Taxes & Fees
The costs for buying a property in Thailand are very reasonable. There are only 4 taxes to pay.
These taxes depend on the value of the property, the length of time the property is in possession of the buyer and the buyer’s own personal tax.
What’s crucial to know is that the taxes are calculated on the property’s taxable value, which in turn is generally well below that of the market value.
1. Transfer costs
Transfer costs are calculated at 2% of the estimated value of the property, and must be shared between the buyer and the seller.
2. Costs for registering the lease
This tax is based on the total cost of the rent payable for the duration of the lease. It must be equally shared between the two parties.
3. Specific Business Tax (SBT)
The Specific Business Tax (SBT) is payable by companies and individuals who have owned a property for less than five years. It is 3.3% and is based on the officially estimated value, or on the price of the property sale, as detailed in the contract.
An individual can be exempted from this tax if he or she uses the property as their main residence, and their name has appeared on the registration certificate for at least a year.
4. Stamp duty
Stamp duty is only payable if the professional tax isn’t applicable. It’s 0.5% and is based on the the value of the officially estimated value or on the price of the property sale.
Once you have acquired a property, there are two types of tax.
Land Tax
This tax is an annual tax on the property and is equivalent to a few Baht for each rai owned.
Structures Usage Tax
This tax applies solely to properties that are used for commercial purposes. It’s applied at a rate of 12.5% of the estimated rental value of the property.
Legal fees
Legal fees vary from solicitor to solicitor. Approximately 70,000 Baht should be calculated for the fees.
The legal fees comprise three services
- verification of the property’s title
- the drawing up of the contract
- Completion with the Land Department.
The above is for information purposes only and if you wish to know more or have questions, then please do not hesitate to contact us or a solicitor specializing in property and tax.
