When purchasing a property in Thailand, the pinnacle of the process is when the ownership is transferred from the owner or developer to the person acquiring it. This usually happens at the Land Office where the new ownership will also be registered.
If in case the property in question is bought off-plan, the transfer will take place after the said property has been finished by the developer.
Taxes and Other Fees
Taxes and other applicable fees come along with the purchase of a property. For one, it is the buyer of the property who will have to pay for the transfer fee but this fee as well as other fees can be negotiated in between parties, on who is to pay which and how much will be paid.
- Transfer Tax – this tax is based on the registered value of the property and it is at 2%.
- Withholding Tax – it is 1% of the appraised value of the property.
- Special Business Tax – is applicable of the said property is sold to the buyer within the first 5 years of ownership. It is 3.3% of the appraised value.
- Stamp Duty – 0.5% is taxed basing on the registered value.
If there is negotiation and agreement between the buyer and the owner/developer regarding these fees, these must be included in the sales contract to fully document the said agreement.
Withholding Tax (Income Tax)
When a sale of property happens, income is surely involved and this income is taxed accordingly.
- Seller is a juristic person (company) – the withholding tax rate is 1% of the sales price or 1% of the assessed value, whichever is higher.
- Seller is a natural person (individual) – the withholding tax is not based on the sales price or assessed value but on a progressive income tax scale.
The process in transferring a property from the seller to the buyer in Thailand may be a bit complicated especially for expatriates. Negotiating on the schedule of the applicable fees may also prove to be challenging for these foreign-based individuals but this can become easier with a help from a local attorney or lawyer.
We can act in your behalf as your legal representation to transfer the property from the owner/developer to you.