What taxes will I pay when purchasing property in Thailand?

Several types of taxes and fees must be paid when buying property in Thailand. These costs may be divided between the buyer and seller, depending on the agreement. Below are the main taxes and fees related to purchasing property in Thailand:

  • Transfer Fee
    Amount: 2% of the property’s value (assessed by the tax office, not necessarily the market value).
    Who pays: These costs are typically shared between the buyer and seller, but this can be agreed upon individually in the contract.
  • Specific Business Tax (SBT)
    Amount: 3.3% of the property sale price (or assessed value if higher).
    When it applies: This tax is levied if the seller sells the property within five years of purchase, except in some cases such as a private sale without intent to trade properties.
    Who pays: Typically paid by the seller but may be negotiated.
  • Withholding Tax on Capital Gains
    Amount: Depends on the seller’s status:

    • For individuals: Tax is calculated on a progressive scale based on the property’s value and the duration of ownership. The final amount is calculated based on Thailand’s income tax scale (0% to 35%).
    • For companies: The rate is 1% of the sale price or assessed value (whichever is higher).
      Who pays: Usually paid by the seller.
  • Stamp Duty
    Amount: 0.5% of the property’s sale price (or assessed value).
    When it applies: Stamp duty is only payable if there is no requirement to pay the Specific Business Tax (SBT).
    Who pays: Typically paid by the seller.
  • Land and Building Tax
    Amount: Introduced in 2020, tax rates vary depending on the type of property:

    • Residential properties: 0.02%-0.1% of the assessed value.
    • Agricultural land: 0.01%-0.1%.
    • Other types of property (e.g., commercial): up to 1.2%.
      Who pays: This annual tax is paid by the property owner.

Important Notes:

  • Negotiations: The responsibility for paying individual taxes can be negotiated. Transfer costs are often split between buyer and seller, while taxes like the Specific Business Tax and capital gains tax are usually borne by the seller.
  • Tax Valuer: Tax offices assess the property’s value for tax purposes, which may differ from the actual purchase price on the market.

Taxes and fees vary based on the property type, its value, and the length of ownership before sale.