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 Selling a Condo in Thailand: Discover Costs, Taxes, and Key Insights. This guide helps simplify the selling process and gives sellers full visibility into the costs involved in selling their property.