What are the fees and taxes that both buyers and sellers face when it comes to buying or selling a property in Thailand? This is a common question that understandably everyone wishes to know before completing a deal.
Fees occur when buying/selling a property under Thai or Foreign Freehold as well as when registering, purchasing, or renewing a lease. Below is a clear breakdown of the taxes and fees due at the land office when completing a transfer of a condominium, house, or land:
Transfer Fees & Taxes Breakdown
The total property taxes and transfer fees in Thailand amount to 6.8% and are most commonly split 50/50 between the buyer and the seller.
- Business Tax: - 3.3% of the selling price or the appraised value, whichever is higher.
- Stamp Duty: - 0.5% of the value of the purchase price.
- Transfer Fee: - 2% of assessed value.
- Withholding Tax: 1% of the declared amount or assessed value - whichever higher.
- TOTAL: 6.8%
*The appraised value or government assessed value (land valuation) is set by the Land Department and Treasury Department and adjusted every 4 years.
Taxes & Fees Explained
At Pulse Real Estate, we can provide our clients the exact amount of taxes and fees to be paid once we know the market value of the property. Please contact us if you would like a free quotation.
Business Tax: The Business Tax is levied on companies and individual owners holding property less than 5 years. The business tax is 3.3% of the selling price or the appraised value, whichever is higher.
Stamp Duty: The Stamp Duty is 0.5% of the value of the purchase price. The stamp fee is not imposed when the Business Tax is due.
Transfer Fee: The Transfer Fee is 2% of the appraised value of the property. The Thailand Land Department charges a transfer fee of 2% of the assessed value. The fee is paid on the day of the transfer of the ownership.
Withholding Tax: The Withholding Tax is 1% of the declared amount or assessed value, whichever is higher. The amount of tax paid varies slightly if the seller is an individual or a private company.
Lease Registration Fee
In the case of the sale and purchase of a lease the above fees are not applied.
The lease registration fee of a property is calculated as 1% of the total amount for the whole lease term. A stamp duty is also collected at a rate of 0.1% of the total rental throughout the lease term for a total of 1.1%.
The fee is collected by the land office at the time of registration.
Transfer Fee of Leasehold Property in Thailand
The transfer fee of leasehold property in Thailand is calculated as 1.1% of the remaining value of the lease term.
To get the remaining value you take the full amount of the lease, divide it with the total amount of years and multiply it by the remaining amount of years.
As an example, if a 30 year lease is purchased for 10,000,000 THB, after 15 years the remaining value would be (10,000,000 / 30) * 15 = 5,000,000 THB.
Just as for registration of a lease, fees are payable at point of transfer at the land office. The fees are usually paid by the buyer, or shared equally between buyer and seller.
Fee for Renewal of Leasehold in Thailand
There is no current precedent but the fee would most likely be based on the original cost of the lease, or an evaluation from the land office.