Property taxes in Thailand

Amounts of property taxes in Phuket

Whether you are buying property in Thailand for your own residence or for investment, you need to be aware of the taxes that will have to be paid in the Kingdom.

Taxes on renting out real estate in Phuket

Registration fee — 1%

Paid at a time for the entire period. In Thailand, it is customary to divide the amount of the contribution equally between the landlord and the tenant equally, but it is better to further coordinate this point with the second party in the transaction.

Duty - 0.1%

The costs are paid by the seller. The fee is calculated at the remaining rental price.

Total amount — 1,1%

Taxes on the sale of real estate in Phuket

Transfer fee — 2%

TF (Transferring Fee) - a percentage is calculated from the official appraised value regardless of the contract sale price. The amount is also often distributed equally between the seller and the buyer.

Business tax (SBT) - 3.3% or 0%

SBT (Specific Business Tax) is paid by companies and persons who own real estate in the property for less than 5 years. The tax is calculated based on the official appraised value or contract price, which is greater. The owner is entitled to an exemption from the SBT if the property has been used as the seller's principal residence. An important condition: the fact of residence must be recorded in the certificate of registration for at least one year.

Duty - 0.5% or 0%

SD (Stump Duty) is paid only if the business tax is not applied. When selling a property, the percentage is calculated from the official appraised value or the contract price, which is greater.

Income tax (WHT) - 1% or from 5-37%

WHT (Withholding Tax) is paid by the buyer (as a tax agent) on behalf of the seller from the proceeds. If the selling party is a company, the income will be 1% of the official appraisal price or contract price, which is greater. If the seller is an individual, income tax is calculated on the basis of the marginal tax rate (except that the first 150,000 baht are not taxed) minus the standard deduction for the number of years of ownership from the appraised value.

All taxes and fees in respect of the sale of property, including land leases, are received by the Land Department. The income tax of the non-resident supplier is usually accepted as the final tax. Also income tax of a Thai resident company (in the amount of 1%) can be used as a profit tax refund.

However, the resident has the right to choose income tax as final or to indicate this amount as annual income in the declaration, declaring it the actual income from the sale, and receive a refund of the overpaid tax. But in practice, this method is rarely used.

In Thailand, there is a so-called tax deduction for property owners.

The amount of the deduction depends on the period of ownership of real estate:

Срок владения, лет Процент вычета от оценочной стоимости

1               92%

2               84%

3               77%

4               71%

5               65%

6               60%

7               55%

8 и более лет           50%

Действует прогрессивная шкала ставок подоходного налога:

Доход, бат      Ставка налога

0 - 150,000        0%

150,001 – 300,000    5%

300,001 - 500,000    10%

500,001 – 750,000    15%

750,001 - 1,000,000    20%

1,000,001 – 2,000,000    30%

4,000,001 and more 35%

Let's calculate what taxes will need to be paid when selling apartments in a condominium

If we take as input data:

the seller owned the property for two years;

84% — the rate of deduction from the estimated value by the number of years of ownership;

official estimated value - 3 000 000 baht;

then we will calculate the total income tax payable in four steps:

Let's remove from the cost the deduction for the number of years of ownership:

3 000 000 – 3 000 000 х 84% = 480 000 baht

Divide the amount received by the number of years of ownership of the property:

480 000 / 2 = 240 000 baht

We calculate the tax using the established tax rates:

150 000 x 0% = 0 baht

90,000 x 5% = 4,500 baht

0 + 4 500 = 4 500 baht

Multiply the resulting amount by the number of years of ownership:

4,500 x 2 = 9,000 baht is the total amount to be transferred.

This is an approximate calculation of the amount of tax on the sale of real estate. For a more accurate calculation, please contact the specialists of our company - we will calculate the amount specifically in your case.

We have analyzed general examples and amounts of taxes when owning or selling real estate in Phuket. Call or write to the company InDreams Phuket - we will help you understand your specific case and calculate the amount of taxes and deductions when buying. sale or rental of real estate in Phuket.