Land Office Fees Going Up March 26 (correction)

[george]

NOTE: See correction of the date as March 26 later in this thread

Land Office Fees Going Up March 2, Friday Last Day for Low Fees

After Friday, land office transfer of property, condos and and other transfers will increase substantially.

BANGKOK: -- "A nationwide increase in land offices fees will go in effect on March 2," a spokeswoman for the Ministry of Interior announced in Bangkok.

The fees for purchases and sales involving a Thai company limited which most foreigners use to buy land will go up from one percent to six and a half percent of appraised or contract value, whichever is higher.

The head of the Chonburi Land Office, Director Vaiyavuth Surapruik, said, “In 2008 the fees were lowered to help the economy. This has stimulated the sale of properties. Since the fees were lowered almost two years ago there has been no slow-down in the number of transactions at the land office in Banglamung which services Pattaya so now fees will go back up in order to increase government revenues."

As an example, a house on the East side of Sukhumvit Highway in Pattaya - which is owned or sold to a Thai company before Monday and given the valuation of 949,000 baht by the Banglamung Land Office would be charged significantly lower fees. The application fee, land office fee, personal tax, duty stamp, business tax and local fee would all added up to only 11,245 baht, or 1.1 percent of value if sold before the end of business on Friday.

After this Friday, this same transaction will be much more expensive. Monday is a Thai national holiday, Makha Bucha Day, and the new higher charges go into effect Tuesday. So beginning Tuesday the company limited sales fee will be 6.5% of Land Office valuation plus all the other fees. The house valued at 949,000 baht and owned or sold to a Thai company would cost about 75,000 baht to transfer ownership on Tuesday whereas on this Friday the fees would only be 11,245 baht.

Property transfered between individuals will be charged three percent fees if owned for more than two years by the current owner. If owned less than two years the fee is higher, between five and six and a half percent.

Source: http://pattaya-times.com/a5158-land-office...ay-for-low-fees

-- Pattaya Times 2010-02-24

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[Thailand]

Screw the Farang year.

[apex2000]

Screw the Farang year.

Again

[deadbloke]

Don't you just love these increases whenever farang are concerned?

Not 10% or even a hefty 50% as might be expected, maybe?

But 650%.....!!!!!

(yes, yes, it's "because it was lowered 2 years ago")

[basjke]

The head of the Chonburi Land Office, Director Vaiyavuth Surapruik, said, “In 2008 the fees were lowered to help the economy. This has stimulated the sale of properties. Since the fees were lowered almost two years ago there has been no slow-down in the number of transactions at the land office in Banglamung which services Pattaya so now fees will go back up in order to increase government revenues."

As far as I recall is that the fees were lowered for 1 year in 2008.This was extended for another year from march 2009 on but since this decision was never properly announced the discount during the second year was not enforced at the land office.

[ChiangMaiFun]

I believe this is inaccurate - the date is 26th for condos

[earlbrownuk]

Is simple, they don't want us in their county, so they are pushing everything up in fees to drive us away. ATM fees, Land fees, next it'll be 200% on beer and hotel rooms.

Just wait, the women will be charging us a added tax when we take them away for the evening.

[Peterphuket]

That's one of the reasons to escape europe, but now they start here so to, YEH indeed screw up the farang!!

[StasD]

farangs go home

[lensta]

I was under the impression it ended on the 28th March???

[silentnine]

well this is a bit of a bummer.

i thought they had annouced end of march for the increase

we had sold our house & land for 3.5m baht , currenly in company name but thia ppl buying so going into a private name.

this means an increase from 35k tax to over 200k !! its crazy.

[thaiwanderer]

Why is this viewed merely as a farang bashing measure?

It affects Thai companies rather than individual farangs.

If farangs feel they are being victimised because of this (rather than their majority thai partners also) i can only assume its because the companies are in fact shams.

If so paying a bit extra in fees is hardly a great step in comparison to actually complying with the law?

Perhaps those are so outraged should explain why it is actually aimed at them rather than teh companies tehy are minority shareholders in - although that might then open them up to admitting an imprisonable offence?

[BSJ]

Out of interest. When they set their taxes, does the Cambodian government hate foreigners as much as the Thai's do? If not an extended stay could be interesting. Anyone know if Kampong Saom has a budget 1 and a half star hotel.....with no hippies.

[Chua]

The head of the Chonburi Land Office, Director Vaiyavuth Surapruik, said, “In 2008 the fees were lowered to help the economy. This has stimulated the sale of properties. Since the fees were lowered almost two years ago there has been no slow-down in the number of transactions at the land office in Banglamung which services Pattaya so now fees will go back up in order to increase government revenues."

As far as I recall is that the fees were lowered for 1 year in 2008.This was extended for another year from march 2009 on but since this decision was never properly announced the discount during the second year was not enforced at the land office.

The date in the original article from the Pattaya Times is incorrect. The expiration date of the temporarily reduced real estate taxes is 28th of March, 2010.

The new law was properly approved and announced as anyone can see from any of these multiple references:

http://www.thailandlawonline.com/transfer_tax.html

http://bangkok.angloinfo.com/countries/thailand/intax.asp

http://ezinearticles.com/?Thailand-Real-Es...&id=2387266

http://phuket-post.com/article/thai-tax-ti...reak-ends-march

Also note that this has nothing to do with farrangs -- it affects ALL real estate transactions in Thailand, regardless of the buyer's nationality.

It is not a tax increase -- it is a return to the normal tax rate, which the Thai government was smart enough to reduce to near zero for the last 2 years in order to boost the economy.

