While buying a property in Thailand, you need to pay a few fees and tax contributions, which depend on the method of registration of the property.
The Land Department levies taxes and fees for transferring ownership rights that apply to all types of real estate, for example, condominiums, land plots and villas. In the case of registration of property under a leasehold ownership, an ownership transfer fee will be in the amount of 2% of the appraised value. A stamp duty in this case is 0.1%. Stamp duty, generally, have to be paid by the buyer and levied when buying a home that has been in ownership for more than 5 years. For the registration of the freehold, the transfer ownership fee is 3%, and the stamp duty is 0.5%. In the event that the property was resold within the last 5 years, a special business tax of 3.3% is charged. Stamp duty in this situation is not paid.
Registration of the property for Thai company also requires payment of taxes and fees. The creation of a Thai company, whose director is a foreigner, will cost about 30,000 baht. The lawyer’s services will amount to about 20,000 baht, as well as a fee for registration of the company, depending on the size of the authorized capital of the company. Companies also carry additional annual maintenance expenses, for example, preparation of the reporting on income of the company. For legal entities, there is also a withholding tax of 1% of the estimated value of housing, which is levied on the sale of real estate.
In complexes and condominiums, additional monthly fees are charged for the maintenance of the common areas, garbage collection, security, parking, cleaning of the common pool, sinking fund, technical service. The amount of such payments, as a rule, depends on the size of the property. For owners of detached villas maintenance of the property and keeping it in a good condition will cost approximately 10-50,000 baht monthly, depending on the size of the garden, the pool that requires regular cleaning and other things. Electricity and water are paid in addition, the cost depends on the location of the property: in complexes and condominiums, the cost may differ from the state one.
If the owner rents out his property, then they are obliged to pay 12.5% of the income received annually. Also in Thailand there is an annual land tax, but it is so small, several baht per Rai, that it is paid every few years.