Taxes

Whenever a property in Thailand is purchased or sold there are four potential taxes/fees to be paid. There is a stamp fee of 0.5%, a transfer fee of 0.01%, a business tax of 0.1% (levied against an owner who has been in registered possession of the property less than 5 years), and income tax (similar to capital gains tax) at a variable rate.

Taxes on Condominium Purchase

1. 2% transfer fee of the registered value of the property price
2. 0.5% stamp duty of the registered value (only payable if exempt from Business Tax)
3. 1% of the registered value or appraised value (whichever is higher) of the property price in the case the seller is a limited company. In the case the seller is a natural person, the tax shall be calculated on progressive rate of the registered value
4. 3.3% Business tax of the registered value or appraised value (whichever is higher) of the property price. Business tax is only payable if the property is sold within 5 years of the purchase registration date.
Property Taxes

Once you have acquired the property, there are 2 different types of tax levied on property in Thailand that you need to be aware of:

Land Tax

This is an annual tax levied on land ownership equivalent to just a few Baht per rai. The amount is often so miniscule that in practice the body charged to collect it, rarely bothers to do so. When they do collect it, its usually after several years when the amount has accumulated.

Structures Usage Tax

This only applies to properties used for commercial purposes. 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.