Define Thai Condominium Transfer Taxes and Fees

Author // Nadia Henderson (foreign legal consultant)

Condominium transfer tax in Thailand is a tax imposed by the Thai government and paid at the local land office when transferring ownership of a condominium in Thailand. There are a variety of taxes and fees involved when transferring a condominium unit in Thailand; transfer fee, stamp duty, withholding tax (personal or corporate) and specific business tax (if applicable).

Total transfer fees and taxes could range from a small amount to a relatively larger amount depending on the amount of income tax involved for the seller. Another variation of the transfer taxes and fees in Thailand relate to the agreement between the seller and buyer and how these costs are shared between the buyer and seller of the condominium unit. In the end, how these cost are split and at what percentage depend on the bargaining power of the parties as there is no fixed rule or legal requirement how to split these costs or how the transfer taxes and fees are shared in case of an existing condominium unit in Thailand.

In a sale and purchase of a new unit or in an off the plan purchase of a condominium apartment unit under the Condominium Act the law specifies that the developer may ONLY pass on the transfer fee for a percentage of 50% of the total transfer fee to the buyer.

In the transfer of an existing condominium unit in Thailand some specific exemptions on condominium transfer fees and taxes may be applied based on the number of years of possession of the condominium and if specific business tax is paid by the seller.

Prior to buying or selling or signing a sale and purchase agreement for a condominium in Thailand, it is advisable for a purchaser of a condo in Thailand to confirm in writing with the seller who will be responsible or at what percentage the parties are responsible for transfer fees and taxes. The local custom in Thailand is generally to divide the taxes and fees involved with the transfer of a condominium as follows:

Transfer fees at 2%; the buyer's duty or shared
Specific Business Tax 3% + 10% local municipal tax over the amount of Specific Business Tax = total tax of 3,3%; the seller's duty
Stamp duty; the seller's duty or shared between the seller and purchaser (does NOT have to be paid if Specific Business Tax is charged)
Withholding tax; as this relate to seller's personal or corporate income tax this should be the seller's duty.

Condo transfer taxes and fees relate to the transfer of ownership of a condominium unit. In case of obtaining a registered long term leasehold interest in a condominium there are lease registration fees involved and rental income from renting out the condo is subject to personal income tax.

Sample existing condo transfer tax calculation in Thailand

Thailand transfer sample tax and fees indication based on the transfer of a condominium apartment unit in Thailand with an appraised value of 5 million Thai Baht after 3 years of ownership by the current owner.

Transfer before March 29 2010 (under the temporary rate reduction):