Transfer Fees & Taxes On Thailand Property

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Posted by Continent Property on September 23, 2022
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Thailand Property Transfer Fees & Taxes

Thailand’s property market is the same as other countries across the globe in regards to paying taxes. Buying property in Thailand will always incur additional costs and fees. The most common Thailand property transfer fees & taxes are the Transfer Fees, Stamp Duties, Withholding Tax and Business Tax.

Simply put, the fee % are are follows.

Transfer Fee – 2%
Stamp Duty – .5%
Business Tax – 3.3%
Withholding Tax – 1%

Transfer Fee

Thailand’s Land Department will charge a 2% fee over the appraised value of the property in question. This is the same for Condos, Villas or Townhouses.

Stamp Duty

Taxes will be levied in an amount totaling 0.5% above the registered value. Stamp duty is not required when a special business tax is in effect.

Business Tax

This is considered to be worth 3.3% of the estimated value. Only if the property is sold during the first five years of ownership will it be paid, though. Stamp duty will be applied in its stead if not.

Withholding Tax

Whether the seller is a business or an individual will determine this. 1% of the appraised value or 1% of the sales price, whichever is higher, is the fixed amount for company withholding tax. In contrast, the withholding tax is computed at progressive rates based on the appraised value if the property seller is an individual.

Thailand Property Taxes & Fees Explained

So Who Pays The Taxes And Transfer Fees?

Typically, developers and customers split all fees 50/50. In comparison, the seller frequently foots the majority of the bill in private transactions, which might include stamp duty, business tax, and withholding tax.

On the other hand, buyers are generally required to pay 1% of the 2% transfer charge. This is very much a case-by-case result, though, and is negotiable. How much of these taxes and fees the sellers or the buyers will be responsible for paying is typically spelled out in advance.

A property lawyer or agent should be consulted beforehand as well. Remember that there are different costs involved when purchasing a property from a developer compared to registering a lease.

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