Thinking of Buying Property in Thailand? Here’s What You Need to Know About Property Tax
If you’re planning to invest in real estate in Thailand, understanding the property tax system is a must. Whether you’re a local or a foreign buyer, knowing the costs involved can help you budget better and avoid surprises during the transaction.
Property Tax for Thai Citizens
Recently, there has been news about reduced property tax rates for Thai nationals. For residential property purchases, Thai buyers are currently paying only 0.01% in property tax. That means if you purchase a condo worth THB 3 million, you’ll only need to pay THB 300 in property tax—a minimal cost that significantly benefits local buyers.
Property Tax for Foreign Buyers
If you’re a foreigner purchasing property in Thailand—whether it’s a condo or a house—property tax is something you can’t avoid. However, the amount you’ll pay depends on who you are buying the property from:
1. Buying Directly from a Developer
If you’re buying directly from a developer, you will be required to pay 1% of the purchase price as property tax. For example, for a THB 3 million condo, this equals THB 30,000. Typically, developers include this cost in the invoice, so you may not need to make a separate payment.
2. Buying a Resale Property
If you’re buying a resale unit (a property that’s being resold by an individual), the taxes and fees are split between the buyer and the seller:
- Buyer pays: 2%
- Seller pays: 2.5%
- Stamp Duty: 0.5%
For example, if you’re buying a THB 3 million property, you could be looking at an extra THB 75,000 in taxes and fees.
Where and When Do You Pay?
All taxes and fees must be paid in full at the Land Department during the ownership transfer process. Only then will the property title officially be transferred to your name.
Why You Should Be Informed
Whether you’re buying or selling, understanding these costs ahead of time allows you to plan your budget, negotiate better, and avoid unexpected financial stress. Knowing these property tax details ensures a smooth and transparent transaction.
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