Thailand Property Tax

Property tax or tax relating to real estate transactions.

So long as a property is being used for private residential purpose these do not apply. However, upon ownership transfer, there are costs.

These fall into four following potential categories:

• transfer fee 2%

• specific business tax 3.3% (If the land’s owner transfers within 5 years)

• duty stamp 0.5%

• income tax ( to be withheld at source, the seller of real estate has an obligation to pay this tax with a progressive rate as stated by the Revenue Department).

However, if a company or a limited partnership is the transferer of the real estate, it has to pay a withholding tax 1 % of the selling price or estimated price of the Land Department, whichever higher.

This payment is considered as a tax credit for the company’s annual tax filling.

In practice the costs above, except income tax, will be split in some degree between the buyer and seller, depending on negotiation.