Taxes on buying or selling real estate in Thailand

When buying real estate in Thailand, the easiest transaction is Free Hold – this, buying a home permanently with the right of donation, inheritance and so on. It is important to understand that you will pay tax as a buyer and as a seller. If you buy a home privately, you will be required to pay a registration tax (Transfer Fee), which is 2% of the final value on the property.

When the transfer fee is split equally between buyer and seller, before you sign the contract you should make sure that the seller agrees to pay his share, otherwise it all falls on you. So for the buyer when buying a home in a Free Hold – the tax fee will be 1-2%, and when buying in a Lease Hold – 1% and split in half between the two.

Taxes in Thailand when selling real estate

  1. Herb Duty (Samp Duty) – a fee of 0.5% of the value of the home or contract value. It is worth noting that the highest price is chosen. Calculated only if the property in Thailand was in the possession of the seller for more than 5 years.
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  3. Special Business Tax (Special Bussines Tax) – fee charged when selling the property by the seller, who owns it less than 5 years and is 3.3% of the contract value. Its payment cancels the stamp duty.
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  5. Tax on profits (Withholding Tax) – calculated on the difference between the purchase and sale price of the home. The percentage is chosen depending on who owns the home, a natural person or a legal entity. If the seller – a natural person, it is calculated progressively – from 5% to 35%, depending on the value of the property. If the seller is a legal entity, it is fixed and amounts to 1%.

Personal income tax

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Income Tax in Thailand, called Income Tax, depends on your total annual income. Its calculation is progressive, which means that when you exceed a certain amount, its rate increases. For example, if your income for the year amounted to 299,000 baht, then it will be 5% of 149,000 baht.

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Income tax in Thailand

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Tip! For all the details of Thai taxation, visit the official website of the Thai Tax Authority.

Taxes-for-land

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There are also regular Thai taxes levied on building and land owners. They are paid by those who conduct their own business in Thailand, for example, engaged in house rentals. It is 12.5% of the contract rental rate, or no more than 100 baht per 1,600 square meters, and is only charged when you reach a significant amount. For more information, read here.

Taxes on real estate in Thailand for gifts or inheritance are not provided. To formalize the transaction, you will likely need the services of a lawyer, and that is an unnecessary expense for the buyer. By the way, we recommend to read How to refund VAT in Thailand when buying goods.

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