Property Taxes in Thailand & Real Estate Fees

If you are buying or selling a property in Thailand, you may be wondering what the fees and taxes are? It’s likely to be different from your home country and it’s good to know a break down of fees and taxes before you enter into a deal.

Pearl Property Thailand are a hugely experienced team having been helping their customers buy, rent and sell properties for over eight years. We can help you through the whole process from calculating fees right through to the sale. You will incur fees when purchasing or renewing a lease and buying/selling a property under a Thai or foreign freehold.

Here is a breakdown of property transfer fees and taxes you can expect.

Business Tax

business taxes of 3.3% is payable on the sale price or the appraised price of the property. The seller is usually responsible for the fee when they have held the property for less than 5 years.

Transfer Fee

This fee is 2% of the appraised value of the property being transferred. This fee is either paid solely by the buyer or is sometimes shared between the buyer and the seller.

Stamp Duty

The stamp duty amounts to 0.5% of the property sale price. In Thailand, the seller normally pays for the stamp duty.

Withholding Tax

This tax varies depending on whether the seller is a person or a company. If you are a private seller, the withholding tax is based on the appraised value of the property at a progressive rate. If you are a company selling, the withholding tax is a fixed 1% of the appraised value or sale value (whichever is greatest).

Lease Registration Fee

During the process of selling or purchasing a lease, a lease registration fee is applied. This is 1% of the whole amount of the lease term. Stamp duty is added to this at a rate of 0.1% of the total rental. At the time of registration, the fee is payable to the land office.

Fee for Renewal of Leasehold

This will be based on the original cost of the lease, calculated by the land office.

When Are Specific Business Taxes Not Payable in Thailand?

You do not have to pay a business tax in Thailand under certain circumstances. These are;

  • If you transfer the property to an heir in your will
  • If you possess the property longer than 5 years
  • If you transfer the property to your own blood relative
  • If you transfer the property to a temple, church, mosque or Thai government agencies

Pearl Property Thailand can help guide you through property transfer fees, lease fees, stamp duty calculations and taxes. Reach out anytime to talk with a real estate expert.

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