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Property taxes in Thailand

There is no immovable property tax in Thailand. You will need to pay tax if the premises will be used for commercial purposes.

Real estate taxation in Thailand provides for:

  • Payment of land tax.
  • Payment of development tax. Land is subject to taxation.
  • Rental tax.

If the apartment is rented out, then the owner will need to pay several taxes:

  • Income tax, the amount of which is from 5 to 30% of the amount of profit received. The lower the profit, the lower the tax.
  • Vat. The tax rate is 7% per annum. payable if the annual turnover exceeds 1 million 800 thousand baht, which is approximately 55 thousand dollars.

When making a real estate purchase and sale transaction, both parties to the transaction are obliged to pay taxes. However, state fees depend on the type of transaction for the registration of an object. In this case, the parties to the transaction have the right to agree on who will be responsible for paying a specific tax and fee. For example, the lease registration tax is 1% of the estimated or actual value of the premises. It is the buyer's responsibility to pay this fee. Income tax is paid by the seller and is not more than 35% of the actual value of the premises.

It is important to remember that a person who receives income from renting their own housing in Thailand is required to declare it to the tax office and pay the appropriate fee in a timely manner.

When renting the premises through the management company, the tax is paid in 2 stages: advance payment, the amount is withheld after payment to the owner of the funds, the second part of the fee is paid after the owner submits a declaration. The amount of the tax advance to be withheld by the management company is 5% if the owner has a TIN. If there is no TIN, then the amount of the fee increases to 15%. Penalties are applied to the owner for non-payment of tax.