Property Taxes in Thailand

Property Taxes in Thailand When buying property in Thailand always be certain that you understand how the property taxes are calculated. We have highlited how it is calculated to give you an idea as to the taxes payable on a property in Hua Hin. Consider the taxes payable when you purchase property in say Hua Hin.

There are two calculations which are important much like in the West. The first is the market value of the property and the other being the government assesed prices of the value of the property. Normally with the exception of a few countries the assesed value is always far lower than the market value. The government in Thailand will asses the value of the property based on the area.

Lets say you are buying property “A” in Hua Hin and the government has assesed the area at 50,000 Baht per sqm. Lets say that the property is 100 sqm then your value would be 5,000,000 Baht. That is the government value or in the UK it would be called the municipal value of the property. Now the withholding value is based as follows:

The assessed government price for the property : 5,000,000 Baht
Deduction for possession of property for 3 years for 77% = 3,850,000

Balance = 1,150,000 (5,000,000 – 3,850,000)
Divided by the 3 year of possession
Balance = 383,333.33 (1,150,000/3)

Taxation on progression rate
1 to 80,000 = exempt
80,001 – 100,000 = 5% (1,000)
100,001 383,333.33 = 10% (28,333.23)
Total = 29,333.23 (1,000 + 28,333.23)

Multiply by the year of possession = 87,999.69 (29,333.23 x 3)

In this case withholding tax is Baht 87,999.69 

Tranfer fees would be 2% of the assesed value of the property. Now that we have calculated the value of the property at 5 million Baht the transfer duty is therefore 100,00 Baht for the property. As the property was held for less than 5 years there is no stamp duty payable. There is also a business tax on the property based ont he higher value. The higher value for this property is 6 million Baht and the business tax being 3.3% leaves you with a goverment business tax of 198,000 Baht.

If you are considering buying property speak to one of our lawyers at our Hua Hin office who will be able to assist you with calculating your taxes when buying a property. The Hua Hin office is one of many office we have in Thailand as we have an office in every major tourist city in Thailand with Bangkok housing our Head Office. Speak to us online on our main website, in person at any of our offices in Thailand or better yeat call us today on our tollfree US or UK telephone numebrs for assistance. Speak to us today about property in Hua Hin.

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