Transfer fees on property purchases have now been increased to the old rates, Last year when the global property market sunk the Thai government reduced transfer fees for a period of 1 year. That has now ended.
Nobody is certain how the reduced transfer fees had affected the property market in Thailand however nobody has clearly complained about reduced fees. The government has decided that they will not extend the tranfer fees reductions this year as the property market is doing well and property developers on the stock exchange are starting to increase in share price and showing profits. The reduiced fees would therefore stop on the 28th March 2010. Some commercial banks have stated that there has been a last minute rush to transfer property before the28th March 2010 and have asked the government to consider another year of reduced fees. This was turned down! how do the rates compare:
Original Business Tax:
3% of the Base Price or 3.3% of the Base Price inclusive of local tax
Reduced Business Tax:
0.1% of either the government appraisal price or 0.11% of the Base Price inclusive of local tax
The normal transfer fees is 2% of the government appraised price while under the reduced scheme that was lowered to 0.01% of the government appraised price. The reduction was huge and the Thai government clearly lost revenue for the year keeping the property market up. The mortage registration fees also fell from 1% to 0.01% of the appraised value. If you are looking at buying property in Thailand then speak to any of our attorneys in Chiang Mai or an attorneys in any fo the major cities in Thailand where we have an office. Call us today on our tollfree numbers or chat to us live on our chat messenger.
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