Belaws Home ›› Thailand ›› Blog ›› BOI Offers Tax Privileges for Developing Housing for Low-Income Thais
real estate
BOI Offers Tax Privileges for Developing Housing for Low-Income Thais
01/05/2024
In an effort to provide affordable housing options for Thais earning a low income, the Board of Investment (BOI) has announced a set of tax privileges for property developers. These privileges aim to encourage developers to focus on the construction of houses and condominiums priced at THB1.5 million and below. The BOI approved these measures on March 15 2024, alongside the Government Housing Bank’s project to offer loans to low-income individuals for home purchases.
Key points
- Developers who build townhouses, single-detached houses, and condominiums priced at THB 1.5 million or below may be eligible for tax incentives from the BOI.
- Eligible projects will receive corporate tax exemption for 3 years, covering up to 100% of investment costs excluding land and working capital.
- Developers must obtain endorsement from the Government Housing Bank and apply to the BOI before the end of 2025.
- The tax privileges aim to encourage developers to construct affordable housing options for low-income Thais.
Who will be Eligible for these Tax Privileges?
To be eligible for the tax privileges on offer from the BOI, developers must have a plan to build townhouses, single-detached houses, and condominiums valued at 1.5 million THB or below..
Each detached property or townhouse unit must have a minimum floor area of 70 square meters, while condo units must have at least 24 square meters of floor space.
Additionally, property developers must obtain endorsement from the Government Housing Bank (GHB) to be eligible for the tax privileges.
Property developers who are interested in applying for this promotion must apply to the BOI’s before the end of the next year (2025).
What Benefits are Available?
Eligible projects will be exempted from corporate tax for a period of three years. This exemption covers up to 100% the investment cost (excluding working capital and purchasing the land). Areas eligible for the exemption include investment in roads, public facilities and public usage areas included in the development.
By granting these tax privileges, the BOI aims to encourage property developers to focus on constructing affordable housing options for low-income individuals.
How will these Benefits Affect the Thai Economy?
The BOI’s tax privileges for developing housing for low-income Thais, along with the Thai government’s measures to extend the price range eligible for reduced transfer and mortgage fees, are aimed at addressing the need for affordable housing options. These measures not only benefit buyers and developers but also have wider economic implications, stimulating various sectors and promoting growth.
With the government’s commitment to providing affordable housing solutions, the real estate market in Thailand is poised for positive development, creating opportunities for both low-income individuals and property developers alike.
How can Belaws help?
For more information about real estate in Thailand, why not talk to one of our experts now?
Please note that this article is for information purposes only and does not constitute legal advice.
Our consultations last for a period of up to 1 hour and are conducted by expert Lawyers who are fluent in English, French and Thai.
Consultations can be hosted via WhatsApp or Video Conferencing software for your convenience. A consultation with one of our legal experts is undoubtedly the best way to get all the information you need and answer any questions you may have about your new business or project.
USD 150
Up to 1 hour
Online payment (Paypal or Credit card)
Legal consultation can be conducted in English, French or Thai
Legal consultations are handled by experienced lawyers from the relevant fields of practice
Frequently asked questions
What is franchising, and why is it popular in Thailand?
Franchising allows an established business (franchisor) to grant another party (franchisee) the right to operate a business using its brand and systems. In Thailand, franchising is popular due to its established legal framework, potential for market expansion, and proven business models.
Can foreigners own 100% of a franchise in Thailand?
Foreigners can own 100% of a franchise in Thailand, depending on the specific business activity. However, certain restrictions may apply, and it’s essential to navigate existing Thai laws, permits, and regulations.
What types of franchise businesses are available in Thailand?
Thailand offers various types of franchise businesses, including local, regional, and international franchises, as well as single and multi-unit franchises, catering to diverse investment preferences and market segments.
What are the advantages of starting a franchise business in Thailand?
Starting a franchise business in Thailand provides access to an established business model, training, and support from the franchisor, reduced business risks compared to starting from scratch, and opportunities for market expansion with minimal upfront investment.
What is a franchise agreement, and what does it include?
A franchise agreement is a legally binding contract between the franchisor and the franchisee. It outlines the rights and obligations of both parties, including details of the parties, object of the agreement, franchise fee, duration, termination, renewal rights, and dispute resolution mechanisms.
What are the remuneration options and running costs associated with a franchise?
Franchise remuneration options typically include entrance fees, royalties based on turnover, and various operational fees such as advertising contributions and licensing expenses. Understanding these costs is crucial for effective financial planning and management.
How can Belaws assist with starting a franchise in Thailand?
Belaws provides expert legal guidance and support for navigating the complexities of starting a franchise in Thailand. From drafting franchise agreements to ensuring compliance with local laws and regulations, our team is dedicated to facilitating a smooth and successful franchising process.
Related articles
Decreased Tax Rates for Foreign Professionals
29/06/2022
In May 2022, the Royal Decree No. 743 B.E. 2565 (2022) issued under the Revenue Code announced decreased tax rates for foreign professionals.
In May 2022, the Royal Decree No. 743 B.E. 2565 (2022) issued under the Revenue Code announced decreased tax rates for foreign professionals.
Thailand to work with the OECD to tackle international tax avoidance
30/06/2022
As part of their responsibilities as a signatory the OECDs project to tackle international tax avoidance, Thailand has ratified the MLI.
As part of their responsibilities as a signatory the OECDs project to tackle international tax avoidance, Thailand has ratified the MLI.
Income tax exemptions on offer for investment in target companies
01/09/2022
Income Tax exemptions have been made available to those who invest in targeted industries and companies.
Income Tax exemptions have been made available to those who invest in targeted industries and companies.
Subscribe today
Subscribe today
To our newsletter for all the latest legal news
in South East Asia, Belaws updates and
special promotions on our services.
To our newsletter today for all the latest legal news in South East Asia,
Belaws updates and special promotions on our services.
Belaws 2017 - 2025.
Belaws provides information and software only. Belaws is not a "lawyer referral service" and does not provide legal service or participate in any legal representation.
Belaws is not a law firm or a substitute for an attorney or a law firm. The use of Belaws is subject to our Terms of Use.
