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Thailand Introduces New Property Measures
30/04/2024
On Tuesday 9th of April 2024, Thailand’s government introduced a new proposal aimed at supporting and encouraging growth in its residential real estate market, with the hope of promoting economic growth. These measures, approved by the government, include cuts in property registration and transfer fees, as well as tax incentives for both individuals and companies involved in property development.
In this blog post we will explore these new measures and their potential effects on the economy and market sentiment.
Key points
- Thailand plans to reduce property registration and transfer fees for residential properties valued up to 7 million baht
- Tax incentives introduced for individuals building their own homes and real estate companies doing BOI projects valued up to 1.5 million baht
- These measures and incentives are expected to increase market activity, create opportunities for investors, and drive demand in related industries like construction
Why Introduce These New Measures?
Thailand’s residential real estate market has faced slower than expected growth in recent years and a slowdown in property purchases. To address these issues, the Thai government introduced these new measures to promote the sector. By reducing fees and offering incentives, the government hopes to encourage property buyers, attract investment, and boost economic growth.
What are the New Measures?
The new measures to support the real estate market in Thailand includes the following:
Lower Transaction Fees
The most significant measure introduced by the government is the increase in the threshold for lower transaction fees. Previously, only residential properties valued up to 3 million baht were eligible for a reduced registration fee of 0.01%. However, under the new measures, this threshold has been raised to 7 million baht, providing a significant benefit to buyers in the higher price range.
Tax Incentives and Benefits
Under the new proposal, the government has also introduced tax incentives available to those who build their own houses. Please note, the exact details of the tax incentives have not been released, we will keep you updated with any developments when they are made.
There will also be incentives available for BOI projects relating to real estate. Under the new proposal the threshold for properties developed by companies eligible for tax incentives from the Board of Investment has been raised to 1.5 million baht, creating more opportunities for developers and investors. Previously only projects valued at 1 million baht or less were eligible for incentives under the BOI.
How Will These Incentives Help?
The introduction of these measures are expected to have a positive effect on market sentiment. It is expected that the fee reductions and tax incentives will help speed up the process time for property transfers in the 3 million to 7 million baht price range, where buyers have a high mortgage loan approval rate. These proposals are expected to create a sense of confidence among buyers and sellers, leading to increased market activity and more opportunities for investors
What do These Measures Mean for the Real Estate Market?
The introduction of these new measures is expected to have significant implications for the real estate market in Thailand. The increase in the threshold for lower transaction fees and the availability of tax incentives will likely attract more buyers and investors to the market. The reduced fees will reduce the financial burden on buyers, while the tax incentives will encourage property development and investment.
Furthermore, the increased activity in the property sector may have an effect on other similarly related industries, such as construction, interior design, and home improvement. Increased property deals and investment are likely to increase demand for these services, creating new business opportunities and generating additional economic activity.
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.
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Frequently asked questions
Why did the Thai government introduce new property measures?
The Thai government introduced these measures to address the slow growth in the residential real estate market and encourage property purchases.
What are the new measures for real estate market in Thailand?
- Lower transaction fees for residential properties valued up to 7 million baht.
- Tax incentives for individuals building their own homes (details to be announced).
- Increased threshold for tax incentives for BOI projects to 1.5 million baht.
How will these incentives help the market?
- Lower fees and faster transfer process for properties between 3-7 million baht (high mortgage approval rate).
- Increased buyer and seller confidence leading to more market activity.
- Incentives for property development and investment.
What are the potential effects on other industries?
Increased demand for construction, interior design, and home improvement services due to more property deals and investment.
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