Property Taxes in Thailand: An Up-to-Date Guide to Transfer Fees

Navigating the sale or purchase of real estate in Thailand involves several key taxes and fees, collectively known as property taxes. Below is an overview of the main costs you’ll encounter when transferring property at the Thai Land Department Office. For the most accurate and detailed information, refer to Thailand’s Department of Lands (DOL) or the Thai Revenue Department

1. Transfer Fee (2% of the Appraised Value)

• Rate: 2% of the Land Office’s official appraised value.
• Calculation: Determined by the Land Office’s valuation, which may differ from the market price.
• Who Pays: Typically negotiated between buyer and seller; in many cases, both parties share this fee.

2. Specific Business Tax (SBT) (3.3% of the Higher Value)

• Rate: 3.3% of either the registered sale value or the appraised value, whichever is higher.
• Exemptions: Sellers may be exempt under certain conditions, such as:
  • Owning the property for more than five years.
  • Using the property as a principal residence for at least one year.
• Check Requirements: Exemption criteria and regulations can change, so confirm details with the Land Department.

3. Stamp Duty (0.5% of the Registered Value)

• Rate: 0.5% of the registered sale price.
• Exemption: Stamp Duty is waived if the seller is subject to SBT.

4. Withholding Tax

• Corporate Sellers: 1% of the registered sale price.
• Individual Sellers: Calculated at progressive personal income tax rates, based on the official appraised value.

Practical Tips

1. Negotiate Fees Early: Define who covers each fee in your Sale and Purchase agreement.
2. Investigate Exemptions: Requirements like ownership duration or principal residency can substantially reduce taxes.
3. Stay Informed: Government regulations may be updated periodically—always consult with a local professional or legal advisor.
4. Budget Wisely: Include these taxes and fees in your overall cost calculations for a smoother transaction.

For official regulations and the latest updates, check the Department of Lands (DOL) and the Thai Revenue Department. Consider seeking advice from a qualified real estate or tax specialist to ensure compliance with current laws.