Propert Transfer Taxes in Thailand
When properties such as lands, condos and buildings are bought and sold of which the transfer of ownership happen afterwards, taxes are imposed on these transactions. Non-Thai nationals should not be surprised with taxes related to property transfers as chances are the same do exist in their home countries.
What expatriates should remember is that rates of taxes may differ from the rates in their home countries.
- Transfer Fee
Transfer Fee is not actually a tax but a type of fee that is payable to the Thai government for the transfer’s registration. The rate of this fee is 2% of the registered value of the said property.
In general terms, the buyer would be the one who should pay the transfer fee but the seller may do so depending on the negotiations between the two.
- Specific Business tax and Stamp duty
Stamp Duty is 0.5% of the sale price and this will be paid if the seller’s ownership of the property exceeded five (5) years. If the seller’s ownership of the property to be sold is less than five (5%) years then it is the Special Business Tax at 3.3% that will apply. The Special Business Tax is assess on the appraised value of the property.
However, if the entity selling the property is a developer, it is the Special Business Tax that would apply.
- Income tax or Withholding Tax
The income resulting from the sale of the property is subject to taxation. If the seller of the property is a company, the Withholding Tax is 1% of the sales price or 1% of the assessed value, depending on which is higher.
If the seller of the property is an individual, the Withholding Tax is based on a progressive income tax scale.