Real Estate & Property Transfer Fees and Taxes in Thailand
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.
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.
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:
The transfer fee is 2% of the appraised value of the property. The transfer fee is normally paid by the buyer of the property or it is shared by equally by the buyer and the seller.
Business Tax is levied on companies and individual owners holding property less than 5 years, hence the seller is usually responsible for the 3.3% fee.
Stamp Duty is 0.5% of the value of the purchase price. This tax is normally paid by the seller or equally between buyer and seller and not imposed when on the Business Tax is due.
Withholding tax is usually the responsibility of the seller. It is 1% of the sale price. The amount of tax paid varies slightly if the seller is an individual or a private company.
The total property taxes and transfer fees in Thailand amounts to 6.8% and are most commonly shared between the buyer and the seller.
- Withholding Tax: Seller - 1% of the declared amount or assessed value - whichever higher.
- Transfer Fee: - Equally shared between Buyer and Seller - 2% of assessed value
- Stamp Duty: - Seller; or equally between buyer and seller - 0.5% of the value of the purchase price.
- Business Tax: - Seller - 3.3% (or the appraised value, whichever is the higher)
*The appraised value or government assessed value (land valuation) is set by the Land Department and Treasury Department and adjusted every 4 years.
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.