Thailand has the following taxes in regards of property purchase.
2a. Specific business tax (SBT) - 3.3% of the registered (sale) value or appraised value, whichever is higher (3.3% actually consists of 3% SBT tax itself plus a municipal tax of 10% assessed on the amount of the specific business tax).
2b. Stamp duty - 0.5% of the registered value. Stamp duty isn’t payable when SBT is payable, so there won’t be a case when you have to pay both.
It’s important to note that appraised value of the property (which, importantly, is used as a base for taxation for resales) is calculated by the Central Valuation Authority (CVA) and announced by the land department every 4 years. It is normally substantially lower than the transaction price.
In case of leasehold ownership, lease registration fee is payable at the rate of 1.1% of total lease value (again, technically lease registration fee itself is 1%, but 10% stamp duty is paid on it).
<aside> 👉 SUNWAY says: In case if you are buying new property from developer, consumer protection laws establish that the developer is responsible for SBT and withholding tax in full. Transfer fee (2%) is normally split 50/50. So the buyer normally pays only 1% overall. In case of resale however, there is no specific regulations determining who who is paying the taxes and how they must be split, leaving this to the discretion of the parties. Market convention is 50/50 split.
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In 2019 Thai government introduced a new Land and Building Tax law, which came into power on Jan 1st 2020.
The law’s main change - for the purposes of this article - was introduction of property tax for residential properties (which were previously exempt from any kind of annual taxes).
Taxable properties in context of residential real estate include land, buildings and condominium units. The ceiling tax rate for residential properties is 0.3% per annum.
There is an exemption for the properties used as a primary residence:
In either case the individual’s name must be on the household registration documents on 1 January of that tax year; the exemption only applies to one primary residence, and cannot be applied to further properties.
Otherwise, the taxes are as follows:
THB 1M - THB 25M | 0.03% |
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THB 25M - THB 50M | 0.05% |
THB 50M+ | 0.1% |