A 30-year lease can be a good idea to a freehold
purchase or usufract, or a Thai company (7
PARTNERS) can be established with Thai majority shareholders. Foreigners
only own 49% shares in a company with foreigner
ownership. We can assist you to make sure your
company is safeguarded. Remember if you need advice ask us.
TRANSFER PROPERTY FEE
Normally shared 50-50% with the seller?? but ask first as the seller may pay all and is b ased on the appraised value of the property
LEGAL REGISTRATION FEE
Based on the total rent payable over the lease term, and is normally shared equally between the lessor and lessee,at the start but check with the other party
SPECIFIC BUSINESS TAX:
Specific Business Tax (SBT) is paid by companies and individuals who have owned the property under five years. It is based on the official appraised value or the contracted price, whichever is highest.
You may be exempt from SBT if they have used the property as their principal residence and have had their name in the household registration certificate for at least one year.
PROPERTY TAXES THAILAND:
There is a property sales tax of 0.11% of assessed value or the sale price, whichever is higher, as well as a transfer fee of 0.01% of the assessed value of the land. Also a stamp fee of 0.5% of the assessed value or the sale price - again whichever is higher.
However, there is no property sales tax if:
- The seller has owned the property for at least five years.
- The seller received the property as an inheritance.
- The seller has used the property as his primary residence for at least one year prior to the sale.
Once you have acquired the property, there are 2 different types of tax levied on property in Thailand that you need to be aware of:
Land Tax is an annual tax levied on land ownership equivalent to just a few Baht per rai. The amount is often so miniscule that in practice the body charged to collect it, rarely bothers to do so. When they do collect it, its usually after several years when the amount has accumulated.
STAMP DUTY
Stamp Duty paid when SBT is not applicable and is based on the official appraised value or the contracted price, whichever is higher.
Withholding Tax (WHT)
If the seller is a company, the WHT on the sale of the property is calculated at 1% of the official appraised value or the contracted price, whichever is higher. If the seller is an individual, the WHT is based on the individual's marginal tax rate (except that the first 100,000 baht is taxed at 5% rather than falling under the tax-free threshold) after deducting from the official appraisal price a standard deduction based on the number of years of ownership.
Structures Usage Tax
This only applies to properties used for commercial purposes. This is applicable at the rate of 12.5% on the actual or assessed gross rental value of the property. However, this notional value is well below the commercial market rental value.
