Guide to purchase a Property in Thailand

Personal Taxation

  • No Foreign Ownership Tax
  • No Yearly Ownership Tax
  • No Housing or Council Tax
  • No Asset Tax
  • No Multiple Properties Ownership Tax
  • No Increase of Stamp Duty if Owner of Multiple Properties
  • Low Taxation Environment

Rental Income Tax

Calculated based on the personal income tax progressive rate chart

Thailand Personal Income Tax rate 2020-2021

Property Sale – Taxation

When purchasing property in Thailand there are taxes and fees involved.

  1. Transfer fee 2% (from the Land Department appraisal value of the property)
  2. Withholding tax +/- 3% (of the property selling price)
  3. Stamp Duty at 0.5% (if the owner held the property since more than 5 years) / Special Business tax 3.3% (only if the owner held the property less than 5 years).

Withholding tax: If the seller is a company, the withholding tax rate will be at 1% of the appraised value or registered sales value of the property (whichever is higher). If the seller is an individual, withholding tax is calculated at a progressive rate based on the appraisal value of the property.

These taxes go to the Land Department at the transfer of ownership.

Usually these taxes are shared between buyer and seller. In most cases, as a buyer you will pay only half of the transfer fee (1%). This means you will be only subject to 1% transfer fee. The other taxes are usually borne by the seller.

Transfer of Funds

When purchasing a property as a foreigner you will need to show that the funds are coming into Thailand from overseas. The most common way is via bank transfer. The bank that exchanges the funds transferred will issue a Foreign Exchange Transaction form (FET or FETF).

This document is holding 2 names, the name of the sender of the funds overseas and the name of the receiver of the funds. It is mandatory that one of those 2 names (sender or receiver) is the buyer. If someone pays on your behalf, and the buyer name does not appear as either sender or receiver, then the buyer name must appear in the transfer document: Purchase of Condominium XXX, unit XXX for Mr/Miss XXX XXX.

Check our blog post – Payment instruction for foreign purchaser of condominium in Thailand.

Buying Procedure (New Properties)

In general, projects located in Bangkok will require a down payment from 20% to 30% of the property value. Upon project’s completion, the remaining balance can be paid in one time or with a bank loan.

Outside of Bangkok, developers will usually require a down payment of 30% to 45%. Then the remaining amount will be paid in the form of installments, according to the progress of construction.

Check our blog post – The Guide to Purchase a Property in Thailand. Conditions, Process & Recommendations. 2021.

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