There are several aspects to Property Conveyancing in Thailand that you should be aware of. First, you must pay the withholding tax of one percent on the value of the property when it is sold. This tax will be deducted by the land office at the time of ownership transfer.
Due Diligence Report
Before buying a property in Thailand, you should conduct a due diligence report to determine whether or not the property is free of legal encumbrances. This involves conducting a thorough title search and evaluating building construction permits. A legal property practitioner can help you with these activities.
If you are planning to buy a property in Thailand, you will have to pay various taxes before finalizing the transaction. Those taxes can add up to hundreds of thousands of Thai baht, so it’s important to know what you’re responsible for. Foreign buyers need to make a tax withholding payment to the local land office before their ownership transfer is recorded on the deed. The tax is progressive and is based on the assessed value of the property, as well as the number of years that you’ve owned it. However, foreigners are not required to pay this tax if they live abroad.
Exceptions to Thai Law
Thai property laws are similar to those in Western countries, including the United States and Europe. In fact, Thailand’s Civil Code resembles the civil law systems of these countries and incorporates many aspects of common law countries. The main difference between Thai and Western property laws is that foreigners may not own land in Thailand.
Legally Lease a Condo Unit
In Thailand, it is possible to lease a condo unit. However, there are certain conditions that must be met. One of the main requirements is that you sign a lease agreement in writing. It should be signed by both the lessee and lessor. It should also be registered at the Land Department of Thailand.
Form a Thai Company to Purchase Property
One of the first things you need to know when you are planning to buy a property in Thailand is how to form a Thai company. These companies can purchase real estate on your behalf and are usually administered by a foreigner. There are many benefits to this type of company, including the fact that you do not need to prove your ownership of the property before making a purchase. In addition, you can use any form of payment to make the purchase, including cash and credit cards.
Taxes Payable for Conveyancing
There are several types of taxes payable when property is sold in Thailand, including land transfer tax and stamp duty. Both taxes are collected at the land department and are a part of the official costs associated with property conveyancing. Typically, these taxes will be around 0.5% of the registered value of the property. However, if the property is not used for business purposes, the seller will be responsible for paying the entire amount in taxes.