Property Tax

In the case of a sale of freehold property, the property transfer fee is 2% of the appraised value of the property. This is based on what the Land Office views the value of the property to be, which is assessed every 4 years. The transfer fee is normally paid by the buyer of the property or shared equally by both the buyer and the seller.

The business tax in Thailand is 3.3% of the appraised value of the property or the sale price of the property, whichever is higher. This is made up of 3% Specific Business Tax (SBT) and a municipal tax of 10% of the SBT, which is 0.3%. The business tax of 3.3% is normally paid for by the seller of the property. The SBT is not payable if all the following apply:

• The seller has had the property for more than 5 years
• And it was the seller’s principal place of residence
• And the seller’s name is in the house registration book (tabian baan) for at least 1 year prior to the sale.

The transfer is exempt from stamp duty if specific business tax is being paid. Normally paid for by the seller, stamp duty is calculated as 0.5% of appraised value or the purchase price, whichever is higher.

If the seller is a company, the withholding tax is 1% of the sale price or the appraised value, whichever is higher.

If the seller is a private person, the withholding tax is calculated using a combination of the appraised value, the length of time owned, and the progressive personal income tax rate. Your lawyer can calculate this for you.

In the case of registering a lease on a property, both stamp duty and a lease registration fee need to be paid. These are based on the total value of the lease, which may include payment for construction, security deposits, or other amounts paid by the lessee to the lessor for the benefit of the lease. The lease registration fee is 1% and stamp duty at 0.1%, giving a total of 1.1%.

The lease registration fee is normally shared equally between lessor and lessee. Stamp duty is normally paid by the lessor.

The seller of both leasehold or freehold property is subject to tax on any capital gain.

• If the seller is a person, any capital gain is subject to income tax (rates of 10 to 37% apply).
• If the seller is a Thai company, corporation tax is applicable (rates of 15 to 30% apply).
• In the case where the seller is a foreign company, the foreign company is subject to a 15% withholding tax.

For property sellers who are foreign nationals, a Foreign Exchange Transaction (FET) form is required to repatriate funds out of Thailand. This will have been issued by the receiving bank when transferring funds into Thailand for the original purchase. The same amount of money that was sent will be tax-free and only any capital gain will be is subject to income tax.