Costs Involved In House Purchase

[micky44]

hi chaps, any help would be very gratefully appreciated, can any one give me an idea of the costs in voled in the purchase of a house over here, the price of the house is 1.1 million baht, its in a Thai name and will be put in another Thai name, any idea of the legal fees / taxes etc, realize its a difficult question but i have not the faintest idea! 1000 S or 10000s thanks for any clues, cheers Micky.

[gotlost]

I thank the land office will charge you .03%of the 1.1m as tax, thats 33,000 baht thats divided between you and the seller or 15,000 baht each. The seller pays the brokerage fees.

[micky44]

I thank the land office will charge you .03%of the 1.1m as tax, thats 33,000 baht thats divided between you and the seller or 15,000 baht each. The seller pays the brokerage fees.

thanks for that, long time since i was at school but is 0.03% of 1100000 not 333 ?

[MJo]

gotlos had few singha's again...

But he's right, it's next to nothing if you transfer before 28th of March.

It depends a bit on how long the seller has hold the property. If less than 5 years then transfer fee and special business tax and if more than five years then business tax is not payable but stamp duty is.

SBT is 0.11% and transfer fee 0.01% or was it other way around. Losing my memory but search for thread "property taxes slashed" or something like that. I posted the correct rates there recently with links for the source etc...

Ps. after March 28th it seems to be back to normal rates or 3.3% & 2% ? or something like that so better to close the deal fast. Makes big difference.

[MJo]

And forgot to mention, the seller will most likely pay income tax and most likely will try to get you to pay half of it. While it is common to split the fees 50/50 the income tax is personal tax based on the sellers income and always paid by seller alone.

[givenall]

And forgot to mention, the seller will most likely pay income tax and most likely will try to get you to pay half of it. While it is common to split the fees 50/50 the income tax is personal tax based on the sellers income and always paid by seller alone.

Everything is negotiable so negotiate to pay next to nothing if I were you

[MikeyIdea]

You don't need a lawyer to make a simple Thai to Thai property purchase in Thailand, saying that though, if the buyer has never done it before, then it's a good investment. Would take nearly a full day at the land office in Bangkok, lawyers cost up to 10,000 bath per day. Everything cheaper up-country of course.

I know that many people here on ThaiVisa post that taxes should be split 50/50 but statistics from Thai personal friends I have is that it is a bit more common that buyer pays all tax than that it is split. Maybe farang guests in Thailand are better at bargaining than Thais are? Both those scenarios are common though

Good luck

[MJo]

You can get laywer to assist fairly cheap in BKK.

Sunbelt charges less than 30k for basic service.

- title search (to ensure the title is clear and verify the actual owners, any mortgage attached to the title etc)

- preparation of sales and purchase agreement (basic agreement where you can advice them on any conditions you might want to add)

- accompanies you to land office to assist in closing the transfer (babysitting if you have not done it before)

You can do it without but for first timers not that much money to make sure it goes smooth and do the paperwork for you.

While they advice it is still up to you to make sure all is in order, so if you want someone to do it all for you prepare to pay more.

[donx]

I know that many people here on ThaiVisa post that taxes should be split 50/50 but statistics from Thai personal friends I have is that it is a bit more common that buyer pays all tax than that it is split. Maybe farang guests in Thailand are better at bargaining than Thais are? Both those scenarios are common though

When my wife did her from Thai to Thai purchase of undeveloped land, the seller paid all taxes and fees. This was offered to her from the beginning; no bargaining required.

[MikeyIdea]

I know that many people here on ThaiVisa post that taxes should be split 50/50 but statistics from Thai personal friends I have is that it is a bit more common that buyer pays all tax than that it is split. Maybe farang guests in Thailand are better at bargaining than Thais are? Both those scenarios are common though

When my wife did her from Thai to Thai purchase of undeveloped land, the seller paid all taxes and fees. This was offered to her from the beginning; no bargaining required.

All versions are possible, I think the important message is more that no version is wrong

[micky44]

Thanks for all the advice guys, really helpfull.micky.

[katabeachbum]

gotlos had few singha's again...

But he's right, it's next to nothing if you transfer before 28th of March.

It depends a bit on how long the seller has hold the property. If less than 5 years then transfer fee and special business tax and if more than five years then business tax is not payable but stamp duty is.

SBT is 0.11% and transfer fee 0.01% or was it other way around. Losing my memory but search for thread "property taxes slashed" or something like that. I posted the correct rates there recently with links for the source etc...

