Condominium Conveyance Tax
Ownership transfer tax and fees
Total transfer fees and taxes involved for the buyer with the transfer of ownership of a condo in Thailand could range from a relatively small amount to a more substantial amount depending on the agreement with the seller. In a sale and purchase of a newly built apartment unit consumer protection laws specify that the developer may only ask up to half of the 2% transfer fees from the buyer, all other taxes, fees and costs involved with ownership registration on the name of the buyer must be born by the developer.
Check your contract
In the transfer of an existing re-sale condominium in Thailand there is no fixed rule or legal requirement how to split the costs associated with the transfer of ownership or how these costs and fees are shared. This depends on what is agreed between seller and buyer and this is normally included in the condominium sale and purchase agreement outlining the sales process and responsibilities of the parties.
Below a standard clause how this could be agreed in the condominium sale agreement:
Seller shall be solely responsible for registration fee, personal income withholding tax, stamp duty, specific business tax and all other expenses incurred in relation to the registration of transfer of ownership of the purchased unit.
Fees and Tax
- Transfer fee 2% (over the government appraised value of the unit)
- Stamp duty of 0.5 % over the sale price or appraised value of the unit (whichever is higher)
- Specific Business Tax 3.3% over the sale price or appraised value of the unit (whichever is higher), applied when the seller is a company, or in case if an individual owner when the unit is sold within 5 year of ownership. When specific business tax is paid stamp duty is excluded
- Income Withholding Tax 1% if the seller is a company, or in case of an individual owner the income tax is charged at a progressive income tax rate
The above tax and fees are applied and relate to the transfer of ownership of a condominium unit in a registered and licensed condominium. Apartment blocks having no condominium registration do not offer individual ownership and therefore there are no ownership transfer fees and taxes involved. In case of a registered long term lease the land office lease registration fees are 1,1 % over the total lease price involved. All rental income from renting out the condo is subject to personal or corporate income tax, and in addition a yearly 'rental tax' of 12.5% is charged over the yearly rent.
Transfer tax and fees commercial sales
Developing condominiums in Thailand and selling the newly built units to private clients is a contract controlled business and must comply with government regulations. One of the conditions is that the buyer of a new unit can only be charged up to half of the 2% ownership transfer fee only. All other fees, duties and taxes related to the registration and transfer of ownership to the buyer are the responsibility of the developer. It is common that developers try to charge transfer costs from the buyer for which they are by law responsible. Check your sale and purchase contract.