Transfer Fee in Thailand
The transfer fee is typically 2% of the assessed property value and is usually split between the buyer and seller, often equally. However, this division is negotiable and can be adjusted depending on the terms agreed upon 🏠.
For condominiums and houses, this fee is paid directly at the Land Department when the property ownership is officially transferred.
Stamp Duty or Specific Business Tax (SBT) in Thailand
Stamp duty and specific business tax are alternative taxes based on ownership conditions and the seller’s status.
If the seller is an individual and has owned the property for more than five years, stamp duty applies at a rate of 0.5% of the assessed value. This can be a more favorable option for personal sales.
On the other hand, if the property has been owned for less than five years or the seller is a company, a specific business tax of 3.3% applies. This ensures taxation on properties used for business or short-term speculation.
Withholding Tax in Thailand
Withholding tax varies based on whether the seller is an individual or a company.
For sales by companies, a withholding tax of 1% of either the assessed value or the actual sale price (whichever is higher) is required.
When the seller is an individual, the tax is calculated progressively based on the appraised property value, often resulting in a higher tax amount than the flat company rate.
Legal and Miscellaneous Costs in Thailand
Engaging a lawyer to conduct due diligence and draft contracts is highly recommended. Lawyer fees generally range from 1% to 2% of the purchase price or sometimes as a fixed fee, depending on the service scope ⚖️.
Other miscellaneous costs may include fees for registering leases, which is typically 1% of the total lease value if applicable.
Ongoing Taxes in Thailand
After purchase, owners should also be aware of recurring taxes.
An annual property tax, recently updated as the land and building tax, is imposed but is usually minimal, especially for primary residences.
Additionally, if you plan to rent out your property, income tax on rental income will apply, which should be incorporated into your long-term budget plans 📅.
