Property taxes & fees

Thailand may be a beautiful, exotic, very friendly destination and a world away from many countries in advanced capitalist societies. But, taxes and fees related to property still apply as they do in industrialized societies.

There are various taxes and fees to consider when buying property on Samui, Thailand. If you decide to rent out your sea view condo on the beach or your private pool villa nestled in the hills on Samui, you are legally required to pay tax on the rent that you generate. Any property that is classed as immovable property that is rented is liable to House and Land tax set at 12.5%. This is based on the yearly annual rental value of the property.

Regarding sales of property, there are four taxes to consider:
– Withholding Tax if the seller is a company is calculated at 1% of the assessed or actual price of the property.
– Specific Business Tax is calculated at 3.3% of the assessed or actual price of the property.
– Transfer Fee is calculated at 2% of the assessed price by the Land Department.
– Stamp Duty must also be paid by the Seller – unless in the case that Specific Business Tax is liable.

As you can see, Specific Business Tax is the highest tax here. This tax has been implemented by the government with the purpose to try to stop speculators buying property and selling it on quickly or ‘flipping’ it in order to make healthy profits. Specific Business Tax is also commonly known as speculative taxation.

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