When you sell a condo here, I believe you pay "income" tax on the profits.

 

I would have assumed you deduct expenses, but TIT, so just checking.

 

Let's say you buy a fixer upper for 2 million baht.

You spend 500k baht on renovations and repairs.

 

Later you sell for 3 million baht. 

 

Profit is 500k? Or 1 million?

 

 

Yes, TiT and it doesn't work like that - unlike most countries that tax the gain, Thailand basically taxes the sales proceeds, so the cost of acquisition and any renovation costs are irrelevant.   There is a set formula to calculate the income tax based on the appraised value and length of ownership. 

Also extra taxes if you have in company name

Here is a calculator that can help you estimate the transfer taxes:

https://herorealtor.com/property-transfer-tax-calculator/

There are 3-4 taxes when you sell a condo, and they are subject to individual circumstances. One of the taxes is on profit, but varies over time, if you live in the property, other income etc.

One thing to keep in mind is taxes are calculated on what the land office says a property is worth, not what you say its worth.

 

https://samui-island-realty.com/thailand-property-taxes-fees/

Buying a condo in Thailand is not an investment it's a gamble.

Isn't it CGT when you sell a property? Then you can make deductions for purchase price and costs, and other outgoings. In the UK, no CGT if it's your sole residence. Talk to a lawyer, as you'll probably need one in any case. In the Philippines they call it CGT but it's a sales tax, and you pay the tax on the sale price, pure and simple. Thoroughly misleading.

21 hours ago, timendres said:

Here is a calculator that can help you estimate the transfer taxes:

https://herorealtor.com/property-transfer-tax-calculator/

Thanks, actually less tax than I thought.

Interesting to note the differences of opinions on the subject. Hues it is to be expected here where different locales bring different results. Think I will go along with my experience. When I sold my condo, we split the transfer tax … done and dusted.

On 12/25/2024 at 9:16 AM, Airwolf said:

When you sell a condo here, I believe you pay "income" tax on the profits.

 

I would have assumed you deduct expenses, but TIT, so just checking.

 

Let's say you buy a fixer upper for 2 million baht.

You spend 500k baht on renovations and repairs.

 

Later you sell for 3 million baht. 

 

Profit is 500k? Or 1 million?

You pay tax of the sales price based on the period it's owned. Your tax could be in the area of up to around 180,000 baht, depending of house book registration, in a project and and appraised value. There is a property tax calculator HERE.