There is likely nothing more thrilling than living or holidaying in a magical, year round sun-filled neighborhood with friendly people, beaches, lush vegetation, and a great tropical climate. How exciting would it be to do so in your own condo? Choosing to purchase a condo in Pattaya is a highly attractive option for many foreign nationals. While a foreigner is unable to purchase land in Pattaya, he has the opportunity to purchase and own a freehold condo.
Pattaya offers a large amount of investment potential and its world-class vacation environment is coupled with the huge growth of the local real estate market. Whether you are planning to retire in Pattaya, choosing a holiday get-away home or would like a place to call your own, buying a condo is certainly a viable option.
Owning a condo in Pattaya is a great investment opportunity. Regardless of whether you are planning to live in it full time, or only a couple weeks or months of the year, owning a condo is an excellent way of ensuring your future’s security. Once you have purchased the condo, and have decided that, for whatever reason, you cannot live in it, reselling it or hiring it out makes perfect economic sense.
Buying a condo in Pattaya offers a number of benefits for those looking for an excellent investment. Moreover, there are fewer nationality restrictions regarding ownership under Thailand’s condominium laws compared to land ownership.
In the past, condos in Thailand – including Pattaya – did not have annual property taxes. In 2020, a new property tax law was implemented. However, the property tax rates on a condo in Pattaya are very low. In fact, they are less than 0.02% of the appraised value of the condo each year. A large number of condominiums have juristic offices and these provide a service to pay the property tax to city hall. However, there are some where the landlord himself needs to visit city hall with the tax invoice in order to pay the property tax. The line official channel is also available as a means in which to pay the tax.
Interestingly, maintenance fees are generally higher than what the property taxes are. Maintenance fees generally cover aspects, as in any property, for the maintenance or the upkeep of the building, repairs, cleaning, staff and the like.
The regulations governing land and property tax changed names from the House and Land Tax Act and Local Development Tax Act and came into effect on the 1st of January 2020.
As a foreign homeowner in Pattaya, Thailand, it is prudent to learn more about property and other taxes that you’ll be liable for. While it may seem complicated, it can be navigated. As a foreigner, there are a number of different options available to purchase the dream condo. It is also essential to rely on the guidance and expertise of a lawyer experienced in real estate law to ensure a smooth process. Believing that one can save on costs by navigating the purchase of a condo oneself is, simply, not a good idea. A real estate lawyer has the experience and the knowledge to ensure that the purchase is correctly and efficiently completed.
Different Types of Taxes When Purchasing a Condo in Pattaya
The different taxes for a condo, villa or house include the following – transfer fee, stamp duty, withholding tax, and business tax.
The transfer fee is paid by the buyer and is 2% of the registered value of the property. If you purchase an older condo in Pattaya instead of a brand new development, it is important to note that you, as the buyer is likely to pay all of the taxes. This is because it does lower the purchase price and therefore, the taxes that are due. If you purchase a condo directly from the developer, he will usually pay the Special Business Tax (SBT) and then divides the rest of the taxes with the buyer, half and half.
Stamp duty is the responsibility of the seller and is 0.5% of the registered value of the condo. It is necessary to pay if the seller is exempt from business tax.
Withholding tax is paid by the seller, and is 1% of the appraised value or the registered sale value of the property – whichever amount is higher and if the seller is a company. If the seller is an individual, this tax is calculated at a progressive rate based on the appraisal value of the property. Business tax is paid by the seller and this amount is 3.3% of the appraised amount or the registered sale value of the property, whichever is the higher amount. This tax applies to business individuals and companies. All but one is the responsibility of the buyer.
The Withholding Tax is a payment made in advance of the seller’s income taxes. When you purchase a condo from a developer or a company, the Withholding Tax will be 1% of the assessed value or sales price (whichever is higher). However, should you purchase a second-hand condo from an individual, the Withholding Tax will most definitely be higher.
There Are Benefits to Owning a Condo in Pattaya
There are many benefits to purchasing a condo in Pattaya. From the joy of owning a luxurious residence in one of the world’s most sought after destinations, to a solid investment, purchasing and owning a condo in Pattaya is not as difficult as one might think.
- The benefits include the actual ownership of a condo, and in your own name with a full title deed of ownership. It is yours to enjoy as you wish. Purchasing a condo in Pattaya provides the opportunity to own a property in an exceptionally beautiful part of the world, and at an affordable price. In fact, a condo is a far better financial investment than in any other type of building, especially for foreign buyers.
- Low maintenance: one of the main benefits of owning a condo in Pattaya is that there is very little maintenance needed on the owner’s part to keep it looking and functioning as it should. Obviously the interior will need care by the owner, but the outer side of the building is taken care of. With the common area maintenance fee that each owner needs to contribute to, the expenses of maintaining the condo are kept to a minimum. Another fee is called a ‘sinking fund’. This ensures that the cost of any exterior maintenance or repair work is covered.
- The perfect ‘lock up and go’: a condo in Pattaya is ideal for those who travel extensively, or are only visiting for a few months of the year. A condo is a perfect second home. The owner of a condo can visit when he wants to, knowing that his condo is in the same well-maintained condition as when he left it.
- Safety: in comparison to other destinations around the world, Pattaya is a safe place in which to live. Additionally, living in a condo provides that extra sense of security that is not as evident in a house or a villa. Most condos have a key card entry system, as well as additional security. The condo may have security guards to ensure further, enhanced safety and security.
Building, housing and land tax is collected on an annual basis by the local government under the Building and Land Tax Act. However, it is to be noted that there is no general annual property tax in Pattaya, Thailand. If though, the owner of a condo rents it out, there will be a housing and rent tax at the rate of 12.5% every year.
Thailand, and in particular, Pattaya is a fabulous place to live or holiday. This magical city is home to a rich and elegant culture, and provides foreigners with a sense of wonder along with the amenities and style of living they are used to in their homeland. Owning a condo in Pattaya is a real way in which to experience the joy of this delightful country.
Pattaya is an ideal location in which to purchase a beautiful condo. A magical place, it balances both Eastern and Western philosophies to produce the best of both worlds.
When you are looking to invest in a condo, Pattaya is an ideal location. If you are interested in the available condos that are worth the investment in Pattaya, have a look at our website.