Do you know the cost of your Conveyancing Fees? When buying property in Thailand there will be property transfer taxes. This is applicable if you are buying or selling your property in Thailand. Many expats do buy property and then wish to sell the property later. Property taxes is again important when selling the property. Below is what you will be looking at. Also note that if you are leaving Thailand then the bank might ask where the money came from so the property transfer documents would be important.
Conveyancing Fees – Selling your Condo
With the changes in immigration laws such as the constant changing of retirement visa applications and requirements in Thailand some foreigners have decided that it is time to move and selling the property is going to be first on the agenda as they need to money to buy another home in their country or elsewhere. Once you have found a buyer for your condo then you will also need to understand that this time you are the seller and you are going to need to take into account the property taxes or conveyancing fees. If you have not held the property for long.
Transfer Fees:
The property transfer fees is 2% of the value of the property being sold. This is normally split between the buyer and the seller. Note that there is the sale value as well as the assessed value of the property. The Land Department will place an assessed price on the property every four years.
Business Taxes:
The specific business tax in Thailand is 3.3% of the sales value of the property. Note that this is not the municipal value or government assessed value but the actual sales prices of the property. This is 3% business tax as well as 10% of that being the municipal taxes which combined amounts of the 3.3% in taxes. The seller in this case you would have to pay this tax. Note also that be it the sales price or assessed price the one which is higher is going to be the value used on the property sales taxes.
Stamp Duty
The stamp duty in Thailand is 0.5% of the property value. You do not pay as a seller the stamp duty if a specific business tax is being paid. You can see where this is applicable on this website under the specific business taxes. Take proper legal advice with regards to this tax as it can become complicated.
Withholding Taxes
There is also the withholding tax which as a seller of the property that you are going to need to pay. This withholding tax become complicated as there is a progressive scale used to factor in what taxes are payable depending on how long you have owned the property. Also there might be the issue that this is not your primary home and you might need to show that this is your primary home so as to show that you are not a property speculator. This is a 1% tax on the value of the property whichever is higher, being the assessed value or sales value.
If you are not in Thailand or doing the transfer yourself then you will need a power of attorney for the transfer as there is a very specific power of attorney which is needed to complete the transfer. Without this power of attorney the Land Office will not transfer the property.
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