Property Tax

• Property taxes in Thailand are not equivalent to property taxes in the West.
• The most comparable taxes on property in Thailand are the Land Tax and the Structures Usage Tax.
• The Land Tax levied on land is so miniscule, that in practice the body charged to collect it, rarely bothers to do so, and if they do, they usually wait several years until the amount accumulates.
• The Structures Usage Tax, relates to buildings, it is collected by the municipal office or district office, and is only applied to properties used for commercial purpose.

What taxes, Fees and Costs are applicable to purchasing a property in Thailand?

• Transfer Fee of 2 % of appraised value.
• Business Tax of 3.3 % of the sales price or the appraised value, whichever is higher, must be paid in cases that a seller has a property in his possession for less than 5 years.
• Stamp Duty of 0.5 % of the appraised value must be paid only when a specific business tax is not applicable.

• In most cases a withholding tax of 1% is charged.
• There is no capital Gains Tax on property in Thailand, unlike in many other countries. Income Tax (between 1.0% and 3.0%) on property is the comparable replacement. There are no set rules on who pays the Income Tax, and it is just another part of the bargaining process, as with all the other costs of the transfer of ownership.
• NOTE: the matter of who pays for these taxes is negotiated at time of offer. It is very common that these taxes are shared equally between buyer and seller.

• The withholding tax (from 0 to 37%) varies based on the income of the seller. The basis of the tax is the government appraised value less a deduction of between 50% and 92%, depending on how long you own the condo. The longer you own the condo, the lower the deduction from the appraised value, and therefore your withholding tax liability.