Property Tax in Thailand - All that you should know about!
posted 9 months ago
Your property in Thailand can be a source of your income. Even if not, there are real estate regulations in Thailand that can obligate you to pay taxes for the same. You may earn by selling your property, or, gain from the rent you receive from them. Based on the type of your tax entity in Thailand, you are liable to pay property tax in Thailand.
Irrespective of the fact whether you are a Thai or Foreigner in Thailand, these property or real estate tax laws are applicable to all. Read through this guide to check whether you will have to pay property tax in Thailand this fiscal or not.
Property Acquisitions Via Company Takeover
The firm that owns the property in question remains the same whenever a property
transaction involves the acquisition of a company (which could be a Thai company or an
overseas company). No ownership of the property has really changed, and no real estate-
related taxes or fees are due. Instead, you have to make a share transfer.
The government charges a 0.1% stamp duty on the value of the shares when a Thai company
acquires a property. Additionally, personal income tax is applicable to the capital gains of the
share seller (see the section on Capital Gains below). Whereas, the acquisition of a foreign
firm is not a taxable event in Thailand. However, for such transactions outside Thailand, taxes
may be due in that respective country, but, there is no Thai tax obligation.
Property Acquisitions Without a Company Takeover
There is a real transfer of property ownership on purchase in Thailand without taking over a
business. Every such real estate transaction is subject to payment of government fees and
taxes. These can make up as much as 6% of the contract’s cost.
Depending on whether the ownership is leasehold or freehold, different taxes, and fees apply.
Parties need to pay both stamp duty and a lease registration fee when acquiring a lease of
land or a building. The stamp duty is 0.1%, and the lease registration fee is 1%. Note that, the
calculation of the duties and taxes are on the basis of the total value of the lease, i.e., total
rental during the course of the lease. The stamp duty and lease registration fee often hold a
50/50 share in Thailand between the buyer and the seller. Irrespective of the involvement of a
person or a business, the fees remain the same.
To know more, read through our comprehensive tax guide for realtors in Thailand - https://www.konradlegal.com/2023/02/07/do-you-have-to-pay-property-tax-in-thailand-in-2023/