What are the fees and taxes for selling a condo in Thailand?
Thailand has long been a popular destination for expats and investors to come and live long-term. This is the case now more than ever due to the recent introduction of the new Long Term Residency (LTR) visa.
The purchase of a condo unit is the easiest way for a foreigner to 100% own a piece of real estate in Thailand. However, it is essential to consider the fees and taxes associated with purchasing a condo in Thailand.
This article will look at the taxes and fees for selling a condo in Thailand.
- When selling a condo a transaction will be subject to transfer fees, special business tax (if applicable), stamp duty (if applicable), and withholding tax.
- Typically, with the exception of the transfer fee which is payable by the buyer or shared between both parties, stamp duty, withholding tax, and business tax is paid by the seller.
What are the fees and taxes for selling a condo in Thailand?
When selling a condo a transaction will be subject to the following fees and taxes:
- Transfer fees
- Business tax (if applicable)
- Stamp duty (if applicable)
- Income withholding tax
What is a transfer fee?
When making a real estate transaction, the transfer fee will be charged for the registration of the ownership transfer, with the Department of Lands.
The transfer fee is 2% of the appraised value of the property. This is a fixed fee that applies to all real estate transactions.
The transfer fee is typically shared equally between the buyer and the seller i.e. 1% each.
What is specific business tax?
Specific business tax applies to businesses that do not pay value-added tax (VAT). Specific business tax also applies to natural persons who sell their property within five years of the purchase registration date.
The transaction will be exempt from the specific business tax if the seller has owned the property in question for more than five years.
If a specific business tax is owed on a transaction, the amount will be calculated from the registered sale value or the appraised value (whichever is higher).
Are there any specific business tax exemptions?
The following exceptions will apply to specific business taxes subject to the following conditions:
- The seller has possessed the property more than five years before the transfer and uses it as their residential home (it was the seller’s domicile starting not later than one year from the date of purchase)
- The seller transfers the absolute property of the legal heir or an heir by a will
- The seller transfers the real property to a legitimate child (not applicable to adopted children)
- The seller transfers the real property without consideration to government agencies
- The seller transfers the real property without consideration to temples, churches, or mosques
- The exemption is limited to the transferred portion, which does not make the total area of the estate acquired by temples, churches, or mosques exceed 80,000 square meters
- The transferred real property has been used as the principal place of residence, and the seller’s name appeared in the housing register for not less than one year from the date of acquiring such property
- The property transferred was acquired through inheritance
What is stamp duty?
Stamp duty is calculated from the market or appraised value (whichever is higher).
Stamp duty is applied at a rate of 0.5%. The requirement to pay stamp duty depends on whether the transaction is subject to a specific business tax. If a specific business tax applies, the transaction is exempt from payment of stamp duty.
The seller is responsible for paying stamp duty.
What is withholding tax?
Withholding tax is imposed on the gain obtained from selling a property. Calculating the amount of WHT owed depends on several factors, including
If a company sells the property, the translation will be subject to a withholding tax fee of 1% of the registered or appraised value (whichever is higher).
If the seller is an individual, the WHT owed is calculated at a progressive rate based on the property’s appraised value. The final amount of WHT owed will depend on the years the seller owned the property.
If the seller buys and sells the property within the same year, it will be counted as one year of ownership. However, if the seller owns the property from December to July next year, it will be estimated as two-year ownership.
|Years of ownership||Deduction|
|8 years +||50%
Who is responsible for paying the fees?
Typically, with the exception of the transfer fee which is payable by the buyer or shared between both parties, stamp duty, withholding tax, and business tax is paid by the seller.
How can Belaws help?
If you need more information about real estate in Thailand, why not talk with one of our experts right now?
Please note that this article is for information purposes only and does not constitute legal advice.
Our consultations last for a period of up to 1 hour and are conducted by expert Lawyers who are fluent in English, French and Thai.
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Frequently asked questions
Can a foreigner buy a land in Thailand?
Yes, On October 25, 2022, Thailand’s cabinet approved in principle a draft Ministerial Regulation which would permit certain groups of foreign nationals to acquire land for residential use in Thailand.
Can I get visa if I buy a property in Thailand?
The LTR (available Sep 2022) allows applicants who have invested USD 500,000 in real estate in Thailand to apply for this visa
Can foreigners buy property in Thailand 2023?
Yes, foreigners are able to purchase condo units
Can a foreigner own a villa in Thailand?
Yes, since October 2022 foreigners are allowed to own a land in Thailand
Can a foreigner open a company in Thailand?
Yes it is possible for a foreigner to open a company in Thailand. There are also options available which allow 100% foreign owned companies as well.
Where is the best place to buy property in Thailand?
Bangkok, Phuket, Samui and Chiang Mai are some of the most popular destinations for purchasing propertyl.
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