Thailand is one of the Top 10 countries with the most attractive economy for investment. A simplified tax system contributes to this.
There are practically no real estate taxes in Thailand! Yes, yes, it is true, there are no taxes on buildings, apartments, houses for foreign citizens. There is a land tax, which is a symbolic amount of $ 2 for 16 acres per year. This amount is so small that it is paid once every few years - only when something more substantial than a few dollars accumulates.
Therefore, buying property in Phuket for the purpose of subsequent rental is a popular type of investment.
However, before buying real estate, you need to know and be prepared for a number of additional payments, which are made at the stage of buying and selling real estate. Their sum depends on the form of ownership.
Freehold is an unconditional form of ownership. Foreign citizens may freely sell, inherit and lease their acquired property at freehold. The Thailand Land Department issues a document called Chanot, which confirms this form of ownership.
Leasehold is a form of ownership with limited period - 30 years. The received Chanot will indicate the expiration date. You will also receive a contract stating your unconditional right to renew Chanot twice more, ( for another 60 years). Real estate acquired through leasehold, can also be sold, rented and inherited for the remaining period.
Land in Thailand can be sold to foreigners only in leasehold. If you decided to buy a villa or house in Phuket, you will have two contracts of sale: a building in freehold, land in a leasehold.
|Specific Business Tax||3,3 %||-||Seller < 5 years|
|Withholding Tax||1 %||-||Seller (entity)|
|Transfer Fee Tax||2%||1%||Seller or buyer|
All payments are made once mainly by the seller at the sale stage. The buyer pays only the registration fee. The contract can be drawn up in such a way that these costs will be paid by the seller. The experts in Phuket Gallery Real Estate will help you in the proper preparation of the contract.
Transfer Fee Tax: for leasehold - 1%, for freehold - 2%. It is paid by the seller or buyer, or both parties. This moment depends only on the agreement of the parties.
Specific Business Tax: for leasehold it is 0%, for freehold it is 3.3%. The seller pays this amount only if he owns the property for less than 5 years. But since the price of real estate is constantly growing, enterprising investors easily sell their new possessions without waiting for the expiration of 5 years, therefore they are exempt from this tax.
Stump Duty: for a leasehold - 0.1%, for freehold - 0.5% of the cadastral value and is paid by the seller.
Withholding Tax (for legal entities only): for leasehold it is 0%, for freehold it is 1%. It is also paid by the seller.
Do you have any questions? You can apply for a free consultation or a free transfer to the real estate exhibition in Phuket.
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