Typical Taxes and Fees
When buying or selling a house in Thailand, you will incur several taxes and fees. These may include:
- Transfer fee: This fee is levied on the transfer of ownership and is usually paid by the buyer. It amounts to 2% of the registered value of the property.
- Stamp duty: This is a tax on the transfer of ownership and is usually paid by the seller. It amounts to 0.5% of the registered value of the property.
- Withholding tax: If the seller is a foreign national, the buyer is required to withhold 1% of the sale price as income tax.
- Legal fees: These fees are paid to the lawyer who handles the transaction. They usually amount to around 1% to 2% of the property’s value.
Property Tax
In Thailand, property tax is levied by the local government and is based on the assessed value of the property. The tax rate ranges from 0.02% to 0.05% of the assessed value.
Capital Gains Tax (CGT)
If you sell a property in Thailand, you may be subject to capital gains tax. The tax rate is currently 20% and is applied to the difference between the sale price and the purchase price.
Inheritance Tax
In Thailand, inheritance tax is levied on the value of the inherited property. The tax rate depends on the value of the property and the relationship between the deceased and the heir.
Gift Tax
If you receive a gift of property in Thailand, you may be subject to gift tax. The tax rate depends on the value of the property and the relationship between the giver and the receiver.
Tax on Property Income
If you rent out your property in Thailand, you will be subject to tax on the rental income. The tax rate ranges from 0% to 35%, depending on the amount of rental income.
Tax Advantages
If you buy a house in Thailand and use it as your primary residence, you may be eligible for certain tax deductions. These include deductions for mortgage interest and property tax. Additionally, if you are a foreign national buying a house in Thailand, you may be eligible for tax incentives such as a reduction in the transfer fee. However, it’s important to note that Thailand has relatively high taxes overall, so the tax advantages may not be as significant as in other countries.