Buyer’s Guide for Thailand Real Estate

Thailand’s real estate market offers diverse opportunities for both local and international buyers, Whether you’re looking for an investment property, a holiday home, or a permanent residence, understanding the legal, financial, and market landscape is crucial for a smooth transaction.

This Buyer’s Guide provides essential insights into Thailand’s property laws, ownership structures, purchasing processes, taxes, and market trends. It will help you navigate the complexities of buying real estate in Thailand, ensuring you make informed decisions and avoid common pitfalls.

Let’s explore everything you need to know to secure the right property in Thailand with confidence.

Individual Foreign buyers guide to Thai Condominium

Foreign Ownership
Freehold	Permitted for 49% of the total saleable area of the condominium All funds to purchase should be transferred in from abroad to the developer’s Thai bank account A “Foreign Exchange Transaction: form will be issued by the Thai bank to be used as proof upon transfer of ownership at the Land Office
Leasehold	Permitted for 100% of the total Leasable area Maximum lease period up to 30 years Thai baht can be used to lease the condo unit

Buying Cost
Freehold Transfer Fee	2% of the assessed value or sale price whichever is greater. Usually split between buyer and seller.
Leasehold Registration Fee	< 3 years: lease registration not required > 3 years: 1% of the total rental fee (often paid by the lesser)
Sinking Fund	One-time payment upon completion Amount varies from project This money is to be used for major renovations and replacement of equipment when necessary.
Utility Meter	There is a payment for the initial registration of the electricity meters in new residential properties.

Holding Cost
Common Area Management Fee	Monthly payment.  Amount varies from project This money is to be used for monthly maintenance of the common property

Category	Property held less than 5 years	Property held less than 5 years
Transfer Fee (1)	2% of the official appraised value	2% of the official appraised value
Specific Business Tax (2)	N/A	3.3% of the official appraised value or the contracted sale price (whichever is greater)
Stamp Duty	0.5% of the official appraised value or the contract sale price  (whichever is greater)	N/A
Withholding Tax (3)	For company seller 1% of the official appraised valued or the contracted sale price (whichever is greater) For an individual seller withholding tax is calculated at a progressive rate based on the appraised value of the property	For company seller 1% of the official appraised valued or the contracted sale price (whichever is greater) For an individual seller withholding tax is calculated at a progressive rate based on the appraised value of the property

(NOTE) To calculate whether the seller will be subject to Specific Business Tax, the number of years in possession will be counted from the date that the property was acquired to the date that the property is transferred to the new buyer. There is an exemption for an individual who holds a property for less than 5 years but uses a property as a primary residence and their name appears on the household registration certificate for at least one year. In this case, the individual seller will not be subject to Specific Business Tax.

Progressive Personal Income Tax Rates

Taxable Income Band (THB)	Tax Rate (%)	Maximum Tax Payable
0-300,000	5	15,000
300,001-500,000	10	20,000
500,001-750,000	15	37,500
750,001-1,000,000	20	50,000
1,000,001-2,000,000	25	250,000
2,000,001-5,000,000	30	900,000
More than 5,000,000	35	N/A

Standard Deduction for Expenses

Number of Years in Possession	Expenses (% of Selling Price)
1	92%
2	84%
3	77%
4	71%
5	65%
6	60%
7	55%
8 or more	50%

*To find the standard deduction for expenses, the number of years in possession will be counted from the year that the property was acquired to the year that the property is transferred to the new buyer.

Examples of Taxes and Expenses for private sellers

Example 1 :
The seller acquired the property in May 1, 2014 and sold the property (transferred) to the buyer on April 25, 2019 for THB 3,500,000 thereby holding the property for less than 5-years. The official appraised value at the Land Office is THB 3,000,000. In this case, the seller will be subject to the transfer fee, specific business tax and withholding tax.

The transfer fee will be :

The official appraised value	THB 3,000,000
Transfer fee	2%
Total transfer fee payable	THB 60,000

The specific business tax will be :

The contract sales price	THB 3,500,000
Specific business tax	3.3%
Total transfer fee payable	THB 115,500

The withholding tax will be :

1	Number of years in possession	6
2	The official appraised value	THB 3,000,000
3	Deduct Expenses for 6-year possession* Total expenses = 3,000,000 x 60%	60% THB 1,800,000
4	Total net income = 3,000,000 - 1,800,000	THB 1,200,000
5	Divide by the number of years in possession Total net income per year = 1,200,000 / 6	THB 200,000
6	Personal income tax per year** 5% for the first THB 300,000 = 200,000 x 5%	THB 10,000
7	Multiply the number of years in possession = THB 10,000 x 6	THB 60,000
8	Total withholding taxes payable	THB 60,000

*Refer to table of Standard Deduction for Expenses above

Total taxes and expenses payable at the Land Department

The transfer free payable	THB 60,000
Total specific business tax payable	THB 115,500
Total withholding tax payable	THB 60,000
Total taxes and expenses payable	THB 235,500

Example 2 :The seller acquired the property in May 1, 2014 and sold the property (transferred) to the buyer on May 2, 2019 at THB 3,500,000 thereby holding the property for more than 5-years. The official appraised value is at THB 3,000,000. In this case, the seller will be subject to the transfer fee, stamp duty and withholding tax. The transfer fee and withholding tax payable are the same as in example 1 because:

• The contracted sale price and the official appraised value are the same, and
• The number of years in possession calculated for standard deduction of expenses is calculated from year to year, so it is counted as a 6-year possession despite thedifferent date of transfer.

The only thing that changes in this case is that the seller is no longer subject to specific business tax because the number of years in possession is counted from date to date. At the date of transfer, the seller has owned the property more than 5 years, so he/she will be subject to stamp duty instead.

The stamp duty will be :

The contract sales price	THB 3,500,000
Stamp duty	0.5%
Total stamp duty payable	THB 17,500

Total taxes and expenses payable at the Land Department

Disclaimer
Although every care has been taken in preparing this investor’s guide, Prima Realty does not verify its accuracy. Information, opinions and forecasts in this investor’s guide depend on the accuracy of any information and assumptions on which they are based, and on prevailing market conditions, for which Prima Realty does not accept responsibility. No representations or warranties of any nature whatsoever are given, intended or implied about this investor’s guide, any information, opinions and forecasts contained within this proposal or the accuracy or enforceability of any documents referred to in this proposal. Prima Realty will not be liable for any omissions or errors and will not be liable nor take responsibility for any decision made as a result of information provided in this guide which later proves to be incorrect.  Any overseas investment carries additional financial, regulatory and legal risks, and investors are advised to do the necessary checks and research on the investment beforehand