Property Tax

[BazilFox]

Does everyone paay this new Tax or is it by area.

Just be asked by my accountant to pay been here 3 years???

[hhfarang]

There has always been a property tax here and it is due in March every year, but they don't send a bill. It is up to the property owner to go to the Tessabahn and find out what they owe and pay it each year. If you don't there will be a small fine for every year you haven't paid so I suggest that you go get it settled if you haven't been paying it each year.

[a10ams]

I also understand it is not possible to sell a property with outstanding unpaid tax.

As I recall, ours runs about 12k baht a year.

[PattayaPhom]

I also understand it is not possible to sell a property with outstanding unpaid tax.

As I recall, ours runs about 12k baht a year.

1,000 Baht a month.....you should get that checked.....

[Langsuan Man]

I also understand it is not possible to sell a property with outstanding unpaid tax.

As I recall, ours runs about 12k baht a year.

l

Your property tax could not be that much anywhere in Thailand. You are probably confusing what you are paying to keep your "company" legal, not your property tax. Thailand only taxes the "land" not what is on it. As a previous poster stated, it is usually such a small amount they don't even bill you for it.

Source:

http://www.propertys...roperty-tax.asp

[Angritgent]

I have just been hit, mine is 15k a year, not paid for 6 years.

The fine is 200 baht a year, so stuff em.

With the new laws, may be repossed anyway.

[1huahin]

we have just been hit too 9000 per year and we have not paid for 5 years. This is a property tax for foreigners only!

[PattayaPhom]

I have just been hit, mine is 15k a year, not paid for 6 years.

The fine is 200 baht a year, so stuff em.

With the new laws, may be repossed anyway.

Why will it be repossed, havnt you paid the mortgage....6 years at 15k plus 200 fine is just over 90K...must be a shed if you are prepared to let it go at that price. Is the bill arriving by post, where is it originating from, where do you pay it?

[hhfarang]

As stated above, no bill arrives by post. There has always been property tax here and the property owner is expected to know that they have to go to the Tessabahn each year during the spring (March/April) time frame and pay. Everyone, Thais and Foreigners are taxed. The amount of the tax depends on how the ownership of the property is held. If it is held by a business (as a lot of foreigners do to get around the land ownership problem) then the tax can be very high. If it is held legally as a private residence, then the tax is much lower. That's why it seems to be a tax on foreigners, because Thai owners pay very little as they own and use the land legally (in most cases), but they still have to pay.

If you are a foreigner and you own land under a business, whether real or set up just to own your home you will have a high tax to pay each year (thousands instead of hundreds like a Thai homeowner), not because you are a foreigner, but because the land is registered as owned by a business. If you leased the property, then the owner should be responsible for the tax, but remember that most lessors, builders, and developers who sell by this method know this and will stipulate in your lease contract that the lessee will pay all taxes, fines, and penalties associated with the land.

[1huahin]

The list of tax due is entitled Tax for Foreigners so ..........

[PattayaPhom]

As stated above, no bill arrives by post. There has always been property tax here and the property owner is expected to know that they have to go to the Tessabahn each year during the spring (March/April) time frame and pay. Everyone, Thais and Foreigners are taxed. The amount of the tax depends on how the ownership of the property is held. If it is held by a business (as a lot of foreigners do to get around the land ownership problem) then the tax can be very high. If it is held legally as a private residence, then the tax is much lower. That's why it seems to be a tax on foreigners, because Thai owners pay very little as they own and use the land legally (in most cases), but they still have to pay.

If you are a foreigner and you own land under a business, whether real or set up just to own your home you will have a high tax to pay each year (thousands instead of hundreds like a Thai homeowner), not because you are a foreigner, but because the land is registered as owned by a business. If you leased the property, then the owner should be responsible for the tax, but remember that most lessors, builders, and developers who sell by this method know this and will stipulate in your lease contract that the lessee will pay all taxes, fines, and penalties associated with the land.

So it dosnt arrive by post, why all of a sudden are people saying they have to pay tax...did they go to the tessabaan and ask 'do I need to pay tax'..no...so who is actually telling them or presenting them with a bill, and where???

[PattayaPhom]

I have just been hit, mine is 15k a year, not paid for 6 years.

The fine is 200 baht a year, so stuff em.

With the new laws, may be repossed anyway.

Where did you get hit from???..means of request?

[sotsira]

The OP stated that his accountant told him about the property tax,

BTW this topic will get better response in the business or real estate forum.

