Every person residing in Thailand, regardless of his/her nationality shall be responsible to pay taxes and fees when buying or selling property. These taxes and fees are as follows:
Taxes for Buying and Selling Property in Thailand
1. Transferring Fee :
The Transferring fee is 2% of the registered value of the property. Whether the buyer or the seller is paying for this fee, is depending on the Sale and Purchase Agreement. Normally the buyer partly pays for this fee. This fee will be paid to the officer at the land office, upon the day of the transfer of ownership.
2. Stamp Duty :
The buyer or seller is subject to a 0.5% Duty Stamp from either the appraised value of the property or the actual purchasing price, whichever is higher. The parties are reliable for this additional 0.5% of Stamp Duty can be agreed in Sale and Purchase Agreement. Stamp Duty is to be imposed unless the Specific Business Tax (SBT) is paid.
3. Specific Business Tax (SBT) :
SBT will only be imposed if you are selling your property, which you have own less than a period of five years. The tax rate is 3.3% of the selling or assessed price of an asset (whichever is higher).
4. Withholding Tax :
Individuals selling their property: the withholding is determined under to Revenue Code of Thailand. The seller shall withhold such tax and pay to the Revenue Department when he/she earns an income from the sale of immovable property (including a condominium unit). Withholding tax rates are calculated based on government assessed price with a deduction of possession year, which are varies depending on the year of your possession (the more years of possession, the more the deduction) and calculate the amount based on the income from the progressive tax rate (range from 0 – 37%).