As a matter of process in Thailand, the transfer of property ownership, or title, takes place at the Land Office, where the property is registered under the buyer’s name. If you buy the property from a development company before a building is completed, the transfer will take place after the project is completed.
If a property has been built and is ready to occupy, the title transfer happens after the signing of the real estate documentation and the payment of fees. The payment of the balance normally occurs on the day of the title transfer.
Besides the property’s purchase price, you are liable for certain taxes. Usually, the purchaser of real estate must pay the transfer fee along with these taxes. You can always negotiate the payments of fees and taxes with the seller.
Types of Property Taxes
Below are some of the taxes paid:
Transfer taxes in the amount of 2% of the value of the property that is registered with the land department.
A special business tax is due if a property is sold within the first five years of ownership. The tax is assessed at 3.3% of the property’s appraised value.
Stamp duty of 0.5% of the property’s registered value.
The real estate sales contract highlights the taxes that need to be paid.
Income Tax or Withholding Tax
The income derived from a property sale is subject to withholding tax or income tax. The land department withholds the prepayment of a seller’s gain when a property transfer is initiated and registered. Rates for the income tax differ between juristic and non-juristic buyers when the following applies:
The seller is represented by a company. In this case, the income tax or withholding tax is 1% of the assessed property value or sales price, whichever happens, to be higher.
An individual is the property seller. In this instance, the income tax is based on the progressive income tax scale.
How a Lawyer can help with the Title Transfer?
You should always have a lawyer represent your real estate interests and handle the details when you buy or sell real property. The transfer of a property is made easier, especially if:
You cannot appear in person at the land office. In this instance, your lawyer can create a Power of Attorney so you can use his or her legal services to perform the title transfer.
You can obtain legal support if you choose to appear at the land office yourself.
You can easily access the documents required and find out what you need to do to pay the taxes and administrative charges.
If you are buying or selling real property, make sure you know your rights legally. Contact an experienced attorney – someone who understands all the details of Thai real estate law. Make sure any real property sale complies with the country’s legislation.
If you need the assistance of a property lawyer in Thailand, please contact us.