Edited July 1, 2012 by sotsira

[PattayaPhom]

The OP stated that his accountant told him about the property tax,

BTW this topic will get better response in the business or real estate forum.

The OP did but two other posters said hey were 'hit' for 9K and 15K but didnt say how....

[1huahin]

We were well aware that we had not paid any tax for 5 years and often spoke about going to the Tessabaan and sorting things out; we were not too worried as everyone said there was virtually nothing to pay. So last week we finally decided to do something about it and found as well as the tax everyone pays we also had to pay 9000 for each year. The basic property tax was under 300 baht including fines for the 5 years it was the rest that came as a surprise. Some people do get bills sent out to them but it seems the majority do not; this higher tax only applies if your house in not owned by a Thai.

[Langsuan Man]

We were well aware that we had not paid any tax for 5 years and often spoke about going to the Tessabaan and sorting things out; we were not too worried as everyone said there was virtually nothing to pay. So last week we finally decided to do something about it and found as well as the tax everyone pays we also had to pay 9000 for each year. The basic property tax was under 300 baht including fines for the 5 years it was the rest that came as a surprise. Some people do get bills sent out to them but it seems the majority do not; this higher tax only applies if your house in not owned by a Thai.

This must be something that is only in Hua Hin / Cha-Am, since I have never heard of a specific tax on farang dwellings in Thailand or for Thai dwellings for that matter

There have been attempts to levy a tax on all property here in Thailand, based upon evaluation (which would include buildings), but it has never gotten through Parliament. Most hi-so property owners here in Thailand are not about to pay taxes on unused land. That is why land prices are so high here. There is no penalty for holding land plots so Thais get rich by keeping it off the market since it only becomes more valuable as time goes by

[johnnyk]

As stated above, no bill arrives by post. There has always been property tax here and the property owner is expected to know that they have to go to the Tessabahn each year during the spring (March/April) time frame and pay. Everyone, Thais and Foreigners are taxed. The amount of the tax depends on how the ownership of the property is held. If it is held by a business (as a lot of foreigners do to get around the land ownership problem) then the tax can be very high. If it is held legally as a private residence, then the tax is much lower. That's why it seems to be a tax on foreigners, because Thai owners pay very little as they own and use the land legally (in most cases), but they still have to pay.

If you are a foreigner and you own land under a business, whether real or set up just to own your home you will have a high tax to pay each year (thousands instead of hundreds like a Thai homeowner), not because you are a foreigner, but because the land is registered as owned by a business. If you leased the property, then the owner should be responsible for the tax, but remember that most lessors, builders, and developers who sell by this method know this and will stipulate in your lease contract that the lessee will pay all taxes, fines, and penalties associated with the land.

So it dosnt arrive by post, why all of a sudden are people saying they have to pay tax...did they go to the tessabaan and ask 'do I need to pay tax'..no...so who is actually telling them or presenting them with a bill, and where???

If you own via a company then you likely use accounting services so check with your accountant/tax filer.

[hhfarang]

This must be something that is only in Hua Hin / Cha-Am, since I have never heard of a specific tax on farang dwellings in Thailand or for Thai dwellings for that matter

My wife is Thai and besides the home we own here (in her name) she owns a home and a farm in Issan. She is in her 40's and says that she has always paid property tax on all property she has owned as long as she has been an adult so no, the tax is not only Hua Hin/Cha-Am and it is not new and is not just a tax on foreign owners.

There have been attempts to levy a tax on all property here in Thailand, based upon evaluation (which would include buildings), but it has never gotten through Parliament. Most hi-so property owners here in Thailand are not about to pay taxes on unused land. That is why land prices are so high here. There is no penalty for holding land plots so Thais get rich by keeping it off the market since it only becomes more valuable as time goes by

There has been a push lately by the government to collect unpaid back taxes as well as to re-evaluate property to obtain the true taxable value. The push to collect back taxes may be why some people are being notified, and the re-evaluation is what the hi-so Thai land speculators and property owners are fighting against in Parliament.

Again, all privately owned property is taxed in Thailand no matter who owns it and it has been law for as long as my wife can remember. It is the owner's responsibility to go physically to their local Tessabahn to determine the amount and pay it each spring. The amount of the tax depends on the last valuation (by sale) of the property, the way the ownership is held, and what the land is used for. The tax is strictly a land tax, i.e., there is no tax on the home or structure, but strictly on the land. The variance can be seen as by structure though as land used for a business is taxed at a much higher rate than land used for a primary dwelling.

