Thailand Property Taxes
The following is an overview of property taxes in Thailand and how they are calculated. These taxes apply for Condo, Villa, House or Land.
Transfer of Ownership Taxes
- TRANSFER FEE – 2% of the registered value of the property
- STAMP DUTY – 0.5% of registered value. Only payable if exempt from business tax
- WITHOLDING TAX – 1% of the appraised value or registered sale value of the property (whichever is higher and if the seller is a company). If the seller is an individual, withholding tax is calculated at a progressive rate based on the appraisal value of the property.
- BUSINESS TAX – 3.3% of the appraised value or registered sale value of the property (whichever is higher). This applies to both individuals and companies.
Total fees and taxes for transfer of ownership are around 6% of the registered value of the property. And usually are paid 50/50 between seller and buyer.
Long term Lease Registration Fee
- LEASE REGISTRATION FEE – 1% of the registered value of the property
This is based on the appraised value of the property and is normally shared equally between both buyer and seller, although this needs to be agreed by both parties.
Lease Registration Fee
This is based on the total rent payable over the lease term, and is normally shared equally between the lessor and lessee, although this must be agreed by both parties
This is an annual tax levied on land ownership equivalent to just a few Baht per rai for properties held as private residences. For properties held by companies the tax can be significantly higher. Under current legislation the property owner is expected to pay at the local tessaban or local government office every year. However, there is no tax bill sent out and in practice it is rarely chased up. The problem of unpaid tax liability usually only surfaces when the property is being transferred, and no transfer can go ahead while there are unpaid taxes on the property.
There has also been ongoing parliamentary debates about resurrecting the land tax bill, which would introduce a more general tax on property that would apply to all land and/or any permanent structures built on the land with different tax rates for commercial property, private residences and agricultural land. Owners of undeveloped land will also come under the new taxation.
Structures Usage Tax
This only applies to properties used for commercial purposes or rental properties. This is applicable at the rate of 12.5% on the actual or assessed gross rental value of the property. However, this notional value is well below the commercial market rental value.