Ps. after March 28th it seems to be back to normal rates or 3.3% & 2% ? or something like that so better to close the deal fast. Makes big difference.

total transfertaxes are approx 5,8% if purchasing property from individual.

the current tax break ending march requires owner to have been registered as resident in selling properties tabien baan for at least one year

or

at least 5 years of ownership

[MJo]

total transfertaxes are approx 5,8% if purchasing property from individual.

the current tax break ending march requires owner to have been registered as resident in selling properties tabien baan for at least one year

or

at least 5 years of ownership

Ok, so if you purchase land only there is no house registration or tabien baan and you pay more. Interesting.

Do you have any link to that information?

Not that i doubt it but would like to read bit more as i'm closing on one house shortly and no idea if the owner has ever registered himself in the tabien baan even when he's been living in it all the time...

[MJo]

total transfertaxes are approx 5,8% if purchasing property from individual.

the current tax break ending march requires owner to have been registered as resident in selling properties tabien baan for at least one year

or

at least 5 years of ownership

Edit...

Actually i do take you up on this. Could you clarify where you get the 5.8% ?

Purchase "immovable property" from individual who has hold it for less than 5 years IMO is considered to be sold in "commercial manner or profits". In this case Special Business Tax applies instead of stamp duty. Now SBT has been reduced from 3.3% to 0.11% (inclusive of municipal taxes)

I have not seen anything mentioned anywhere that there is some rule of being registered in Tabien Baan for more than a year to be eligible. Are you sure this is not a personal requirement of some land office employee as it in Thailand often is?

Or do you have any source to back this up ?

The transfer fee, regardless of land, house, condo is reduced from 2% to 0.01%

I base above on information acquired from these links

See page 4

and

Page 1 & 2

As well as those links i posted on the other thread.

[MJo]

Well, now it is confirmed at least what comes to land office in Srinakarin Road, Bangkok.

Wife transferred today a townhouse (land + house on top of it).

Details:

Seller hold it less than 5 years so Special Business Tax was applicable instead of Stamp Duty.

Seller has never been registered in the property's Tabien Baan / house registration. The book was handed over to us empty

Value of transaction 4,320,000 baht

SBT was 4,752 baht or 0.11% from value as expected

Transfer fees were only 135 baht (55 baht transfer fee and 60 baht worth of stamps) not 0.01% or 432 baht as i expected. I reckon they give some discounts from the value of the house or then they used their own evaluation for the land value for this.

Seller also paid around 36,000 in personal income taxes, no idea how this was calculated as it was not paid by us or nothing to do with us.

All this came automatic from the land office employees so they knew very well what is the current rate and how it is applied.

[worldfun]

interesting. only a ~0.83% personal income tax/withholding tax (PIT) to be paid for seller as that is the one I currently worry about or the equialent for business (BIT)...

cheers

[scorecard]

And forgot to mention, the seller will most likely pay income tax and most likely will try to get you to pay half of it. While it is common to split the fees 50/50 the income tax is personal tax based on the sellers income and always paid by seller alone.

Is the personal tax payable at the time of changing the name on the chanut at the lands title office, or payable when the seller submits next years personal Thai income tax return?

And if so, what happens if the seller is a farang and has no Thai personal income tax number?

Thanks for your advice on this.

[EvilDrSomkid]

Anybody have any news on what fees are involved now for transfer of land with house from Thai to Thai?

My wife wants to buy a place on Ram Inthra.

The transfer fee is 2% and the revenue fee is 0.5%. I know this is sometimes shared 50/50.

The mortgage fee is 1% of the mortgage amount.

I am not sure if the owner of the place is on the Tabien Baan or not or it the owner has had the place for 5 years or more.

Would this have an impact on buyer?

The sale is going through an agency.

So far they have been helpful, but we have the feeling that they are trying to pull a fast one on one of the fees involved.

We do not have a lawyer.

What fees are required by the land department to paid by the buyer?

[Robby nz]

This is really the Mrs and her sisters buisness but may help if I know as well.

Suspect this is a bit different to either buying an existing house or building one yourself.

The situation is that the Mrs and her 2 sisters are buying a house which is still being built.

The owner of the land has built several houses on it and 2 are still for sale.

However the ladies wanted something different so came to an agreement with the land owner to build a house to their specifications.

The building is underway at present, a price agreed on and a deposit has been paid.

There will be a mortgage taken out by them to complete the payment, probably through the Govt housing bank.

They can not apply for the mortgage till the house is complete.

They will not take over ownership till the mortgage is approved, this will not be untill March next year.

The Mrs seems to know about other charges but I do not.

While I will be keeping out of the deal it may help if I have some idea of the charges that apply.

Any info would be appreciated.