Many foreigners own their primary dwelling through a company that is set up just for that purpose. Those foreigners will be charged a much higher tax rate on their primary residence as it is considered a business and not a residence.

[1huahin]

The tax I am referring to is not strictly a land tax but is a tax on the property itself. The amount due is based on the size of the dwelling and starts at 6000 baht for a single story building between 50 -150m² without a swimming pool rising to 37500 baht for a two story building from 720m² upwards and with a swimming pool. There are two different bands and the one I have quoted is the cheaper of the two; it just depends on which area you live in.

From what I can ascertain this tax dates back to 2003 and has to be paid by 28^th February each year otherwise a 200 baht fine is imposed.

As I said before the land tax/maintenance tax came to under 300 baht for the 5 years we owed including fines.

There is a leaflet available at the Tessabahn that explains everything but it is all in Thai.

This tax is for foreigners not Thais – the sheet of tariffs is headed “In the case of lease of the company (foreigners)” If you are married to a Thai this tax does not apply.

[Langsuan Man]

The tax I am referring to is not strictly a land tax but is a tax on the property itself. The amount due is based on the size of the dwelling and starts at 6000 baht for a single story building between 50 -150m² without a swimming pool rising to 37500 baht for a two story building from 720m² upwards and with a swimming pool. There are two different bands and the one I have quoted is the cheaper of the two; it just depends on which area you live in.

From what I can ascertain this tax dates back to 2003 and has to be paid by 28^th February each year otherwise a 200 baht fine is imposed.

As I said before the land tax/maintenance tax came to under 300 baht for the 5 years we owed including fines.

There is a leaflet available at the Tessabahn that explains everything but it is all in Thai.

This tax is for foreigners not Thais – the sheet of tariffs is headed “In the case of lease of the company (foreigners)” If you are married to a Thai this tax does not apply.

So are you saying that this is in fact a Hua Hin / Chai Am tax or is it country wide ?

I am not disputing that there is such a thing as a Property Tax in Thailand, I am just disputing the fact that it is so high as posters have reported in this forum.(300 THB for 5 years is only 50 THB per year and is the national norm) I find it hard to believe that farangs in Hua Hin / Cha Am are paying this tax and members in Pattaya (Chonburi) and Phuket are not

If members are paying this "farang tax" why no hue and cry about "discriminatory " double pricing in the other forums ?

[ripstanley]

The tax I am referring to is not strictly a land tax but is a tax on the property itself. The amount due is based on the size of the dwelling and starts at 6000 baht for a single story building between 50 -150m² without a swimming pool rising to 37500 baht for a two story building from 720m² upwards and with a swimming pool. There are two different bands and the one I have quoted is the cheaper of the two; it just depends on which area you live in.

From what I can ascertain this tax dates back to 2003 and has to be paid by 28^th February each year otherwise a 200 baht fine is imposed.

As I said before the land tax/maintenance tax came to under 300 baht for the 5 years we owed including fines.

There is a leaflet available at the Tessabahn that explains everything but it is all in Thai.

This tax is for foreigners not Thais – the sheet of tariffs is headed “In the case of lease of the company (foreigners)” If you are married to a Thai this tax does not apply.

So are you saying that this is in fact a Hua Hin / Chai Am tax or is it country wide ?

I am not disputing that there is such a thing as a Property Tax in Thailand, I am just disputing the fact that it is so high as posters have reported in this forum.(300 THB for 5 years is only 50 THB per year and is the national norm) I find it hard to believe that farangs in Hua Hin / Cha Am are paying this tax and members in Pattaya (Chonburi) and Phuket are not

If members are paying this "farang tax" why no hue and cry about "discriminatory " double pricing in the other forums ?

read post #18 very well explained.

[1huahin]

I have no idea if this tax is only payable in the rest of Thailand I can only report on what happens in Hua Hin and what we had to pay.

[BazilFox]

As stated above, no bill arrives by post. There has always been property tax here and the property owner is expected to know that they have to go to the Tessabahn each year during the spring (March/April) time frame and pay. Everyone, Thais and Foreigners are taxed. The amount of the tax depends on how the ownership of the property is held. If it is held by a business (as a lot of foreigners do to get around the land ownership problem) then the tax can be very high. If it is held legally as a private residence, then the tax is much lower. That's why it seems to be a tax on foreigners, because Thai owners pay very little as they own and use the land legally (in most cases), but they still have to pay.

