Tax On Sale Of Condo

[Phil Conners]

I have been informed that the tax on the sale of a 1M baht condo is over 40,000 baht. Sounds expensive, can that be right?

[mark5335]

I believe the only tax payable on sale of a condo is applied if you buy and sell the condo within 5 years.

In that case, a Specific Business Tax of 3.3% of the selling or appraised value applies.

[Phil Conners]

Thsnk! So if the seller only had the condo for 3 year the tax would be 33,000 + probably other stamps and duties, so it would end up around 40K.... just sounded a bit expensive to me.

[Phil Conners]

I'm understanding there is /also/ a 3% with holding tax. Or is this the same as the business tax? or am I getting confused?

[Phuket Stan]

1% Withholding Tax

2% Transfer Fee

3.3% Specific Business Tax

Then you get into tax on capital gain

15% on first million

25% 1-3 million

30% thereafter

[Phil Conners]

Thanks for that, very clear!

(and very expensive)

[InterestedObserver]

1% Withholding Tax

2% Transfer Fee

3.3% Specific Business Tax

Then you get into tax on capital gain

15% on first million

25% 1-3 million

30% thereafter

There is no specific tax on capital gains in Thailand. Assessable income is taxed as a Personal Income Tax, the end result is the same.

[manhattan55]

There are offshore funds now available that allow foreigners in Thailand to raise mortgages for the purchase of condos in Thailand. As far as I understand it, a purchase through the funds affords freedom of movement of capital both into and out of Thailand. If a property were purchased via an onshore mortgage, then if the property is sold later the profit will be taxed and any export of funds would be subject to the Thai exchange control system. On the other hand, subsequent sale proceeds from an offshore fund related property would be drawn offshore and thus free of tax and exchange controls.

[PattayaParent]

There are offshore funds now available that allow foreigners in Thailand to raise mortgages for the purchase of condos in Thailand. As far as I understand it, a purchase through the funds affords freedom of movement of capital both into and out of Thailand. If a property were purchased via an onshore mortgage, then if the property is sold later the profit will be taxed and any export of funds would be subject to the Thai exchange control system. On the other hand, subsequent sale proceeds from an offshore fund related property would be drawn offshore and thus free of tax and exchange controls.

You'll have to be more clear about the mechanics of this as the tax is collected by the Land Office when you sell the condo.

And to buy the condo in the first place the Land Office require you to prove that the funds have come in to Thailand.

[Raptor7]

he might mean that the condo is owned by an offshore company (for example, a Cayman Islands, British Virgin Islands, Mauritius or Hong Kong company).

Then the company itself is sold to a buyer (which company has the condo as an asset).

In that kind of transaction, there would be nothing done (or fees / taxes paid) at the Thailand Land Office

[manhattan55]

Raptor7 is closer to the truth of the mechanics, but I have to admit to you, I am not a financial expert on this, so I cannot elaborate any further right now. I only quoted what I knew from looking into this a bit, for my own personal reasons. However, I can try to get more info to you, some literature.

[hhgz]

Thai Real Estate Sales Tax