In Thailand, when a property is bought or sold a transfer fee is one of the taxes that must be paid. The amount of the transfer fee is calculated at two per cent of the property’s assessed value.
The buyer or the seller can be responsible for paying this fee depending on the provisions of the sale and purchase agreement. In some cases, the parties to the agreement share the responsibility. This should be considered as part of the price negotiation and must be stipulated in the agreement.
It is important to have a legal expert review the sale and purchase agreement and to seek their advice to ensure that the agreement complies with Thai law. Properties are taxed according to the Land Department’s assessed value rather than the property’s true market value, so in some cases, the taxes could significantly add to the purchase price.
A property’s appraised or assessed value is calculated by the land office, taking into consideration the area in which the property is situated and other factors set out by the Land Department, such as the number of floors in the house, the total floor area and the materials used in the house’s construction.
The property transfer fee is paid at the land office on the day of transfer of ownership.