What are the taxes and fees for Thai real estate? Will it be more expensive than in China?

The transfer tax is 2% of the price of the real estate assessment by the Thai land department.

2. Special business tax is 3.3%

If the owner (natural person or company) has held the property for less than 5 years, but sells or transfers it to others, he will have to pay a special business tax, which will be charged by the Thai land department at 3.3% of the real estate assessment price or the actual buying and selling price (whichever is higher).

The owner (natural person) does not need to pay special business tax when transferring the property to others under the following circumstances:

-The owner has held the property for more than 5 years.

-the owner transfers the property to the legal heir or the heir on the will.

-The owner transfers the property to the legitimate children, excluding adopted children or adopted children.

-The owner transfers the property to a government agency.

-Owners transfer property to temples, churches and mosques.

The stamp duty is 0.5%

The land department in Thailand collects stamp duty at 0.5% of the real estate assessment price or the actual transaction price (whichever is higher). If the special business tax has been paid at the time of transfer, stamp duty is not required.

4. Withholding income tax 1%

If the owner is in the form of a company, the income tax is 1% of the appraised price or actual purchase and sale price of the property by the Thai land department (whichever is higher).

If the owner is a natural person, the income tax shall be calculated according to the holding time of the property. The longer you hold it, the greater the discount and the less income tax you need to pay. Since there is no property tax in Thailand at present, the above tax is generated when buying and selling real estate in Thailand. Under normal circumstances, when buying and selling a new house, the buyer only needs to pay transfer fees, and all other taxes and fees are borne by the developer.

When buying and selling second-hand houses, taxes and fees are generally borne by the buyer and the seller, and 50% or all of them are borne by the seller.

However, in practice, the burden of taxes and fees can be negotiated by buyers and sellers or determined by some established practices. Therefore, before signing the sales contract, buyers and sellers should determine their respective taxes and fees to avoid unnecessary disputes.