Purchase Taxes & Fees for Individuals & Thai Companies

When buying a property in Thailand, The Land Department levies taxes and fees when transferring ownership rights that apply to all types of properties, including condominiums, land plots, and villas. Not sure what they are? Don’t worry—we, at PropertyinPhuket.com, are here to explain to you exactly what they are.

Registration Fee

Registration fee comprises stamp duty and tax. The stamp duty for freehold properties is 3.3% of the overall purchase price whereas the tax for leasehold properties is 1.1%.

Transfer Fee + Stamp Duty

If a property is registered under leasehold ownership, an ownership transfer fee amounting to 2% of the appraised value will be charged, which is normally paid by the buyer or shared between both the buyer and seller. In this case, the stamp duty has to be paid by the buyer and levied when buying a home that has been in ownership for more than 5 years, is 0.1%. On the other hand, if a property is registered under freehold ownership, the ownership transfer fee will be 3% and the stamp duty will be 0.5%.

Business Tax

In the event that property was resold within the last 5 years, a special business tax of 3.3% will be charged to the seller whereas the payment of stamp duty will not be required.

Business Registration Fees

Registering a property through a Thai company also involves the payment of taxes and fees. The business registration fee of a Thai company, whose director is a foreigner, will cost about 30,000 baht depending of the size of the authorized capital of the company.

Withholding Tax

A withholding tax, which needs to be paid by the seller, is normally 1% of the estimated value of the property, which is levied upon sale. However, the amount varies slightly depending on if the seller is an individual or an entity.

Maintenance Fees

In complexes and condominiums, additional monthly fees for the maintenance of the common areas, garbage collection, security, parking, cleaning of the common pool, sinking funds, and technical services are charged. The amount of such payments, as a rule, depends on the size of ​​the property. For owners of detached villas, maintenance and upkeep will cost approximately 10,000-50,000 baht monthly, depending on the size of the garden, pool, and other parts of the property that require regular cleaning and maintenance. In addition, electricity and water charges also need to be paid, whose costs depend on the location of the property. In complexes and condominiums, the costs may differ from the general state ones due to different meter arrangements.

Rental Tax + Annual Land Tax

Those renting out properties are obliged to pay 12.5% of the income received annually. Also, in Thailand, there is an annual land tax, which is low as few baht per rai and only needs to be paid every few years.