Thailand Raises Land Transfer Fees in March 2010
In March 2008, the Thai government implemented certain property transfer incentives to
encourage entry of foreign investors. The policy can be summarized as follows:
1. The Specific business taxes for the sale of all immovable properties (like land,
condominium units and other buildings) for commercial purposes were reduced
to 0.1% of either the actual or government appraisal price whichever is higher, or
0.11% of the base price inclusive of local tax, from the regular tax rate of 3% of
the Base Price or 3.3% of the Base Price inclusive of local tax.
2. Registration fees for the transfer of certain immovable properties were reduced
from 2% of the government appraisal price to 0.01%.
3. Registration fees for the mortgage of certain immovable properties excluding
office buildings were decreased from 1% to 0.01% of the appraisal price.
Unfortunately, the policy’s effectivity already ended last March 26, 2010 and the Thai
authorities did not permit its renewal for at least another year. The only consolation
given was the extension of the reduced rate for transfer fees and mortgage registration
fees until May 31, 2010. Being so, buyers are advised to take advantage of the time left
to avail the reduced rates.
This article was provided by Siam Legal, an international law firm with offices in
Thailand, the Philippines, the United Kingdom, and the United States. Siam Legal
publishes Thailand property Buyers guides on its website.
Siam Legal International
Interchange 21 Building, 23rd Floor, 399 Sukhumvit Road
North Klongtoey, Wattana, Bangkok 10110
Tel: 662 259-8100