The Cost Of House Ownership

[dvdlock]

Hello

I was just curious about the ongoing costs of running a household in Thailand. I haven't seen any reference to it anywhere. I don't mean so much the cost of utilities (water, elec etc), rather about any local/national taxation and things.

Here in the UK there is the dreaded Council Tax. The cost of which is largely dependent on the area you live and the size of your house.

Are there any such additional taxation in Thailand?

What about Buildings/Contents insurance. Is this expensive?

Appreciated

Dave.

Edited January 13, 2010 by dvdlock

[Langsuan Man]

Other than your initial transfer tax there is no property tax per se here in Thailand

There is a bill pending that would like to change this situation by establishing a "residence tax" primarily to help local governments raise money for infrastructure improvements

Whether the "elite" who own most of the property in the country will allow it to go anywhere is anyone's guess

One fixed cost, if you own a house via the "company" route, is 10 to 15,000 THB per year for your accountant to pay your "nominee companies" taxes and his fee to file them

[ricwoo09]

We live in Nong Palai district of Banglamung, north Pattaya to be precise: we have to pay about B500/year for refuse collection [daily], it also covers street lighting and street cleaning.

[lioness]

There is indeed a tax on property, but it is generally minimal. I pay 59 Baht a year on my main property. Everyone I know all pay property tax so I don't know how Langsuan man says their isn't any.

[katabeachbum]

There is indeed a tax on property, but it is generally minimal. I pay 59 Baht a year on my main property. Everyone I know all pay property tax so I don't know how Langsuan man says their isn't any.

Who would you pay this tax to?

I have several properties, but no tax. 7 years.

In Hua Hin I pay 10 baht a month for garbage collection, comes with public waterbill.

In projects its usually commonfees to maintain roads, parks, garbagecollection etc, in Land & House Park I pay 5k a year

Electricity, water, ADSL/phone, cabeltv all depend on how much you use.

In Kata, Phuket there is nothing to pay when house left closed.

[kamalabob2]

For just under one rai of land where we built a house INSIDE a town's City limits we pay 21 baht a year. Last week I paid 84 baht for this year and the next 3 years of annual LAND TAX at the government office where they were in fact mailing out via registered mail the annual land tax invoices. Of course this is for my Thai wife's land. There is NO TAX on the house that sits on that land since no business takes place in that home. I own the house due to my name only on the "permit to build" document. That document was a one time posted fee based on square meters of about 800 baht in our case.

Today I paid 40 baht for TWO months of the daily refuse service. It is 20 baht a month in this community for at least six days a week refuse service.

I pay 500 baht a month for twice a day (random check times) of the local Police to sign a book at the edge of our property.

Real insurance to cover LIABILITY, contents, Theft and Fire on your rental or owned home is very reasonable in Thailand and I suggest you contact a native English speaking insurance BROKER for this cost. We paid about 2100 baht a year at our rental house, we pay just over 10,000 baht a year for a home we own that has a pool and perhaps too much square footage. Property Insurance premiums and policy coverage are easy to figure out with the help of a native English speaking Insurance broker. It is based in a large part on the declared replacement cost of the contents and building, but not the foundation or land.

The 21 baht a year land tax is the new period of land assessment, but interestingly is the exactly the same as the previous 4 years land tax. There is a BILLBOARD in Thai erected in this community near the local post office to inform people the new land tax assessments are due and payable. (wife's translation)

Some expats "blow off" the annual land tax out of sheer ignorance or spite, but I would rather not ever give a government official any chance of a "shakedown" or "complication" when for the price of a small bottle of local beer the annual fee is paid in a Government office with a written receipt.

The person with 7 parcels of land might consider going in person with LAND PAPERS (original and copy) and the I.D. of the person who owns the land to "City Hall" and they will be happy to direct you to the office where LAND TAX is computed and accepted. The receipt will be in Thai, but it is clearly written out with the parcel number and dates it covers.

Land in a "village" is often paid to a local elected official. Farm land might still have the annual 2 baht per rai tax, maybe it is 5 baht a rai.

If you run a BUSINESS such as a shop, hotel, internet cafe, restaurant, factory, bakery, motorbike repair, noodle factory, or bar out of your house then a whole different tax on that land or improvements comes into play, but I am not in a real position to know the exact annual tax when your home is used for even PARTIAL BUSINESS uses.

My home owner friends in America envy the land tax rates of Thailand residences.

[dvdlock]

Many thanks to everyone for your replies.

That's very interesting. I will me moving over to Thailand in the near future, as soon as my house is sold here in the UK.

All this very informative very useful.

Many thanks again,

Dave.