Transfer of Property Ownership in Thailand
By Magna Carta Law Office
The registration of the transfer of property ownership from the owner or developer to the buyer takes place at the Land Office after the property is built, the contract has been signed, and all the installment payments have been made. The remaining balance of the purchase price is usually paid on the day of transfer at the Land Office.
Whoever buys or sells a property in Thailand should be aware of the following taxes and fees:
- Land Registration (Transfer Fee)
The rate is 2% of the appraised value of the property.
- Stamp Duty/Fee
0.5% of the assessed value or the actual selling price, whichever amount is higher. Stamp duty does not have to be paid if specific business tax is applicable.
- Specific Business Tax
3.3% calculated on the basis of the government appraised value or the actual selling price, whichever amount is higher. This tax only applies if the property is sold within the first five years of ownership. Otherwise, a stamp duty will be assessed instead.
- Income Tax
Income from the sale of a property is subject to income taxation. This is calculated based on the government appraised value of the property, the length of time it has been owned and the applicable personal income tax rate. When the property seller is a company, the withholding tax is 1% of the selling price or of the assessed value, whichever is higher. When the property seller is an individual, the withholding tax is calculated on a progressive income tax scale. Under Thai tax laws the land office must take the income withholding tax at the time of transfer of ownership.
There are no specific rules as to who pays for which taxes. It must be negotiated by the buyer and the seller, and must be stipulated in the sales contract.
Documents needed for the transfer of land and house ownership
- The title deed for the property (Chanote)
- Copies of the passport(s) or other identification documents of both the buyer and the seller
- Copies of the entry stamp(s) in the passport(s) of the foreign buyer and/or the seller
- Company Documents updated for the last 3 months
Documents needed for the transfer of condominium ownership
- The title deed for the property (Chanote)
- Document from condominium juristic person stating that all maintenance fees are paid up (Letter of Debt Free)
- Copies of the passport(s) or other identification documents of both the buyer and the seller
- Copies of the entry stamp(s) in the passport(s) of the foreign buyer and/or the seller
- Foreign Exchange Transaction Certificate or Thor Thor 3 (for purchases in the name of a foreigner only)
- Company Documents updated for the last 3 months
