Property Transfer Taxes in Thailand

December 16, 2011

If you are buying property in Thailand then don't forget that the property transfer taxes in Thailand are not the same or in the same format as in your home country. The Thai government has made an effort to limit property speculation to avoid property bubbles in Thailand.

These property bubbles are limited by taxes which are imposed based on how long you have owned the property. The shorter the ownership the higher the taxes. When you do a due diligence on a property in Thailand this is one of the legal issues that are looked at when wanting to buy a property. Speak to a conveyancer in Thailand for more information with regards to transfer taxes and ownership of property in Thailand.

Business tax 3.3% of the government assessed price or sale price, whichever is higher. Levied against a vendor who has been in registered possession of the property for less than 5 years.

Stamp Duty 0.5% of registered value. Temporarily being waived by the government if the transaction is subject to Business tax -possession of the property less than 5 years. Normally paid by the seller.

Transfer fee 2% of registered value. Normally paid by the buyer.

Income Tax. The vendor must pay the income tax on what he earns on the sale. This rate varies according to the transaction. Remember that the vendor may have to pay the Business Tax (3.3%)  as well, in case of being in registered possession for less than 5 years.

Other related Taxes

Land Tax. This tax is levied on land ownership. Despite being an annual tax is  often collected for longer periods as the amount is usually very small.

Inheritance Tax. There is no inheritance tax as such in Thailand.

Rental Income Tax. Usually charged between 10% and 30% of rental income depending on the specific circumstances.

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