Buying and selling real estate in Thailand, whether it’s a house, condo, or land, involves several significant costs. Buyers and sellers often wonder about the responsibilities for transfer fees, specific business tax, and stamp duty. Understanding these expenses is crucial for a smooth and fair transaction, especially for buyers seeking clarity and protection of their interests.
Transfer Fee
The transfer fee is an expense incurred at the Land Department on the day of title deed registration. Generally, buyers and sellers agree to split this fee equally. However, this proportion is negotiable and should be clearly stated in the property sale and purchase agreement. SUN Gateway, as a buyer-side partner, assists clients in thoroughly reviewing and negotiating these terms, ensuring that the agreement is in the buyer’s best interest.
Specific Business Tax (SBT)
Specific Business Tax (SBT) is levied on the sale of real estate held for less than a specified period or on commercial sales. Typically, the seller is responsible for this tax. However, if the seller is exempt from SBT (e.g., holding the property for more than 5 years or having their name on the house registration for over 1 year), then stamp duty might apply instead. Understanding these conditions is part of SUN Gateway’s Buyer-Side Property Due Diligence service, which helps verify crucial information before a purchase decision.
Stamp Duty
Stamp duty is collected when the property sale is exempt from Specific Business Tax. Generally, the seller is also responsible for this cost. Having an expert representative like SUN Gateway through its Buyer Representation & Property Acquisition service ensures professional contract review and negotiation, providing buyers with a comprehensive understanding of all associated expenses.
Withholding Tax
While not a direct burden on the buyer, withholding tax is another expense the seller must pay on the transfer date. It is calculated based on the appraised value or the selling price (whichever is higher). SUN Gateway’s Cross-Border Transaction & Closing Desk service facilitates the comprehensive management of these documents and expenses, ensuring that international buyers can be confident that every step complies with Thai law.
SUN Gateway Your True Buyer’s Partner in Thai Real Estate
Navigating the costs and taxes associated with buying property in Thailand can be complex, especially for foreign buyers or those new to the Thai market. SUN Gateway understands these challenges. We are committed to being a true buyer-side partner, receiving no compensation from sellers or developers, to ensure that the buyer’s best interests are our top priority.
With comprehensive services ranging from legal verification and independent valuation (Buyer-Side Property Due Diligence & Valuation) to buyer representation and negotiation (Buyer Representation & Property Acquisition), and even managing transactions and title deed registration on your behalf (Cross-Border Transaction & Closing Desk for Foreigners), our bilingual team will help you understand every detail and navigate each step seamlessly, no matter where you are in the world.
Let SUN Gateway be the single team that supports you throughout your entire journey of owning property in Thailand, from verification, acquisition, closing, setting up, to long-term care, ensuring confidence in every investment and every decision.
Buying property in Thailand? Have someone on your side.
SUN Gateway verifies, acquires, closes, and cares for your property — buyer-side only
Tel: +66-2-231-6800
Email: online@sungateway.co.th
https://sungateway.co.th/contact-us/
