Land Registration Department In Thailand
If you are involved in the transfer or lease of land or property, you need to know what the transactional costs are, how to calculate them, who is liable for those costs, fees and taxes, and where and when they are to be paid, all of which is laid out below.
The process of transfer of ownership or lease
All land transfers and leases that are over 3 years should be registered with the Land Department. The transfer of ownership of property usually takes place at the land office, and the new ownership will be registered upon the conclusion of the transaction.
If a property is bought before completion, the transfer of property takes place after the completion of the property, and if the property has already been bought transfer takes place only after the installment payments are completed in accordance with the signed contract. The remaining balance of the purchase price is usually paid at the land office on the day of transfer.
Taxes and Transfer Fees
- Transfer Fee 2% over the appraised value of the property
- Business Tax 3.3% over the registered (sale) value or appraised value(whichever is higher)
- Stamp Duty 0.5% over the registered value
- Withholding tax;
- if the seller is a company withholding tax is fixed at 1%over the registered sale value or appraised value(whichever is higher)
- if the seller is a private person withholding tax is calculated at a progressive rate based on the appraised value of the property
- Stamp duty is exempt if Specific Business Tax is charged.
- Business tax consists of 3% business tax + a municipal tax of 10% assessed on the amount of the specific business tax (total tax 3.3%).
If the seller is an individual (not a company) Specific Business Tax does not have to be paid if:
- The seller has owned the property for five years or more prior to the transfer
- The transferred real property has been used as the principal place of residence
- The seller’s name appeared in the house register for one year or more from the date of acquiring the property