: 5% to 37% of the assessed value
Transfer fee

Buyer

2% of assessed value
Stamp Duty

Seller

THB1 per THB200 of a declared amount, or 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 to 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 the case of double tax treaty 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 overseas.)

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 renting
• 3% service provisions.
A 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 the property, the writing of the contract, and its transfer to the Land Department of Thailand.

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

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