If you are a foreigner and you own land under a business, whether real or set up just to own your home you will have a high tax to pay each year (thousands instead of hundreds like a Thai homeowner), not because you are a foreigner, but because the land is registered as owned by a business. If you leased the property, then the owner should be responsible for the tax, but remember that most lessors, builders, and developers who sell by this method know this and will stipulate in your lease contract that the lessee will pay all taxes, fines, and penalties associated with the land.

This is not correct, the amount of Tax is not dependant on the way the property is held, it is based on the square meter of the property. It has nothing to do with land, its a property tax.

My accountant informed me of the payment due.

Edited July 7, 2012 by BazilFox

[hhfarang]

As stated above, no bill arrives by post. There has always been property tax here and the property owner is expected to know that they have to go to the Tessabahn each year during the spring (March/April) time frame and pay. Everyone, Thais and Foreigners are taxed. The amount of the tax depends on how the ownership of the property is held. If it is held by a business (as a lot of foreigners do to get around the land ownership problem) then the tax can be very high. If it is held legally as a private residence, then the tax is much lower. That's why it seems to be a tax on foreigners, because Thai owners pay very little as they own and use the land legally (in most cases), but they still have to pay.

If you are a foreigner and you own land under a business, whether real or set up just to own your home you will have a high tax to pay each year (thousands instead of hundreds like a Thai homeowner), not because you are a foreigner, but because the land is registered as owned by a business. If you leased the property, then the owner should be responsible for the tax, but remember that most lessors, builders, and developers who sell by this method know this and will stipulate in your lease contract that the lessee will pay all taxes, fines, and penalties associated with the land.

This is not correct, the amount of Tax is not dependant on the way the property is held, it is based on the square meter of the property. It has nothing to do with land, its a property tax.

My accountant informed me of the payment due.

Then how do you explain two residences side by side, one on a 3200 sq mt plot of land and the one beside it on an approximately 1200 sq mt plot. The annual tax on the 3200 sq mt Thai owned land is between 300 and 400 baht. The annual tax on the 1200 sq mt land next door owned by a company set up with a majority Thai ownership so that a foreigner could buy the property is around 3000 baht per year. They are both primary residences with western style homes built at approximately the same time occupied full time by the owners on the same soi in Hua Hin. The only difference in the two (besides the size of the land) is how the ownership is held.

One other point that applies to both cases of ownership. The tax amount is based on the last time the property value was set, which in most cases was the amount it sold for the last time it changed hands, so if you paid a lower price for your land than your neighbor, his/her taxes for the same size piece of land will be higher than yours (or vice versa).

Laws are changing all the time so maybe your accountant, Baxilfox, knows of a new law, but I can tell you that as of four months ago (March 2012) the scenario I stated above about the two neighbors is what happened. Please ask him to explain why the neighbor with the much smaller plot pays ten times as much in annual property tax.

[Angritgent]

As stated above, no bill arrives by post. There has always been property tax here and the property owner is expected to know that they have to go to the Tessabahn each year during the spring (March/April) time frame and pay. Everyone, Thais and Foreigners are taxed. The amount of the tax depends on how the ownership of the property is held. If it is held by a business (as a lot of foreigners do to get around the land ownership problem) then the tax can be very high. If it is held legally as a private residence, then the tax is much lower. That's why it seems to be a tax on foreigners, because Thai owners pay very little as they own and use the land legally (in most cases), but they still have to pay.

If you are a foreigner and you own land under a business, whether real or set up just to own your home you will have a high tax to pay each year (thousands instead of hundreds like a Thai homeowner), not because you are a foreigner, but because the land is registered as owned by a business. If you leased the property, then the owner should be responsible for the tax, but remember that most lessors, builders, and developers who sell by this method know this and will stipulate in your lease contract that the lessee will pay all taxes, fines, and penalties associated with the land.

This is not correct, the amount of Tax is not dependant on the way the property is held, it is based on the square meter of the property. It has nothing to do with land, its a property tax.

My accountant informed me of the payment due.

Then how do you explain two residences side by side, one on a 3200 sq mt plot of land and the one beside it on an approximately 1200 sq mt plot. The annual tax on the 3200 sq mt Thai owned land is between 300 and 400 baht. The annual tax on the 1200 sq mt land next door owned by a company set up with a majority Thai ownership so that a foreigner could buy the property is around 3000 baht per year. They are both primary residences with western style homes built at approximately the same time occupied full time by the owners on the same soi in Hua Hin. The only difference in the two (besides the size of the land) is how the ownership is held.

