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why Invest in property in Thailand

When investing in property in Thailand, the first step is to consider the intended purpose for your purchase. Common reasons for investing in property in Thailand are follow as:

  • Primary residence
  • Source of rental income
  • Holiday home
  • Office or Workspace
  • Retirement spot
  • Capital appreciation investment

By keeping in mind your purpose of purchase, you will be able to better decide which prospective properties suit your needs and requirements. Thailand is an incredibly diverse country, which provides a range of options for property investors,   from city condominiums to resort homes. Factors such as location, easy access to transport, accessibility, proximity to amenities, unit size, decor, etc. Will vary in importance depending on your reasons for buying. However, the most important factor to consider before all others is the type of property you wish to invet.

Guidance for Foreign Buyers of Condominium Units

Fees and Taxes for Ownership Transfer

  • 1 Transfer fee :

2% of the value of the condo unit  as appraised by the land office.whether it is the buyer or seller who is subjected to pay the transfer fee depends entirely on the sale and purchase agreement. Upon the day of ownership transfer , the transfer fee is paid to an officer at the Land Office where the land is located.

  • 2 Lease Registration Fee :

If the term of a lease is 3 years or less, registration of that lease is not required in order for it to be legally enforceable. Leases exceeding 3 years, up to 30 years, should be registered with the land office in order to ensure enforceability in court.

Currently, the lease registration fee is 1% of the total rental fee over the entire term of the lease agreement. This cost is often borne equally by the lessor and lessee upon mutual agreement by both parties.

  • 3 Specific Business Tax (SBT)  :

SBT is payable by companies and individuals who wish to sell a property which they have held for less than a period of 5 years. The tax rate is 3.3% (including municipal tax) of the selling price or the official appraised value of the property, whichever is higher.

  • 4 Stamp Duty :

 Stamp Duty is imposed at varying rates on certain legal instruments. For leasehold property, the stamp duty rate is 1 Baht for every 1,000 Baht, or fraction thereof, of the total rental fee over the entire term of the lease agreement.

For the purchasing of Property, the stamp duty is only applicable in cases where SBT is not applied. The Buyer or Seller is subject to pay 0.5% stamp duty based on the official appraised value or contracted Sale price,whichever is the higher.

  • 5 Withholding Tax (WHT) :

Where the Seller is a company, the WHT is calculated at 1% of the Land Department’s official appraised value or contracted Sale price, whichever is the higher.

An individual who earns income from selling a property,which includes  condominium units, is subject to withholding tax under the Revenue  Code of Thailand. The withholding tax is calculated at a progressive rate based on the official appraised value of the property, with deduction proportional to the number of years of possession.

Which measurements units are used in thailand for measure properties?