taxes and fees when buying a house (not a new house) higher

[timego]

I think the section on buying a house is missing about the cost of buying a normal house not on a project. Have to pay 5% of house cost when you get to the land office plus to mention the 1000 baht to overheated staff(no aircon even with all the money they bring in) so as not to have to wait forever like a fool.
I think it's best to be upfront about it as it's only 5% when it comes down to it but is a fat wad on a 5 million baht property and when your not expecting it, it feels like money down the drain.

Taxes and other costs
On all purchase/sale of property in Thailand there is a stamp Duty of 0.5%, a transfer fee of 0.01%, a business tax of 0.11% levied against an owner who has been in registered possession of the property less than 5 years, and Income Tax. There is no Capital Gains Tax in Thailand, unlike many countries, and Income Tax (usually between 1.0 - 3.0%) on property is the comparable replacement. There are no set rules on who pays the income tax, and it is just another part of the bargaining process, as with all the other costs of the transfer of ownership.

[tuktukmike]

There is Capital Gains Tax in Thailand and is levied on companies,

The range is 20-40% and is due every 6 months.

Mike.

[caller]

Scuse me?

What happens if the `not new on a project' house is more than 5 years old?

What about -/+ 5year old properies on a project?

What about new properties not on a project?

What is the capital gains tax levied every 6 months based on: 20-40% of what?

Phew - glad I'll be meeting up with a forum member to learn more when I'm there in a few weeks!

But why, having sat opposite both Farang/Thai/Chinese agents in the past, having looked at several properties, on many mailing lists, has this not been pointed out to to me?

Looks like a code of conduct is required!

Okay, I know thats what a lawyers for, but why not hear this from those in the know in any case?

Thanks to timego!

[timego]

the section on buying a house in hua hin, the part above anyhow is copied directly from the manora property website so i'm guessing because they sell property to just not mention it so as not to discourage buyers or at least maximise commission.
i see it elsewhere mentioned at 2% for not housing development houses or i'm guessing resold housing development houses.
The section on hhad about buying a house is good and it would be better to add more about that.
I always remember how odd it was the first time i went to thailand a agent saying there was no bullshiit with them. Strange thing to say but it hinted at the amount of bs in thailand round the real estate area.

To be honest i'm half sorry about buying over here because of the nagging risk and that feeling that one can't really trust the system here and the people behind it.
besides china i'm not sure are other cheap asian countries so jew like with the land.

[Burger]

Capital Gains Tax:

The way my accountant has explained it to me, in respect of limited companies, is as follow, someone please correct me if I've been told it wrong:

There is no seperate capital gains tax on property in Thailand, as we know it in the UK. Any gains of capital on company assets (property) is treated as income tax. Therefore it is taxed as company corporation tax in the normal way. Corporation tax rates that will apply are between 15% and 30%.
However, you are not due to pay this until such time as you 'realise the asset (property)', ie: sell it. Also should you purchase another property at the same time, ie: of a similar value, or 'trade up', then you will not have this tax liability.
Ulitmately if you sell up and return to your country, or decide to rent, or 'trade down', then you will have to pay your taxes due under your company.
I assume if you merely leave the property for children/wife etc, then you do not have to pay this tax.

In any case, it is imperitive that you employ the services of a 'good' accountant.

Burger

[Burger]

timego wrote:

Have to pay 5% of house cost when you get to the land office.
I think it's best to be upfront about it as it's only 5% when it comes down to it but is a fat wad on a 5 million baht property and when your not expecting it, it feels like money down the drain.

timego, it is worth noting that the Land Office have their own formula for calculating the value of land and house. It is considerably lower than what you pay for it, therefore the tax due at the land office is very modest indeed, particularly when on a contract where the buyer and seller share if 50/50.


Burger

[timego]

hoopla