Purchase – Taxes & Fees
When buying a property in Thailand, you need to pay a few fees and tax contributions, which depend on the method of registration of the property.
The Land Department levies taxes and fees for transferring ownership rights that apply to all types of real estate, for example, condominiums, land plots and villas. In the case of registration of property under leasehold ownership, an ownership transfer fee will be in the amount of 2% of the appraised value. In this case, the stamp duty is 0.1%. Stamp duty, generally, has to be paid by the buyer and levied when buying a home that has been in ownership for more than 5 years. For the registration of the freehold, the transfer ownership fee is 3%, and the stamp duty is 0.5%. In the event that the property was resold within the last 5 years, a special business tax of 3.3% is charged. In this situation, stamp duty is not paid.
Registration of the property for a Thai company also requires payment of taxes and fees. The creation of a Thai company, whose director is a foreigner, will cost about 30,000 baht. The lawyer’s services will amount to about 20,000 baht, as well as a fee for the registration of the company, depending on the size of the authorized capital of the company. Companies also carry additional annual maintenance expenses, for example, preparation of reporting on the income of the company. For legal entities, there is also a withholding tax of 1% of the estimated value of housing, which is levied on the sale of real estate.
In complexes and condominiums, additional monthly fees are charged for the maintenance of the common areas, garbage collection, security, parking, cleaning of the common pool, sinking funds, and technical services. The amount of such payments, as a rule, depends on the size of the property. For owners of detached villas, maintenance of the property and keeping it in good condition will cost approximately 10-50,000 baht monthly, depending on the size of the garden, the pool that requires regular cleaning and other things. Electricity and water are paid in addition and the cost of these depend on the location of the property. In complexes and condominiums, the costs may differ from the general state ones due to different meter arrangements.
Those renting out properties are obliged to pay 12.5% of the income received annually. Also, in Thailand, there is an annual land tax, but it is so low at just a few baht per rai, that it is paid every few years.