Buying property in Thailand is best done with the advice of an attorney as foreigners are not allowed to own land and there are rules with regards to transferring money into Thailand and rules which govern condominiums. Thailand does not have Capital Gains Tax and this has made the property market attractive for flipping property.
Over the past 5 years the average property investment had risen by an average 30% over the period. The highest property increases had been in the region of 45% in Central Bangkok. Chiang Mai is also seeing a boom in the property market and with its laid back atmosphere Chiang Mai is being called home by more expats than ever before.
Transfer duties with regards to property transactions in Thailand can be summed up as follows:
Transfer Fee |
2% over the appraised or registered value of the property |
Business Tax |
3.3% registered value or appraised value (whichever is higher) note current temporary tax rate reduction |
Stamp Duty |
0.5% over the registered value |
Withholding Tax
|
1% registered value or appraised value (whichever is higher)
|
Lets look at the property transfer fees briefly as follows. The transfer fees of 2% is based on the actual evaluation price of the land which calculated by the land office. In the West this would be called the Municipal Value of the property. The Municipal Value does not always correlate with that of the actual value of the property. The Business Tax is when you sell the property within five years of the purchase registration date. The Withholding Personal Income Tax is best to speak to a tax lawyer in Thailand with regards to what you would need to pay on the transaction and the scope of the tax.
Buying property in Chiang Mai with the advice of an attorney makes moving and retiring in Chiang Mai very easy. Allow our attorneys to not only apply for your retirement visa but also settle your property purchase at the same time. With offices in all the major tourist cities in Thailand, we are able to offer you quality service and value for money.