Taxes for Buying and Selling Property in Thailand

Every person residing in Thailand, regardless his/her nationality shall be
responsible to pay taxes and fees when buying or selling property. These
taxes and fees are as follows:

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.

Stamp Duty
Buyer or seller is subject to a 0.5% Duty Stamp from either the appraised
value of the property or actual purchasing price, whichever is higher. The
parties 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.

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).

Witholding 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
earn an income from the sale of immovable property (including condominium
unit). Withholding tax rate are calculated based from government assessed
price with a deduction of possession year, which are varied depending on
the year of your possession (the more years of possession, the more the
deduction) and calculate that amount based on the income form the
progressive tax rate (range from 0 – 37%).

Company selling their property:
The withholding tax of 1% from appraised value of property or actual selling
price, whichever is higher, must be paid by the Seller. However, there are
no property taxes as such in Thailand that are exactly equivalent to the
property taxes in the West.

Commercial properties incur a small tax which is collected infrequent. In term
of registering a lease agreement, a registration of a lease for duration of more
than 3 year required to pay a registration fee rate of 1% plus a 0.1% rate of
stamp duty. Rates are calculated from the total amount of the rental fee or
the key money or both.

Business Tax
3.3% of the appraised value of the property if selling within 5 years. This
applies to both individuals and companies.