Any Taxes Payable When Buying A Property

[johnbutt]

Mam and I built a house in her village three years ago. All went smoothly.

Now we are buying a new-build tonw house in Surin. Deposit paid in August and contract to complete the puchase when we are next there at Christmas.

We have everything costed but are unsure if there are any government taxes payable at the time of the transfer of the chanot to Mam's name.

We don't want to be faced with unexpected bills. Any info greatly appreciated.

John B

[londonthai]

depending what you agreed with the seller - either you, the seller or both of you pay the tax (say 50% / 50%).

as you are a foreigner the seller will try to force you to pay the tax - if you have already payed the deposit and did not previously agreed with the seller you don't stand much ground to argue

[Beardog]

Hi,

I transfered property on a purchase in July this year.

I asked the same question & found this out from Quicksilva & he was right on the money.

Enclosed are the applicable taxes.

Below is another link or e-mail address if link does not work that can give you additional info on a commercial purchace.

Good luck.even 50/50 wasn't cheap.

The owners sold the last 2& 1/2 rai with the new owner pays at 100% & the 7 Rai property is the same new owner picks up the tab. 50/50 is not bad! (THE WITHOLDING TAX-THE EQUIVALENT TO CAPITOL GAIN TAX IS THE BIGGIE & I AM NOT SURE WHY BUT THE FARANG ALWAYS SEEMS TO HAVE TO PAY SOMETHING ON THE TAX THE SELLER IS SUPPOSE TO PAY!)

Quicksilva is a genius in these matters if you need additional help I am sure you can PM him if he does not give a direct response to this post!

Good luck on your new purchase!

Beardog

Transfer Fee

The transfer fee is usually collected at the rate of 2 % of the appraised value of property by the Land Department, or the purchase price whichever is higher.

Stamp Duty

Stamp duty shall be collected at the rate of 0.5% of the actual purchase price or the appraised value of the Land Department, whichever is the higher.

Withholding Tax

Withholding tax is a tax payable by the seller to the Land Department on transfer. Its based on the appraised value again and in this case is likely to be withholding tax on personal income that is payable at progressive rates.

http://www.thailand-lawyer.com/land-title-deeds.html

Edited October 23, 2007 by Beardog