The land office will register the transfer of property ownership from the owner or developer to the buyer. The transfer of property ownership takes place after constructing the property, signing the contract, and making the payments. 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 needs to know 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. You do not have to pay stamp duty if a specific business tax is applicable.
Specific Business Tax
3.3% is 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, stamp duty will be assessed instead.
Income Tax
Income from the sale of a property is subject to income taxation. They calculate the tax based on the government appraised value of the property, the length of ownership time, 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, they calculate the withholding tax on a progressive income tax scale. Under Thai tax laws, the land office must take the income withholding tax at the time of the transfer of property ownership.
There are no specific rules about who pays for which taxes. The buyer and the seller must negotiate on this matter, and must then stipulate the terms in the sales contract.
Condominium
Land and House
Upon request, your Thai bank will issue a Foreign Exchange Transaction Certificate, or Thor Thor 3, when foreign currency is transferred into your Thai bank account for the purpose of acquiring a condominium unit. The Thai government requires that the money used to pay for the purchase price come from an offshore source in the form of foreign currency. Therefore, the officer at the land office where you will register ownership of the condominium unit will require you to present this certificate. Failure to meet this very important criteria prohibits property registration in the purchaser’s name.
A foreigner married to a Thai national is not allowed to have any form of joint land ownership with his or her Thai spouse. Any land acquired in Thailand during the course of their marriage cannot be a conjugal property. Therefore, it shall only be a personal asset of the Thai spouse.
When a Thai national married to a foreigner requests ownership registration of land, they both have to sign a joint declaration at the Land Department. They have to prove that the Thai spouse owns the money they used to buy the land. The Land Department must make sure that the land becomes the personal property of the Thai spouse only and will remain a non-marital asset.
By completing and signing the land office’s power of attorney form, a buyer or seller of real estate can empower another individual to execute the transaction on their behalf. In Thailand, the province and local Land Department branch offices only recognize the official Land Department’s Thai script Power of Attorney (Tor Dor 21 for land and home; Or Chor 21 for condominium).
Our team has the right people to assist and represent you at the Land Office for the transfer of property ownership.
