Taxation in Thailand
Posted: Sun Jan 19, 2025 9:43 am
When buying a freehold property, there are more taxes. Firstly, when registering the transaction with the land office, you need to pay a property transfer tax - usually 2% of the assessed value of the property.
Secondly, there is a tax on the sale of real estate (Specific Business Tax). It must be paid on the property that the seller has owned for less than five years. The tax rate is 3.3% of the usa telegram database assessed or sales price (whichever is higher). This is especially important for investors who receive income from resale.
If a person has owned real estate for more than five years and it was registered to him, the tax on the sale of real estate does not apply. Then you must pay the property increase tax (Stamp Duty), which is 0.5% of the assessed or sale price.
Thirdly, when selling real estate, the seller charges income tax (PIT, Withholding Tax), which is calculated on a progressive scale, depending on the length of ownership of the property and its value. For foreign citizens, this tax may be calculated at a fixed rate from the sale price.
Important note: In Thailand, it is common practice to share the responsibility for paying taxes and fees between the buyer and seller. For example, the registration fee for the transfer of property rights or the stamp duty may be shared.
In general, buying and owning real estate abroad involves a huge number of nuances and subtleties - both in Thailand and in other countries. Therefore, it is ideal to go through this process with a specialist who knows the local legislation well and can protect you from the risk of losing huge amounts due to possible legal errors.
Secondly, there is a tax on the sale of real estate (Specific Business Tax). It must be paid on the property that the seller has owned for less than five years. The tax rate is 3.3% of the usa telegram database assessed or sales price (whichever is higher). This is especially important for investors who receive income from resale.
If a person has owned real estate for more than five years and it was registered to him, the tax on the sale of real estate does not apply. Then you must pay the property increase tax (Stamp Duty), which is 0.5% of the assessed or sale price.
Thirdly, when selling real estate, the seller charges income tax (PIT, Withholding Tax), which is calculated on a progressive scale, depending on the length of ownership of the property and its value. For foreign citizens, this tax may be calculated at a fixed rate from the sale price.
Important note: In Thailand, it is common practice to share the responsibility for paying taxes and fees between the buyer and seller. For example, the registration fee for the transfer of property rights or the stamp duty may be shared.
In general, buying and owning real estate abroad involves a huge number of nuances and subtleties - both in Thailand and in other countries. Therefore, it is ideal to go through this process with a specialist who knows the local legislation well and can protect you from the risk of losing huge amounts due to possible legal errors.