House Purchase, How Much Tax Ect ?

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I plan to buy the house Im living in for 600.000bht the house will go into my girls name but I will morgage it to her for 30 years, I have sorted this out with the lawyer but I would like to know what other (hidden) expenses there are with house purchase, the house is as I said 600.000bht... laywers fee for his time + making a will... 20.000bht, transfer fee ? he cant tell me but he thinks about...40.000bht, why cant he tell me ? also he's talking about tax, what tax ? he said possibly 100.000bht, this sounds excessive on a house only costing 600.000bht, I have asked round and everyone I have spoken to agrees it does sound high, the house I plan to buy is in the pattaya area. is there any other costs I can expect ? thank's for any help on this subject.

[China Lady]

I plan to buy the house Im living in for 600.000bht the house will go into my girls name but I will morgage it to her for 30 years, I have sorted this out with the lawyer but I would like to know what other (hidden) expenses there are with house purchase, the house is as I said 600.000bht... laywers fee for his time + making a will... 20.000bht, transfer fee ? he cant tell me but he thinks about...40.000bht, why cant he tell me ? also he's talking about tax, what tax ? he said possibly 100.000bht, this sounds excessive on a house only costing 600.000bht, I have asked round and everyone I have spoken to agrees it does sound high, the house I plan to buy is in the pattaya area. is there any other costs I can expect ? thank's for any help on this subject.

I think you should find another attorney - I believe that you could accomplish all that you require for far less then your paying - taxes should be 7% and most often paid by the seller.

Look around - try Sun Belt for your legal requirements.

[ning & john]

Hello

I think your lawyer thinks you just climbed out of a rubarb tree.

1) The will is not much use because it would be made invalid if your girl makes another.Plus you can go to a government office without a lawyer and make a will for a few hundred baht.

2) The lease can be done without a lawyer cost again a few hundred baht.

3) If he wants 40,000 for a few minutes work doing the transfer at the land office.Isuggest you make him an offer of 1,000 bht it is more realistic.

4) The transfer tax can be expensive if the last owner has not owned it for over 5 years,but it should be les than 10% of the value.

PS Be aware of recomendations,juist go to other lawyers and get quotes.Or bite the bullet and do it yourselve it is easy,and the people at the land office will help.So between you ,your girlfriend,and the land office people yopu should be able to work it out

I plan to buy the house Im living in for 600.000bht the house will go into my girls name but I will morgage it to her for 30 years, I have sorted this out with the lawyer but I would like to know what other (hidden) expenses there are with house purchase, the house is as I said 600.000bht... laywers fee for his time + making a will... 20.000bht, transfer fee ? he cant tell me but he thinks about...40.000bht, why cant he tell me ? also he's talking about tax, what tax ? he said possibly 100.000bht, this sounds excessive on a house only costing 600.000bht, I have asked round and everyone I have spoken to agrees it does sound high, the house I plan to buy is in the pattaya area. is there any other costs I can expect ? thank's for any help on this subject.

[quiksilva]

Transfer fee 2% of the registered value of the property

Stamp Duty 0.5% of registered value. Only payable if exempt from business tax

Withholding tax 1% of the appraised value of the property

Business tax 3.3% of the appraised value of the property if selling within 5 years.

This applies to both individuals and companies.

TAX WHICH PARTY NORMALLY PAYS AMOUNT

Transfer fee Buyer 2% of registered value

Stamp Duty Seller 0.5% of registered value

Withholding Tax Seller 1% of appraised value

Business Tax Seller 3.3% of appraised value

1.TRANSFERRING FEE

The Transferring fee is 2% of the registered value of the property. Whether, the buyer or the seller is paying for this fee, is depending on the Sale and Purchase Agreement. Normally the buyer partly pays for this fee. This fee will be paid to the officer at the land office, upon the day of the transfer of ownership.

2.STAMP DUTY

Buyer or seller is subject to a 0.5% Duty Stamp from either the appraised value of the property or actual purchasing price, whichever is higher. The parties reliable for this additional 0.5% of Stamp Duty can be agreed in Sale and Purchase Agreement. Stamp Duty is to be imposed unless the Specific Business Tax (SBT) is paid.

3.SPECIFIC BUSINESS TAX (SBT)

SBT will only be imposed if you are selling your property, which you have own less than a period of five years. The tax rate is 3.3% of the selling or assessed price of an asset (whichever is higher).

