Buying property in Pattaya can be a great investment, but it’s essential to understand the taxes and fees that come with it. From transfer fees to annual land and building taxes, knowing what costs to expect can help you better plan your budget and avoid surprises down the road. Here’s a comprehensive guide to the key property taxes and fees for buyers in Pattaya.
1. Transfer Fees
The transfer fee is a significant cost when buying property in Thailand. The fee is 2% of the appraised value or the sale price, whichever is higher. This fee is paid to the Land Department when the property is officially transferred from the seller to the buyer. In many cases, the fee is split between the buyer and seller, but it’s important to clarify this in the sales agreement.
2. Stamp Duty
Stamp duty is 0.5% of the sale price or appraised value but is only applicable if the property has been owned for more than five years and is exempt from the Specific Business Tax (SBT). If SBT applies, stamp duty is waived.
3. Specific Business Tax (SBT)
SBT is 3.3% of the sale price or appraised value and is applicable if the property has been owned for less than five years. This tax is generally paid by the seller.
4. Withholding Tax
For companies, withholding tax is a flat 1% of the appraised value or sale price. For individuals, withholding tax is calculated on a progressive income tax scale and varies based on the seller’s income and the length of ownership, ranging from 5% to 35%.
5. Land and Building Tax
Property owners are subject to annual land and building tax, which varies based on the property’s use and value:
- Residential property: 0.02% to 0.1%
- Commercial property: 0.3% to 0.7%.
6. Common Area Maintenance Fees
Condominium buyers must also account for ongoing common area maintenance (CAM) fees. These cover shared amenities and are typically calculated per square meter. Fees vary depending on the condominium’s amenities and location, with luxury condos near Pratumnak Hill typically having higher fees.
Conclusion: Be Prepared for Property Costs in Pattaya
Understanding property taxes and fees is essential for any real estate transaction in Pattaya. From transfer fees to annual taxes, these costs can significantly impact your investment. Make sure to plan ahead and work with a qualified real estate agent or lawyer to ensure that all taxes and fees are accounted for in your budget.
