Property Taxes And Regulations In Thailand


The new property tax will focus on the collection of tax from wealthy land owners including investors and politicians. At the same time property tax will help spread land ownership to lower income families due to higher taxation by letting out, selling, or government buy up at a lower rate.

The new property tax will focus on collection of tax from wealthy land owner including investor and politicians. At the same time property tax will help spread land ownership to lower income families due to higher taxation by letting out,Property Taxes And Regulations In Thailand  Articles selling, or government buy up at a lower rate.
Taxation of land plots and structures would include land plots without structure, land plots with structure, commercial structures and residential structures where all 30 million properties are currently are under valuation. Commercial and residential structure valuation in some location are completed and taxation divided in to three types 
1. Taxation of a general structure at not more than 0.5% 
2. Taxation of a residential unit without commercial usage at not more than 0.1% 
3. Agricultural use land at not more than 0.05% . 
For an empty land plot without usage, the tax rate is at 0.5% of the total valued price in the first three years with an incremental rise of 100% every three years if still left unused but not to exceed 2% of the total valued price.
Thailand’s taxation situation has improved the conditions for purchasing property and if property prices do dip as a result of the situation it may be a good time to buy as the possibility that property will regain its high soon. The result, financial condition of project development is more robust than in the past. In regard to land ownership in general, foreign businesses and citizens are not permitted to own land in Thailand unless the land is on government-approved industrial estates. 
Under the 1999 amendment to the Land Code Act, foreigners who invest a minimum of 40 million Baht (approximately US$1.2 million) are permitted to buy a maximum of 1,600 square meters of land for residential use with the permission of the Ministry of Interior. If the land is not used as a residence within two years from the date of acquisition and registration, the Ministry has the power to dispose of the land.
Last week the Land Department planned to amend the condominium law to change the definition of a condo, including a requirement that condominium should have at least three stories and each unit should have a minimum of 30sqm. Currently some developers have converted low-rise buildings into condominiums, which can be sold to foreigners. Several developers even made rooms with 10-20sqm lowering the living standard of the residents.
Most developers believe that condo buyers are concerned more with price than size and the best way to improve living standards is to make it more affordable with more functions. If developers have to build 30sqm rooms instead of the current sizes of 22-25sqm, the prices would be increased, or else the project would be have to be farther out of town.
The real demand is for condos that are priced between THB600,000 – 900,000 (US$19,500-29,250) per unit. The Government Housing Bank is considering lifting restrictions on making loans to non-salaried people which would open up a whole new group of people that would be eligible to purchase property. This, along with the fact that the bank’s interest rate is expected to go no higher than 2.25% should spur demand for units in this price range.

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Author: Piyawut Sutthiruk

Welcome to Thailand, the land of smiles, beautiful sights, delicious foods and the friendliest people in the world.

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