Taxes when buying or selling real estate in Thailand

When buying property in Thailand, the easiest transaction is considered Free Hold is buying a home forever with the right to donate, inheritance and so on. It is important to understand that you will pay tax fees as a buyer and as a seller. When buying a home in private ownership registration tax will be required (Transfer Fee), constituting 2% of the final cost on the property.

At that moment when the registration fee is divided in half between buyer and seller, before signing a contract, it is worth clarify whether the seller agrees to pay his part, otherwise If all this will fall on you. So for the buyer when buying a property during Free Hold – the tax duty will be be 1-2%, and when buying in Lease Hold – 1% and divide in half between the one and the other.

Taxes in Thailand when selling real estate

  1. Stamp Duty (Samp Duty) – a collection of 0.5% of cost of housing or the cost of the contract. It is worth noting that choose the highest price. It is calculated only If the property in Thailand was owned by the seller more than 5 years.
  2. Special Business Tax (Special Bussines Tax) – duty charged on the sale of real estate by the seller who owns it less than 5 years and is 3.3% of the cost of contract. His payment cancels the stamp duty.
  3. Withholding Tax – calculated from the difference between the purchase and sale price of housing. Percent is selected depending on who owns the property, natural or legal person. If the seller is an individual, then it is calculated progressively – from 5% to 35%, it all depends on property value. If the seller is a legal entity, then he fixed and is 1%.

Income tax on individuals

Income tax in Thailand called Income Tax, depends on your total annual income. It is calculated progressively, that is, when exceeding a certain amount, his rate rises. For example, if your revenues for the year amounted to 299,000 baht, it will be 5% of 149,000 baht

Income tax in Thailand

Tip! All the details of Thai taxation you You can find out on the official web site management office. Thailand

Taxes for land

It also has a place to be regular Thai. taxes levied on building and landowners plots. They are paid by those who do business in Thailand to example, engaged in rental housing. It is 12.5% ​​of rental contract rates or not more than 100bat for 1600 sq.m. and Exhibited only reaching the sum of a significant amount. Read more here.

Property taxes in Thailand donation or inheritance is not provided. To make a deal, most likely, you will need the services of a lawyer, and these are extra costs for the buyer. By the way, we recommend that you familiarize yourself with how to return VAT in Thailand when buying goods.

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