The notion that if there was no change in the average number of real transactions (where did the Pattaya Times get this info anyway?), that it means the tax reduction should not be extended is ludicrous on its face. Demand for real estate slowed when the economic crises first hit. In order to increase demand for real estate back up to 'normal' levels, the Thai government lowered the associated taxes. It is a fundamental principle of economics that lower costs (including taxes) for a particular product increases demand. So if the quantity and amounts of the real estate transactions in Thailand over the last 2 years have remained relatively stable, it is BECAUSE OF THIS TAX REDUCTION -- if the taxes were still in place, basic eco-101 teaches that the quantity and amounts of the real estate transactions over the last 2 years would have gone down.

The worldwide and Asean economies are now starting to recover -- if the Thai government is wise, they will extend the deadline for one additional year. Let's please refrain from all the cynical comments -- and remember that they were wise enough to at least reduce it in the first place.

[musicman2004uk]

I have my wife & 4 kids in the lovely land of not so many smiles I think I'm gonna think about spending less of my hard earnt UK salary out there & get the family settled in the UK. Once foreigners cut back on holidays & spending, etc in Thailand & holiday elsewhere they might notice a difference. I used to love coming to Thailand but now some changes are on the books.

[NinjaGladiator]

You guys can harp on.

Do you know how much it costs when you buy/sell houses in the UK, and if it's your second property look-out

You'll note that TV kept the Company ownership separate for ease of breaking it down to explain, it doesn't imply only falang prices are going up, although true this is generally the way falang buy property. It then goes on to say that individuals will see an increase as well, I recently sold a house that I'd owned for +2yrs and was charged all in about 2%, this is now going up to 3%, this transaction has nothing to do with falang.

On the plus side (which you are either forgetting or have never purchased in Thailand b4), the land office only charges the tax once on the sale of property to the company, after that the property (ie company) can change hands as often as you like but the land office doesn't get a baht from the transaction, cos the method of transfer is done simply by transferring the company, (1hr in a lawyer's office) the land office doesn't play any part in the transaction.

Stop whinging we're all lucky to be here.

[BlueSmurf]

I was under the impression it ended on the 28th March???

yep so was i..I asked at the land office in Chiang Rai last week.

[Changian]

Screw the Farang year.

Aaah, the Thaivisa knee-jerk paranoia. It's the new 'First' on discussion board threads.

I think you'll find this affects literally millions more Thais than it does farangs.

Screw the Thais year Ha, that will teach them.

[nam-thip]

A simple way to avoid this increase is don't buy a property in Thailand which is heavily loaded against foreign ownership.

[george]

Pattaya Times wrote an article about this in the January 7th issue:

http://pattaya-times.com/a4730-land-office...se-next-quarter

I have just emailed the editor of Pattaya Times and asked for clarification of the dates mentioned.

Cheers

[lazygourmet]

A simple way to avoid this increase is don't buy a property in Thailand which is heavily loaded against foreign ownership.

At least, a post full of common sense.

[BlackJack]

yes everyone that does this type of buying and owning will have to pay the real rate

EVERYONE not just falang

[Sunderland]

I have my wife & 4 kids in the lovely land of not so many smiles I think I'm gonna think about spending less of my hard earnt UK salary out there & get the family settled in the UK. Once foreigners cut back on holidays & spending, etc in Thailand & holiday elsewhere they might notice a difference. I used to love coming to Thailand but now some changes are on the books.

Byeeeeeeeeeeeeee ...

[imaderbyfan]

I have my wife & 4 kids in the lovely land of not so many smiles I think I'm gonna think about spending less of my hard earnt UK salary out there & get the family settled in the UK. Once foreigners cut back on holidays & spending, etc in Thailand & holiday elsewhere they might notice a difference. I used to love coming to Thailand but now some changes are on the books.

Byeeeeeeeeeeeeee ...

Your hard earned salary is going to go very much less far, back in the UK.

Still, you have a choice, Use it wisely.

[george]

Got a fast answer from Pattaya Times:

The announcement was also on Channel 3 stating the fees will go up March 2. March 1 is a holiday and a Monday.

Members on the thread also appear to think the fees are going up only for foreigners. Of course, the fees are increased for everyone.

[senshusband]

Will this affect those who are simply transferring land, no money involved? To be a bit more clear, a chanote in parents name being put in daughters name. Will there still be a tax/fee on the appraised property value? Just wondering.

[johnswift1956]

try buying in spain. 10/11% on purchase plus up to 40% on profits when you sell up? looks like a good deal at the moment. thailand should do a little research and they could make a pretty packet!

[backsoon]

A simple way to avoid this increase is don't buy a property in Thailand which is heavily loaded against foreign ownership.

Hold on, please. My property (condo) is in my personal name, no Company is involved.

It is duly willed to my g/f. If the property is valued upon my death at, say, 10M, does this mean she will have to fork out 3% (300,000bt) for the name transfer?

This is her 3 x yearly salary!

Besides, this will create a strong tendency for Land Office to overvalue properties on paper, compared to realistic market price. This smells of artificial inflationary process at the end.

Poor girls... Their own govt forces them to work strictly for cash... //vulgarity deleted// The western optimists could placate them by saying that in their country tax rates are closer to 4\10

And older ones can't have even this, if there are no takers?

[mythBuster]

Screw the Farang year.

tariffs are the same for everybody.. Besides there is only so much time to make a politician's investment back and the army need new bomb scanners (and a new general).

[snaggletooth]

Stop whinging we're all lucky to be here.

Surely you jest! That's right. Can't complain. Not allowed to... We're GUESTS here. poppycock