Thai Property Transfer Taxes and Fees

June 20, 2013

Thai Property

When you buy property in Thailand the transfer fees and duties are not the same as in your home country and we have given a brief explanation as to how the transfer duty and taxes are calculated and who pays which part of the fees when the property is being transferred. If you have any questions always ensure that you ask your attorney beforehand as to what to expect.

The basic which you need to know about a property transfer in Thailand is the break down of the taxes and duties first of all. These are listed as follows:

Transfer Fee: This is the percentage fee of the appraised value of the property being transferred. The transfer fees in Thailand for property is 2% of the property value.  The Transfer duty on the property is either shared between the buyer and the seller which is common or it is paid by the buyer.

Business Tax: The business tax payable over the property is 3.3% of either the sale price of the property or the appraised price of the property. In Western terms it is either the sale price or the municipal value of the property which ever is the higher of the two. Speak to your attorney in Bangkok about who will pay the business tax on the transaction. Note that this tax consists of 3% Business Tax + a Municipal Tax of 10% assessed on the amount of the specific business tax (total tax 3.3%)

Stamp Duty: The stamp duty in Thailand for the transaction is 0,5% of the sale price of the property. The seller in the transaction normally pays for the Stamp Duty in Thailand. Note that if Specific Business Tax then the Stamp Duty is not payable. It is one or the other which gets paid.

Withholding Tax: This tax will vary according to who the seller is being either a person or a company. If the seller is a company then the withholding tax is fixed at 1% over the registered sale value or appraised value (whichever is higher). If however the seller is a private person withholding tax is calculated at a progressive rate based on the appraised value of the property.

Note of Specific Business Taxes:

This is important with regard to the business taxes payable in Thailand. There is no Specific Business Taxes payable in Thailand under the following circumstances:

Specific Business Tax does not have to be paid if:

  • If you have possessed the property more than five years;
  • If you are transferring the property to an heir in your will;
  • If you transfer the property to your legitimate child, not including say an adopted child.
  • If you are transferring it to a Thai government agencies.
  • If you are transferring it to a temple, church or mosque.

Note that a lease registration fee could be payable if there is a lease agreement over the property. This is normally 1% of the value of the lease over the whole term of the agreement. There is also a stamp duty of 0.1% of the value of the lease at the Land Department in Thailand. If you are buying property in Thailand then speak to an attorney first before you sign any documents.

Speak to us today toll-free or at any of our offices in Thailand.

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