Property Transfer Taxes

Property in Thailand

Transfer Taxes

When anyone buys or sells immovable property in Thailand, several taxes must be paid. Keep the cost of taxes in mind when you are looking for a condo. The Land Department collects these taxes when the deed is transferred. When you buy secondhand, the buyer usually pays all of the taxes! This happens because it lowers the purchase price and thus the total taxes due. When buying a condo directly from the developer, the developer usually pays the Special Business Tax (SBT) and splits the rest of the taxes with the buyer 50/50.

The Special Business Tax (SBT) is a 3.3% tax on the sales price. The tax is only applicable if the seller has owned the property for less than 5 years. If you buy a unit in a new development, the SBT will apply, but the sales contract will usually specify that the developer pay it. If the seller has owned the property for 5 years or more, a 0.5% Stamp Duty is owned instead of the SBT.

The second applicable tax is the Transfer Duty, which is 2% of the assessed value. The Land Department assesses a property's value, and the assessment is usually lower than the sales price. The final tax is the Withholding Tax. The Withholding Tax is a prepayment of the seller's income taxes.

If you buy a condo from a developer or a company, the Withholding Tax will be 1% of the assessed value or sales price (whichever is higher). If you buy a secondhand condo from an individual, the Withholding Tax will be higher. When an individual sells a property, the Land Department calculates the amount of Withholding Tax based on the assessed value, and the duration of the sellers ownership. Although the tax is payment for the seller's income tax liability, the buyer usually pays.

Property in Thailand for US Citizens
Buying a Condo Buying Offplan Property
Leasing Property Offshore Income
Thai Property Taxes Condo Management
Renting Thai Property Superficies
Condo Title Deed Property Title Deeds
Property Transfer Taxes Rental Income
Local Office Numbers:
Bangkok: 02-259-8100
Phuket: 076-326-322
Chiang Mai: 053-818-306
Pattaya: 03-300-8830
International Numbers:
US: 1-877-252-8831
(323)-482-1525
Thailand: +66 2259-8100
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