One other point that applies to both cases of ownership. The tax amount is based on the last time the property value was set, which in most cases was the amount it sold for the last time it changed hands, so if you paid a lower price for your land than your neighbor, his/her taxes for the same size piece of land will be higher than yours (or vice versa).

Laws are changing all the time so maybe your accountant, Baxilfox, knows of a new law, but I can tell you that as of four months ago (March 2012) the scenario I stated above about the two neighbors is what happened. Please ask him to explain why the neighbor with the much smaller plot pays ten times as much in annual property tax.

Hey Listen. Its not the land its the property, does not matter how big the land is, ITS THE PROPERTY. Read the reply again.

Edited July 8, 2012 by Angritgent

[hhfarang]

As stated above, no bill arrives by post. There has always been property tax here and the property owner is expected to know that they have to go to the Tessabahn each year during the spring (March/April) time frame and pay. Everyone, Thais and Foreigners are taxed. The amount of the tax depends on how the ownership of the property is held. If it is held by a business (as a lot of foreigners do to get around the land ownership problem) then the tax can be very high. If it is held legally as a private residence, then the tax is much lower. That's why it seems to be a tax on foreigners, because Thai owners pay very little as they own and use the land legally (in most cases), but they still have to pay.

If you are a foreigner and you own land under a business, whether real or set up just to own your home you will have a high tax to pay each year (thousands instead of hundreds like a Thai homeowner), not because you are a foreigner, but because the land is registered as owned by a business. If you leased the property, then the owner should be responsible for the tax, but remember that most lessors, builders, and developers who sell by this method know this and will stipulate in your lease contract that the lessee will pay all taxes, fines, and penalties associated with the land.

This is not correct, the amount of Tax is not dependant on the way the property is held, it is based on the square meter of the property. It has nothing to do with land, its a property tax.

My accountant informed me of the payment due.

Then how do you explain two residences side by side, one on a 3200 sq mt plot of land and the one beside it on an approximately 1200 sq mt plot. The annual tax on the 3200 sq mt Thai owned land is between 300 and 400 baht. The annual tax on the 1200 sq mt land next door owned by a company set up with a majority Thai ownership so that a foreigner could buy the property is around 3000 baht per year. They are both primary residences with western style homes built at approximately the same time occupied full time by the owners on the same soi in Hua Hin. The only difference in the two (besides the size of the land) is how the ownership is held.

One other point that applies to both cases of ownership. The tax amount is based on the last time the property value was set, which in most cases was the amount it sold for the last time it changed hands, so if you paid a lower price for your land than your neighbor, his/her taxes for the same size piece of land will be higher than yours (or vice versa).

Laws are changing all the time so maybe your accountant, Baxilfox, knows of a new law, but I can tell you that as of four months ago (March 2012) the scenario I stated above about the two neighbors is what happened. Please ask him to explain why the neighbor with the much smaller plot pays ten times as much in annual property tax.

Hey Listen. Its not the land its the property, does not matter how big the land is, ITS THE PROPERTY. Read the reply again.

Ok, that was a problem of semantics then. The word property can mean many things. By your last post I take it to mean the structure or home that is on the land. That cannot be correct either. My neighbors and I have discussed this in depth because of the massive differences in everyone's taxes and I know of homes that are close to 400 sq mt that are paying a few hundred baht and homes of 125 sq mt that are paying a few thousand baht.

The only differences, again, is that the big homes paying only a few hundred are wholly owned by the Thai wife. The small homes paying thousands are owned by a foreigner or by foreign couples using a company setup. The only other difference could be in the price paid for the property, therefore, the evaluation of it for tax purposes. Though, I can't imagine that the couples owning the small homes paid many times the amount that was paid for the bigger homes. All the homes in the neighborhood were built over the same three year period ending about six years ago.

I don't pretend to know all the complexities of Thai tax law, but from what I do know from real (Hua Hin) examples, it cannot be levied by square meter of either house or land or neither of the scenarios I mentioned would make sense. I'd find a new accountant if I were you...

[MrJ]

Hi All,

is there also a tax for foreign owned condominium units?

THX

[stgrhe]

Foreigners, owning land and houses through a limited company, are often unaware of their responsibility for the Building and Land tax and possible consequences of not paying.

The Building and Land tax is calculated at 12.5% of the yearly rental or yearly assessed rental value. It is the responsibility of the owner of the property to pay and to come forward and pay building and land tax. It is the owner’s responsibility to inform the local authorities (Or Bor Tor or Municipality) and pay the tax each year.