Taxes And Other Expenses Involved When Buying A Condominium Unit In Thailand
If you are a foreigner and you want to buy a condominium unit in Thailand, realize that on top of the price of the unit, you also need to pay taxes and other expenses.
Taxes and Other Expenses
1. Transfer Fee The transfer fee is 2% of the registered value of the property price.
2. Stamp Duty The stamp duty represents just 0.5% of the registered value of the property price. It is payable only when the purchaser is exempt from the Business Tax.
- In cases when the seller is a limited company, the condominium purchaser must pay a tax worth 1% of the registered value of the property price.
- If the seller is a natural person, the tax shall be calculated based on the progressive rate of the registered value.
4. Business Tax The Business Tax is equivalent to 3.3% of either the registered value or the appraised value of the property price.
5. Miscellaneous Fees Other expenses the condominium unit purchaser must take care of are those which pertain to the transfer of ownership and are as follows:
- Electric meter deposit
- Water meter deposit
- Sports complex fee
- Management fee
- Sinking fund, etc.
Can the taxes and other expenses be paid in other forms besides cash?
The taxes and other expenses are usually paid in cash. However, in cases where large sums of money are involved, and if both parties agree, payment can be made in the form of a cashier’s cheque which is made payable to the Ministry of Finance in Thailand.
What is the business tax?
A business tax is levied on newly-built condominiums based on the assumption that new units generate profits on sale. As such, the Business Tax shall be payable if the seller sells the property within 5 years of the date of purchase registration. This rule does not apply if the seller—who is named the owner of the condo unit in the household registration document—sells the condo unit after 1 year of the registration date.
Can a foreigner repatriate funds to a foreign country?
Repatriating funds to a foreign country can be very laborious as it involves a lot of meticulous paperwork. This is due to the very strict Money Laundering Regulations currently governing the banks in Thailand. If a foreigner has sold a condominium unit for instance, and wants to repatriate the proceeds from the sale, he will find that the bank will require of him several documents. The requisite documents may include some or all of the following:
- copy of the sale and purchase agreement which was signed at the Land Office
- copy of the FET form which the non-resident obtained from the Thai bank into which he remitted the money during purchasing of the condo unit
- copy of the Title Deed to the condominium unit
- copy of passport
To follow this series on how to buy a condominium in Thailand, read up on the articles below in the following sequence: Do's and Don'ts in Buying a Condominium Unit in Thailand Requisite Documents