I have owned a condo in Thailand for the past 10 years. At all times, it has been my principal place of residence - never rented,

Upon sale, what is the formula to calculate the tax/transfer costs?

Sales price will be approx B5m.

For a 5m condo owned 10 years you should end up paying:

Stamp Duty (0.5%): 25,000
Transfer Fee (2%): 200,000
Withholding Tax: 200,000

This is based on the spreadsheet model posted here: http://www.thaivisa.com/forum/topic/830727-real-estate-annual-yield-spreadsheet-model/

Edit: Changed 5 → 10 years.

Thank you. I am surprised by the amount of transfer tax.

In fact, I am surprised that such a tax existed.

Well, nothing I can do about it. That is a lotta BJs (for health purposes)

Tax will be based on the land office valuation, which should be significantly lower than market rate.

Therefore, I presume that I cannot accurately calculate the transfer/tax costs without contacting the local Land Office?

Needed that additional advice. Thanks.

I am not entirely sure how you can engage them other than going in with the title, as I understand (maybe not explained very well to me or lost somewhat in translation) the valuation for tax purpose will be based on the building unit/ address and an associated baht/ sqm from their current records. - ie your neighbor could have a run down unit exactly the same as yours, whereas you may have renovated and modernized, so the market value would differ but the land office valuation would be identical.

I have bought 2 units in the same building within the last year - in both cases the valuation appeared to be 65-75% of the actual sale price. Both under 2 million and I have never paid more than 50,000 baht in taxes (split 50/50 with the seller)

Therefore, I presume that I cannot accurately calculate the transfer/tax costs without contacting the local Land Office?

Needed that additional advice. Thanks.

Chances are there are going to be two prices. One will be the assessed price and the other will be the actual sale price. The assessed price will in all likelihood be lower than the actual sale price.

You can:

1. Declare the sale price and pay a percentage of tax/fees based on that.

2. Declare the assessed value and pay a percentage of tax/fees based on that.

3. Declare somewhere between the two and pay a percentage of tax/fees based on that.

Depending on who is paying the taxes and fees you may have to agree the price that will be declared with the purchaser.

Should I submit the lower price for tax assessment?

As Thai people can be fond of saying, "Up to you."

You certainly wouldn't be the first or the last, that is for sure.

Other than you and the purchaser, nobody knows the real price anyway.

My recollection is that when I purchased the condo from a Thai, he insisted that we have 2 contracts totally the contract price - about 50%. The Titles did not question the price.