Phuket real estate buyer’s guide by “Phuketbuyhouse”. Part 3
Thailand taxation
Buying real estate in a foreign country is an important and serious step that should be considered with all due care.
Foreigners often choose Thailand as a country with stable economy, perfect investment climate and, most important, comfortable taxation conditions.
Most often foreigners buy apartments, houses and land plots for construction purposes.
Apartment
The easiest purchase deal is buying Freehold apartment. Freehold means you buy apartment to your full ownership with the right of property demise.
First you must pay registration fee. It makes only 2% of the apartment price.
Note that if you plan to sell the apartment in 5 years after purchasing you will have to pay special business tax. It makes 3,3 % of the apartment price.
Another fee is stamp duty. It makes 0,5% of the estimated or contract price of the apartment. The higher price is chosen. Stamp duty is paid only if special business tax wasn’t paid.
There is also a withholding tax. It makes 1% of the apartment price or of the price stated in the contract. The price is chosen depending of the ownership right to the property. If the seller is a company the higher price is chosen. If the seller is an individual the income tax rate is taken.
There is another way of buying property in Thailand - leasehold. In fact this is a long term rent. First you rent it for 30 years with the right of prolongation for 2 more periods 30 years each. All in all it sums up to 90 years rent. This property can be devolved. One of the advantages of this way is a possibility to avoid taxation in your country, as you don’t buy but rent realty in a foreign country.
Buying Phuket apartment in Leasehold you should pay:
- registration fee - 1% of the apartment price.
- stamp duty - 0,1% of appraised value or of contract price. The higher price is chosen
VILLA OR HOUSE
The problem with buying house at Phuket is that the respective land plot can only be purchased on behalf of a legal company or rented on Leasehold terms.
Buying Freehold villa, and then buying land in Leasehold you should pay:
registration fee - 2% of the house price and 1% of the land price.
special business tax. That makes 3,3 % of the house price. Paid only if you re-sell the house in 5 years after buying it.
stamp duty - 0,5% of the house price plus 0,1% of the land price.
withholding tax - 1% of the house price.
Buying Freehold house and land plot on behalf of a registered Thai company the client pays:
registration fee - 2% of the house and land plot price.
special business tax. 3,3 % of the house price. Paid only if you re-sell the house in 5 years after buying it.
stamp duty - 0,5% of the house and land plot price.
withholding tax - 1% of the house and land plot price.
LAND PLOTS
A foreigner may own land by documented long term rent (Leasehold) or having established a company he manages and on behalf of which he buys land. There are no other ways for a foreigner to own land in Thailand.
If you buy land in Leasehold, you only pay registration fee - 1% of the apartment price.
If a Thai company buys Freehold land the following fees are paid: stamp duty - 0,5%, registration fee - 1%, withholding tax - 1%.
There is also Income tax for legal entities and individuals. Income tax for individuals: if the realty price is below 150 thousands baht, the tax will be 0%.
from 150 to 300 thousands baht the tax will be 5%,
from 300 to 500 thousands baht - 10%,
from 500 to 1 million baht - 20 %,
1+ million - 23%.
Income tax for the companies buying realty for the price below 150 thousands baht, the tax will also be 0%..
from 150 to 300 thousands baht the tax will be 15%,
from 300 to 500 thousands baht - 20%,
1+ million - 23%.
There are regular taxes in Thailand for the owners of buildings. This tax is paid by the owners of villas and condos who run business. For example, rent out the property. Tax for commercial usage of the property is taken once in several years. It makes 12, 5 % of the specific rental rate.
Land plot tax is a few tens of Thai baht for 1600 square meters (1 rai). Also paid once in several years when the amount is significant enough.
Tax for inheritance and deed of gift for close family members is not imposed in Thailand.
15 reasons to choose PhuketBuyHouse
Phuketbuyhouse was created for people.
- Our services for the clients are 100% free. You visit our website, choose an offer you like and we start working with you. The price you see at the website is the price you pay when closing the deal.
- Phuketbuyhouse has collected the largest base of real estate offers at the island. Our experts make sure that you may choose any type of realty: land plots or apartments, luxurious villas and hotels in any part of the island.
- Our website is user-friendly. Comfortable searching system will help filter real estate by price, number of rooms, location at the island. You may also convert the Phuket realty price to any of 20 world currencies, including Russian ruble and Ukrainian hryvnia.
- We provide the lowest prices for the real estate at Phuket because we work directly with developers, owners and managers.
- Buying realty in a foreign country it is very important to settle all the legal formalities correctly. We can offer you the best and reliable lawyers so that you don’t worry about all the legal nuances of buying a house at Phuket.
- Our experts will consult you regarding the special aspects of Thailand visa and taxation legislation.
- If you have doubts about your choice, independent experts recommended by Phuketbuyhouse will help evaluating the real state of the object and calculate the price of the repair or renovation.
- We will consult you regarding all the questions you may have and help you to calculate the estimated profit from future renting or re-selling of your purchase.
- If you are interested in building construction at the island – our holding has architect and construction departments.
- To ensure the constant income from your purchase we will advise you regarding the beneficial rent programs. Our consultants will offer you the best rent conditions for your house and will help placing the ad at the most popular real estate rent website.
- You want not only buy realty at Phuket, but also to live in luxurious apartments while awaiting the deal closure? We can find you a residence for rent.
- If you have definitely decided to buy a house at Phuket and nothing can stop you, note that our agency will compensate you the price of air tickets to the island.
- You may order transfer from airport to your residence. After you have had some rest the company provides a car and you may go visiting the property objects. We will drive you to villa, condo or apartment of your choice and then drive you back home. We will also present you a Thai SIM card so you can easily reach our experts.
- All our consultants live at the island and work with real estate for more than 10 years. We will answer all the questions you may have about the peculiarities of life at Phuket.
- If you are buying a villa or a condo at Phuket it doesn’t mean that you will be occupied with it all the time. We will tell you about the best entertainments of the island and help choosing a guided tour.
Buying real estate in Thailand is striving for the best. To save your dream from the legal and formal obstacles come to real estate agency Phuketbuyhouse.
We make the process of buying realty abroad easy, calm and profitable.
Our contacts:
Phuket Project Co. Ltd. 66/2 Viset Road, Tambon Rawai, Muang, Phuket 83130 Thailand 95/30 Moo 1, Saiyuan Road, Rawai, Muang Phuket, 83130 Thailand
Sales department: +66-93582-9933; +66-93749-1133
