It is no secret that Phuket is one of the most popular destinations in Thailand and in general, one of the most popular tourist destinations in Southeast Asia. And since the tourist flow is consistently high, then investing in Phuket real estate is more than profitable. How much taxes do you need to pay to buy your perfect house on paradise island?
Taxes on real estate in Thailand.
To begin with, there is no property tax in Thailand. Under the laws of Thailand, you do not pay any taxes for owning real estate, which makes Thailand property even more attractive for investment. Taxes on real estate in Thailand are paid one-time - during the conclusion of the purchase and sale transaction. The exceptions are land and commercial real estate.
Typically, the duty of paying taxes during real estate transactions in Phuket between the buyer and the seller share in equal, but there are exceptions. Therefore, before concluding a transaction, we recommend you to carefully study all the details of the agreement and agree with the other party on the payment of taxes and fees.
The exact amount of tax can be calculated by the Land Office only. The information below allows you to calculate it only approximately.
Taxes and fees on real estate in Thailand: Full ownership - Freehold.
The list of taxes and fees that must be paid when carrying out real estate transactions in Thailand.
- 2% Transfer fee.
This fee is paid when transferring ownership of the property in the Land Office, by the address of the registration of the property. The fee, in this case, is 2% of the value recorded in the purchase agreement or of the estimated value (tax calculation is based on the amount that turned out to be higher).
- 3.3% Specific Business Tax (SBT)
The tax is calculated from the value recorded in the agreement or, based on the cadastral value of the object (tax calculation is based on the amount that turned out to be higher). SBT is not paid if the seller owns the property for at least 5 years.
- 0.5% Stamp duty.
If the “Special Business Tax” is not applied - should be paid “Stamp Duty”. The duty is based on the estimated value or recorded in the purchase agreement (duty calculation is based on the amount that turned out to be higher). If the “Special Business Tax” is applied, the “Stamp Duty” is not charged.
From 0 to 35% Withholding Tax.
Legal entities are subject to a fixed tax rate of 1% of the value recorded in the purchase agreement or the estimated value of the object (tax calculation is based on the amount that turned out to be higher).
For individuals, the tax rate will be from 0 to 35%, calculated on the basis of the estimated value and duration of the seller’s ownership of the property.
Building tax.
This tax applies exclusively to commercial real estate. The interest rate is calculated based on the estimated or actual profit from the rental of premises, and is 12.5%.
Tax on land.
Due to the very low tax rate, the land tax is paid once every several years.
Property Taxes Thailand: Long Term Rentals - LeaseHold.
- 1% Transfer fee - Registration fee.
In cases when you purchase the property you like in LeaseHold, you pay a registration fee, which is 1% of the amount fixed in the sale agreement, or of the assessed value. The tax is paid in the Land Office, at the address of the registration of real estate. The low cost of real estate re-registration in Thailand when buying on a long-term lease is one of the advantages of Leasehold.
- 0.1% Stamp duty - Stamp duty.
Calculated on the basis of assessed value or fixed in the agreement. The amount used there is higher.
Buying a house or villa in Phuket.
In this case, the land is purchased on the terms of the Leasehold, and the building in the Freehold. In order to reduce the amount of tax, the building can also be purchased on the Leasehold. Registration of a land plot in freehold is possible only for a company name registered in Thailand or a citizen of Thailand.
<< Назад
