Phuket freehold condo buy/sell tax, docs, etc.

[Agusts]

So I am getting different numbers from various sources, so I thought maybe can confirm some of these. Specifically looking at Phuket foreign freehold condo transaction from one foreigner to another:

 

1- Transfer fee, I'm guessing land registry charges some fixed amount for the transaction, new title/chanote issue etc. , possibly paid 50/50 buyer/seller, how much, who pays....? 

 

2- Transfer tax, again land registry charges this, I got anything from 1% or 3% or even 6%...!!! ? I thought could this various range be related to the actual price of the condo - depends if 1m or 10m price...! (usually 50/50 paid by both parties I'm told). 

 

3- Income tax, I read this is usually paid by seller if he owned the condo for less than 5 years, what %...? 

 

4- Agent fee, that's I guess what seller agreed originally with them, I think normally in 3% range. No fee to buyer...? 

 

5- Lawyer fee, I heard wide range for this, but it is not so important as it varies and agreed separately by each party privately. 

 

6- For transfer seller must get two docs from condo management, one that says common fees and sinking fund and all debt are paid and up to date. Other to say condo is in foreign quota for freehold transfer. I guess valid visa and passport..., does it need certificate of residence...? Anything else... 

 

I'm guessing if original owner turns up with original title/chanote in his name it means no debt to banks or anyone - in western countries usually banks keep the title if any money is borrowed with condo as collateral. And I'm guessing land registry checks documents to be authentic and not fake and this owner is registered correctly on their computers etc...!? Maybe also check authenticity of condo management docs...!? 

 

7- Buyer needs a CFT (certificate of foreign transfer) for the amount, with a bank cashier check for the amount to hand over after new title/chanote issued in his name..., passport and valid visa I guess, certificate of residence...? Anything else... 

 

Anything else of fees or docs I missed....? The problem is when I ask around they say the lawyer, agent, land registry blah blah..., tells you all this, but it's good to know beforehand, so can plan and understand better..., and more importantly, not taken for a ride. So people who recently done it in Phuket can easily help - although rules also change a lot here from one year to the next..., cheers. 

 

 

[Peterw42]

 

• Transfer Fee 2% over the appraised value of the property
• Business Tax 3.3% over the registered (sale) value or appraised value (whichever is higher)
• Stamp Duty 0.5% over the registered value
•  

There are many websites that cover the fees and taxes like this one. 

https://www.samuiforsale.com/knowledge/real-property-transfer-taxes-and-fees.html.

 

Who pays any fees is negotiable between parties.

Withholding tax is like a capital gain tax, its profit from a sale added to taxable income and taxed at the sellers nominal rate of tax. withholding tax is not paid on a principial residence, IE: the house you live in.

 

Some things to note are, The land office says how much a property is worth and any fees/taxes are calculated on that amount, not what the buyer/sellers say they are paying.

 

Any mortgage on a property will be noted on the back of the chanote, a sale wont go ahead without the bank getting paid and removing the mortgage.

 

Agent and lawyer fees are not fixed and could be whatever the buyer/seller are willing to pay.

 

 

 

 

[Agusts]

6 hours ago, Peterw42 said:

 

• Transfer Fee 2% over the appraised value of the property
• Business Tax 3.3% over the registered (sale) value or appraised value (whichever is higher)
• Stamp Duty 0.5% over the registered value
•  

There are many websites that cover the fees and taxes like this one. 

https://www.samuiforsale.com/knowledge/real-property-transfer-taxes-and-fees.html.

 

Who pays any fees is negotiable between parties.

Withholding tax is like a capital gain tax, its profit from a sale added to taxable income and taxed at the sellers nominal rate of tax. withholding tax is not paid on a principial residence, IE: the house you live in.

 

Some things to note are, The land office says how much a property is worth and any fees/taxes are calculated on that amount, not what the buyer/sellers say they are paying.

 

Any mortgage on a property will be noted on the back of the chanote, a sale wont go ahead without the bank getting paid and removing the mortgage.

 

Agent and lawyer fees are not fixed and could be whatever the buyer/seller are willing to pay.

 

 

 

 

 

Thanks for the info, so these rates and definitions are the same for Samui and Phuket and all over Thailand.....? 

 

Also the Withholding Tax for individual is not so clear but I found some more info and examples. 

 

What about the sales value, what normally happens, I heard they put lower amount in sales document to reduce tax, I think a small difference is not a big deal, but shouldn't be too much as that is not really legal...? 

[Peterw42]

2 hours ago, Agusts said:

What about the sales value, what normally happens, I heard they put lower amount in sales document to reduce tax, I think a small difference is not a big deal, but shouldn't be too much as that is not really legal...? 

 

As above, the land office says what a property is worth. So you will be taxed at that figure, even if you put a lower figure in a contract. it would make no sense to put a higher figure in a contract that's going to the land office.

The laws for taxes and fees are the same all over Thailand.

[treetops]

Transfer fee is currently being discounted but it's unclear if this only applies  to Thais.

 

https://aseannow.com/topic/1357817-is-there-currently-a-discount-on-property-transfer-tax-at-land-office

 

[Agusts]

5 hours ago, treetops said:

Transfer fee is currently being discounted but it's unclear if this only applies  to Thais.

 

https://aseannow.com/topic/1357817-is-there-currently-a-discount-on-property-transfer-tax-at-land-office

 

 

I think this is for Thai nationals, it says the previous discount rate limit was 3 mill, now increased to 7 mill, I know for fact that many foreigners sold and bought condos below 3 mill and paid the 2%, so even previous discount was not available to non-Thais, very much doubt new arrangement apply either. Then again this is LOS, let's hear from those who did a transaction this week and if they paid this or got 0.01%...!? 

[Agusts]

With Witholding Tax (aka income/gain tax) don't take into account initial money paid for property purchase...? 

 

See this example here:

https://thailand.acclime.com/guides/withholding-tax-selling-condominium/

 

It mentions "7,995,000 assessed value", is that the sales price now, or sales price minus purchase price...?  It should be the latter... 🤔