Understanding the True Costs of Selling Your Condo in Thailand: A Comprehensive Guide
When selling a condo, there are various costs that sellers need to account for beyond just the selling price. Understanding these expenses will help you avoid surprises and better plan your sale. Here’s a breakdown of the true costs involved when selling your condo in Thailand.
1. Transfer Fees
- The transfer fee is 2% of the appraised value of the property.
- This fee is typically shared equally between the buyer and seller, but this can vary depending on the negotiation.
2. Business Tax or Stamp Duty
- Business Tax (3.3%): Applicable if the property has been owned for less than 5 years and the owner hasn't registered the property in the House Registration Book for at least 1 year.
- Stamp Duty (0.5%): If the property has been owned for more than 5 years or has been registered in the Blue Book for more than 1 year, the seller will pay stamp duty instead of business tax.
3. Withholding Tax
- This is calculated based on the appraised value and the number of years of ownership.
- The withholding tax is applied at a progressive rate, depending on the annual income derived from the sale.
4. Real Estate Commission
- The real estate agent’s commission is generally 3% of the selling price, plus VAT.
- Sellers should include this cost when calculating their net proceeds from the sale.
Collect Necessary Data
Before you begin calculating taxes and expenses, gather the following essential information:
- Appraised Value: This is the value assigned to the property by the Land Department or official assessors. It can be retrieved from the official assessment website (https://assessprice.treasury.go.th) or through the Land Department.
- Selling Price: The price agreed upon between the seller and the buyer for the condo.
- Occupied Date: The date on which the seller first legally took possession of or started occupying the condo.
- Transfer Date: The date when the property will be officially transferred to the new owner.
- Years of Possession: The number of years the seller has owned the condo.
- Calendar Year: The total number of years from the first year of occupancy to the current transfer year.
- House Registration Book (Blue Book): Verify whether the property has been registered in the seller’s name for more than 1 year. This determines whether business tax or stamp duty applies.
The sample of detailed calculations will be shown in this guide. This guide helps simplify the selling process and gives sellers full visibility into the costs involved in selling their property.