Property Taxes in Thailand

Property Taxes in Thailand
Property Taxes in Thailand

Property taxes in Thailand is not the same as those back home as the Thai system does not have such monsters as Capital Gains Taxes and personal and corporate taxes are far easier to understand. Thailand does not have CGT (Capital Gains Taxes) which makes property flipping a real lucrative venture in Thailand.

What does happen most times is that investors would purchase property in the name of a company and sell the company which owns the property to another buyer. This brings the tranfer taxes to zero as well as the corporate taxes as only the company changes hands. There are many advantages to Thailand with their tax system making it not only user friendly but streets ahead of the UK and US tax system. The tax system in Thailand relies mainly on consumption taxes such as VAT and excise taxes. With the global view that nobody should be taxed twice, Thailand has many Double Taxation Treaties with many countries. Income from property rentals have to be declared and as stated the tax system in Thailand is far less complicated than say its immigration policies and rules. For income from any real property, there is no property tax for the possession of property or tax on the capital gains.

The tax on the appreciation of the value of the real property is not adopted. Once you sell the real property, you will pay only transfer taxes in case you register the transfer of ownership with the Land Office. If you transfer the ownership by changing the shareholder structure and directorship to the buyer, there will be no tax to pay. There has been speculation for years that property taxes in Thailand would be changed however this is not likley to happen as the low taxation has brought enormous wealth to the shores of Thailand and investment not only in property but also industry. Inheretance taxes are not really going to work either with the wealthy as placing the property in a company name allows you to take control of the company without the need to actually transfer the property itself at the Land Office. When drafting a will always consider talking to your attorney about its implications.

 

 

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