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Property Taxes in Pattaya

Pattaya, Thailand

Property Taxes in Thailand

The Thai economy is actively developing due to the good investment "climate". The local law creates loyal conditions for foreign investment, especially in the real estate market. That is why there are practically no taxes on property ownership and buying a real estate in Thailand is a profitable investment. Most payments and duties are paid once per transaction, and most of them are paid by the seller. Tax rates depend on the form of ownership, but the difference between them is not significant. In our article we will tell about the forms of ownership and property taxes in Pattaya.

Forms of ownership in Thailand

Thai law states that foreigners cannot become owners of land in the Kingdom, but they can rent it for a long term. Therefore, there are two forms of ownership: freehold and leasehold.

Freehold is a form of full ownership. A foreigner can resell it, rent it out or include / receive it in inheritance.

Leasehold is a form of ownership which has a time limit (30 years). A long-term lease can be extended for another two terms, ( for 60 years). Property acquired in this form can also be resold, rented out or inherited for the remaining term of the lease.

Land tax

Land tax is the only tax which is paid by property owners in Pattaya. The tax is only $ 2 per 16 acres per year. The tax is so small that it is paid once every several years until a significant amount is accumulated.

One-time payments for the purchase of real estate

Transfer Fee Tax is paid either by the seller or buyer or by both parties, depending on arrangements. The registration fee rate is 1% of the cost of housing for a leasehold and 2% for freehold.

The Specific Business Tax is paid by the seller if he has owned the property for less than 5 years with a freehold ownership. The tax rate is 3.3% of the cost of housing. There is no tax for leasehold.

Stamp Duty is paid by the seller and calculated according to the cadastral value of housing. The rate for leasehold is 0.1% and 0.5% for freehold.

Withholding Tax is a tax for legal entities only and is paid by the seller. The rate is 1% of the value of the object and is provided only for the freehold form.

As you can see, taxes on buying property in Thailand are insignificant and are mainly paid by the seller. If you have any questions or would like to invest profitably in real estate in Pattaya, you can book a free transfer to the Real Estate Gallery at our website and get a detailed consultation from professionals.