4.WITHHOLDING TAX

Individuals selling their property :

the withholding is determined under to Revenue code of Thailand. The seller shall withhold such tax and pay to the Revenue Department, when he/she earn an income from the sale of immovable property (including condominium unit). Withholding tax rate are calculated based from government assessed price with a deduction of possession year, which are varied depending on the year of your possession (the more years of possession, the more the deduction) and calculate that amount based on the income form the progressive tax rate (range from 0 – 37%).

Companyselling their property:

the withholding tax of 1% from appraised value of property or actual selling price, whichever is higher, must be paid by the Seller. However, there are no property taxes as such in Thailand that are exactly equivalent to the property taxes in the West. Commercial properties incur a small tax which is collected infrequent. In term of registering a lease agreement, a registration of a lease for duration of more than 3 year required to pay a registration fee rate of 1% plus a 0.1% rate of stamp duty. Rates are calculated from the total amount of the rental fee or the key money or both.

Business tax 3.3% of the appraised value of the property if selling within 5 years. This applies to both individuals and companies.

Tax and Cost Calculation for Transferring Property

Example of how to calculate the taxes and cost

* Suppose that the government assessed price is Baht 50,000 per Sq.m.

* All areas are 100 Sq.m.

* The total assessed price is Baht 5,000,000

* Actual selling price is 6,000,000

* The Seller possessed this property for 3 years

1.WITHHOLDING TAX

The government assessed price = 5,000,000 Baht

Deduction with the expense of possession for 3 years for 77% = 3,850,000

Balance = 1,150,000 (5,000,000 – 3,850,000)

Divided by the 3 year of possession

Balance = 383,333.33 (1,150,000/3)

Taxation on progression rate

1 to 80,000 = exempt

80,001 - 100,000 = 5% (1,000)

100,001 383,333.33 = 10% (28,333.23)

Total = 29,333.23 (1,000 + 28,333.23)

Multiply by the year of possession = 87,999.69 (29,333.23 x 3)

In this case withholding tax is Baht 87,999.69 (A)

2. THE GOVERNMENT FEE OF TRANSFER OF OWNERSHIP

Is 2% based on the government assessed price so 5,000,000 x 2% Balance = 100,000

Transfer fee is 100,000 (B )

3.STAMP DUTY

in this case is exempt. This is because transaction is subject to the specific Business Tax (possession of less than 5 year before sale).

4.SPECIFIC BUSINESS TAX

3.3% for Specific Business Tax based on the government assessed price or sale whichever is higher. In this case sale price is higher than government so 6,000,000 x 3.3% = 198,000. Specific Business Tax is Baht 198,000 ©

Total expenses are Baht 385,999.69 (A+B+C)

Edited December 4, 2006 by quiksilva

[ProThaiExpat]

I plan to buy the house Im living in for 600.000bht the house will go into my girls name but I will morgage it to her for 30 years, I have sorted this out with the lawyer but I would like to know what other (hidden) expenses there are with house purchase, the house is as I said 600.000bht... laywers fee for his time + making a will... 20.000bht, transfer fee ? he cant tell me but he thinks about...40.000bht, why cant he tell me ? also he's talking about tax, what tax ? he said possibly 100.000bht, this sounds excessive on a house only costing 600.000bht, I have asked round and everyone I have spoken to agrees it does sound high, the house I plan to buy is in the pattaya area. is there any other costs I can expect ? thank's for any help on this subject.

I agree that Sunbelt should be consulted.

I went with a Chiang Mai Counsulate approved lawyer who spent hours at the land office as their staff told him how to properly record the documents.

He charged me 40K baht for Thai and English translation of the lease with my thai partner and it was a page and a half long. I don't think he understood the concept of sale/leaseback or my desire to have the rent payments equal the mortgage payments.

The taxes on the house and land lease were 40k, the purchase of the land and house fee was 5k. Evidenlty everyone lies about the value of the land and even if the house is already built, the land office is not told that and don't seem to follow up on whether a house is built on the land or not.

I didn't go that route so it cost me the 40k

Tax office came around a year later and tried for 400k tax from my Thai partner for the value of the lease payments over 30 years, the botched up mortgage/rent notion.

We settled for an agreed 10K payable at 330 baht a year for 30 years, payed up front with 30 register receipts each marked with the appropriate year.

If I had it to do over again, and knew about Sunbelt then, I would have done it differently, of cours.