Condominium Transfer Taxes

Condominium Transfer Taxes

Many buyers wonder what taxes need to be paid when buying a condominium in Thailand. The tax system is easy to understand and we have broken it down in an easy example to show how it works. Speak to a real estate lawyer in Samui for more advice and guidance. Call us today on our Toll-Free numbers!

When buying a property is always important to check who pays what and by what percentages. Usually, the buyer and seller share the cost of transferring property and other taxes which might be involved. There is one set of rules when buying a new condo and another set of rules when buying an existing condominium in Thailand. Always speak to a property lawyer in Samui or Thailand when you are thinking about buying any form of real estate in Thailand.

For say an existing condo or property in Thailand the costs would usually be split as follows:

  1. Transfer Fees being 2% usually paid by the buyer but can be split;
  2. (SBT) Specific Business Tax which range from 3% – 10% of the value of the property;
  3. Stamp duty which would not be paid iof the SBT has already been paid;
  4. Withholding taxes but this again depends on the situation of the buyer and seller;

The above costs are far ranging as it depends on how long the seller has had the property, the value of the property, zoning of the property just as an example. Speak to an attorney to do the calculations for you before you buy. This only serves as an example of what would be paid in Thailand. Let’s say you are buying a condo and it has been with the current owner for 3 years and costs 5 million Baht. The costs would be as follows:

  1. Your transfer duty being 2% would amount to 100,000 Baht.
  2. Your SBT would be 3.3% of value and this would amount to 165,000 Baht
  3. Withholding taxes if applicable would be  in the region of 100,000 Baht
  4. Other minor fees might be about 300 Baht

In total your property taxes would amount to a total of around 365,000 Baht.

As has been stated before that these are simply an indication of what property transfers in Thailand would cost you. If you need to have your property transfer costs negotiated and calculated then speak to one of our real estate lawyers in Samui or Bangkok with regards to property transfers and the costs thereof for your condo in Thailand.

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