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real estate & property taxes in Thailand
Purchasing property in Thailand and the fees and taxes involved
08/07/2022
As a popular destination for expats and investors alike, Thailand is a great place to invest in real estate. Additionally, the recent announcement of the new Long Term Residency visa has included investing in Thai property as one of the possible qualifications for the visa.
With the possible increase in the number of foreigners looking to purchase property in Thailand, it is important to consider the additional costs you are likely to encounter on top of the sale price.
Like any property market, purchasing property in Thailand is subject to additional expenses and fees. Before the completion of your purchase you will come across things such as transfer fees, business tax, withholding tax and stamp duty. It is important to consider who’s responsible for paying them and how much the applicable rates are.
Key points
- Foreigners can fully own condos in Thailand (subject to the condo developments foriegn ownership quota).
- For the most part foreigners cannot own land in Thailand (there are certain exceptions which are outside the scope of this article).
- Property transactions are subject to the following additional fees: transfer fees, business tax, withholding tax and stamp duty.
What type of property can foreigners own in Thailand?
Thailand has no restrictions relating to nationality when buying/selling a condo, therefore a
foreigners can buy and own a condo unit.
While it is possible for foreigners to purchase a Condo, Thai law states that foreigners may only own 49% of a single condo development. Essentially, this means that foreign ownership in the development cannot exceed 49% of the total area of all condo units. If you are interested in buying a condo it is best to check with the development’s jurisdiction office and make sure the building has not reached the foreign ownership quota.
There are however, no restrictions on the number of condominium units that a foreigner can buy. It is possible for foreigners to buy condominium units either off plan (new project or development) or second hand. Foreigners are free to resell any condos they have purchased at any time.
Please note, it is not normally possible for foreigners to purchase land in Thailand (there are certain exceptions which are outside the scope of this article).
What are the fees and taxes relating to property purchase in Thailand?
Purchasing property in Thailand is subject to the following fees.
Transfer Fee
The Thailand Land Department charges 2% of the appraised value of the property.
Business Tax
Business Tax is assessed at 3.3% of the appraised value. However, it’s only payable if the property is sold within the first five years of ownership. If not, stamp duty will be imposed instead.
Stamp Duty
A Stamp Duty of 0.5% of the total registered value of the property will be imposed. When specific business tax is applicable, stamp duty is not required.
Withholding Tax
Whether Withholding Tax is applicable depends on whether the seller is a company or an individual.
Withholding Tax for a company is fixed at 1% of the appraised value or 1% of the sales price (whichever is higher).
Withholding Tax for an individual is calculated at a progressive rate depending on the appraised value of the property.
Who pays the transfer fees and property taxes in Thailand?
Typically, the buyer and the seller will both pay the transfer fee and split the cost 50/50. The remaining types of taxes are dealt with by the Seller. However, both parties can negotiate between themselves and decide how much of the payable tax will be paid by each of them.
| Type of Tax | Rate of Tax | Who pays? |
| Transfer fees | 2% | Buyer or shared |
| Specific Business Tax (only
payable if the property is sold within its first 5 years of ownership) |
3.3% | Seller |
| Stamp duty | 0.5% | Seller |
| Withholding Tax | 1% or progressive rate | Seller |
Keep in mind that the fees are different for registering a lease and buying a property from a developer.
In conclusion
Thai law makes it possible for foreign investors to purchase a condo, however, such transactions are subject to the taxes and fees mentioned above.
The Belaws team of real estate and taxation experts are readily available to assist you with all your needs relating to purchasing property in Thailand.
For more information about our real estate and tax services, please follow these links:
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Frequently asked questions
Can a foreigner own a condo in Thailand?
Foreigners can fully own condos in Thailand (subject to the condo developments foreign ownership quota).
Can a foreigner own a land in Thailand?
For the most part foreigners cannot own land in Thailand (there are certain exceptions which are outside the scope of this article).
Is there any fees when purchasing a condo in Thailand?
Purchasing property in Thailand is subject to the following fees.
Transfer Fee
The Thailand Land Department charges 2% of the appraised value of the property.
Business Tax
Business Tax is assessed at 3.3% of the appraised value. However, it’s only payable if the property is sold within the first five years of ownership. If not, stamp duty will be imposed instead.
Stamp Duty
A Stamp Duty of 0.5% of the total registered value of the property will be imposed. When specific business tax is applicable, stamp duty is not required.
Withholding Tax
Whether Withholding Tax is applicable depends on whether the seller is a company or an individual.
Withholding Tax for a company is fixed at 1% of the appraised value or 1% of the sales price (whichever is higher).
Withholding Tax for an individual is calculated at a progressive rate depending on the appraised value of the property.
What type of property can foreigners own in Thailand?
Thailand has no restrictions relating to nationality when buying/selling a condo, therefore a
foreigners can buy and own a condo unit.
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